Us Congress 2025-2026 Regular Session

Us Congress House Bill HB2038 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	I
2	2	119THCONGRESS
3	3	1
4	4	STSESSION H. R. 2038
5	5	To make housing more affordable, and for other purposes.
6	6	IN THE HOUSE OF REPRESENTATIVES
7	7	MARCH11, 2025
8	8	Mr. C
9	9	LEAVER(for himself, Ms. ANSARI, Ms. BONAMICI, Mr. FIELDS, Mr. FIG-
10	10	URES, Mr. FROST, Mr. GARCI´Aof Illinois, Mr. GREENof Texas, Mr.
11	11	G
12	12	OMEZ, Ms. NORTON, Mr. JACKSONof Illinois, Mr. KHANNA, Mr.
13	13	M
14	14	CGOVERN, Mrs. MCIVER, Ms. MOOREof Wisconsin, Mr. NADLER, Ms.
15	15	O
16	16	CASIO-CORTEZ, Ms. OMAR, Ms. PRESSLEY, Mrs. RAMIREZ, Ms. SCHA-
17	17	KOWSKY, Mr. THANEDAR, Mr. THOMPSONof Mississippi, and Ms. TLAIB)
18	18	introduced the following bill; which was referred to the Committee on Fi-
19	19	nancial Services, and in addition to the Committees on the Judiciary,
20	20	Veterans’ Affairs, and Ways and Means, for a period to be subsequently
21	21	determined by the Speaker, in each case for consideration of such provi-
22	22	sions as fall within the jurisdiction of the committee concerned
23	23	A BILL
24	24	To make housing more affordable, and for other purposes.
25	25	Be it enacted by the Senate and House of Representa-1
26	26	tives of the United States of America in Congress assembled, 2
27	27	SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 3
28	28	(a) S
29	29	HORTTITLE.—This Act may be cited as the 4
30	30	‘‘American Housing and Economic Mobility Act of 2025’’. 5
31	31	(b) T
32	32	ABLE OFCONTENTS.—The table of contents for 6
33	33	this Act is as follows: 7
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36	36	•HR 2038 IH
37	37	Sec. 1. Short title; table of contents.
38	38	TITLE I—MAKING HOUSING MORE AFFORDABLE
39	39	Sec. 101. Local housing innovation grants.
40	40	Sec. 102. Investing in affordable housing infrastructure.
41	41	Sec. 103. Conditions for the sale of real estate-owned properties and non-per-
42	42	forming loans.
43	43	TITLE II—TAKING THE FIRST STEPS TO REVERSE THE LEGACY
44	44	OF HOUSING DISCRIMINATION AND GOVERNMENT NEGLIGENCE
45	45	Sec. 201. Down payment assistance program for first-time, first-generation
46	46	homebuyers.
47	47	Sec. 202. Formula grant program for communities with an appraisal gap.
48	48	Sec. 203. Strengthening the Community Reinvestment Act of 1977.
49	49	Sec. 204. Amendments relating to credit union service to underserved areas.
50	50	Sec. 205. Raising public welfare caps.
51	51	Sec. 206. Temporary eligibility of certain direct descendants of certain veterans
52	52	for housing loans guaranteed by the Secretary of Veterans Af-
53	53	fairs.
54	54	TITLE III—REMOVING BARRIERS THAT ISOLATE COMMUNITIES
55	55	Sec. 301. Expanding rights under the Fair Housing Act.
56	56	Sec. 302. Improving outcomes in housing assistance programs.
57	57	TITLE IV—ESTATE TAX REFORM
58	58	Sec. 401. Amendment to Internal Revenue Code of 1986.
59	59	Sec. 402. Rate adjustment.
60	60	Sec. 403. Required minimum 10-year term, etc., for grantor retained annuity
61	61	trusts.
62	62	Sec. 404. Certain transfer tax rules applicable to grantor trusts.
63	63	Sec. 405. Elimination of generation-skipping transfer tax exemption for trans-
64	64	fers to certain persons.
65	65	Sec. 406. Simplifying gift tax exclusion for annual gifts.
66	66	Sec. 407. Clarification regarding disallowance of step-up in basis for property
67	67	held in certain grantor trusts.
68	68	Sec. 408. Limitation on discounts; valuation rules for certain transfers of non-
69	69	business assets.
70	70	Sec. 409. Surcharge on high income estates and trusts.
71	71	Sec. 410. Modification of rules for value of certain farm, etc., real property.
72	72	Sec. 411. Modification of estate tax rules with respect to land subject to con-
73	73	servation easements.
74	74	TITLE V—ACCESSIBILITY REQUIREMENTS
75	75	Sec. 501. Accessibility requirements.
76	76	TITLE I—MAKING HOUSING 1
77	77	MORE AFFORDABLE 2
78	78	SEC. 101. LOCAL HOUSING INNOVATION GRANTS. 3
79	79	(a) D
80	80	EFINITIONS.—In this section: 4
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83	83	•HR 2038 IH
84	84	(1) ELEMENTARY SCHOOL ; SECONDARY 1
85	85	SCHOOL.—The terms ‘‘elementary school’’ and ‘‘sec-2
86	86	ondary school’’ have the meanings given those terms 3
87	87	in section 8101 of the Elementary and Secondary 4
88	88	Education Act of 1965 (20 U.S.C. 7801). 5
89	89	(2) E
90	90	LIGIBLE ENTITY.—The term ‘‘eligible enti-6
91	91	ty’’ means— 7
92	92	(A) a State; 8
93	93	(B) a unit of general local government; or 9
94	94	(C) an Indian tribe. 10
95	95	(3) I
96	96	NDIAN TRIBE.—The term ‘‘Indian tribe’’ 11
97	97	has the meaning given the term in section 4 of the 12
98	98	Native American Housing Assistance and Self-De-13
99	99	termination Act of 1996 (25 U.S.C. 4103). 14
100	100	(4) I
101	101	NSTITUTION OF HIGHER EDUCATION .—The 15
102	102	term ‘‘institution of higher education’’ has the 16
103	103	meaning given the term in section 101 of the Higher 17
104	104	Education Act of 1965 (20 U.S.C. 1001). 18
105	105	(5) M
106	106	ETROPOLITAN AREA ; STATE; UNIT OF 19
107	107	GENERAL LOCAL GOVERNMENT .—The terms ‘‘metro-20
108	108	politan area’’, ‘‘State’’, and ‘‘unit of general local 21
109	109	government’’ have the meanings given those terms in 22
110	110	section 102 of the Housing and Community Devel-23
111	111	opment Act of 1974 (42 U.S.C. 5302). 24
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114	114	•HR 2038 IH
115	115	(6) SECRETARY.—The term ‘‘Secretary’’ means 1
116	116	the Secretary of Housing and Urban Development. 2
117	117	(b) E
118	118	STABLISHMENT.—Not later than 1 year after 3
119	119	the date of enactment of this Act, the Secretary shall es-4
120	120	tablish a program to award grants on a competitive basis 5
121	121	to eligible entities to— 6
122	122	(1) reform local land use restrictions to bring 7
123	123	down the costs of producing affordable housing; and 8
124	124	(2) remove unnecessary barriers to building af-9
125	125	fordable units in their communities. 10
126	126	(c) E
127	127	LIGIBLEACTIVITIES.—An eligible entity receiv-11
128	128	ing a grant under this section may use funds to— 12
129	129	(1) carry out any of the activities described in 13
130	130	section 105 of the Housing and Community Devel-14
131	131	opment Act of 1974 (42 U.S.C. 5305); 15
132	132	(2) carry out any of the activities permitted 16
133	133	under the Local and Regional Project Assistance 17
134	134	Program under section 6702 of title 49, United 18
135	135	States Code; or 19
136	136	(3) modernize, renovate, or repair facilities used 20
137	137	by public elementary schools, public secondary 21
138	138	schools, and public institutions of higher education, 22
139	139	including modernization, renovation, and repairs 23
140	140	that— 24
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143	143	•HR 2038 IH
144	144	(A) promote physical, sensory, and envi-1
145	145	ronmental accessibility; and 2
146	146	(B) are consistent with a recognized green 3
147	147	building rating system. 4
148	148	(d) A
149	149	PPLICATION.— 5
150	150	(1) I
151	151	N GENERAL.—An eligible entity desiring a 6
152	152	grant under this section shall submit to the Sec-7
153	153	retary an application that demonstrates that the eli-8
154	154	gible entity has carried out, or is in the process of 9
155	155	carrying out, initiatives that facilitate the expansion 10
156	156	of the supply of well-located affordable housing. 11
157	157	(2) A
158	158	CTIVITIES.—Initiatives that meet the cri-12
159	159	teria described in paragraph (1)— 13
160	160	(A) include— 14
161	161	(i) establishing ‘‘by-right’’ develop-15
162	162	ment, which allows jurisdictions to admin-16
163	163	istratively approve new developments that 17
164	164	are consistent with their zoning code; 18
165	165	(ii) revising or eliminating off-street 19
166	166	parking requirements to reduce the cost of 20
167	167	housing production; 21
168	168	(iii) instituting measures that 22
169	169	incentivize owners of vacant land to rede-23
170	170	velop the space into affordable housing or 24
171	171	other productive uses; 25
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174	174	•HR 2038 IH
175	175	(iv) revising minimum lot size require-1
176	176	ments and bans or limits on multifamily 2
177	177	construction to allow for denser and more 3
178	178	affordable development; 4
179	179	(v) instituting incentives to promote 5
180	180	dense development, such as density bo-6
181	181	nuses; 7
182	182	(vi) passing inclusionary zoning ordi-8
183	183	nances that require a portion of newly de-9
184	184	veloped units to be reserved for low- and 10
185	185	moderate-income renters or homebuyers; 11
186	186	(vii) streamlining regulatory require-12
187	187	ments and shortening processes, reforming 13
188	188	zoning codes, or other initiatives that re-14
189	189	duce barriers to housing supply elasticity 15
190	190	and affordability; 16
191	191	(viii) allowing accessory dwelling 17
192	192	units; 18
193	193	(ix) using local tax incentives to pro-19
194	194	mote development of affordable housing; 20
195	195	and 21
196	196	(x) implementing measures that pro-22
197	197	tect tenants from harassment and displace-23
198	198	ment, including— 24
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201	201	•HR 2038 IH
202	202	(I) providing access to counsel 1
203	203	for tenants facing eviction; 2
204	204	(II) the prohibition of eviction ex-3
205	205	cept for just cause; 4
206	206	(III) measures intended to pre-5
207	207	vent or mitigate sudden increases in 6
208	208	rents; 7
209	209	(IV) the repeal of laws that pre-8
210	210	vent localities from implementing a 9
211	211	measure described in subclause (I), 10
212	212	(II), or (III); 11
213	213	(V) protections against construc-12
214	214	tive eviction; 13
215	215	(VI) tenant right-to-organize 14
216	216	laws; 15
217	217	(VII) a cause of action for ten-16
218	218	ants to sue landlords who threaten or 17
219	219	begin an illegal eviction; and 18
220	220	(VIII) landlord-tenant mediation 19
221	221	or other non-eviction diversion pro-20
222	222	grams; and 21
223	223	(B) do not include activities that alter or-22
224	224	dinances that govern wage and hour laws, fam-23
225	225	ily and medical leave laws, health and safety re-24
226	226	quirements, prevailing wage laws, or protections 25
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229	229	•HR 2038 IH
230	230	for workers’ health and safety, anti-discrimina-1
231	231	tion, and right to organize. 2
232	232	(3) R
233	233	ELATION TO CONSOLIDATED PLAN .—An 3
234	234	eligible entity shall include in an application sub-4
235	235	mitted under paragraph (1) a description of how the 5
236	236	planning and development of eligible activities de-6
237	237	scribed in subsection (c) may advance an objective, 7
238	238	or an aspect of an objective, included in the com-8
239	239	prehensive housing affordability strategy and com-9
240	240	munity development plan of the eligible entity under 10
241	241	part 91 of title 24, Code of Federal Regulations, or 11
242	242	any successor regulation (commonly referred to as a 12
243	243	‘‘consolidated plan’’). 13
244	244	(e) L
245	245	ABORLAWS.— 14
246	246	(1) I
247	247	N GENERAL.—All laborers and mechanics 15
248	248	employed by contractors or subcontractors in the 16
249	249	performance of construction work financed in whole 17
250	250	or in part with a grant received under this section 18
251	251	shall be paid wages at rates not less than those pre-19
252	252	vailing on similar construction in the locality, as de-20
253	253	termined by the Secretary of Labor in accordance 21
254	254	with subchapter IV of chapter 31 of title 40, United 22
255	255	States Code (commonly known as the ‘‘Davis-Bacon 23
256	256	Act’’). 24
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259	259	•HR 2038 IH
260	260	(2) AUTHORITY AND FUNCTIONS .—With re-1
261	261	spect to the labor standards specified in paragraph 2
262	262	(1), the Secretary of Labor shall have the authority 3
263	263	and functions set forth in Reorganization Plan 4
264	264	Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C. 5
265	265	App.) and section 3145 of title 40, United States 6
266	266	Code. 7
267	267	(f) A
268	268	UTHORIZATION OF APPROPRIATIONS.—There is 8
269	269	authorized to be appropriated to carry out this section 9
270	270	$2,000,000,000 for each of fiscal years 2025 through 10
271	271	2029. 11
272	272	SEC. 102. INVESTING IN AFFORDABLE HOUSING INFRA-12
273	273	STRUCTURE. 13
274	274	(a) H
275	275	OUSINGTRUSTFUND.—Section 1338(a) of the 14
276	276	Federal Housing Enterprises Financial Safety and Sound-15
277	277	ness Act of 1992 (12 U.S.C. 4568(a)) is amended by add-16
278	278	ing at the end the following: 17
279	279	‘‘(3) A
280	280	UTHORIZATION OF APPROPRIATIONS .— 18
281	281	There is authorized to be appropriated to the Hous-19
282	282	ing Trust Fund $48,000,000,000 for each of fiscal 20
283	283	years 2025 through 2034.’’. 21
284	284	(b) C
285	285	APITALMAGNETFUND.—Section 1339 of the 22
286	286	Federal Housing Enterprises Financial Safety and Sound-23
287	287	ness Act of 1992 (12 U.S.C. 4569) is amended by adding 24
288	288	at the end the following: 25
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291	291	•HR 2038 IH
292	292	‘‘(k) AUTHORIZATION OF APPROPRIATIONS.—There 1
293	293	is authorized to be appropriated to the Capital Magnet 2
294	294	Fund $3,000,000,000 for each of fiscal years 2025 3
295	295	through 2034.’’. 4
296	296	(c) P
297	297	UBLICHOUSINGCAPITALFUND.—Section 5
298	298	9(c)(2)(A) of the United States Housing Act of 1937 (42 6
299	299	U.S.C. 1437g(c)(2)(A)) is amended to read as follows: 7
300	300	‘‘(A) C
301	301	APITAL FUND.—For allocations of 8
302	302	assistance from the Capital Fund, 9
303	303	$70,000,000,000 for fiscal year 2025.’’. 10
304	304	(d) I
305	305	NDIANHOUSINGBLOCKGRANTPROGRAM.— 11
306	306	Section 108 of the Native American Housing Assistance 12
307	307	and Self-Determination Act of 1996 (25 U.S.C. 4117) is 13
308	308	amended— 14
309	309	(1) by striking ‘‘such sums as may be necessary 15
310	310	for each of fiscal years 2009 through 2013’’ and in-16
311	311	serting ‘‘$2,500,000,000 for fiscal year 2025 and 17
312	312	such sums as may be necessary for each of fiscal 18
313	313	years 2026 through 2034’’; and 19
314	314	(2) by striking the second sentence. 20
315	315	(e) N
316	316	ATIVEHAWAIIANHOUSINGBLOCKGRANTPRO-21
317	317	GRAM.—Section 824 of the Native American Housing As-22
318	318	sistance and Self-Determination Act of 1996 (25 U.S.C. 23
319	319	4243) is amended by striking ‘‘such sums as may be nec-24
320	320	essary for each of fiscal years 2001, 2002, 2003, 2004, 25
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323	323	•HR 2038 IH
324	324	and 2005’’ and inserting ‘‘$50,000,000 for fiscal year 1
325	325	2025 and such sums as may be necessary for each of fiscal 2
326	326	years 2026 through 2034’’. 3
327	327	(f) R
328	328	URALHOUSINGPROGRAMS.—Out of funds in 4
329	329	the Treasury not otherwise appropriated, there is appro-5
330	330	priated for fiscal year 2025— 6
331	331	(1) to provide direct loans under section 502 of 7
332	332	the Housing Act of 1949 (42 U.S.C. 1472), 8
333	333	$420,000,000; 9
334	334	(2) to provide assistance under section 514 of 10
335	335	such Act (42 U.S.C. 1484), $54,000,000; 11
336	336	(3) to provide assistance under section 515 of 12
337	337	such Act (42 U.S.C. 1485), $420,000,000; 13
338	338	(4) to provide assistance under section 516 of 14
339	339	such Act (42 U.S.C. 1486), $75,000,000; 15
340	340	(5) to provide grants under section 523 of such 16
341	341	Act (42 U.S.C. 1490c), $75,000,000; and 17
342	342	(6) to provide funding to carry out the Multi-18
343	343	family Preservation and Revitalization Demonstra-19
344	344	tion Program of the Rural Housing Service (as au-20
345	345	thorized under sections 514, 515, and 516 of such 21
346	346	Act (42 U.S.C. 1484, 1485, 1486)), $240,000,000. 22
347	347	(g) M
348	348	IDDLECLASSHOUSINGEMERGENCYFUND.— 23
349	349	(1) D
350	350	EFINITIONS.—In this subsection— 24
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353	353	•HR 2038 IH
354	354	(A) the term ‘‘affordable rental housing 1
355	355	unit’’ means a unit for which monthly rent is 2
356	356	not more than 30 percent of the monthly area 3
357	357	median income; and 4
358	358	(B) the term ‘‘State’’ has the meaning 5
359	359	given the term in section 3(b)(7) of the United 6
360	360	States Housing Act of 1937 (42 U.S.C. 7
361	361	1437a(b)(7)). 8
362	362	(2) E
363	363	STABLISHMENT.—The Secretary of Hous-9
364	364	ing and Urban Development shall establish and 10
365	365	manage a fund, to be known as the ‘‘Middle Class 11
366	366	Housing Emergency Fund’’, which shall be funded 12
367	367	with any amounts as may be appropriated, trans-13
368	368	ferred, or credited to the Fund under any provision 14
369	369	law. 15
370	370	(3) G
371	371	RANTS.—From amounts available in the 16
372	372	fund established under paragraph (2), the Secretary 17
373	373	of Housing and Urban Development shall award 18
374	374	grants on a competitive basis to State housing fi-19
375	375	nance agencies located in a State in which— 20
376	376	(A) there is a shortage of affordable rental 21
377	377	housing units available to individuals with an 22
378	378	income that is at or below the area median in-23
379	379	come and median rents have risen on average 24
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382	382	•HR 2038 IH
383	383	over the preceding 5 years substantially faster 1
384	384	than the area median income; or 2
385	385	(B) there is a shortage of housing units 3
386	386	available for sale that are affordable to individ-4
387	387	uals with an income that is at or below the area 5
388	388	median income and median home prices have 6
389	389	risen on average over the preceding 5 years 7
390	390	substantially faster than the area median in-8
391	391	come. 9
392	392	(4) U
393	393	SE OF FUNDS.—Grants received under 10
394	394	this subsection shall be used to fund— 11
395	395	(A) the construction or acquisition, by non-12
396	396	profit organizations, State or local agencies, 13
397	397	special-purpose units of local government, resi-14
398	398	dent councils organized to acquire housing, and 15
399	399	other qualified purchasers (as defined by the 16
400	400	Secretary of Housing and Urban Development), 17
401	401	of rental housing units or units for purchase 18
402	402	that are affordable to residents making less 19
403	403	than 120 percent of the area median income; 20
404	404	and 21
405	405	(B) measures to prevent tenant displace-22
406	406	ment and harassment, including— 23
407	407	(i) the provision of legal advice and 24
408	408	representation for tenants facing eviction; 25
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411	411	•HR 2038 IH
412	412	(ii) enforcement of anti-harassment 1
413	413	laws; 2
414	414	(iii) emergency rental assistance; and 3
415	415	(iv) other measures as specified by the 4
416	416	Secretary of Housing and Urban Develop-5
417	417	ment. 6
418	418	(5) L
419	419	ABOR LAWS.— 7
420	420	(A) I
421	421	N GENERAL.—All laborers and me-8
422	422	chanics employed by contractors or subcontrac-9
423	423	tors in the performance of construction work fi-10
424	424	nanced in whole or in part with a grant received 11
425	425	under this subsection shall be paid wages at 12
426	426	rates not less than those prevailing on similar 13
427	427	construction in the locality as determined by 14
428	428	the Secretary of Labor in accordance with sub-15
429	429	chapter IV of chapter 31 of title 40, United 16
430	430	States Code (commonly known as the ‘‘Davis- 17
431	431	Bacon Act’’). 18
432	432	(B) A
433	433	UTHORITY AND FUNCTIONS .—With 19
434	434	respect to the labor standards specified in sub-20
435	435	paragraph (A), the Secretary of Labor shall 21
436	436	have the authority and functions set forth in 22
437	437	Reorganization Plan Numbered 14 of 1950 (64 23
438	438	Stat. 1267; 5 U.S.C. App.) and section 3145 of 24
439	439	title 40, United States Code. 25
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442	442	•HR 2038 IH
443	443	(6) REGULATIONS.—The Secretary of Housing 1
444	444	and Urban Development shall promulgate regula-2
445	445	tions to carry out this subsection that include— 3
446	446	(A) the metrics that the Secretary will use 4
447	447	to determine eligibility for a grant under this 5
448	448	subsection; 6
449	449	(B) a requirement that grantees and sub-7
450	450	grantees consult with impacted communities in 8
451	451	policymaking and planning for the construction 9
452	452	or acquisition of housing units as described in 10
453	453	paragraph (4)(A); and 11
454	454	(C) a requirement that all housing units 12
455	455	constructed or acquired using grants awarded 13
456	456	under the subsection are affordable to residents 14
457	457	making less than 120 percent of the area me-15
458	458	dian income in perpetuity. 16
459	459	(7) A
460	460	PPROPRIATIONS.—Out of funds in the 17
461	461	Treasury not otherwise appropriated, there is appro-18
462	462	priated to the fund established under this subsection 19
463	463	$4,000,000,000 for fiscal year 2025. 20
464	464	SEC. 103. CONDITIONS FOR THE SALE OF REAL ESTATE- 21
465	465	OWNED PROPERTIES AND NON-PERFORMING 22
466	466	LOANS. 23
467	467	(a) F
468	468	INDINGS.—Congress finds that— 24
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470	470	kjohnson on DSK7ZCZBW3PROD with $$_JOB 16
471	471	•HR 2038 IH
472	472	(1) the Federal Housing Administration, the 1
473	473	Federal National Mortgage Association, and the 2
474	474	Federal Home Loan Mortgage Corporation provide 3
475	475	critical homeownership opportunities that greatly 4
476	476	benefit individuals, families, and communities; and 5
477	477	(2) it is the purpose of this section to— 6
478	478	(A) preserve owner-occupied homes with 7
479	479	mortgages insured by the Federal Housing Ad-8
480	480	ministration or purchased by the Federal Na-9
481	481	tional Mortgage Association or the Federal 10
482	482	Home Loan Mortgage Corporation for contin-11
483	483	ued use as owner-occupied homes; and 12
484	484	(B) direct that, upon the sale of those 13
485	485	properties or transfer of those mortgages, cer-14
486	486	tain percentages of those properties are sold to 15
487	487	low- and moderate-income homeowners. 16
488	488	(b) L
489	489	OANSINSURED BY THEFEDERALHOUSINGAD-17
490	490	MINISTRATION.—Title II of the National Housing Act (12 18
491	491	U.S.C. 1707 et seq.) is amended by adding at the end 19
492	492	the following: 20
493	493	‘‘SEC. 259. SALE OF REAL ESTATE-OWNED PROPERTIES. 21
494	494	‘‘(a) D
495	495	EFINITIONS.—In this section— 22
496	496	‘‘(1) the term ‘Claim Without Conveyance of 23
497	497	Title program’ means the program of the Federal 24
498	498	Housing Administration carried out under section 25
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501	501	•HR 2038 IH
502	502	203.368 of title 24, Code of Federal Regulations, or 1
503	503	any successor regulation; and 2
504	504	‘‘(2) the term ‘community partner’ has the 3
505	505	meaning given the term ‘nonprofit organization’ in 4
506	506	section 229 of the Low-Income Housing Preserva-5
507	507	tion and Resident Homeownership Act of 1990 (12 6
508	508	U.S.C. 4119). 7
509	509	‘‘(b) R
510	510	EQUIREMENT.—Not later than 1 year after the 8
511	511	date of enactment of this section, the Secretary shall de-9
512	512	velop programs within the Federal Housing Administra-10
513	513	tion to ensure that not less than 75 percent of the single- 11
514	514	family residential properties conveyed to the Federal 12
515	515	Housing Administration after foreclosure or conveyed to 13
516	516	third parties under the Claim Without Conveyance of Title 14
517	517	program are sold— 15
518	518	‘‘(1) directly to an owner-occupant; or 16
519	519	‘‘(2) to community partners that will— 17
520	520	‘‘(A) rehabilitate or develop the property; 18
521	521	and 19
522	522	‘‘(B) sell the property to an owner-occu-20
523	523	pant. 21
524	524	‘‘(c) G
525	525	UIDELINES.—Not later than 1 year after the 22
526	526	date of enactment of this section, the Secretary shall de-23
527	527	velop guidelines for the Claim Without Conveyance of Title 24
528	528	program that provide an exclusive listing period during 25
529	529	VerDate Sep 11 2014 23:05 Mar 22, 2025 Jkt 059200 PO 00000 Frm 00017 Fmt 6652 Sfmt 6201 E:\BILLS\H2038.IH H2038
530	530	kjohnson on DSK7ZCZBW3PROD with $$_JOB 18
531	531	•HR 2038 IH
532	532	which only eligible governmental entities, nonprofit organi-1
533	533	zations approved by the Department of Housing and 2
534	534	Urban Development, and owner-occupant buyers may sub-3
535	535	mit bids. 4
536	536	‘‘(d) A
537	537	NTI-PREDATORYFEATURE.—Unless the Sec-5
538	538	retary provides prior approval, the Secretary shall prohibit 6
539	539	any purchaser of a real estate-owned property of the Fed-7
540	540	eral Housing Administration from reselling the property 8
541	541	within 15 years of purchase using a land installment con-9
542	542	tract or through any other mechanism that does not trans-10
543	543	fer title to the buyer at the time of sale. 11
544	544	‘‘SEC. 260. SALE OF NON-PERFORMING LOANS. 12
545	545	‘‘(a) D
546	546	EFINITIONS.—In this section— 13
547	547	‘‘(1) the term ‘community partner’ has the 14
548	548	meaning given the term in section 259; and 15
549	549	‘‘(2) the term ‘covered mortgage’— 16
550	550	‘‘(A) means any mortgage insured under 17
551	551	this title that is secured by a single-family resi-18
552	552	dential property; and 19
553	553	‘‘(B) includes the promissory note secured 20
554	554	by the mortgage described in subparagraph (A). 21
555	555	‘‘(b) R
556	556	ESTRICTION ONSALE ORTRANSFER.—Except 22
557	557	as provided in this section, the Secretary may not sell or 23
558	558	transfer any covered mortgage. 24
559	559	‘‘(c) C
560	560	ONDITIONS FORSALE ORTRANSFER.— 25
561	561	VerDate Sep 11 2014 23:05 Mar 22, 2025 Jkt 059200 PO 00000 Frm 00018 Fmt 6652 Sfmt 6201 E:\BILLS\H2038.IH H2038
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563	563	•HR 2038 IH
564	564	‘‘(1) IN GENERAL.—The Secretary— 1
565	565	‘‘(A) may sell or transfer a covered mort-2
566	566	gage only if— 3
567	567	‘‘(i) the capital level of the Fund is 4
568	568	substantially below the capital ratio re-5
569	569	quired under section 205(f)(2); 6
570	570	‘‘(ii) the Secretary certifies that other 7
571	571	reasonable measures are not available to 8
572	572	restore the Fund to that capital ratio; and 9
573	573	‘‘(iii) the Secretary complies with 10
574	574	paragraph (2)(C), if applicable; and 11
575	575	‘‘(B) may sell or transfer only such covered 12
576	576	mortgages as are necessary to assist in restora-13
577	577	tion of that capital ratio. 14
578	578	‘‘(2) R
579	579	EQUIREMENTS FOR THE SECRETARY .— 15
580	580	‘‘(A) I
581	581	N GENERAL.—If the Secretary in-16
582	582	tends to sell or transfer a covered mortgage, the 17
583	583	Secretary shall provide the current borrower 18
584	584	and all owners of record of the property secur-19
585	585	ing the covered mortgage, or require that the 20
586	586	current borrower and owners of record be pro-21
587	587	vided, a separate written notice of the intent to 22
588	588	sell the covered mortgage that— 23
589	589	‘‘(i) is mailed via certified and first 24
590	590	class mail not less than 90 days before the 25
591	591	VerDate Sep 11 2014 23:05 Mar 22, 2025 Jkt 059200 PO 00000 Frm 00019 Fmt 6652 Sfmt 6201 E:\BILLS\H2038.IH H2038
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593	593	•HR 2038 IH
594	594	date on which the loan is included in any 1
595	595	proposed sale; and 2
596	596	‘‘(ii) includes— 3
597	597	‘‘(I) a description of the loss 4
598	598	mitigation options of the Federal 5
599	599	Housing Administration that are 6
600	600	available to borrowers in financial dis-7
601	601	tress and the obligation of servicers to 8
602	602	consider borrowers in default for those 9
603	603	options; 10
604	604	‘‘(II) a description of the actions 11
605	605	that the servicer of the loan has taken 12
606	606	to review and implement those options 13
607	607	for the borrower; and 14
608	608	‘‘(III) a description of the proce-15
609	609	dures the borrower may use to contest 16
610	610	with the Secretary the compliance by 17
611	611	the servicer with that obligation. 18
612	612	‘‘(B) J
613	613	UDICIAL REVIEW.—The determina-19
614	614	tion of the Secretary to authorize the sale of a 20
615	615	mortgage insured under this title shall be re-21
616	616	viewable under chapter 7 of title 5, United 22
617	617	States Code, for abuse of discretion and arbi-23
618	618	trary and capricious agency action. 24
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621	621	•HR 2038 IH
622	622	‘‘(C) AUCTIONS.—The Secretary may not 1
623	623	sell any covered mortgage through any type of 2
624	624	non-performing loan sale auction program until 3
625	625	the Secretary issues rules, through the notice 4
626	626	and comment rule making procedures under 5
627	627	section 553 of title 5, United States Code, that 6
628	628	address essential aspects of any non-performing 7
629	629	loan sale program, including— 8
630	630	‘‘(i) the method of selection of loans 9
631	631	for sale; 10
632	632	‘‘(ii) notice to borrowers prior to in-11
633	633	clusion of the loan in a sale; and 12
634	634	‘‘(iii) review of loss mitigation status 13
635	635	prior to the sale, selection of eligible bid-14
636	636	ders, loss mitigation guidelines applicable 15
637	637	to loan purchasers, and reporting require-16
638	638	ments for purchasers. 17
639	639	‘‘(3) C
640	640	ERTIFICATION REQUIREMENT FOR LEND -18
641	641	ERS AND SERVICERS.— 19
642	642	‘‘(A) C
643	643	ERTIFICATION.—As a condition to 20
644	644	payment of an insurance claim under this title 21
645	645	in connection with any non-performing loan 22
646	646	sale, the lender or servicer of the loan shall pro-23
647	647	vide the Secretary and the borrower with writ-24
648	648	ten certification of the loss mitigation review 25
649	649	VerDate Sep 11 2014 23:05 Mar 22, 2025 Jkt 059200 PO 00000 Frm 00021 Fmt 6652 Sfmt 6201 E:\BILLS\H2038.IH H2038
650	650	kjohnson on DSK7ZCZBW3PROD with $$_JOB 22
651	651	•HR 2038 IH
652	652	contained in the FHA Single Family Housing 1
653	653	Policy Handbook 4000.1, or any successor 2
654	654	handbook, which certification shall include a de-3
655	655	scription of the actions the lender or servicer 4
656	656	has taken, prior to transfer of the loan to the 5
657	657	Secretary, to— 6
658	658	‘‘(i) review the borrower for all avail-7
659	659	able loss mitigation options of the Federal 8
660	660	Housing Administration; and 9
661	661	‘‘(ii) implement the options described 10
662	662	in clause (i) that are appropriate to the 11
663	663	borrower. 12
664	664	‘‘(B) F
665	665	ALSE STATEMENTS.— 13
666	666	‘‘(i) I
667	667	N GENERAL.—Any false state-14
668	668	ment provided in a certification described 15
669	669	in subparagraph (A) shall be a basis for— 16
670	670	‘‘(I) recovery by the Secretary of 17
671	671	any amounts paid under the insurance 18
672	672	claim and any other penalties and 19
673	673	sanctions authorized under Federal 20
674	674	law; and 21
675	675	‘‘(II) a private right of action by 22
676	676	the borrower against the lender and 23
677	677	servicer, with remedies to include 24
678	678	compensatory and punitive damages 25
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680	680	kjohnson on DSK7ZCZBW3PROD with $$_JOB 23
681	681	•HR 2038 IH
682	682	and an assessment of costs and attor-1
683	683	ney’s fees. 2
684	684	‘‘(ii) T
685	685	RANSFERS.—Unless a bona fide 3
686	686	purchaser has acquired title to the prop-4
687	687	erty as a primary residence— 5
688	688	‘‘(I) a certification described in 6
689	689	subparagraph (A) that contains a 7
690	690	false statement shall be a basis for re-8
691	691	voking the transfer of the property; 9
692	692	and 10
693	693	‘‘(II) the pre-sale lender and 11
694	694	servicer of the property shall— 12
695	695	‘‘(aa) resume servicing the 13
696	696	loan as a loan insured under this 14
697	697	title; and 15
698	698	‘‘(bb) reimburse the Sec-16
699	699	retary for any insurance claim 17
700	700	paid and all costs related to the 18
701	701	sale of the property. 19
702	702	‘‘(4) R
703	703	EQUIREMENTS FOR PURCHASERS .— 20
704	704	‘‘(A) I
705	705	N GENERAL.—Each purchaser of a 21
706	706	covered mortgage shall offer the borrower on 22
707	707	the covered mortgage loss mitigation options 23
708	708	that allow for payment reduction at least as 24
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710	710	kjohnson on DSK7ZCZBW3PROD with $$_JOB 24
711	711	•HR 2038 IH
712	712	great as would be available to the borrower if 1
713	713	the loan had not been sold. 2
714	714	‘‘(B) L
715	715	OSS MITIGATION OPTIONS .—The 3
716	716	specific formula, calculations, waterfall steps, 4
717	717	and other terms for appropriate loss mitigation 5
718	718	options described in subparagraph (A) shall be 6
719	719	published by the Secretary, made available to 7
720	720	the public, and included in a written notice 8
721	721	given to borrowers before any acceleration or 9
722	722	foreclosure is initiated after a loan sale. 10
723	723	‘‘(5) R
724	724	EQUIREMENTS FOR TRANSFEREES .— 11
725	725	With respect to a transferee, including any subse-12
726	726	quent transferee, of a covered mortgage that is sold 13
727	727	under this title— 14
728	728	‘‘(A) the transferee shall certify in writing 15
729	729	to the Secretary that the transferee will comply 16
730	730	with the provisions of this section in the mar-17
731	731	keting and transfer of any property received in 18
732	732	the disposition of any transferred loan; 19
733	733	‘‘(B) the transferee shall provide to the 20
734	734	Secretary records documenting that the trans-21
735	735	fers of those properties are in compliance with 22
736	736	this section; and 23
737	737	‘‘(C) the failure of the Secretary or the 24
738	738	transferee to comply with the requirements 25
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741	741	•HR 2038 IH
742	742	under this section for a loan in default shall be 1
743	743	a defense to foreclosure, and a transferee may 2
744	744	not execute a foreclosure judgment or order of 3
745	745	sale, or conduct a foreclosure sale, until the 4
746	746	transferee has complied with all requirements 5
747	747	under this section. 6
748	748	‘‘(d) L
749	749	IMITATIONS.—With respect to covered mort-7
750	750	gages that are sold under this title and acquired by the 8
751	751	buyer through foreclosure sale, not less than 90 percent 9
752	752	of the properties that are the subject of the covered mort-10
753	753	gages shall be— 11
754	754	‘‘(1) sold to owner-occupants; 12
755	755	‘‘(2) operated or transferred to an entity that 13
756	756	will operate the property as affordable rental hous-14
757	757	ing for households below 80 percent of the area me-15
758	758	dian income for a period of not less than 15 years; 16
759	759	or 17
760	760	‘‘(3) transferred or donated to a nonprofit 18
761	761	agency that is certified by the Secretary and will re-19
762	762	develop the property for owner occupancy or afford-20
763	763	able rental housing. 21
764	764	‘‘(e) P
765	765	RIORITIZATION OF SALES.—The Secretary 22
766	766	shall implement policies, procedures, and controls to— 23
767	767	‘‘(1) identify and recruit community partners; 24
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770	770	•HR 2038 IH
771	771	‘‘(2) engage in consultations with community 1
772	772	partners before the sale of a pool of covered mort-2
773	773	gages under this title to determine whether that sale 3
774	774	can be designed to meet the specific needs of the 4
775	775	communities served by the community partners; and 5
776	776	‘‘(3) prioritize the sale of pools of single-family 6
777	777	mortgages to community partners by— 7
778	778	‘‘(A) designing pools of covered mortgages 8
779	779	for direct sale to a community partner, the 9
780	780	price of which shall be set by the Secretary 10
781	781	based on a pricing model that considers— 11
782	782	‘‘(i) the current fair market value of 12
783	783	the properties; and 13
784	784	‘‘(ii) the potential impact of fore-14
785	785	closures on those properties to the value of 15
786	786	other homes that secure mortgages insured 16
787	787	under this title in the same census tract; 17
788	788	or 18
789	789	‘‘(B) in the case of an auction, if the win-19
790	790	ning bid is not from a community partner, per-20
791	791	mitting any community partner that bid during 21
792	792	that same auction to have a final opportunity to 22
793	793	enter a higher bid on the pool.’’. 23
794	794	VerDate Sep 11 2014 23:05 Mar 22, 2025 Jkt 059200 PO 00000 Frm 00026 Fmt 6652 Sfmt 6201 E:\BILLS\H2038.IH H2038
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796	796	•HR 2038 IH
797	797	(c) FANNIEMAE.—Section 302 of the Federal Na-1
798	798	tional Mortgage Association Charter Act (12 U.S.C. 1717) 2
799	799	is amended by adding at the end the following: 3
800	800	‘‘(d)(1) In this subsection, the term ‘covered mort-4
801	801	gage’— 5
802	802	‘‘(A) means any mortgage that is secured by a 6
803	803	single-family residential property; and 7
804	804	‘‘(B) includes the promissory note secured by 8
805	805	the mortgage described in subparagraph (A). 9
806	806	‘‘(2) The corporation may not sell or transfer any 10
807	807	covered mortgage under this section unless the require-11
808	808	ments of this subsection are met. 12
809	809	‘‘(3)(A) If the corporation intends to sell or transfer 13
810	810	a covered mortgage, the corporation shall provide the cur-14
811	811	rent borrower and all owners of record of the property se-15
812	812	curing the covered mortgage, or require that the current 16
813	813	borrower and owners of record be provided, a separate 17
814	814	written notice of the intent to sell the covered mortgage 18
815	815	that— 19
816	816	‘‘(i) is mailed via certified and first class mail 20
817	817	not less than 90 days before the date on which the 21
818	818	loan is included in any proposed sale; and 22
819	819	‘‘(ii) includes— 23
820	820	‘‘(I) a description of the loss mitigation op-24
821	821	tions of the corporation that are available to 25
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824	824	•HR 2038 IH
825	825	borrowers in financial distress and the obliga-1
826	826	tion of servicers to consider borrowers in de-2
827	827	fault for those options; 3
828	828	‘‘(II) a description of the actions that the 4
829	829	servicer of the loan has taken to review and im-5
830	830	plement those options for the borrower; and 6
831	831	‘‘(III) a description of the procedures the 7
832	832	borrower may use to contest with the corpora-8
833	833	tion the compliance by the servicer with that 9
834	834	obligation. 10
835	835	‘‘(B) The Federal Housing Finance Agency, as re-11
836	836	ceiver for the corporation, may not authorize the corpora-12
837	837	tion to sell any covered mortgage through any type of non- 13
838	838	performing loan sale auction program until the Director 14
839	839	of the Federal Housing Finance Agency issues rules, 15
840	840	through the notice and comment rule making procedures 16
841	841	under section 553 of title 5, United States Code, that ad-17
842	842	dress essential aspects of any non-performing loan sale 18
843	843	program, including— 19
844	844	‘‘(i) the method of selection of loans for sale; 20
845	845	‘‘(ii) notice to borrowers prior to inclusion of 21
846	846	the loan in a sale; and 22
847	847	‘‘(iii) review of loss mitigation status prior to 23
848	848	the sale, selection of eligible bidders, loss mitigation 24
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851	851	•HR 2038 IH
852	852	guidelines applicable to loan purchasers, and report-1
853	853	ing requirements for purchasers. 2
854	854	‘‘(4)(A) Each purchaser of a covered mortgage shall 3
855	855	offer the borrower on the covered mortgage loss mitigation 4
856	856	options that allow for payment reduction at least as great 5
857	857	as would be available to the borrower if the loan had not 6
858	858	been sold. 7
859	859	‘‘(B) The specific formula, calculations, waterfall 8
860	860	steps, and other terms for loss mitigation options de-9
861	861	scribed in subparagraph (A) shall be published by the cor-10
862	862	poration, made available to the public, and included in a 11
863	863	written notice given to borrowers before any acceleration 12
864	864	or foreclosure is initiated after a loan sale. 13
865	865	‘‘(5) With respect to a transferee, including any sub-14
866	866	sequent transferee, of a covered mortgage that is sold by 15
867	867	the corporation under this section— 16
868	868	‘‘(A) the transferee shall certify in writing to 17
869	869	the corporation that the transferee will comply with 18
870	870	the provisions of this subsection in the marketing 19
871	871	and transfer of any property received in the disposi-20
872	872	tion of any transferred loan; 21
873	873	‘‘(B) the transferee shall provide to the corpora-22
874	874	tion records documenting that the transfers of those 23
875	875	properties are in compliance with this subsection; 24
876	876	and 25
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879	879	•HR 2038 IH
880	880	‘‘(C) the failure of the corporation or the trans-1
881	881	feree to comply with the requirements under this 2
882	882	subsection for a loan in default shall be a defense to 3
883	883	foreclosure, and a transferee may not execute a fore-4
884	884	closure judgment or order of sale, or conduct a fore-5
885	885	closure sale, until the transferee has complied with 6
886	886	all requirements under this subsection. 7
887	887	‘‘(6) With respect to covered mortgages that are sold 8
888	888	by the corporation under this section and foreclosed upon 9
889	889	by the buyer, not less than 90 percent of the properties 10
890	890	that are the subject of the covered mortgages in an auc-11
891	891	tion shall be— 12
892	892	‘‘(A) sold to owner-occupants; 13
893	893	‘‘(B) operated or transferred to an entity that 14
894	894	will operate the property as affordable rental hous-15
895	895	ing for households below 80 percent of the area me-16
896	896	dian income for a period of not less than 15 years; 17
897	897	or 18
898	898	‘‘(C) transferred or donated to a nonprofit 19
899	899	agency that is certified by the corporation and will 20
900	900	redevelop the property for owner occupancy or af-21
901	901	fordable rental housing. 22
902	902	‘‘(7) The corporation shall implement policies, proce-23
903	903	dures, and controls to— 24
904	904	‘‘(A) identify and recruit community partners; 25
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907	907	•HR 2038 IH
908	908	‘‘(B) engage in consultations with community 1
909	909	partners before the sale of a pool of covered mort-2
910	910	gages under this section to determine whether that 3
911	911	sale can be designed to meet the specific needs of 4
912	912	the communities served by the community partners; 5
913	913	and 6
914	914	‘‘(C) prioritize the sale of pools of single-family 7
915	915	mortgages to community partners by— 8
916	916	‘‘(i) designing pools of covered mortgages 9
917	917	for direct sale to a community partner, the 10
918	918	price of which shall be set by the corporation 11
919	919	based on a pricing model that considers— 12
920	920	‘‘(I) the current fair market value of 13
921	921	the properties; and 14
922	922	‘‘(II) the potential impact of fore-15
923	923	closures on those properties to the value of 16
924	924	other homes in the same census tract; or 17
925	925	‘‘(ii) in the case of an auction, if the win-18
926	926	ning bid is not from a community partner, per-19
927	927	mitting any community partner that bid during 20
928	928	that same auction to have a final opportunity to 21
929	929	enter a higher bid on the pool.’’. 22
930	930	(d) F
931	931	REDDIEMAC.—Section 305 of the Federal 23
932	932	Home Loan Mortgage Corporation Act (12 U.S.C. 1454) 24
933	933	is amended by adding at the end the following: 25
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936	936	•HR 2038 IH
937	937	‘‘(e)(1) In this subsection, the term ‘covered mort-1
938	938	gage’— 2
939	939	‘‘(A) means any mortgage that is secured by a 3
940	940	single-family residential property; and 4
941	941	‘‘(B) includes the promissory note secured by 5
942	942	the mortgage described in subparagraph (A). 6
943	943	‘‘(2) The Corporation may not sell or transfer any 7
944	944	covered mortgage under this section unless the require-8
945	945	ments of this subsection are met. 9
946	946	‘‘(3)(A) If the Corporation intends to sell or transfer 10
947	947	a covered mortgage, the Corporation shall provide the cur-11
948	948	rent borrower and all owners of record of the property se-12
949	949	curing the covered mortgage, or require that the current 13
950	950	borrower and owners of record be provided, a separate 14
951	951	written notice of the intent to sell the covered mortgage 15
952	952	that— 16
953	953	‘‘(i) is mailed via certified and first class mail 17
954	954	not less than 90 days before the date on which the 18
955	955	loan is included in any proposed sale; and 19
956	956	‘‘(ii) includes— 20
957	957	‘‘(I) a description of the loss mitigation op-21
958	958	tions of the Corporation that are available to 22
959	959	borrowers in financial distress and the obliga-23
960	960	tion of servicers to consider borrowers in de-24
961	961	fault for those options; 25
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964	964	•HR 2038 IH
965	965	‘‘(II) a description of the actions that the 1
966	966	servicer of the loan has taken to review and im-2
967	967	plement those options for the borrower; and 3
968	968	‘‘(III) a description of the procedures the 4
969	969	borrower may use to contest with the Corpora-5
970	970	tion the compliance by the servicer with that 6
971	971	obligation. 7
972	972	‘‘(B) The Federal Housing Finance Agency, as re-8
973	973	ceiver for the Corporation, may not sell any covered mort-9
974	974	gage through any type of non-performing loan sale auction 10
975	975	program until the Director of the Federal Housing Fi-11
976	976	nance Agency issues rules, through the notice and com-12
977	977	ment rule making procedures under section 553 of title 13
978	978	5, United States Code, that address essential aspects of 14
979	979	any non-performing loan sale program, including— 15
980	980	‘‘(i) the method of selection of loans for sale; 16
981	981	‘‘(ii) notice to borrowers prior to inclusion of 17
982	982	the loan in a sale; and 18
983	983	‘‘(iii) review of loss mitigation status prior to 19
984	984	the sale, selection of eligible bidders, loss mitigation 20
985	985	guidelines applicable to loan purchasers, and report-21
986	986	ing requirements for purchasers. 22
987	987	‘‘(4)(A) Each purchaser of a covered mortgage shall 23
988	988	offer the borrower on the covered mortgage loss mitigation 24
989	989	options that allow for payment reduction at least as great 25
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992	992	•HR 2038 IH
993	993	as would be available to the borrower if the loan had not 1
994	994	been sold. 2
995	995	‘‘(B) The specific formula, calculations, waterfall 3
996	996	steps, and other terms for loss mitigation options de-4
997	997	scribed in subparagraph (A) shall be published by the Cor-5
998	998	poration, made available to the public, and included in a 6
999	999	written notice given to borrowers before any acceleration 7
1000	1000	or foreclosure is initiated after a loan sale. 8
1001	1001	‘‘(5) With respect to a transferee, including any sub-9
1002	1002	sequent transferee, of a covered mortgage that is sold by 10
1003	1003	the Corporation under this section— 11
1004	1004	‘‘(A) the transferee shall certify in writing to 12
1005	1005	the Corporation that the transferee will comply with 13
1006	1006	the provisions of this subsection in the marketing 14
1007	1007	and transfer of any property received in the disposi-15
1008	1008	tion of any transferred loan; 16
1009	1009	‘‘(B) the transferee shall provide to the Cor-17
1010	1010	poration records documenting that the transfers of 18
1011	1011	those properties are in compliance with this sub-19
1012	1012	section; and 20
1013	1013	‘‘(C) the failure of the Corporation or the trans-21
1014	1014	feree to comply with the requirements under this 22
1015	1015	subsection for a loan in default shall be a defense to 23
1016	1016	foreclosure, and a transferee may not execute a fore-24
1017	1017	closure judgment or order of sale, or conduct a fore-25
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1020	1020	•HR 2038 IH
1021	1021	closure sale, until the transferee has complied with 1
1022	1022	all requirements under this subsection. 2
1023	1023	‘‘(6) With respect to covered mortgages that are sold 3
1024	1024	by the Corporation under this section and foreclosed upon 4
1025	1025	by the buyer, not less than 90 percent of the properties 5
1026	1026	that are the subject of the covered mortgages in an auc-6
1027	1027	tion shall be— 7
1028	1028	‘‘(A) sold to owner-occupants; 8
1029	1029	‘‘(B) operated or transferred to an entity that 9
1030	1030	will operate the property as affordable rental hous-10
1031	1031	ing for households below 80 percent of the area me-11
1032	1032	dian income for a period of not less than 15 years; 12
1033	1033	or 13
1034	1034	‘‘(C) transferred or donated to a nonprofit 14
1035	1035	agency that is certified by the Corporation and will 15
1036	1036	redevelop the property for owner occupancy or af-16
1037	1037	fordable rental housing. 17
1038	1038	‘‘(7) The Corporation shall implement policies, proce-18
1039	1039	dures, and controls to— 19
1040	1040	‘‘(A) identify and recruit community partners; 20
1041	1041	‘‘(B) engage in consultations with community 21
1042	1042	partners before the sale of a pool of covered mort-22
1043	1043	gages under this section to determine whether that 23
1044	1044	sale can be designed to meet the specific needs of 24
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1047	1047	•HR 2038 IH
1048	1048	the communities served by the community partners; 1
1049	1049	and 2
1050	1050	‘‘(C) prioritize the sale of pools of single-family 3
1051	1051	mortgages to community partners by— 4
1052	1052	‘‘(i) designing pools of covered mortgages 5
1053	1053	for direct sale to a community partner, the 6
1054	1054	price of which shall be set by the Corporation 7
1055	1055	based on a pricing model that considers— 8
1056	1056	‘‘(I) the current fair market value of 9
1057	1057	the properties; and 10
1058	1058	‘‘(II) the potential impact of fore-11
1059	1059	closures on those properties to the value of 12
1060	1060	other homes in the same census tract; or 13
1061	1061	‘‘(ii) in the case of an auction, if the win-14
1062	1062	ning bid is not from a community partner, per-15
1063	1063	mitting any community partner that bid during 16
1064	1064	that same auction to have a final opportunity to 17
1065	1065	enter a higher bid on the pool.’’. 18
1066	1066	(e) S
1067	1067	ALE OFRE-PERFORMINGLOANS.—The Federal 19
1068	1068	Housing Enterprises Financial Safety and Soundness Act 20
1069	1069	of 1992 (12 U.S.C. 4501 et seq.) is amended by inserting 21
1070	1070	after section 1328 (12 U.S.C. 4548) the following: 22
1071	1071	‘‘SEC. 1329. SALE OF RE-PERFORMING LOANS. 23
1072	1072	‘‘(a) B
1073	1073	ULKAUCTION ORGROUPSALES.—An enter-24
1074	1074	prise may not conduct bulk auctions or other group sales 25
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1077	1077	•HR 2038 IH
1078	1078	of single family re-performing residential loans unless the 1
1079	1079	following requirements are met: 2
1080	1080	‘‘(1) The enterprise establishes a system that 3
1081	1081	provides priority to Federal, State, local, or Tribal 4
1082	1082	governments or nonprofit organizations that have 5
1083	1083	the capacity and experience required for buying, 6
1084	1084	servicing, and resolving single family mortgage loans 7
1085	1085	in a manner that promotes affordable housing, fair 8
1086	1086	housing, affordable homeownership, provision of 9
1087	1087	housing counseling, or neighborhood stabilization. 10
1088	1088	‘‘(2) Clear, written notice is sent by the enter-11
1089	1089	prise or servicer through certified and first-class 12
1090	1090	mail to the borrower and all owners of record, with 13
1091	1091	a copy sent to the enterprise if sent by the servicer, 14
1092	1092	not less than 90 days before the inclusion of the 15
1093	1093	loan in any proposed sale— 16
1094	1094	‘‘(A) stating that the loan will be included 17
1095	1095	in a bulk auction or group sale of re-performing 18
1096	1096	loans; and 19
1097	1097	‘‘(B) describing the bulk auction or group 20
1098	1098	sale process, including— 21
1099	1099	‘‘(i) the loss mitigation or other pro-22
1100	1100	tections available to the borrower and 23
1101	1101	other owners of record both before and 24
1102	1102	after the auction or sale; and 25
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1105	1105	•HR 2038 IH
1106	1106	‘‘(ii) the obligations of the servicer of 1
1107	1107	the loan before and after the auction or 2
1108	1108	sale, including loss mitigation require-3
1109	1109	ments. 4
1110	1110	‘‘(3) The enterprise requires in the terms of the 5
1111	1111	bulk auction or group sale that purchasers take 6
1112	1112	loans subject to the following requirements: 7
1113	1113	‘‘(A) The purchaser is required to offer 8
1114	1114	targeted payment relief options to borrowers 9
1115	1115	that become more than 60 days delinquent on 10
1116	1116	their mortgage after their loan is sold that in-11
1117	1117	cludes deferral of principal and term extension 12
1118	1118	options that reduce payments to an affordable 13
1119	1119	level. 14
1120	1120	‘‘(B) The purchaser is required to offer a 15
1121	1121	deferral program to borrowers that become 16
1122	1122	more than 60 days delinquent on their mort-17
1123	1123	gage after their loan is sold that offers terms 18
1124	1124	and protections at least as favorable as those 19
1125	1125	available under loss mitigation guidelines of the 20
1126	1126	enterprise, including the absence of fees, to bor-21
1127	1127	rowers who can afford their pre-hardship mort-22
1128	1128	gage payment. 23
1129	1129	‘‘(C) Failure by the purchaser to follow the 24
1130	1130	established loss mitigation guidelines shall serve 25
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1133	1133	•HR 2038 IH
1134	1134	as a defense to a judicial foreclosure and a 1
1135	1135	basis to enjoin or otherwise stay a non-judicial 2
1136	1136	foreclosure. 3
1137	1137	‘‘(D) Data reporting as provided under 4
1138	1138	subsection (b)(1). 5
1139	1139	‘‘(E) If a property becomes vacant, the 6
1140	1140	purchaser shall not release the lien until the 7
1141	1141	property is sold or donated. 8
1142	1142	‘‘(F) Use of contract for deed, lease to 9
1143	1143	own, or a land installment contract to sell or 10
1144	1144	otherwise transfer any property that is secured 11
1145	1145	by a purchased loan shall be prohibited unless 12
1146	1146	the tenant or purchaser is a nonprofit organiza-13
1147	1147	tion. 14
1148	1148	‘‘(b) D
1149	1149	ATA ANDREPORTING.— 15
1150	1150	‘‘(1) P
1151	1151	URCHASER REPORTING .—During the 4- 16
1152	1152	year period following any auction or sale of single 17
1153	1153	family re-performing residential mortgage loans 18
1154	1154	under subsection (a), the Director shall require the 19
1155	1155	enterprise to collect from each purchaser of such 20
1156	1156	loans, including any subsequent purchaser of a loan, 21
1157	1157	quarterly loan-level data regarding the treatment 22
1158	1158	and outcome of the loan, including— 23
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1161	1161	•HR 2038 IH
1162	1162	‘‘(A) loan characteristics, including loan 1
1163	1163	type, remaining loan term, loan to value ratio, 2
1164	1164	number of months in arrears, and loan status; 3
1165	1165	‘‘(B) loss mitigation data, including wheth-4
1166	1166	er loss mitigation was provided by the pur-5
1167	1167	chaser, debt-to-income ratio and percent pay-6
1168	1168	ment reduction for any modified loans, and per-7
1169	1169	formance of modified loans; 8
1170	1170	‘‘(C) demographic data for each borrower 9
1171	1171	and any co-borrower, including race, national 10
1172	1172	origin, sex, ZIP Code, and census tract, and, if 11
1173	1173	available, disability status and veteran status; 12
1174	1174	and 13
1175	1175	‘‘(D) other purchaser actions, including 14
1176	1176	charge offs and resales of loans and dates for 15
1177	1177	such actions. 16
1178	1178	‘‘(2) S
1179	1179	EMIANNUAL REPORTS TO CONGRESS .— 17
1180	1180	The Director shall submit to Congress, and make 18
1181	1181	publicly available at no cost to the public in a readily 19
1182	1182	accessible format on the website of the Agency, 20
1183	1183	semi-annual reports on— 21
1184	1184	‘‘(A) loans sold in an auction or sale under 22
1185	1185	subsection (a) by each enterprise, disaggregated 23
1186	1186	by pool, including— 24
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1189	1189	•HR 2038 IH
1190	1190	‘‘(i) the number of loans and types of 1
1191	1191	loans; 2
1192	1192	‘‘(ii) mean and median delinquency 3
1193	1193	and loan to value ratios at the time of the 4
1194	1194	sale; 5
1195	1195	‘‘(iii) the number and percentage of 6
1196	1196	loans modified prior to auction or sale; and 7
1197	1197	‘‘(iv) demographic and geographic 8
1198	1198	data, including property locations by cen-9
1199	1199	sus tract or larger geographic location if 10
1200	1200	necessary to protect personally identifiable 11
1201	1201	information; 12
1202	1202	‘‘(B) the performance of loans after an 13
1203	1203	auction or sale under subsection (a), 14
1204	1204	disaggregated by loan pool, including the initial 15
1205	1205	purchaser, current owner, current servicer, data 16
1206	1206	summarizing any alternatives to foreclosure of-17
1207	1207	fered and enacted, and data summarizing the 18
1208	1208	data collected under subparagraph (A); and 19
1209	1209	‘‘(C) the results of a fair lending analysis 20
1210	1210	conducted based on the data in subparagraphs 21
1211	1211	(A) and (B) to identify any discriminatory im-22
1212	1212	pacts or outcomes associated with the auctions 23
1213	1213	or sales. 24
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1216	1216	•HR 2038 IH
1217	1217	‘‘(c) PENALTIES FORNONCOMPLIANCE.—The enter-1
1218	1218	prises may forcibly retain loans or properties, without pro-2
1219	1219	viding compensation, from purchasers that do not meet 3
1220	1220	the requirements under subsection (a)(3). 4
1221	1221	‘‘(d) R
1222	1222	EGULATIONS.—The Director shall issue regu-5
1223	1223	lations defining the terms of permissible auctions or sales 6
1224	1224	in accordance with the requirements in this section.’’. 7
1225	1225	TITLE II—TAKING THE FIRST 8
1226	1226	STEPS TO REVERSE THE LEG-9
1227	1227	ACY OF HOUSING DISCRIMI-10
1228	1228	NATION AND GOVERNMENT 11
1229	1229	NEGLIGENCE 12
1230	1230	SEC. 201. DOWN PAYMENT ASSISTANCE PROGRAM FOR 13
1231	1231	FIRST-TIME, FIRST-GENERATION HOME-14
1232	1232	BUYERS. 15
1233	1233	(a) D
1234	1234	EFINITIONS.—In this section: 16
1235	1235	(1) E
1236	1236	LIGIBLE RESIDENT.—The term ‘‘eligible 17
1237	1237	resident’’ means an individual who— 18
1238	1238	(A) is a first-time homebuyer; 19
1239	1239	(B) is a first-generation homebuyer; and 20
1240	1240	(C) has an income that is less than— 21
1241	1241	(i) 120 percent of the area median in-22
1242	1242	come; or 23
1243	1243	(ii) in the case of a homebuyer acquir-24
1244	1244	ing a property for use as a principal resi-25
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1247	1247	•HR 2038 IH
1248	1248	dence that is located in a high-cost area, 1
1249	1249	as determined by the Secretary, 140 per-2
1250	1250	cent of the area median income. 3
1251	1251	(2) F
1252	1252	IRST-GENERATION HOMEBUYER .—The 4
1253	1253	term ‘‘first-generation homebuyer’’ means a home-5
1254	1254	buyer who is, as self-attested by the homebuyer, an 6
1255	1255	individual— 7
1256	1256	(A) whose parents do not, or did not at the 8
1257	1257	time of their death, to the best of the individ-9
1258	1258	ual’s knowledge, have any present ownership in-10
1259	1259	terest in a principal residence in any State, ex-11
1260	1260	cluding ownership of heir property; and 12
1261	1261	(B) whose spouse or domestic partner has 13
1262	1262	not, during the 3-year period ending on the 14
1263	1263	date of purchase of a property using a grant 15
1264	1264	under subsection (b), had any present owner-16
1265	1265	ship interest in a principal residence in any 17
1266	1266	State, excluding ownership of heir property, 18
1267	1267	without regard to whether the spouse or domes-19
1268	1268	tic partner is a co-borrower on a mortgage for 20
1269	1269	the property being purchased. 21
1270	1270	(3) F
1271	1271	IRST-TIME HOMEBUYER.—The term ‘‘first- 22
1272	1272	time homebuyer’’ means a homebuyer who is, as 23
1273	1273	self-attested by the homebuyer, an individual (and if 24
1274	1274	married or in a domestic partnership, the spouse or 25
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1277	1277	•HR 2038 IH
1278	1278	domestic partner of the individual) who, during the 1
1279	1279	3-year period ending on the date of purchase of a 2
1280	1280	property using a grant under subsection (b)— 3
1281	1281	(A) has had no present ownership in a 4
1282	1282	principal residence in any State, excluding own-5
1283	1283	ership of heir property; or 6
1284	1284	(B) surrendered any present ownership in-7
1285	1285	terest in a principal residence in any State, ex-8
1286	1286	cluding ownership of heir property, as part of 9
1287	1287	a divorce proceeding. 10
1288	1288	(4) H
1289	1289	EIR PROPERTY.—The term ‘‘heir prop-11
1290	1290	erty’’ means residential property for which title— 12
1291	1291	(A) passed by operation of law through in-13
1292	1292	testacy; and 14
1293	1293	(B) is held by 2 or more heirs as tenants 15
1294	1294	in common. 16
1295	1295	(5) S
1296	1296	ECRETARY.—The term ‘‘Secretary’’ means 17
1297	1297	the Secretary of Housing and Urban Development. 18
1298	1298	(6) S
1299	1299	TATE.—The term ‘‘State’’ includes the 19
1300	1300	District of Columbia and any territory or possession 20
1301	1301	of the United States. 21
1302	1302	(b) E
1303	1303	STABLISHMENT.—There is established in the 22
1304	1304	Treasury of the United States a fund that— 23
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1307	1307	•HR 2038 IH
1308	1308	(1) shall be administered by the Secretary, act-1
1309	1309	ing through the Office of Housing of the Depart-2
1310	1310	ment of Housing and Urban Development; and 3
1311	1311	(2) shall be used— 4
1312	1312	(A) to provide grants to eligible residents 5
1313	1313	to purchase a property for use as a principal 6
1314	1314	residence; 7
1315	1315	(B) for outreach to financial institutions in 8
1316	1316	targeted areas and eligible residents, including 9
1317	1317	for the administration of that outreach; 10
1318	1318	(C) for counseling or financial education 11
1319	1319	administered by counseling agencies approved 12
1320	1320	by the Secretary in order to ensure sustainable 13
1321	1321	homeownership; and 14
1322	1322	(D) to maintain any records required to 15
1323	1323	implement this section. 16
1324	1324	(c) G
1325	1325	RANTAMOUNT.—An eligible resident may re-17
1326	1326	ceive a grant under subsection (b) in an amount equal 18
1327	1327	to— 19
1328	1328	(1) not more than 3.5 percent of the appraised 20
1329	1329	value of the property to be purchased; or 21
1330	1330	(2) if the appraised value of the property to be 22
1331	1331	purchased exceeds the principal obligation amount 23
1332	1332	limitation for mortgages insured under title II of the 24
1333	1333	National Housing Act (12 U.S.C. 1707 et seq.), 3.5 25
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1336	1336	•HR 2038 IH
1337	1337	percent of the maximum principal obligation limita-1
1338	1338	tion for the property to be purchased. 2
1339	1339	(d) R
1340	1340	ELATION TOFHA LOAN.—An eligible resident 3
1341	1341	shall not be required to obtain a mortgage that is insured 4
1342	1342	under title II of the National Housing Act (12 U.S.C. 5
1343	1343	1707 et seq.) as a condition of receiving a grant under 6
1344	1344	subsection (b). 7
1345	1345	(e) L
1346	1346	AYERING OFASSISTANCE.—Receipt by an eligi-8
1347	1347	ble recipient of assistance for a down payment from a 9
1348	1348	source other than the fund established under subsection 10
1349	1349	(b), including assistance from the Federal Government, a 11
1350	1350	State or local government, or any other public, private, 12
1351	1351	or nonprofit source, shall not affect the eligibility of the 13
1352	1352	eligible recipient for assistance under subsection (b). 14
1353	1353	(f) R
1354	1354	EGULATIONS AND DATABASE.—Not later than 15
1355	1355	1 year after the date of enactment of this Act, the Sec-16
1356	1356	retary shall— 17
1357	1357	(1) in consultation with interested parties, in-18
1358	1358	cluding housing counseling agencies approved by the 19
1359	1359	Secretary and individuals or groups with expertise in 20
1360	1360	fair housing, promulgate regulations relating to the 21
1361	1361	use of the fund established under subsection (b); 22
1362	1362	(2) promulgate regulations relating to the dis-23
1363	1363	bursement of funds under this section to ensure that 24
1364	1364	an eligible resident is able to receive funds before 25
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1367	1367	•HR 2038 IH
1368	1368	the closing date for the home of the eligible resident, 1
1369	1369	which may include creating a program that allows a 2
1370	1370	lender to be reimbursed by the fund established 3
1371	1371	under subsection (b) if the lender— 4
1372	1372	(A) provides an eligible resident with funds 5
1373	1373	for the closing; or 6
1374	1374	(B) allows an eligible resident to be 7
1375	1375	preapproved to receive assistance under this 8
1376	1376	section when arranging financing for the home 9
1377	1377	of the eligible resident; and 10
1378	1378	(3) establish methods to verify that an indi-11
1379	1379	vidual is an eligible resident. 12
1380	1380	(g) A
1381	1381	PPROPRIATION.—Out of funds in the Treasury 13
1382	1382	not otherwise appropriated, there is appropriated to the 14
1383	1383	fund established under subsection (b) such sums as may 15
1384	1384	be necessary for each of fiscal years 2025 through 2034 16
1385	1385	to carry out the activities under subsection (b)(2). 17
1386	1386	(h) I
1387	1387	NCLUSION OFPROGRAM INHOMEBUYINGIN-18
1388	1388	FORMATIONBOOKLETS.—Section 5(b) of the Real Estate 19
1389	1389	Settlement Procedures Act of 1974 (12 U.S.C. 2604(b)) 20
1390	1390	is amended by inserting after paragraph (14) the fol-21
1391	1391	lowing: 22
1392	1392	‘‘(15) Information relating to the down pay-23
1393	1393	ment assistance program established under section 24
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1396	1396	•HR 2038 IH
1397	1397	201 of the American Housing and Economic Mobil-1
1398	1398	ity Act of 2025.’’. 2
1399	1399	(i) I
1400	1400	NCLUSION OFPROGRAM ASMORTGAGEPROD-3
1401	1401	UCT.—Section 203(f)(1) of the National Housing Act (12 4
1402	1402	U.S.C. 1709(f)(1)) is amended by inserting ‘‘, including 5
1403	1403	the down payment assistance program established under 6
1404	1404	section 201 of the American Housing and Economic Mo-7
1405	1405	bility Act of 2025,’’ after ‘‘mortgage products’’. 8
1406	1406	(j) R
1407	1407	ELIANCE ONBORROWERATTESTATIONS.—No 9
1408	1408	additional documentation beyond the borrower’s attesta-10
1409	1409	tion shall be required to demonstrate eligibility under 11
1410	1410	paragraphs (2) and (3) of subsection (a), and no creditor 12
1411	1411	shall be subject to liability, including monetary penalties 13
1412	1412	or requirements to indemnify a Federal agency or repur-14
1413	1413	chase a loan that has been sold or securitized, for the pro-15
1414	1414	vision of down payment assistance under this section to 16
1415	1415	a borrower who does not meet the eligibility requirements 17
1416	1416	under those paragraphs if the creditor does so in good 18
1417	1417	faith reliance on borrower attestations of eligibility re-19
1418	1418	quired by those paragraphs or any regulation promulgated 20
1419	1419	to carry out those paragraphs. 21
1420	1420	(k) R
1421	1421	EPAYMENT OFASSISTANCE.— 22
1422	1422	(1) R
1423	1423	EQUIREMENT.—An eligible resident who 23
1424	1424	receives a grant under subsection (b) to purchase a 24
1425	1425	property for use as a principal residence and does 25
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1428	1428	•HR 2038 IH
1429	1429	not occupy the property as a principal residence for 1
1430	1430	5 years or more shall repay to the Secretary a pro-2
1431	1431	portional amount of the grant based on the number 3
1432	1432	of years, if any, for which the eligible resident has 4
1433	1433	occupied the property as a principal residence. 5
1434	1434	(2) L
1435	1435	IMITATION.—Notwithstanding paragraph 6
1436	1436	(1), an eligible resident who receives a grant under 7
1437	1437	subsection (b) to purchase a property for use as a 8
1438	1438	principal residence and does not occupy the property 9
1439	1439	as a principal residence for 5 years or more shall not 10
1440	1440	be liable to the Secretary for repayment under para-11
1441	1441	graph (1) of this subsection if— 12
1442	1442	(A) the failure to occupy the property as a 13
1443	1443	principal residence is due at least in part to a 14
1444	1444	hardship; or 15
1445	1445	(B) the eligible resident sells the property 16
1446	1446	before the expiration of the 5-year period begin-17
1447	1447	ning on the date of acquisition and the capital 18
1448	1448	gains from the sale to a bona fide purchaser in 19
1449	1449	an arm’s length transaction are less than the 20
1450	1450	amount the eligible resident would be required 21
1451	1451	to repay under paragraph (1). 22
1452	1452	SEC. 202. FORMULA GRANT PROGRAM FOR COMMUNITIES 23
1453	1453	WITH AN APPRAISAL GAP. 24
1454	1454	(a) D
1455	1455	EFINITIONS.—In this section— 25
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1458	1458	•HR 2038 IH
1459	1459	(1) the term ‘‘neighborhood with an appraisal 1
1460	1460	gap’’ means a census tract in which the median sales 2
1461	1461	price of a dwelling unit is lower than the median 3
1462	1462	cost to acquire and rehabilitate, or build, a new 4
1463	1463	dwelling unit; 5
1464	1464	(2) the term ‘‘Secretary’’ means the Secretary 6
1465	1465	of Housing and Urban Development; and 7
1466	1466	(3) the term ‘‘State’’ has the meaning given the 8
1467	1467	term in section 3(b)(7) of the United States Hous-9
1468	1468	ing Act of 1937 (42 U.S.C. 1437a(b)(7)). 10
1469	1469	(b) E
1470	1470	STABLISHMENT.—The Secretary shall establish 11
1471	1471	a formula grant program to provide funding to States to 12
1472	1472	support neighborhoods with an appraisal gap, including 13
1473	1473	borrowers with negative equity in their primary residence 14
1474	1474	in those neighborhoods, through— 15
1475	1475	(1) measures that provide funds to borrowers 16
1476	1476	to— 17
1477	1477	(A) pay down arrears on an otherwise af-18
1478	1478	fordable loan; 19
1479	1479	(B) pay down arrears or principal on a 20
1480	1480	loan in order to qualify for a loan modification 21
1481	1481	that will allow the borrower to keep the home; 22
1482	1482	(C) pay off, or pay down part of, a second 23
1483	1483	mortgage or home equity line of credit; 24
1484	1484	(D) pay off a small-dollar mortgage; 25
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1487	1487	•HR 2038 IH
1488	1488	(E) pay delinquent taxes and tax liens; 1
1489	1489	(F) pay off delinquent water or sewer bills 2
1490	1490	and liens; and 3
1491	1491	(G) pay for home repairs or maintenance 4
1492	1492	or for modifications to bring the home into 5
1493	1493	compliance with any applicable codes; and 6
1494	1494	(2) programs to purchase or rehabilitate vacant 7
1495	1495	or distressed properties to enhance neighborhood 8
1496	1496	property values. 9
1497	1497	(c) F
1498	1498	ORMULA.—The Secretary shall distribute 10
1499	1499	amounts under this section to States based on— 11
1500	1500	(1) the number of borrowers with a primary 12
1501	1501	residence with negative equity in each State; and 13
1502	1502	(2) the share of neighborhoods with an ap-14
1503	1503	praisal gap in each State. 15
1504	1504	(d) A
1505	1505	UTHORIZATION OFAPPROPRIATIONS.—There is 16
1506	1506	authorized to be appropriated to carry out this section 17
1507	1507	$5,000,000,000 for fiscal year 2025. 18
1508	1508	SEC. 203. STRENGTHENING THE COMMUNITY REINVEST-19
1509	1509	MENT ACT OF 1977. 20
1510	1510	(a) S
1511	1511	HORTTITLE.—This section may be cited as the 21
1512	1512	‘‘Community Reinvestment Reform Act of 2025’’. 22
1513	1513	(b) A
1514	1514	MENDMENTS TO THE COMMUNITYREINVEST-23
1515	1515	MENTACT OF1977.—The Community Reinvestment Act 24
1516	1516	of 1977 (12 U.S.C. 2901 et seq.) is amended— 25
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1519	1519	•HR 2038 IH
1520	1520	(1) by striking sections 802 and 803 (12 U.S.C. 1
1521	1521	2901, 2902) and inserting the following: 2
1522	1522	‘‘SEC. 802. FINDINGS AND PURPOSE. 3
1523	1523	‘‘(a) F
1524	1524	INDINGS.—Congress finds that— 4
1525	1525	‘‘(1) regulated financial institutions are re-5
1526	1526	quired by law to demonstrate that they serve the 6
1527	1527	convenience and needs of the communities in which 7
1528	1528	they are chartered or do business, in particular low- 8
1529	1529	and moderate-income communities; 9
1530	1530	‘‘(2) the convenience and needs of communities 10
1531	1531	include the need for credit services, deposit services, 11
1532	1532	transaction services, other financial services, and 12
1533	1533	community development loans and investments; and 13
1534	1534	‘‘(3) regulated financial institutions have a con-14
1535	1535	tinuing and affirmative obligation to meet the credit 15
1536	1536	or other financial needs of all the local communities 16
1537	1537	in which they are chartered or do business, including 17
1538	1538	communities in which— 18
1539	1539	‘‘(A) the institutions make loans and do 19
1540	1540	not accept deposits; or 20
1541	1541	‘‘(B) the institutions accept deposits but 21
1542	1542	do not make loans. 22
1543	1543	‘‘(b) P
1544	1544	URPOSE.—It is the purpose of this title to re-23
1545	1545	quire each appropriate Federal financial supervisory agen-24
1546	1546	cy to use its authority when examining regulated financial 25
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1549	1549	•HR 2038 IH
1550	1550	institutions to ensure that those institutions meet the 1
1551	1551	credit and other financial needs of the local communities 2
1552	1552	in which they are chartered or do business consistent with 3
1553	1553	the safe and sound operation of those institutions. 4
1554	1554	‘‘SEC. 803. DEFINITIONS. 5
1555	1555	‘‘In this title: 6
1556	1556	‘‘(1) A
1557	1557	PPLICATION FOR A DEPOSIT FACILITY .— 7
1558	1558	The term ‘application for a deposit facility’ means 8
1559	1559	an application to the appropriate Federal financial 9
1560	1560	supervisory agency otherwise required under Federal 10
1561	1561	law or regulations thereunder for— 11
1562	1562	‘‘(A) a charter for a national bank or Fed-12
1563	1563	eral savings and loan association; 13
1564	1564	‘‘(B) deposit insurance in connection with 14
1565	1565	a newly chartered State bank, savings bank, 15
1566	1566	savings and loan association, or similar institu-16
1567	1567	tion; 17
1568	1568	‘‘(C) the establishment of a domestic 18
1569	1569	branch or other facility with the ability to ac-19
1570	1570	cept deposits of a regulated financial institu-20
1571	1571	tion; 21
1572	1572	‘‘(D) the relocation of the home office or a 22
1573	1573	branch office of a regulated financial institu-23
1574	1574	tion; 24
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1577	1577	•HR 2038 IH
1578	1578	‘‘(E) the merger or consolidation with, the 1
1579	1579	acquisition of the assets of, or the assumption 2
1580	1580	of the liabilities of a regulated financial institu-3
1581	1581	tion requiring approval under section 18(c) of 4
1582	1582	the Federal Deposit Insurance Act (12 U.S.C. 5
1583	1583	1828(c)); or 6
1584	1584	‘‘(F) the acquisition of shares in, or the as-7
1585	1585	sets of, a regulated financial institution requir-8
1586	1586	ing approval under section 3 of the Bank Hold-9
1587	1587	ing Company Act of 1956 (12 U.S.C. 1842). 10
1588	1588	‘‘(2) A
1589	1589	PPROPRIATE FEDERAL BANKING AGEN -11
1590	1590	CY.—The term ‘appropriate Federal banking agency’ 12
1591	1591	has the meaning given the term in section 3 of the 13
1592	1592	Federal Deposit Insurance Act (12 U.S.C. 1813). 14
1593	1593	‘‘(3) A
1594	1594	PPROPRIATE FEDERAL FINANCIAL SU -15
1595	1595	PERVISORY AGENCY .—The term ‘appropriate Fed-16
1596	1596	eral financial supervisory agency’ means— 17
1597	1597	‘‘(A) the appropriate Federal banking 18
1598	1598	agency with respect to depository institutions 19
1599	1599	and depository institution holding companies; 20
1600	1600	and 21
1601	1601	‘‘(B) the Bureau of Consumer Financial 22
1602	1602	Protection with respect to any covered person 23
1603	1603	supervised by the Bureau pursuant to section 24
1604	1604	1024 of the Dodd-Frank Wall Street Reform 25
1605	1605	VerDate Sep 11 2014 23:05 Mar 22, 2025 Jkt 059200 PO 00000 Frm 00054 Fmt 6652 Sfmt 6201 E:\BILLS\H2038.IH H2038
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1607	1607	•HR 2038 IH
1608	1608	and Consumer Protection Act (12 U.S.C. 1
1609	1609	5514). 2
1610	1610	‘‘(4) A
1611	1611	SSESSMENT AREA .—The term ‘assess-3
1612	1612	ment area’ means, with respect to a regulated finan-4
1613	1613	cial institution, each community, including a State, 5
1614	1614	metropolitan area, or urban or rural county, in 6
1615	1615	which the institution— 7
1616	1616	‘‘(A) maintains deposit-taking branches, 8
1617	1617	automated teller machines, or retail offices; 9
1618	1618	‘‘(B) is represented by an agent; or 10
1619	1619	‘‘(C) issues a significant number of loans 11
1620	1620	or other products relative to the total number 12
1621	1621	of loans or other products made by the institu-13
1622	1622	tion or relative to the total number of loans or 14
1623	1623	other products offered by the private sector 15
1624	1624	market. 16
1625	1625	‘‘(5) C
1626	1626	LIMATE RESILIENCY AND DISASTER MITI -17
1627	1627	GATION.—The term ‘climate resiliency and disaster 18
1628	1628	mitigation’ means activities that— 19
1629	1629	‘‘(A) assist individuals and communities to 20
1630	1630	prepare for, adapt to, and withstand climate-re-21
1631	1631	lated risks, natural disasters, or weather-related 22
1632	1632	disasters; 23
1633	1633	‘‘(B) benefit or serve residents of low- to 24
1634	1634	moderate-income census tracts or climate vul-25
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1637	1637	•HR 2038 IH
1638	1638	nerable communities and do not directly result 1
1639	1639	in forced or involuntary relocation of those resi-2
1640	1640	dents; and 3
1641	1641	‘‘(C) are done in conjunction with— 4
1642	1642	‘‘(i) a plan, program or initiative of a 5
1643	1643	Federal, State, local or Tribal government; 6
1644	1644	or 7
1645	1645	‘‘(ii) a mission-driven nonprofit orga-8
1646	1646	nization that is focused on benefiting or 9
1647	1647	serving targeted census tracts or climate 10
1648	1648	vulnerable communities. 11
1649	1649	‘‘(6) C
1650	1650	LIMATE VULNERABLE COMMUNITIES .— 12
1651	1651	The term ‘climate vulnerable communities’ means 13
1652	1652	communities experiencing heightened risk and in-14
1653	1653	creased sensitivity to climate change with less capac-15
1654	1654	ity and fewer resources to cope with, adapt to, or re-16
1655	1655	cover from climate impacts, as determined by the 17
1656	1656	appropriate Federal financial supervisory agencies. 18
1657	1657	‘‘(7) C
1658	1658	OMMUNITY BENEFITS PLAN .—The term 19
1659	1659	‘community benefits plan’ means a plan that pro-20
1660	1660	vides measurable goals for future amounts of safe 21
1661	1661	and sound loans, investments, services, and other fi-22
1662	1662	nancial products for low- and moderate-income com-23
1663	1663	munities and other distressed or underserved com-24
1664	1664	munities. 25
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1667	1667	•HR 2038 IH
1668	1668	‘‘(8) COMMUNITY DEVELOPMENT .—The term 1
1669	1669	‘community development’ includes— 2
1670	1670	‘‘(A) affordable housing for low- or mod-3
1671	1671	erate-income individuals and avoidance of pat-4
1672	1672	terns of lending resulting in the loss of afford-5
1673	1673	able housing units and housing for low- and 6
1674	1674	moderate-income individuals in high-opportunity 7
1675	1675	areas; 8
1676	1676	‘‘(B) community development services, in-9
1677	1677	cluding counseling and successful mortgage or 10
1678	1678	loan modifications of delinquent loans; 11
1679	1679	‘‘(C) activities that promote integration; 12
1680	1680	‘‘(D) activities that promote economic de-13
1681	1681	velopment by financing small businesses or 14
1682	1682	farms that meet the size eligibility requirements 15
1683	1683	of the development company or small business 16
1684	1684	investment company programs under section 17
1685	1685	121.301 of title 13, Code of Federal Regula-18
1686	1686	tions, or any successor regulation, with an em-19
1687	1687	phasis on small businesses that have gross an-20
1688	1688	nual revenues of not more than $1,000,000; 21
1689	1689	‘‘(E) activities that revitalize or stabilize— 22
1690	1690	‘‘(i) low- or moderate-income geog-23
1691	1691	raphies; 24
1692	1692	‘‘(ii) designated disaster areas; 25
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1695	1695	•HR 2038 IH
1696	1696	‘‘(iii) distressed or underserved non-1
1697	1697	metropolitan middle-income geographies 2
1698	1698	designated by the Federal Financial Insti-3
1699	1699	tutions Examination Council, based on— 4
1700	1700	‘‘(I) rates of poverty, unemploy-5
1701	1701	ment, and population loss; or 6
1702	1702	‘‘(II) population size, density, 7
1703	1703	and dispersion, if those activities help 8
1704	1704	to meet essential community needs, 9
1705	1705	including the needs of low- and mod-10
1706	1706	erate-income individuals; or 11
1707	1707	‘‘(iv) other distressed or underserved 12
1708	1708	communities; 13
1709	1709	‘‘(F) activities that promote physical, envi-14
1710	1710	ronmental, and sensory accessibility in housing 15
1711	1711	stock that is integrated into the community; 16
1712	1712	and 17
1713	1713	‘‘(G) other activities that promote the ob-18
1714	1714	jectives of this title, as determined by the ap-19
1715	1715	propriate Federal financial supervisory agen-20
1716	1716	cies. 21
1717	1717	‘‘(9) D
1718	1718	EPOSITORY INSTITUTION ; DEPOSITORY 22
1719	1719	INSTITUTION HOLDING COMPANY ; INSURED DEPOSI-23
1720	1720	TORY INSTITUTION.—The terms ‘depository institu-24
1721	1721	tion’, ‘depository institution holding company’, and 25
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1724	1724	•HR 2038 IH
1725	1725	‘insured depository institution’ have the meanings 1
1726	1726	given those terms in section 3 of the Federal De-2
1727	1727	posit Insurance Act (12 U.S.C. 1813). 3
1728	1728	‘‘(10) E
1729	1729	NTIRE COMMUNITY .—The term ‘entire 4
1730	1730	community’ means— 5
1731	1731	‘‘(A) all of the assessment areas of a regu-6
1732	1732	lated financial institution; and 7
1733	1733	‘‘(B) areas outside of assessment areas de-8
1734	1734	scribed in subparagraph (A) in which a regu-9
1735	1735	lated financial institution has made loans or re-10
1736	1736	ceived deposits. 11
1737	1737	‘‘(11) E
1738	1738	NUMERATED CONSUMER LAWS .—The 12
1739	1739	term ‘enumerated consumer laws’ has the meaning 13
1740	1740	given the term in section 1002 of the Consumer Fi-14
1741	1741	nancial Protection Act of 2010 (12 U.S.C. 5481). 15
1742	1742	‘‘(12) F
1743	1743	OSSIL FUEL.—The term ‘fossil fuel’ 16
1744	1744	means coal, petroleum, methane gas (often referred 17
1745	1745	to as ‘natural gas’), or any derivative of coal, petro-18
1746	1746	leum, or methane gas that is used for fuel directly 19
1747	1747	or indirectly, such as for generating electricity. 20
1748	1748	‘‘(13) F
1749	1749	OSSIL FUEL COMPANY .—The term ‘fos-21
1750	1750	sil fuel company’ means any company that— 22
1751	1751	‘‘(A) is among the 200 companies with the 23
1752	1752	largest fossil fuel reserves in the world; 24
1753	1753	VerDate Sep 11 2014 23:05 Mar 22, 2025 Jkt 059200 PO 00000 Frm 00059 Fmt 6652 Sfmt 6201 E:\BILLS\H2038.IH H2038
1754	1754	kjohnson on DSK7ZCZBW3PROD with $$_JOB 60
1755	1755	•HR 2038 IH
1756	1756	‘‘(B) is among the 30 largest public com-1
1757	1757	pany owners in the world of coal-fired power 2
1758	1758	plants; 3
1759	1759	‘‘(C) has as its core business— 4
1760	1760	‘‘(i) the construction or operation of 5
1761	1761	fossil fuel infrastructure; or 6
1762	1762	‘‘(ii) the exploration, extraction, refin-7
1763	1763	ing, processing or distribution of fossil 8
1764	1764	fuels; or 9
1765	1765	‘‘(D) receives more than 50 percent of its 10
1766	1766	gross revenue from companies that meet the 11
1767	1767	definition under subparagraph (A), (B), or (C). 12
1768	1768	‘‘(14) F
1769	1769	OSSIL FUEL EXPANSION .—The term 13
1770	1770	‘fossil fuel expansion’ means financing for new fossil 14
1771	1771	fuel infrastructure projects, including financing of 15
1772	1772	exploration activities, that would— 16
1773	1773	‘‘(A) increase greenhouse gas emissions; 17
1774	1774	and 18
1775	1775	‘‘(B) increase the difficulty of achieving 19
1776	1776	Federal, State, or local carbon emission reduc-20
1777	1777	tion goals. 21
1778	1778	‘‘(15) F
1779	1779	OSSIL FUEL INFRASTRUCTURE .—The 22
1780	1780	term ‘fossil fuel infrastructure’ means oil or gas 23
1781	1781	wells, oil or gas pipelines and refineries, oil, coal or 24
1782	1782	gas-fired power plants, oil and gas storage tanks, 25
1783	1783	VerDate Sep 11 2014 23:05 Mar 22, 2025 Jkt 059200 PO 00000 Frm 00060 Fmt 6652 Sfmt 6201 E:\BILLS\H2038.IH H2038
1784	1784	kjohnson on DSK7ZCZBW3PROD with $$_JOB 61
1785	1785	•HR 2038 IH
1786	1786	fossil fuel export terminals, and any other infra-1
1787	1787	structure used exclusively for fossil fuels, including 2
1788	1788	facilities with carbon capture, utilization, and stor-3
1789	1789	age. 4
1790	1790	‘‘(16) G
1791	1791	EOGRAPHY.—The term ‘geography’ 5
1792	1792	means a census tract delineated by the Bureau of 6
1793	1793	the Census in the most recent decennial census. 7
1794	1794	‘‘(17) I
1795	1795	NTERMEDIATE BANK .—The term ‘inter-8
1796	1796	mediate bank’ is a depository institution with assets 9
1797	1797	of not less than $402,000,000 and less than 10
1798	1798	$1,609,000,000, as adjusted annually for purposes 11
1799	1799	of an examination under section 804. 12
1800	1800	‘‘(18) L
1801	1801	ARGE BANK.—The term ‘large bank’ is 13
1802	1802	a depository institution with assets of not less than 14
1803	1803	$1,609,000,000, as adjusted annually for purposes 15
1804	1804	of an examination under section 804. 16
1805	1805	‘‘(19) O
1806	1806	THER DISTRESSED OR UNDERSERVED 17
1807	1807	COMMUNITY.—The term ‘other distressed or under-18
1808	1808	served community’ means an area or census tract 19
1809	1809	that, according to a periodic review and data anal-20
1810	1810	ysis by the appropriate Federal financial supervisory 21
1811	1811	agencies on an interagency basis through the Fed-22
1812	1812	eral Financial Institutions Examination Council of 23
1813	1813	certain metrics, such as loans per households or 24
1814	1814	VerDate Sep 11 2014 23:05 Mar 22, 2025 Jkt 059200 PO 00000 Frm 00061 Fmt 6652 Sfmt 6201 E:\BILLS\H2038.IH H2038
1815	1815	kjohnson on DSK7ZCZBW3PROD with $$_JOB 62
1816	1816	•HR 2038 IH
1817	1817	small business, is experiencing economic hardship or 1
1818	1818	is underserved by financial institutions. 2
1819	1819	‘‘(20) O
1820	1820	THER UNDERSERVED POPULATION .— 3
1821	1821	The term ‘other underserved population’ means a 4
1822	1822	population that is experiencing ongoing effects of 5
1823	1823	discrimination or is relatively underserved by finan-6
1824	1824	cial institutions, as measured by loans per house-7
1825	1825	holds or other similar metrics. 8
1826	1826	‘‘(21) R
1827	1827	EGULATED FINANCIAL INSTITUTION .— 9
1828	1828	The term ‘regulated financial institution’ means— 10
1829	1829	‘‘(A) an insured depository institution; 11
1830	1830	‘‘(B) a depository institution holding com-12
1831	1831	pany; and 13
1832	1832	‘‘(C) a U.S. nonbank mortgage originator. 14
1833	1833	‘‘(22) R
1834	1834	ETAIL LENDING ASSESSMENT AREA .— 15
1835	1835	The term ‘retail lending assessment area’ means a 16
1836	1836	geographical area in which a regulated financial in-17
1837	1837	stitution— 18
1838	1838	‘‘(A) makes a threshold number of loans, 19
1839	1839	as determined by the appropriated Federal su-20
1840	1840	pervisory agencies; 21
1841	1841	‘‘(B) does not have branches, deposit-tak-22
1842	1842	ing automated teller machines, or offices; and 23
1843	1843	‘‘(C) is not represented by agents. 24
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1845	1845	kjohnson on DSK7ZCZBW3PROD with $$_JOB 63
1846	1846	•HR 2038 IH
1847	1847	‘‘(23) SMALL BANK.—The term ‘small bank’ is 1
1848	1848	a depository institution with assets of less than 2
1849	1849	$402,000,000, as adjusted annually to take into ac-3
1850	1850	count inflation for purposes of determining which in-4
1851	1851	stitutions are subject to an examination under sec-5
1852	1852	tion 804. 6
1853	1853	‘‘(24) U.S.
1854	1854	NONBANK MORTGAGE ORIGI -7
1855	1855	NATOR.—The term ‘U.S. nonbank mortgage origi-8
1856	1856	nator’ means a covered person subject to section 9
1857	1857	1024 of the Dodd-Frank Wall Street Reform and 10
1858	1858	Consumer Protection Act (12 U.S.C. 5514) that of-11
1859	1859	fers or provides— 12
1860	1860	‘‘(A) origination of loans secured by real 13
1861	1861	estate for use by consumers primarily for per-14
1862	1862	sonal, family, or household purposes; or 15
1863	1863	‘‘(B) loan modification or foreclosure relief 16
1864	1864	services in connection with a loan described in 17
1865	1865	subparagraph (A).’’; 18
1866	1866	(2) in section 804 (12 U.S.C. 2903)— 19
1867	1867	(A) by redesignating subsections (c) and 20
1868	1868	(d) as subsections (f) and (g), respectively; 21
1869	1869	(B) by striking subsections (a) and (b) and 22
1870	1870	inserting the following: 23
1871	1871	‘‘(a) D
1872	1872	EPOSITORYINSTITUTIONS AND BANKHOLD-24
1873	1873	INGCOMPANIES.— 25
1874	1874	VerDate Sep 11 2014 23:05 Mar 22, 2025 Jkt 059200 PO 00000 Frm 00063 Fmt 6652 Sfmt 6201 E:\BILLS\H2038.IH H2038
1875	1875	kjohnson on DSK7ZCZBW3PROD with $$_JOB 64
1876	1876	•HR 2038 IH
1877	1877	‘‘(1) IN GENERAL.—In connection with its ex-1
1878	1878	amination of a regulated financial institution other 2
1879	1879	than a U.S. nonbank mortgage originator, the ap-3
1880	1880	propriate Federal financial supervisory agency shall 4
1881	1881	perform the following: 5
1882	1882	‘‘(A) Assess the record of the institution in 6
1883	1883	meeting the credit and other financial needs of 7
1884	1884	its entire community, in particular low- and 8
1885	1885	moderate-income people and communities, and 9
1886	1886	other distressed or underserved communities, 10
1887	1887	and other underserved populations consistent 11
1888	1888	with the safe and sound operation of the insti-12
1889	1889	tution. 13
1890	1890	‘‘(B) Assess the effectiveness of the fol-14
1891	1891	lowing activities in meeting the credit and other 15
1892	1892	financial needs of the assessment areas of the 16
1893	1893	institution, consistent with the safe and sound 17
1894	1894	operation of the institution: 18
1895	1895	‘‘(i) Retail lending, including home, 19
1896	1896	small business, consumer, automobile, and 20
1897	1897	other lending and financial products, that 21
1898	1898	responds to credit needs or other financial 22
1899	1899	needs. 23
1900	1900	VerDate Sep 11 2014 23:05 Mar 22, 2025 Jkt 059200 PO 00000 Frm 00064 Fmt 6652 Sfmt 6201 E:\BILLS\H2038.IH H2038
1901	1901	kjohnson on DSK7ZCZBW3PROD with $$_JOB 65
1902	1902	•HR 2038 IH
1903	1903	‘‘(ii) Community development lending 1
1904	1904	and investments, which may include a con-2
1905	1905	sideration of— 3
1906	1906	‘‘(I) the origination of loans and 4
1907	1907	other efforts by the institution to as-5
1908	1908	sist existing low- and moderate-income 6
1909	1909	residents to remain in affordable 7
1910	1910	housing in their community; and 8
1911	1911	‘‘(II) the origination of loans by 9
1912	1912	the institution that result in the con-10
1913	1913	struction, rehabilitation, or preserva-11
1914	1914	tion of affordable housing units. 12
1915	1915	‘‘(iii) Community development finance 13
1916	1916	tests or similar tests developed by the ap-14
1917	1917	propriate Federal banking agencies shall 15
1918	1918	include separate quantitative measures for 16
1919	1919	community development investments. The 17
1920	1920	evaluation of investments shall positively or 18
1921	1921	negatively affect test scores depending on 19
1922	1922	bank performance, in community develop-20
1923	1923	ment finance tests or similar tests. 21
1924	1924	‘‘(iv) Retail financial services and 22
1925	1925	community development services. 23
1926	1926	‘‘(v) Evaluation of the responsiveness, 24
1927	1927	affordability, and sustainability of retail fi-25
1928	1928	VerDate Sep 11 2014 23:05 Mar 22, 2025 Jkt 059200 PO 00000 Frm 00065 Fmt 6652 Sfmt 6201 E:\BILLS\H2038.IH H2038
1929	1929	kjohnson on DSK7ZCZBW3PROD with $$_JOB 66
1930	1930	•HR 2038 IH
1931	1931	nancial services including credit and de-1
1932	1932	posit products shall positively or negatively 2
1933	1933	affect tests scores, depending on bank per-3
1934	1934	formance, in the retail products and serv-4
1935	1935	ice test or similar tests. 5
1936	1936	‘‘(vi) Retail lending assessment areas 6
1937	1937	shall be established for large banks and in-7
1938	1938	termediate banks if not more than 90 per-8
1939	1939	cent of the retail loans of the bank are in 9
1940	1940	assessment areas containing their branches 10
1941	1941	and deposit-taking automated teller ma-11
1942	1942	chines. Large banks and intermediate bank 12
1943	1943	evaluations shall also examine lending out-13
1944	1944	side of retail lending assessment areas and 14
1945	1945	assessment areas containing branches and 15
1946	1946	deposit-taking automated teller machines. 16
1947	1947	Evaluations of these loans shall be consid-17
1948	1948	ered when assigning an institution level 18
1949	1949	rating to the bank. 19
1950	1950	‘‘(C) With respect to its evaluation of an 20
1951	1951	application for a deposit facility by the institu-21
1952	1952	tion— 22
1953	1953	‘‘(i) consider the record described in 23
1954	1954	subparagraph (A), the effectiveness of the 24
1955	1955	activities described in subparagraph (B), 25
1956	1956	VerDate Sep 11 2014 23:05 Mar 22, 2025 Jkt 059200 PO 00000 Frm 00066 Fmt 6652 Sfmt 6201 E:\BILLS\H2038.IH H2038
1957	1957	kjohnson on DSK7ZCZBW3PROD with $$_JOB 67
1958	1958	•HR 2038 IH
1959	1959	the overall rating of the institution under 1
1960	1960	this section, and any improvement plans 2
1961	1961	submitted pursuant to this section; 3
1962	1962	‘‘(ii) provide an opportunity for public 4
1963	1963	comment for a period of not less than 60 5
1964	1964	days; 6
1965	1965	‘‘(iii) consider changes in the commu-7
1966	1966	nity reinvestment performance of the insti-8
1967	1967	tution since the most recent rating under 9
1968	1968	this section by the appropriate Federal fi-10
1969	1969	nancial supervisory agency; and 11
1970	1970	‘‘(iv) require— 12
1971	1971	‘‘(I) a demonstration of public 13
1972	1972	benefit, including a community bene-14
1973	1973	fits plan with measurable goals re-15
1974	1974	garding increasing responsible lending 16
1975	1975	and other financial products that is 17
1976	1976	commensurate with the ability of the 18
1977	1977	institution to accomplish those goals; 19
1978	1978	‘‘(II) that the institution consult 20
1979	1979	with community-based organizations 21
1980	1980	and other community stakeholders in 22
1981	1981	developing the community benefits 23
1982	1982	plan; and 24
1983	1983	VerDate Sep 11 2014 23:05 Mar 22, 2025 Jkt 059200 PO 00000 Frm 00067 Fmt 6652 Sfmt 6201 E:\BILLS\H2038.IH H2038
1984	1984	kjohnson on DSK7ZCZBW3PROD with $$_JOB 68
1985	1985	•HR 2038 IH
1986	1986	‘‘(III) a public hearing for any 1
1987	1987	institution that has a received a ‘need- 2
1988	1988	to-improve’ or ‘low satisfactory’ grade 3
1989	1989	in any individual assessment area dur-4
1990	1990	ing the most recent examination. 5
1991	1991	‘‘(2) C
1992	1992	ONSIDERATION OF LENDING IN PART -6
1993	1993	NERSHIP WITH NON-DEPOSITORY LENDERS .— 7
1994	1994	‘‘(A) I
1995	1995	N GENERAL.—As part of assessing a 8
1996	1996	financial institution under paragraph (1), the 9
1997	1997	appropriate Federal financial supervisory agen-10
1998	1998	cy shall evaluate the performance of the finan-11
1999	1999	cial institution in originating loans for small 12
2000	2000	farms, consumer loans (including residential 13
2001	2001	mortgages, unsecured installment loans, ad-14
2002	2002	vances, and lines of credit), and loans for small 15
2003	2003	businesses (including unsecured installment 16
2004	2004	loans, advances, and lines of credit) in partner-17
2005	2005	ship with 1 or more non-depository lenders. 18
2006	2006	‘‘(B) A
2007	2007	FFORDABILITY AND SUSTAIN -19
2008	2008	ABILITY.—In making the evaluation described 20
2009	2009	in subparagraph (A), the appropriate Federal 21
2010	2010	financial supervisory agency shall consider the 22
2011	2011	affordability and sustainability of the loan origi-23
2012	2012	nations made in partnership with 1 or more 24
2013	2013	non-depository lenders. 25
2014	2014	VerDate Sep 11 2014 23:05 Mar 22, 2025 Jkt 059200 PO 00000 Frm 00068 Fmt 6652 Sfmt 6201 E:\BILLS\H2038.IH H2038
2015	2015	kjohnson on DSK7ZCZBW3PROD with $$_JOB 69
2016	2016	•HR 2038 IH
2017	2017	‘‘(C) DEFINITIONS.—In this paragraph: 1
2018	2018	‘‘(i) N
2019	2019	ON-DEPOSITORY LENDER .—The 2
2020	2020	term ‘non-depository lender’ means a lend-3
2021	2021	er that is not an insured depository institu-4
2022	2022	tion. 5
2023	2023	‘‘(ii) S
2024	2024	MALL BUSINESS ; SMALL 6
2025	2025	FARM.—The terms ‘small business’ and 7
2026	2026	‘small farm’ have the meanings given those 8
2027	2027	terms under the regulations promulgated 9
2028	2028	by the Bureau implementing the amend-10
2029	2029	ments made by section 1071 of the Dodd 11
2030	2030	Frank Wall Street Reform and Consumer 12
2031	2031	Protection Act of 2010 (Public Law 111– 13
2032	2032	203; 124 Stat. 2056) under part 1002 of 14
2033	2033	title 12, Code of Federal Regulations, or 15
2034	2034	any successor regulation. 16
2035	2035	‘‘(3) D
2036	2036	EDUCTIONS FOR FOSSIL EXPANSION .— 17
2037	2037	‘‘(A) I
2038	2038	N GENERAL.—As part of assessing a 18
2039	2039	financial institution under paragraph (1), the 19
2040	2040	appropriate Federal financial supervisory agen-20
2041	2041	cy shall— 21
2042	2042	‘‘(i) determine the total dollar amount 22
2043	2043	of loans and investments to fossil fuel com-23
2044	2044	panies for the purposes of fossil fuel ex-24
2045	2045	pansion that were originated or held by the 25
2046	2046	VerDate Sep 11 2014 23:05 Mar 22, 2025 Jkt 059200 PO 00000 Frm 00069 Fmt 6652 Sfmt 6201 E:\BILLS\H2038.IH H2038
2047	2047	kjohnson on DSK7ZCZBW3PROD with $$_JOB 70
2048	2048	•HR 2038 IH
2049	2049	financial institution during the period cov-1
2050	2050	ered by an examination under section 804; 2
2051	2051	and 3
2052	2052	‘‘(ii) deduct not more than that total 4
2053	2053	dollar amount from the reported commu-5
2054	2054	nity development loans and investments of 6
2055	2055	the financial institution, both in the aggre-7
2056	2056	gate and at the local market, or assess-8
2057	2057	ment area, level. 9
2058	2058	‘‘(B) A
2059	2059	CTIVITIES.—The deduction de-10
2060	2060	scribed in subparagraph (A)(ii) may only be off-11
2061	2061	set by financing by the institution of climate re-12
2062	2062	siliency and disaster mitigation activities spe-13
2063	2063	cifically targeted to underserved communities, 14
2064	2064	such as— 15
2065	2065	‘‘(i) the development of climate resil-16
2066	2066	ient affordable housing, schools, and small 17
2067	2067	businesses (as defined in paragraph 18
2068	2068	(2)(C)); 19
2069	2069	‘‘(ii) clean electricity projects and 20
2070	2070	microgrids; 21
2071	2071	‘‘(iii) nature-based protective infra-22
2072	2072	structure; 23
2073	2073	VerDate Sep 11 2014 23:05 Mar 22, 2025 Jkt 059200 PO 00000 Frm 00070 Fmt 6652 Sfmt 6201 E:\BILLS\H2038.IH H2038
2074	2074	kjohnson on DSK7ZCZBW3PROD with $$_JOB 71
2075	2075	•HR 2038 IH
2076	2076	‘‘(iv) building decarbonization, which 1
2077	2077	includes holistic home weatherization and 2
2078	2078	health interventions; 3
2079	2079	‘‘(v) lending to green small businesses 4
2080	2080	and companies with legitimate public 5
2081	2081	decarbonization transition plans, strate-6
2082	2082	gies, and targets; 7
2083	2083	‘‘(vi) electric public transit and elec-8
2084	2084	tric vehicle charging infrastructure; 9
2085	2085	‘‘(vii) investments in weatherization 10
2086	2086	and climate resilience for local businesses; 11
2087	2087	‘‘(viii) operational and technical sup-12
2088	2088	port and capacity building for environ-13
2089	2089	mental and climate justice organizations, 14
2090	2090	including support for community groups 15
2091	2091	active in environmental testing and train-16
2092	2092	ing of community members to identify cli-17
2093	2093	mate or environmental risks and opportu-18
2094	2094	nities in their communities; and 19
2095	2095	‘‘(ix) workforce development related to 20
2096	2096	the transition away from fossil fuels, in-21
2097	2097	cluding activities to train workers on skills 22
2098	2098	needed to participate in carbon-pollution- 23
2099	2099	free energy sectors. 24
2100	2100	VerDate Sep 11 2014 23:05 Mar 22, 2025 Jkt 059200 PO 00000 Frm 00071 Fmt 6652 Sfmt 6201 E:\BILLS\H2038.IH H2038
2101	2101	kjohnson on DSK7ZCZBW3PROD with $$_JOB 72
2102	2102	•HR 2038 IH
2103	2103	‘‘(4) PENALTIES FOR SUSTAINED FAILING PER -1
2104	2104	FORMANCE.—A regulated financial institution other 2
2105	2105	than a U.S. nonbank mortgage originator that re-3
2106	2106	ceives overall performance ratings under this section 4
2107	2107	of ‘needs to improve’ or ‘substantial noncompliance’ 5
2108	2108	for 2 consecutive examinations shall be subject to 6
2109	2109	the following penalties, as deemed applicable by the 7
2110	2110	appropriate Federal financial supervisory agency: 8
2111	2111	‘‘(A) Restrictions on the institution’s 9
2112	2112	growth (overall or in discrete areas), business 10
2113	2113	activities, or payment of dividends, including re-11
2114	2114	strictions on ability to sell loans originated by 12
2115	2115	the institution to enterprises, as defined in sec-13
2116	2116	tion 1303 of the Federal Housing Enterprises 14
2117	2117	Financial Safety and Soundness Act of 1992 15
2118	2118	(12 U.S.C. 4502). 16
2119	2119	‘‘(B) Recommendations to appropriate 17
2120	2120	State agencies that State mortgage licenses be 18
2121	2121	suspended or revoked with a statement of facts 19
2122	2122	covering the justification for the recommended 20
2123	2123	suspension or revocation. 21
2124	2124	‘‘(C) Requiring the institution to simplify 22
2125	2125	or reduce its operations, including that the in-23
2126	2126	stitution reduce its asset size, divest subsidi-24
2127	2127	VerDate Sep 11 2014 23:05 Mar 22, 2025 Jkt 059200 PO 00000 Frm 00072 Fmt 6652 Sfmt 6201 E:\BILLS\H2038.IH H2038
2128	2128	kjohnson on DSK7ZCZBW3PROD with $$_JOB 73
2129	2129	•HR 2038 IH
2130	2130	aries or business lines, or exit from 1 or more 1
2131	2131	markets of operation. 2
2132	2132	‘‘(D) Recovery, or claw back, of portions of 3
2133	2133	executive compensation received during consecu-4
2134	2134	tive evaluation periods under this section of 5
2135	2135	which the institution received an overall per-6
2136	2136	formance rating of ‘needs to improve’ or ‘sub-7
2137	2137	stantial noncompliance’. 8
2138	2138	‘‘(b) U.S. N
2139	2139	ONBANKMORTGAGEORIGINATOR.— 9
2140	2140	‘‘(1) I
2141	2141	N GENERAL.—In connection with its ex-10
2142	2142	amination of a U.S. nonbank mortgage originator, 11
2143	2143	the appropriate Federal financial supervisory agency 12
2144	2144	shall perform the following: 13
2145	2145	‘‘(A) Assess the record of the U.S. 14
2146	2146	nonbank mortgage originator in meeting the 15
2147	2147	credit or other financial needs of its entire com-16
2148	2148	munity, in particular low-income and moderate- 17
2149	2149	income people and communities and other dis-18
2150	2150	tressed or underserved communities and other 19
2151	2151	underserved populations, consistent with the 20
2152	2152	safe and sound operation of the U.S. nonbank 21
2153	2153	mortgage originator. 22
2154	2154	‘‘(B) Assess, as appropriate, the following 23
2155	2155	activities in the assessment areas of the U.S. 24
2156	2156	nonbank mortgage originator: 25
2157	2157	VerDate Sep 11 2014 23:05 Mar 22, 2025 Jkt 059200 PO 00000 Frm 00073 Fmt 6652 Sfmt 6201 E:\BILLS\H2038.IH H2038
2158	2158	kjohnson on DSK7ZCZBW3PROD with $$_JOB 74
2159	2159	•HR 2038 IH
2160	2160	‘‘(i) Retail lending, including home 1
2161	2161	loans. 2
2162	2162	‘‘(ii) Community development services. 3
2163	2163	‘‘(iii) Community development lending 4
2164	2164	and investments, which may include a con-5
2165	2165	sideration of— 6
2166	2166	‘‘(I) the origination of loans and 7
2167	2167	other efforts by the institution to as-8
2168	2168	sist existing low- and moderate-income 9
2169	2169	residents to remain in affordable 10
2170	2170	housing in their community; 11
2171	2171	‘‘(II) the origination of loans by 12
2172	2172	the institution that result in the con-13
2173	2173	struction, rehabilitation or preserva-14
2174	2174	tion of affordable housing units; and 15
2175	2175	‘‘(III) investments in, grants to, 16
2176	2176	or loans to community development fi-17
2177	2177	nancial institutions (as defined in sec-18
2178	2178	tion 103 of the Community Develop-19
2179	2179	ment Banking and Financial Institu-20
2180	2180	tions Act of 1994 (12 U.S.C. 4702)), 21
2181	2181	community development corporations 22
2182	2182	(as defined in section 613 of the Com-23
2183	2183	munity Economic Development Act of 24
2184	2184	1981 (42 U.S.C. 9802)), and other 25
2185	2185	VerDate Sep 11 2014 23:05 Mar 22, 2025 Jkt 059200 PO 00000 Frm 00074 Fmt 6652 Sfmt 6201 E:\BILLS\H2038.IH H2038
2186	2186	kjohnson on DSK7ZCZBW3PROD with $$_JOB 75
2187	2187	•HR 2038 IH
2188	2188	nonprofit organizations serving the 1
2189	2189	housing and development needs of the 2
2190	2190	community. 3
2191	2191	‘‘(iv) Retail lending assessment areas 4
2192	2192	shall be established if not more than 90 5
2193	2193	percent of the retail loans of the U.S. 6
2194	2194	nonbank originator are in containing of-7
2195	2195	fices or agents. The evaluations shall also 8
2196	2196	examine lending outside of retail lending 9
2197	2197	assessment areas and assessment areas 10
2198	2198	containing offices or agents. Evaluations of 11
2199	2199	these loans shall be considered when as-12
2200	2200	signing an institution level rating to the 13
2201	2201	U.S. nonbank mortgage originator. 14
2202	2202	‘‘(C) With respect to its evaluation of an 15
2203	2203	application for a deposit facility by the U.S. 16
2204	2204	nonbank mortgage originator— 17
2205	2205	‘‘(i) consider the record described in 18
2206	2206	subparagraph (A), the activities described 19
2207	2207	in subparagraph (B), the overall rating of 20
2208	2208	the U.S. nonbank mortgage originator 21
2209	2209	under this section, and any improvement 22
2210	2210	plans submitted pursuant to this section; 23
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2213	2213	•HR 2038 IH
2214	2214	‘‘(ii) provide an opportunity for public 1
2215	2215	comment for a period of not less than 60 2
2216	2216	days; 3
2217	2217	‘‘(iii) consider changes in the commu-4
2218	2218	nity reinvestment performance of the U.S. 5
2219	2219	nonbank mortgage originator since the 6
2220	2220	most recent rating under this section by 7
2221	2221	the appropriate Federal financial super-8
2222	2222	visory agency; and 9
2223	2223	‘‘(iv) require— 10
2224	2224	‘‘(I) a demonstration that grant-11
2225	2225	ing the application for a deposit facil-12
2226	2226	ity is in the public interest, which 13
2227	2227	shall include a submission of a com-14
2228	2228	munity benefits plan, which shall be 15
2229	2229	commensurate with the ability of the 16
2230	2230	institution to accomplish the plan, by 17
2231	2231	the U.S. nonbank mortgage originator 18
2232	2232	to the appropriate Federal financial 19
2233	2233	supervisory agency; 20
2234	2234	‘‘(II) that the U.S. nonbank 21
2235	2235	mortgage originator consult with com-22
2236	2236	munity-based organizations and other 23
2237	2237	community stakeholders in developing 24
2238	2238	the community benefits plan; and 25
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2240	2240	kjohnson on DSK7ZCZBW3PROD with $$_JOB 77
2241	2241	•HR 2038 IH
2242	2242	‘‘(III) a public hearing for any 1
2243	2243	U.S. nonbank mortgage originator 2
2244	2244	that has a received a ‘need-to-im-3
2245	2245	prove’ or ‘low satisfactory’ grade in 4
2246	2246	any individual assessment area during 5
2247	2247	the most recent examination. 6
2248	2248	‘‘(2) P
2249	2249	ENALTIES AND FEES .—The appropriate 7
2250	2250	Federal financial supervisory agency shall have the 8
2251	2251	same authority to assess penalties and fees under 9
2252	2252	subsection (a)(4) for U.S. nonbank mortgage origi-10
2253	2253	nator as is the case for regulated financial institu-11
2254	2254	tions described in subsection (a). 12
2255	2255	‘‘(3) A
2256	2256	UTHORITY TO ADJUST EXAMINATION AND 13
2257	2257	SUPERVISORY FEES.—The appropriate Federal fi-14
2258	2258	nancial supervisory agencies shall have the authority 15
2259	2259	to adjust the dollar amount of examination and su-16
2260	2260	pervisory fees, based in part on the rating of institu-17
2261	2261	tions under this section. 18
2262	2262	‘‘(c) R
2263	2263	EQUIREMENTS.— 19
2264	2264	‘‘(1) I
2265	2265	N GENERAL.—In connection with its ex-20
2266	2266	amination of a regulated financial institution under 21
2267	2267	subsection (a) or (b), the appropriate Federal finan-22
2268	2268	cial supervisory agency shall— 23
2269	2269	‘‘(A) consider public comments received by 24
2270	2270	the appropriate Federal financial supervisory 25
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2272	2272	kjohnson on DSK7ZCZBW3PROD with $$_JOB 78
2273	2273	•HR 2038 IH
2274	2274	agency regarding the record of the institution in 1
2275	2275	meeting the credit or other financial needs of 2
2276	2276	its entire community, including low- and mod-3
2277	2277	erate-income communities, and hold not less 4
2278	2278	than 1 public hearing to receive comments for 5
2279	2279	large banks with assets of not less than 6
2280	2280	$50,000,000,000; and 7
2281	2281	‘‘(B) require— 8
2282	2282	‘‘(i) an improvement plan for an insti-9
2283	2283	tution that receives a rating of ‘low satis-10
2284	2284	factory’ or lower on the written evaluation 11
2285	2285	of the institution, or such a rating in any 12
2286	2286	individual assessment area; and 13
2287	2287	‘‘(ii) the improvement plan described 14
2288	2288	in clause (i) to result in the reasonable 15
2289	2289	likelihood that the institution will obtain a 16
2290	2290	rating of at least ‘high satisfactory’ in 17
2291	2291	meeting community credit or other finan-18
2292	2292	cial needs in the relevant measure on the 19
2293	2293	next examination. 20
2294	2294	‘‘(2) I
2295	2295	MPROVEMENT PLAN .— 21
2296	2296	‘‘(A) I
2297	2297	N GENERAL.—A regulated financial 22
2298	2298	institution that is required to submit an im-23
2299	2299	provement plan required under paragraph 24
2300	2300	(1)(B) shall submit the plan in writing to the 25
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2302	2302	kjohnson on DSK7ZCZBW3PROD with $$_JOB 79
2303	2303	•HR 2038 IH
2304	2304	appropriate Federal financial supervisory agen-1
2305	2305	cy not later than 90 days after receiving notice 2
2306	2306	that the regulated financial institution is re-3
2307	2307	quired to submit the plan. 4
2308	2308	‘‘(B) P
2309	2309	UBLIC COMMENT.—Upon receipt of 5
2310	2310	an improvement plan of a regulated financial 6
2311	2311	institution required under paragraph (1)(B), 7
2312	2312	the appropriate Federal financial supervisory 8
2313	2313	agency shall— 9
2314	2314	‘‘(i) make the plan available to the 10
2315	2315	public for review and comment for a period 11
2316	2316	of not less than 60 days; and 12
2317	2317	‘‘(ii) require the regulated financial 13
2318	2318	institution to revise, as appropriate, the 14
2319	2319	improvement plan in response to the public 15
2320	2320	comments received under the public review 16
2321	2321	and comment period described in clause (i) 17
2322	2322	and submit the plan to the appropriate 18
2323	2323	Federal financial supervisory agency not 19
2324	2324	later than 60 days after the end of that pe-20
2325	2325	riod. 21
2326	2326	‘‘(3) E
2327	2327	XAMINATION OF CERTAIN REGULATED 22
2328	2328	FINANCIAL INSTITUTIONS.—In the case of a regu-23
2329	2329	lated financial institution whose lending or other 24
2330	2330	business is not clustered in geographical areas and 25
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2332	2332	kjohnson on DSK7ZCZBW3PROD with $$_JOB 80
2333	2333	•HR 2038 IH
2334	2334	is thinly dispersed across the country, the institution 1
2335	2335	shall— 2
2336	2336	‘‘(A) be evaluated under subsection (a) or 3
2337	2337	(b), as applicable— 4
2338	2338	‘‘(i) by considering the effectiveness of 5
2339	2339	the institution in serving customers or bor-6
2340	2340	rowers, with a special emphasis on low- 7
2341	2341	and moderate-income individuals and other 8
2342	2342	underserved populations across the country 9
2343	2343	regardless of where the individuals reside; 10
2344	2344	and 11
2345	2345	‘‘(ii) based on objective thresholds de-12
2346	2346	veloped by the appropriate Federal finan-13
2347	2347	cial supervisory agencies to clarify when 14
2348	2348	lending or other business is dispersed 15
2349	2349	across the country and not clustered in 16
2350	2350	distinct geographical areas, which may in-17
2351	2351	clude low levels of lending or other finan-18
2352	2352	cial products across States or other areas; 19
2353	2353	and 20
2354	2354	‘‘(B) meet the needs of other distressed or 21
2355	2355	underserved communities. 22
2356	2356	‘‘(d) C
2357	2357	ONSIDERATION.—Remediation of consumers 23
2358	2358	pursuant to an order by a court or administrative body 24
2359	2359	or a settlement with a government agency or a private 25
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2361	2361	kjohnson on DSK7ZCZBW3PROD with $$_JOB 81
2362	2362	•HR 2038 IH
2363	2363	party may not be considered in an assessment conducted 1
2364	2364	under subsection (a) or (b). 2
2365	2365	‘‘(e) R
2366	2366	ULE OFCONSTRUCTION.—An evaluation of a 3
2367	2367	bank holding company under this section shall incorporate 4
2368	2368	evaluations of subsidiary regulated financial institutions 5
2369	2369	made by the appropriate Federal financial supervisory 6
2370	2370	agency of each subsidiary, if applicable.’’; 7
2371	2371	(C) in subsection (f), as so redesignated— 8
2372	2372	(i) by striking paragraph (2); 9
2373	2373	(ii) by redesignating paragraph (3) as 10
2374	2374	paragraph (2); and 11
2375	2375	(iii) in paragraph (2), as so redesig-12
2376	2376	nated, by striking subparagraph (C); and 13
2377	2377	(D) in subsection (g), as so redesignated, 14
2378	2378	by striking ‘‘subsection (a)’’ and inserting ‘‘sub-15
2379	2379	sections (a) and (b)’’; 16
2380	2380	(3) in section 807 (12 U.S.C. 2906)— 17
2381	2381	(A) in subsection (a)— 18
2382	2382	(i) by striking ‘‘an insured depository 19
2383	2383	institution’’ and inserting ‘‘a regulated fi-20
2384	2384	nancial institution’’; and 21
2385	2385	(ii) by inserting ‘‘or financial’’ after 22
2386	2386	‘‘credit’’; 23
2387	2387	(B) in subsection (b)— 24
2388	2388	(i) in paragraph (1)— 25
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2390	2390	kjohnson on DSK7ZCZBW3PROD with $$_JOB 82
2391	2391	•HR 2038 IH
2392	2392	(I) in subparagraph (A)— 1
2393	2393	(aa) in clause (ii), by strik-2
2394	2394	ing ‘‘and’’ at the end; 3
2395	2395	(bb) by redesignating clause 4
2396	2396	(iii) as clause (iv); and 5
2397	2397	(cc) by inserting after clause 6
2398	2398	(ii) the following: 7
2399	2399	‘‘(iii) disclose whether the institution en-8
2400	2400	gaged in acts or practices that the Bureau of 9
2401	2401	Consumer Financial Protection has determined, 10
2402	2402	and has publicly disclosed, violate the enumer-11
2403	2403	ated consumer laws; and’’; and 12
2404	2404	(II) by striking subparagraph (B) 13
2405	2405	and inserting the following: 14
2406	2406	‘‘(B) E
2407	2407	VALUATION ON AN ASSESSMENT AREA 15
2408	2408	BASIS.—The information required under subsections 16
2409	2409	(a) and (b) of section 804 shall be presented sepa-17
2410	2410	rately for each assessment area. 18
2411	2411	‘‘(C) T
2412	2412	REATMENT WITH RESPECT TO VIOLA -19
2413	2413	TIONS OF ENUMERATED CONSUMER LAWS .—If a 20
2414	2414	regulated financial institution has engaged in acts or 21
2415	2415	practices that the appropriate Federal financial su-22
2416	2416	pervisory agency has determined to be unfair, decep-23
2417	2417	tive, or abusive or acts or practices that violate enu-24
2418	2418	merated consumer laws intended to ensure the fair, 25
2419	2419	VerDate Sep 11 2014 23:05 Mar 22, 2025 Jkt 059200 PO 00000 Frm 00082 Fmt 6652 Sfmt 6201 E:\BILLS\H2038.IH H2038
2420	2420	kjohnson on DSK7ZCZBW3PROD with $$_JOB 83
2421	2421	•HR 2038 IH
2422	2422	equitable, and nondiscriminatory access to credit for 1
2423	2423	individuals and communities that are enforced by 2
2424	2424	the Bureau of Consumer Financial Protection or 3
2425	2425	other Federal or State agencies, the written evalua-4
2426	2426	tion shall be negatively influenced in a manner com-5
2427	2427	mensurate with the extent of the harm suffered by 6
2428	2428	those individuals and communities.’’; 7
2429	2429	(ii) in paragraph (2)— 8
2430	2430	(I) by striking subparagraphs 9
2431	2431	(A), (B), (C), and (D) and inserting 10
2432	2432	the following: 11
2433	2433	‘‘(A) ‘Outstanding record of meeting com-12
2434	2434	munity credit or other financial needs’. 13
2435	2435	‘‘(B) ‘High Satisfactory record of meeting 14
2436	2436	community credit or other financial needs’. 15
2437	2437	‘‘(C) ‘Low Satisfactory record of meeting 16
2438	2438	community credit or other financial needs’. 17
2439	2439	‘‘(D) ‘Needs to improve record of meeting 18
2440	2440	community credit or other financial needs’. 19
2441	2441	‘‘(E) ‘Substantial noncompliance in meet-20
2442	2442	ing community credit or other financial 21
2443	2443	needs’.’’; and 22
2444	2444	(iii) by inserting after the flush text 23
2445	2445	following paragraph (2) the following: 24
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2447	2447	kjohnson on DSK7ZCZBW3PROD with $$_JOB 84
2448	2448	•HR 2038 IH
2449	2449	‘‘(3) ADDITIONAL AUTHORITY .—The appro-1
2450	2450	priate Federal financial supervisory agencies may— 2
2451	2451	‘‘(A) alter the ratings under this sub-3
2452	2452	section to change or include additional ratings 4
2453	2453	for the overall ratings and subtest ratings; and 5
2454	2454	‘‘(B) develop an accompanying point sys-6
2455	2455	tem that includes ranges for each rating cat-7
2456	2456	egory under paragraph (2).’’; 8
2457	2457	(C) by redesignating subsection (e) as sub-9
2458	2458	section (f); and 10
2459	2459	(D) by inserting after subsection (d) the 11
2460	2460	following: 12
2461	2461	‘‘(e) A
2462	2462	PPEALS OFRATING.—If a regulated financial 13
2463	2463	institution appeals the assigned rating under this section, 14
2464	2464	the appropriate Federal financial supervisory agency 15
2465	2465	shall— 16
2466	2466	‘‘(1) post a public notice of the appeal on the 17
2467	2467	part of the website of the appropriate Federal finan-18
2468	2468	cial supervisory agency that contains information on 19
2469	2469	this title; and 20
2470	2470	‘‘(2) provide an opportunity for public comment 21
2471	2471	on the appeal.’’; 22
2472	2472	(4) in section 806 (12 U.S.C. 2905)— 23
2473	2473	(A) by striking ‘‘Regulations’’ and insert-24
2474	2474	ing the following: 25
2475	2475	VerDate Sep 11 2014 23:05 Mar 22, 2025 Jkt 059200 PO 00000 Frm 00084 Fmt 6652 Sfmt 6201 E:\BILLS\H2038.IH H2038
2476	2476	kjohnson on DSK7ZCZBW3PROD with $$_JOB 85
2477	2477	•HR 2038 IH
2478	2478	‘‘(a) INGENERAL.—Regulations’’; 1
2479	2479	(B) in subsection (a), as so designated, by 2
2480	2480	striking ‘‘companies,,’’ and inserting ‘‘compa-3
2481	2481	nies,’’; and 4
2482	2482	(C) by adding at the end the following: 5
2483	2483	‘‘(b) P
2484	2484	ERIODICREVIEW.—Not later than 5 years 6
2485	2485	after the date of enactment of this subsection and every 7
2486	2486	5 years thereafter, the appropriate Federal financial su-8
2487	2487	pervisory agencies shall— 9
2488	2488	‘‘(1) review the regulations promulgated to 10
2489	2489	carry out this title; and 11
2490	2490	‘‘(2) report to Congress any recommendations 12
2491	2491	for updates to the regulations and this title, which 13
2492	2492	may include consideration of— 14
2493	2493	‘‘(A) data collection under this title; 15
2494	2494	‘‘(B) the rigor of evaluations under this 16
2495	2495	title; 17
2496	2496	‘‘(C) the assessment area coverage of loans 18
2497	2497	and deposits; and 19
2498	2498	‘‘(D) the extent to which the provisions of 20
2499	2499	this title are reducing disparities in access to 21
2500	2500	credit and capital by income and race.’’; and 22
2501	2501	(5) by adding at the end the following: 23
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2503	2503	kjohnson on DSK7ZCZBW3PROD with $$_JOB 86
2504	2504	•HR 2038 IH
2505	2505	‘‘SEC. 810. DATA COLLECTION AND REPORTING REQUIRE-1
2506	2506	MENTS. 2
2507	2507	‘‘(a) D
2508	2508	ATACOLLECTION.— 3
2509	2509	‘‘(1) C
2510	2510	ONSUMER LOANS.— 4
2511	2511	‘‘(A) I
2512	2512	N GENERAL.—Each regulated finan-5
2513	2513	cial institution shall collect and maintain in ma-6
2514	2514	chine readable form, as prescribed by the ap-7
2515	2515	propriate Federal financial supervisory agency, 8
2516	2516	data for consumer loans originated or pur-9
2517	2517	chased by the regulated financial institution, in-10
2518	2518	cluding motor vehicle loans, credit cards, lines 11
2519	2519	of credit, and other secured or unsecured loans. 12
2520	2520	The regulated financial institution shall main-13
2521	2521	tain data separately for each category of con-14
2522	2522	sumer loan, including the following for each 15
2523	2523	loan: 16
2524	2524	‘‘(i) A unique number or alpha-nu-17
2525	2525	meric symbol that can be used to identify 18
2526	2526	the relevant loan. 19
2527	2527	‘‘(ii) The loan amount at origination 20
2528	2528	or purchase. 21
2529	2529	‘‘(iii) The loan location. 22
2530	2530	‘‘(iv) The gross annual income of the 23
2531	2531	borrower that the regulated financial insti-24
2532	2532	tution considered in making its credit deci-25
2533	2533	sion. 26
2534	2534	VerDate Sep 11 2014 23:05 Mar 22, 2025 Jkt 059200 PO 00000 Frm 00086 Fmt 6652 Sfmt 6201 E:\BILLS\H2038.IH H2038
2535	2535	kjohnson on DSK7ZCZBW3PROD with $$_JOB 87
2536	2536	•HR 2038 IH
2537	2537	‘‘(B) EXEMPTIONS.—The appropriate Fed-1
2538	2538	eral financial supervisory agencies may exempt 2
2539	2539	classes of regulated financial institutions from 3
2540	2540	the requirements under subparagraph (A) due 4
2541	2541	to low levels of consumer lending or other fac-5
2542	2542	tors. 6
2543	2543	‘‘(2) C
2544	2544	OMMUNITY DEVELOPMENT LOANS AND 7
2545	2545	INVESTMENTS.— 8
2546	2546	‘‘(A) C
2547	2547	OLLECTION AND MAINTENANCE OF 9
2548	2548	DATA.—Each regulated financial institution 10
2549	2549	shall collect and maintain in machine readable 11
2550	2550	form, as prescribed by the appropriate Federal 12
2551	2551	financial supervisory agency, data on the cat-13
2552	2552	egories of community development lending and 14
2553	2553	investments, including data regarding financing 15
2554	2554	affordable housing, small business development, 16
2555	2555	and economic development. 17
2556	2556	‘‘(B) P
2557	2557	UBLIC DISSEMINATION.—Each reg-18
2558	2558	ulated financial institution and the appropriate 19
2559	2559	Federal financial supervisory agencies shall— 20
2560	2560	‘‘(i) publicly disseminate the data de-21
2561	2561	scribed in subparagraph (A) on a county 22
2562	2562	level and for categories of census tracts in-23
2563	2563	cluding low- and moderate-income census 24
2564	2564	VerDate Sep 11 2014 23:05 Mar 22, 2025 Jkt 059200 PO 00000 Frm 00087 Fmt 6652 Sfmt 6201 E:\BILLS\H2038.IH H2038
2565	2565	kjohnson on DSK7ZCZBW3PROD with $$_JOB 88
2566	2566	•HR 2038 IH
2567	2567	tracts or other distressed and underserved 1
2568	2568	census tracts; and 2
2569	2569	‘‘(ii) consider disseminating the data 3
2570	2570	described in subparagraph (A) by indi-4
2571	2571	vidual census tracts in addition to the cat-5
2572	2572	egories described in clause (i). 6
2573	2573	‘‘(3) A
2574	2574	SSESSMENT AREA DATA .— 7
2575	2575	‘‘(A) I
2576	2576	N GENERAL.—Each regulated finan-8
2577	2577	cial institution shall collect and report to the 9
2578	2578	appropriate Federal financial supervisory agen-10
2579	2579	cy by March 1 of each year a list for each as-11
2580	2580	sessment area showing the geographies within 12
2581	2581	the area. 13
2582	2582	‘‘(B) P
2583	2583	UBLICATION.—The appropriate 14
2584	2584	Federal financial supervisory agencies shall 15
2585	2585	make the list of assessment areas reported by 16
2586	2586	each regulated financial institution under sub-17
2587	2587	paragraph (A) publicly available on the part of 18
2588	2588	the website of the appropriate Federal financial 19
2589	2589	supervisory agency that contains information on 20
2590	2590	this title. 21
2591	2591	‘‘(4) D
2592	2592	EPOSITS.—The appropriate Federal fi-22
2593	2593	nancial supervisory agencies shall— 23
2594	2594	‘‘(A) collect data from regulated financial 24
2595	2595	institutions that reflects— 25
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2597	2597	kjohnson on DSK7ZCZBW3PROD with $$_JOB 89
2598	2598	•HR 2038 IH
2599	2599	‘‘(i) the number of customers of those 1
2600	2600	institutions that reside in categories of 2
2601	2601	census tracts including low- and moderate- 3
2602	2602	income census tracts or other distressed 4
2603	2603	and underserved census tracts and the dol-5
2604	2604	lar amount of deposits of those customers; 6
2605	2605	and 7
2606	2606	‘‘(ii) the number of small businesses 8
2607	2607	that are located in the census tract cat-9
2608	2608	egories described in clause (i); and 10
2609	2609	‘‘(B) consider the dissemination of the de-11
2610	2610	posit data collected under subparagraph (A) by 12
2611	2611	individual census tracts in addition to the cat-13
2612	2612	egories described in that subparagraph. 14
2613	2613	‘‘(b) A
2614	2614	GGREGATEDISCLOSURESTATEMENTS.— 15
2615	2615	‘‘(1) I
2616	2616	N GENERAL.—Each appropriate Federal 16
2617	2617	financial supervisory agency shall prepare annually, 17
2618	2618	for each assessment area, a disclosure statement of 18
2619	2619	home, small business, small farm, and consumer 19
2620	2620	lending for each regulated financial institution sub-20
2621	2621	ject to reporting under this section and an aggre-21
2622	2622	gated statement for all reporting institutions com-22
2623	2623	bined, which shall indicate, for each assessment 23
2624	2624	area, the number and amount of all small business, 24
2625	2625	small farm, and consumer loans originated or pur-25
2626	2626	VerDate Sep 11 2014 23:05 Mar 22, 2025 Jkt 059200 PO 00000 Frm 00089 Fmt 6652 Sfmt 6201 E:\BILLS\H2038.IH H2038
2627	2627	kjohnson on DSK7ZCZBW3PROD with $$_JOB 90
2628	2628	•HR 2038 IH
2629	2629	chased sorted by income level of borrowers, race and 1
2630	2630	ethnicity of borrowers, revenue size of small busi-2
2631	2631	nesses and farms, and categories of census tracts. 3
2632	2632	‘‘(2) D
2633	2633	EPOSITS AND COMMUNITY DEVELOP -4
2634	2634	MENT LOANS AND INVESTMENTS .—An appropriate 5
2635	2635	Federal financial supervisory agency shall include 6
2636	2636	data on deposits and community development loans 7
2637	2637	and investments in the disclosure statements pre-8
2638	2638	pared under paragraph (1). 9
2639	2639	‘‘(3) A
2640	2640	DJUSTED FORM.—An appropriate Fed-10
2641	2641	eral financial supervisory agency may adjust the 11
2642	2642	form of the disclosure statement prepared under 12
2643	2643	paragraph (1) if necessary, because of special cir-13
2644	2644	cumstances, to protect the privacy of a borrower or 14
2645	2645	the competitive position of a regulated financial in-15
2646	2646	stitution. 16
2647	2647	‘‘(c) C
2648	2648	ENTRALDATADEPOSITORIES.—The Federal 17
2649	2649	Financial Institutions Examination Council, in consulta-18
2650	2650	tion with the appropriate Federal financial supervisory 19
2651	2651	agencies, shall implement a system— 20
2652	2652	‘‘(1) to allow the public to access online and in 21
2653	2653	a searchable format the data maintained under 22
2654	2654	paragraphs (1) through (4) of subsection (a); and 23
2655	2655	‘‘(2) that ensures that personally identifiable fi-24
2656	2656	nancial information is not disclosed to public. 25
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2658	2658	kjohnson on DSK7ZCZBW3PROD with $$_JOB 91
2659	2659	•HR 2038 IH
2660	2660	‘‘(d) LIMITATION.—An appropriate Federal financial 1
2661	2661	supervisory agency may not use the authorities of the ap-2
2662	2662	propriate Federal financial supervisory agency under this 3
2663	2663	section to obtain a record from a regulated financial insti-4
2664	2664	tution for the purpose of gathering or analyzing the per-5
2665	2665	sonally identifiable financial information of a consumer. 6
2666	2666	‘‘SEC. 811. COMMUNITY ADVISORY COMMITTEES. 7
2667	2667	‘‘(a) D
2668	2668	EPOSITORYINSTITUTIONS.—Each regulated 8
2669	2669	financial institution that is not a U.S. nonbank mortgage 9
2670	2670	originator shall form a separate Community Advisory 10
2671	2671	Committee (which shall be composed of a diverse set of 11
2672	2672	consumer, housing, community development, and other 12
2673	2673	stakeholder groups) in each of the following: 13
2674	2674	‘‘(1) With respect to a depository institution 14
2675	2675	with consolidated assets equal to or greater than 15
2676	2676	$2,000,000,000 the branches of which are located in 16
2677	2677	1 census region, each metropolitan statistical area 17
2678	2678	where the financial institution or any subsidiaries of 18
2679	2679	the financial institution have a branch or other facil-19
2680	2680	ity (including an automated teller machine) and each 20
2681	2681	metropolitan statistical area where the financial in-21
2682	2682	stitution has a substantial number of customers who 22
2683	2683	maintain deposit accounts with the financial institu-23
2684	2684	tion. 24
2685	2685	VerDate Sep 11 2014 23:05 Mar 22, 2025 Jkt 059200 PO 00000 Frm 00091 Fmt 6652 Sfmt 6201 E:\BILLS\H2038.IH H2038
2686	2686	kjohnson on DSK7ZCZBW3PROD with $$_JOB 92
2687	2687	•HR 2038 IH
2688	2688	‘‘(2) With respect to a depository institution 1
2689	2689	with consolidated assets equal to or greater than 2
2690	2690	$2,000,000,000 the branches of which are located in 3
2691	2691	more than 1 census region, each census division 4
2692	2692	within each of the regions. 5
2693	2693	‘‘(3) With respect to a depository institution 6
2694	2694	with consolidated assets of less than 7
2695	2695	$2,000,000,000, each State where the financial in-8
2696	2696	stitution or any subsidiaries of the financial institu-9
2697	2697	tion are located. 10
2698	2698	‘‘(b) U.S. N
2699	2699	ONBANKMORTGAGEORIGINATORS.— 11
2700	2700	Each U.S. nonbank mortgage originator shall form a sepa-12
2701	2701	rate Community Advisory Committee (which shall be com-13
2702	2702	posed of a diverse set of consumer, housing, community 14
2703	2703	development, and other stakeholder groups) in each of the 15
2704	2704	following: 16
2705	2705	‘‘(1) With respect to a U.S. nonbank mortgage 17
2706	2706	originator that is required to make a number of dis-18
2707	2707	closures under the Home Mortgage Disclosure Act of 19
2708	2708	1975 (12 U.S.C. 2801 et seq.) that is less than the 20
2709	2709	national median, each State in which the U.S. 21
2710	2710	nonbank mortgage originator offers loans. 22
2711	2711	‘‘(2) With respect to a U.S. nonbank mortgage 23
2712	2712	originator that is required to make a number of dis-24
2713	2713	closures under the Home Mortgage Disclosure Act of 25
2714	2714	VerDate Sep 11 2014 23:05 Mar 22, 2025 Jkt 059200 PO 00000 Frm 00092 Fmt 6652 Sfmt 6201 E:\BILLS\H2038.IH H2038
2715	2715	kjohnson on DSK7ZCZBW3PROD with $$_JOB 93
2716	2716	•HR 2038 IH
2717	2717	1975 (12 U.S.C. 2801 et seq.) that is more than the 1
2718	2718	national median, each census division within the cen-2
2719	2719	sus regions in which the U.S. nonbank mortgage 3
2720	2720	originator offers loans. 4
2721	2721	‘‘(c) B
2722	2722	IANNUALCONSULTATION.—The executives of 5
2723	2723	each regulated financial institution shall meet not less fre-6
2724	2724	quently than twice per year with the Community Advisory 7
2725	2725	Committees of the regulated financial institution formed 8
2726	2726	under subsection (a) or (b), as applicable— 9
2727	2727	‘‘(1) to discuss the financial institution’s cur-10
2728	2728	rent work to meet the credit and deposit needs of 11
2729	2729	low- and moderate-income individuals and under-12
2730	2730	served communities, persons with disabilities, 13
2731	2731	LGBTQ+ communities, and Chinese, Asian Indian, 14
2732	2732	Filipino, Japanese, Korean, Vietnamese, Pakistani, 15
2733	2733	Cambodian, Hmong, Laotian, Thai, Taiwanese, Bur-16
2734	2734	mese, Bangladeshi, Nepalese, Indonesian, Malaysian, 17
2735	2735	Hispanic or Latino, Black or African American, 18
2736	2736	American Indian and Alaska Native, Native Hawai-19
2737	2737	ian, Samoan, Chamorro, Tongan, iTaukei, 20
2738	2738	Marshallese, and Other Pacific Islander commu-21
2739	2739	nities, as applicable to the geographic areas of the 22
2740	2740	financial institution; 23
2741	2741	‘‘(2) with respect to an institution described in 24
2742	2742	subsection (a)(2) or a U.S. nonbank mortgage origi-25
2743	2743	VerDate Sep 11 2014 23:05 Mar 22, 2025 Jkt 059200 PO 00000 Frm 00093 Fmt 6652 Sfmt 6201 E:\BILLS\H2038.IH H2038
2744	2744	kjohnson on DSK7ZCZBW3PROD with $$_JOB 94
2745	2745	•HR 2038 IH
2746	2746	nator described in subsection (b)(2), to assist the ex-1
2747	2747	ecutives in developing and updating a plan for how 2
2748	2748	the institution will work to meet the credit needs of 3
2749	2749	the institution’s entire community, including low- 4
2750	2750	and moderate-income neighborhoods; and 5
2751	2751	‘‘(3) to discuss the institution’s data (which 6
2752	2752	shall be disaggregated by Chinese, Asian Indian, Fil-7
2753	2753	ipino, Japanese, Korean, Vietnamese, Pakistani, 8
2754	2754	Cambodian, Hmong, Laotian, Thai, Taiwanese, Bur-9
2755	2755	mese, Bangladeshi, Nepalese, Indonesian, Malaysian, 10
2756	2756	Hispanic or Latino, Black or African American, 11
2757	2757	American Indian and Alaska Native, and Native Ha-12
2758	2758	waiian, Samoan, Chamorro, Tongan, iTaukei, 13
2759	2759	Marshallese and Other Pacific Islander communities, 14
2760	2760	as applicable to the institution’s geographic areas) 15
2761	2761	on— 16
2762	2762	‘‘(A) mortgage lending and lending to 17
2763	2763	small businesses and small farms, as defined in 18
2764	2764	section 804(a)(2)(C); 19
2765	2765	‘‘(B) retail products and services; 20
2766	2766	‘‘(C) community development services; and 21
2767	2767	‘‘(D) community development financing. 22
2768	2768	‘‘(d) S
2769	2769	PECIFICCONSULTATIONS.—In addition to the 23
2770	2770	consultations required under paragraph (2), the executives 24
2771	2771	of a depository institution described in subsection (a)(2) 25
2772	2772	VerDate Sep 11 2014 23:05 Mar 22, 2025 Jkt 059200 PO 00000 Frm 00094 Fmt 6652 Sfmt 6201 E:\BILLS\H2038.IH H2038
2773	2773	kjohnson on DSK7ZCZBW3PROD with $$_JOB 95
2774	2774	•HR 2038 IH
2775	2775	shall meet with the Community Advisory Committee of the 1
2776	2776	institution before— 2
2777	2777	‘‘(1) the institution applies for a merger or ac-3
2778	2778	quisition; 4
2779	2779	‘‘(2) the institution, or any subsidiary of the in-5
2780	2780	stitution, applies for deposit insurance; 6
2781	2781	‘‘(3) the institution applies to open a new 7
2782	2782	branch or to relocate an existing branch; or 8
2783	2783	‘‘(4) the institution provides notice that it 9
2784	2784	would close a branch or other facility. 10
2785	2785	‘‘SEC. 812. STUDY ON DISCRIMINATION AND DISPARITIES IN 11
2786	2786	ACCESS TO CREDIT. 12
2787	2787	‘‘(a) S
2788	2788	TUDY.—Not later than the end of the 2-year 13
2789	2789	period beginning on the date of enactment of this section, 14
2790	2790	and every 2 years thereafter, the appropriate Federal fi-15
2791	2791	nancial supervisory agencies shall, jointly, and in consulta-16
2792	2792	tion with such other Federal or State agencies as the ap-17
2793	2793	propriate Federal financial supervisory agencies determine 18
2794	2794	appropriate, complete an interagency statistical study to 19
2795	2795	identify— 20
2796	2796	‘‘(1) metropolitan areas and rural counties that 21
2797	2797	either experience ongoing discrimination or exhibit 22
2798	2798	significant racial disparities in access to credit for 23
2799	2799	any racial or ethnic group; and 24
2800	2800	VerDate Sep 11 2014 23:05 Mar 22, 2025 Jkt 059200 PO 00000 Frm 00095 Fmt 6652 Sfmt 6201 E:\BILLS\H2038.IH H2038
2801	2801	kjohnson on DSK7ZCZBW3PROD with $$_JOB 96
2802	2802	•HR 2038 IH
2803	2803	‘‘(2) significant disparities in access to branches 1
2804	2804	by racial or ethnic composition of census tract and 2
2805	2805	disparities in access to community development fi-3
2806	2806	nancing by racial or ethnic composition of census 4
2807	2807	tract. 5
2808	2808	‘‘(b) U
2809	2809	SE OFDATA.—In carrying out each study re-6
2810	2810	quired under subsection (a), the appropriate Federal fi-7
2811	2811	nancial supervisory agencies shall make use of data includ-8
2812	2812	ing— 9
2813	2813	‘‘(1) data obtained under the Home Mortgage 10
2814	2814	Disclosure Act of 1975 (12 U.S.C. 2801 et seq.); 11
2815	2815	‘‘(2) data obtained under section 704B of the 12
2816	2816	Equal Credit Opportunity Act (15 U.S.C. 1691c–2); 13
2817	2817	‘‘(3) data obtained under this Act; 14
2818	2818	‘‘(4) available State data; and 15
2819	2819	‘‘(5) information contained in public litigation 16
2820	2820	against regulated financial institutions for redlining 17
2821	2821	or lending discrimination (including litigation initi-18
2822	2822	ated by the Bureau of Consumer Financial Protec-19
2823	2823	tion, the Department of Housing and Urban Affairs, 20
2824	2824	the Department of Justice, or by private parties). 21
2825	2825	‘‘(c) R
2826	2826	EPORT.—Upon the completion of each study 22
2827	2827	required under subsection (a), the appropriate Federal fi-23
2828	2828	nancial supervisory agencies shall jointly submit to the 24
2829	2829	Committee on Banking, Housing, and Urban Affairs of 25
2830	2830	VerDate Sep 11 2014 23:05 Mar 22, 2025 Jkt 059200 PO 00000 Frm 00096 Fmt 6652 Sfmt 6201 E:\BILLS\H2038.IH H2038
2831	2831	kjohnson on DSK7ZCZBW3PROD with $$_JOB 97
2832	2832	•HR 2038 IH
2833	2833	the Senate and the Committee on Financial Services of 1
2834	2834	the House of Representatives a report that includes— 2
2835	2835	‘‘(1) all findings and determinations made in 3
2836	2836	carrying out the study; and 4
2837	2837	‘‘(2) policy recommendations to remedy the dis-5
2838	2838	crimination and disparities identified in the study. 6
2839	2839	‘‘SEC. 813. PUBLIC REGISTRIES. 7
2840	2840	‘‘The appropriate Federal supervisory financial agen-8
2841	2841	cies, acting through the Federal Financial Institutions Ex-9
2842	2842	amination Council, shall— 10
2843	2843	‘‘(1) maintain a list of community-based organi-11
2844	2844	zations and other stakeholders who wish to be listed 12
2845	2845	and who have commented on examinations con-13
2846	2846	ducted under section 804 and applications regarding 14
2847	2847	community needs and bank performance; and 15
2848	2848	‘‘(2) conduct outreach to community groups 16
2849	2849	and strive for geographical diversity, gender and ra-17
2850	2850	cial diversity, and diversity in terms of various types 18
2851	2851	of needs, including affordable housing and economic 19
2852	2852	development to community facilities.’’. 20
2853	2853	(c) A
2854	2854	MENDMENT TO THE BANKHOLDINGCOMPANY 21
2855	2855	A
2856	2856	CT OF1956.—Section 4(k)(6) of the Bank Holding 22
2857	2857	Company Act of 1956 (12 U.S.C. 1843(k)(6)) is amended 23
2858	2858	to read as follows: 24
2859	2859	VerDate Sep 11 2014 23:05 Mar 22, 2025 Jkt 059200 PO 00000 Frm 00097 Fmt 6652 Sfmt 6201 E:\BILLS\H2038.IH H2038
2860	2860	kjohnson on DSK7ZCZBW3PROD with $$_JOB 98
2861	2861	•HR 2038 IH
2862	2862	‘‘(6) NOTICE AND OPPORTUNITY FOR COMMENT 1
2863	2863	REQUIRED.— 2
2864	2864	‘‘(A) I
2865	2865	N GENERAL.—No financial holding 3
2866	2866	company shall directly or indirectly acquire, and 4
2867	2867	no company that becomes a financial holding 5
2868	2868	company shall directly or indirectly acquire con-6
2869	2869	trol of, any company in the United States, in-7
2870	2870	cluding through merger, consolidation, or other 8
2871	2871	type of business combination, that is engaged in 9
2872	2872	activities permitted under this subsection or 10
2873	2873	subsection (n) or (o), unless— 11
2874	2874	‘‘(i) the holding company has provided 12
2875	2875	notice to the Board, not later than 60 days 13
2876	2876	prior to the proposed acquisition or prior 14
2877	2877	to becoming a financial holding company, 15
2878	2878	and during that time period, or such 16
2879	2879	longer time period not exceeding an addi-17
2880	2880	tional 60 days, as established by the 18
2881	2881	Board; 19
2882	2882	‘‘(ii) the Board has provided public 20
2883	2883	notice and opportunity for comment for 21
2884	2884	not less than 60 days; and 22
2885	2885	‘‘(iii) the Board has not issued a no-23
2886	2886	tice disapproving the proposed acquisition 24
2887	2887	or retention. 25
2888	2888	VerDate Sep 11 2014 23:05 Mar 22, 2025 Jkt 059200 PO 00000 Frm 00098 Fmt 6652 Sfmt 6201 E:\BILLS\H2038.IH H2038
2889	2889	kjohnson on DSK7ZCZBW3PROD with $$_JOB 99
2890	2890	•HR 2038 IH
2891	2891	‘‘(B) FACTORS FOR CONSIDERATION .—In 1
2892	2892	reviewing any prior notice filed under this para-2
2893	2893	graph, the Board shall— 3
2894	2894	‘‘(i) consider the overall rating of the 4
2895	2895	financial holding company under the Com-5
2896	2896	munity Reinvestment Act of 1977 (12 6
2897	2897	U.S.C. 2901 et seq.) and any improvement 7
2898	2898	plans submitted pursuant to that Act; 8
2899	2899	‘‘(ii) provide opportunity for public 9
2900	2900	comment for a period of not less than 60 10
2901	2901	days; 11
2902	2902	‘‘(iii) consider changes in the commu-12
2903	2903	nity reinvestment performance of the fi-13
2904	2904	nancial holding company since the last rat-14
2905	2905	ing under the Community Reinvestment 15
2906	2906	Act of 1977 (12 U.S.C. 2901 et seq.) by 16
2907	2907	the appropriate Federal financial super-17
2908	2908	visory agency; and 18
2909	2909	‘‘(iv) require— 19
2910	2910	‘‘(I) a demonstration that grant-20
2911	2911	ing the application for a deposit facil-21
2912	2912	ity is in the public interest, which 22
2913	2913	shall include submission to the appro-23
2914	2914	priate Federal financial supervisory 24
2915	2915	agency of a community benefits plan 25
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2917	2917	kjohnson on DSK7ZCZBW3PROD with $$_JOB 100
2918	2918	•HR 2038 IH
2919	2919	commensurate with the ability of the 1
2920	2920	institution to carry out that plan; 2
2921	2921	‘‘(II) that the institution consult 3
2922	2922	with community-based organizations 4
2923	2923	and other community stakeholders in 5
2924	2924	developing the community benefits 6
2925	2925	plan; and 7
2926	2926	‘‘(III) a public hearing for any 8
2927	2927	bank that has received a ‘need-to-im-9
2928	2928	prove’ or ‘low satisfactory’ grade in 10
2929	2929	any assessment area during the last 11
2930	2930	examination under the Community 12
2931	2931	Reinvestment Act of 1977 (12 U.S.C. 13
2932	2932	2901 et seq.).’’. 14
2933	2933	(d) T
2934	2934	ECHNICAL AND CONFORMINGAMENDMENT.— 15
2935	2935	Section 10(c)(2)(H)(i) of the Home Owners’ Loan Act (12 16
2936	2936	U.S.C. 1467a(c)(2)(H)(i)) is amended by striking ‘‘section 17
2937	2937	804(c) of the Community Reinvestment Act of 1977 (12 18
2938	2938	U.S.C. 2903(c))’’ and inserting ‘‘section 804(f) of the 19
2939	2939	Community Reinvestment Act of 1977 (12 U.S.C. 20
2940	2940	2903(f))’’. 21
2941	2941	SEC. 204. AMENDMENTS RELATING TO CREDIT UNION 22
2942	2942	SERVICE TO UNDERSERVED AREAS. 23
2943	2943	(a) I
2944	2944	NGENERAL.—The Federal Credit Union Act (12 24
2945	2945	U.S.C. 1751 et seq.) is amended— 25
2946	2946	VerDate Sep 11 2014 23:05 Mar 22, 2025 Jkt 059200 PO 00000 Frm 00100 Fmt 6652 Sfmt 6201 E:\BILLS\H2038.IH H2038
2947	2947	kjohnson on DSK7ZCZBW3PROD with $$_JOB 101
2948	2948	•HR 2038 IH
2949	2949	(1) in section 101 (12 U.S.C. 1752)— 1
2950	2950	(A) in paragraph (8), by striking ‘‘and’’ at 2
2951	2951	the end; 3
2952	2952	(B) in paragraph (9), by striking the pe-4
2953	2953	riod at the end and inserting ‘‘; and’’; and 5
2954	2954	(C) by adding at the end the following: 6
2955	2955	‘‘(10) the term ‘underserved area’— 7
2956	2956	‘‘(A) means a local community, neighbor-8
2957	2957	hood, or rural district that— 9
2958	2958	‘‘(i) is an investment area, as defined 10
2959	2959	in section 103 of the Community Develop-11
2960	2960	ment Banking and Financial Institutions 12
2961	2961	Act of 1994 (12 U.S.C. 4702), that meets 13
2962	2962	such additional requirements that the 14
2963	2963	Board may impose; and 15
2964	2964	‘‘(ii) is underserved, based on data of 16
2965	2965	the Board and the Federal banking agen-17
2966	2966	cies (as defined in section 3 of the Federal 18
2967	2967	Deposit Insurance Act (12 U.S.C. 1813)), 19
2968	2968	by other depository institutions (as defined 20
2969	2969	in section 19(b)(1)(A) of the Federal Re-21
2970	2970	serve Act (12 U.S.C. 461(b)(1)(A)); and 22
2971	2971	‘‘(B) notwithstanding subparagraph (A), 23
2972	2972	includes, with respect to any Federal credit 24
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2974	2974	kjohnson on DSK7ZCZBW3PROD with $$_JOB 102
2975	2975	•HR 2038 IH
2976	2976	union, any geographic area within which the 1
2977	2977	credit union— 2
2978	2978	‘‘(i) has received approval to provide 3
2979	2979	service as an underserved area before the 4
2980	2980	date of enactment of this paragraph from 5
2981	2981	the Administration; and 6
2982	2982	‘‘(ii) has established a service facility 7
2983	2983	before that date of enactment.’’; 8
2984	2984	(2) in section 106 (12 U.S.C. 1756)— 9
2985	2985	(A) in the first sentence, by striking ‘‘Fed-10
2986	2986	eral’’ and inserting ‘‘(a) Federal’’; and 11
2987	2987	(B) by adding at the end the following: 12
2988	2988	‘‘(b) The Board shall monitor adherence by a Federal 13
2989	2989	credit union to a significant unmet needs plan submitted 14
2990	2990	under section 109(h) by that Federal credit union that 15
2991	2991	describes how the Federal credit union will serve the de-16
2992	2992	posit and other financial needs of the community.’’; and 17
2993	2993	(3) in section 109 (12 U.S.C. 1759)— 18
2994	2994	(A) in subsection (c), by amending para-19
2995	2995	graph (2) to read as follows: 20
2996	2996	‘‘(2) E
2997	2997	XCEPTION FOR UNDERSERVED AREAS .— 21
2998	2998	‘‘(A) I
2999	2999	N GENERAL.—Notwithstanding sub-22
3000	3000	section (b), the Board may approve an applica-23
3001	3001	tion by a Federal credit union to allow the 24
3002	3002	membership of the credit union to include any 25
3003	3003	VerDate Sep 11 2014 23:05 Mar 22, 2025 Jkt 059200 PO 00000 Frm 00102 Fmt 6652 Sfmt 6201 E:\BILLS\H2038.IH H2038
3004	3004	kjohnson on DSK7ZCZBW3PROD with $$_JOB 103
3005	3005	•HR 2038 IH
3006	3006	person or organization whose principal resi-1
3007	3007	dence or place of business is located within a 2
3008	3008	local community, neighborhood, or rural district 3
3009	3009	if— 4
3010	3010	‘‘(i) the Board determines— 5
3011	3011	‘‘(I) at any time after August 7, 6
3012	3012	1998, that the local community, 7
3013	3013	neighborhood, or rural district taken 8
3014	3014	into account for purposes of this para-9
3015	3015	graph is an underserved area; and 10
3016	3016	‘‘(II) at the time of the approval, 11
3017	3017	that the credit union is well capital-12
3018	3018	ized or adequately capitalized (as de-13
3019	3019	fined in section 216(c)(1)); and 14
3020	3020	‘‘(ii) before the end of the 24-month 15
3021	3021	period beginning on the date of the ap-16
3022	3022	proval, the credit union has established 17
3023	3023	and maintains an ongoing method to pro-18
3024	3024	vide services in the local community, neigh-19
3025	3025	borhood, or rural district. 20
3026	3026	‘‘(B) T
3027	3027	ERMINATION OF APPROVAL .— 21
3028	3028	‘‘(i) I
3029	3029	N GENERAL.—Any failure of a 22
3030	3030	Federal credit union to meet the require-23
3031	3031	ment of clause (ii) of subparagraph (A) by 24
3032	3032	the end of the 24-month period referred to 25
3033	3033	VerDate Sep 11 2014 23:05 Mar 22, 2025 Jkt 059200 PO 00000 Frm 00103 Fmt 6652 Sfmt 6201 E:\BILLS\H2038.IH H2038
3034	3034	kjohnson on DSK7ZCZBW3PROD with $$_JOB 104
3035	3035	•HR 2038 IH
3036	3036	in that clause shall constitute a termi-1
3037	3037	nation, as a matter of law, of any approval 2
3038	3038	of an application under this paragraph by 3
3039	3039	the Board with respect to the membership 4
3040	3040	of the credit union. 5
3041	3041	‘‘(ii) S
3042	3042	IGNIFICANT UNMET NEEDS 6
3043	3043	PLAN.—The Board may terminate the ap-7
3044	3044	proval of an application under this para-8
3045	3045	graph with respect to the membership of a 9
3046	3046	Federal credit union upon a finding that 10
3047	3047	the credit union is not meeting the terms 11
3048	3048	of the significant unmet needs plan of the 12
3049	3049	credit union submitted under subsection 13
3050	3050	(h)(1). 14
3051	3051	‘‘(C) C
3052	3052	REDIT UNION REPORTING REQUIRE -15
3053	3053	MENT.—Any Federal credit union that has an 16
3054	3054	application approved under this paragraph 17
3055	3055	shall, as part of the ordinary course of the ex-18
3056	3056	amination cycle and supervision process, submit 19
3057	3057	a report to the Administration that includes— 20
3058	3058	‘‘(i) the number of members of the 21
3059	3059	credit union who are members by reason of 22
3060	3060	the application; 23
3061	3061	‘‘(ii) the number of offices or facilities 24
3062	3062	maintained by the credit union in the local 25
3063	3063	VerDate Sep 11 2014 23:05 Mar 22, 2025 Jkt 059200 PO 00000 Frm 00104 Fmt 6652 Sfmt 6201 E:\BILLS\H2038.IH H2038
3064	3064	kjohnson on DSK7ZCZBW3PROD with $$_JOB 105
3065	3065	•HR 2038 IH
3066	3066	community, neighborhood, or rural district 1
3067	3067	taken into account by the Board in approv-2
3068	3068	ing the application; and 3
3069	3069	‘‘(iii) evidence, as specified by the 4
3070	3070	Board by regulation, demonstrating com-5
3071	3071	pliance by the credit union with the signifi-6
3072	3072	cant unmet needs plan submitted by the 7
3073	3073	credit union under subsection (h)(1), as 8
3074	3074	specified by the Administration. 9
3075	3075	‘‘(D) P
3076	3076	UBLICATION BY ADMINISTRA -10
3077	3077	TION.—The Administration shall publish an an-11
3078	3078	nual report containing— 12
3079	3079	‘‘(i) a list of all the applications ap-13
3080	3080	proved under this paragraph before the 14
3081	3081	date on which the report is published; 15
3082	3082	‘‘(ii) the number and locations of the 16
3083	3083	underserved areas taken into account in 17
3084	3084	approving those applications; 18
3085	3085	‘‘(iii) the total number of members of 19
3086	3086	credit unions who are members by reason 20
3087	3087	of the approval of those applications; and 21
3088	3088	‘‘(iv) evidence demonstrating compli-22
3089	3089	ance by credit unions with significant 23
3090	3090	unmet needs plans submitted by the credit 24
3091	3091	VerDate Sep 11 2014 23:05 Mar 22, 2025 Jkt 059200 PO 00000 Frm 00105 Fmt 6652 Sfmt 6201 E:\BILLS\H2038.IH H2038
3092	3092	kjohnson on DSK7ZCZBW3PROD with $$_JOB 106
3093	3093	•HR 2038 IH
3094	3094	unions under subsection (h)(1), as speci-1
3095	3095	fied by the Administration.’’; 2
3096	3096	(B) in subsection (e)(2), by inserting ‘‘sub-3
3097	3097	section (c)(2) and’’ after ‘‘provided in’’; and 4
3098	3098	(C) by adding at the end the following: 5
3099	3099	‘‘(h) A
3100	3100	DDITIONALREQUIREMENTS FOR COMMUNITY 6
3101	3101	C
3102	3102	REDITUNIONS.— 7
3103	3103	‘‘(1) I
3104	3104	N GENERAL.—A Federal credit union de-8
3105	3105	siring a field of membership as a credit union de-9
3106	3106	scribed in subsection (b)(3) shall submit to the 10
3107	3107	Board a business plan, which shall include, among 11
3108	3108	other issues, a marketing plan that identifies— 12
3109	3109	‘‘(A) the unique needs of the various demo-13
3110	3110	graphic groups in the proposed community; and 14
3111	3111	‘‘(B) how the credit union will market to 15
3112	3112	each group, particularly underserved groups, to 16
3113	3113	address those needs. 17
3114	3114	‘‘(2) P
3115	3115	UBLIC COMMENT AND HEARING .—With 18
3116	3116	respect to a Federal credit union desiring a field of 19
3117	3117	membership as a credit union described in sub-20
3118	3118	section (b)(3) for an area with multiple political ju-21
3119	3119	risdictions with a population of not less than 22
3120	3120	2,500,000, the Administration shall— 23
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3122	3122	kjohnson on DSK7ZCZBW3PROD with $$_JOB 107
3123	3123	•HR 2038 IH
3124	3124	‘‘(A) publish a notice in the Federal Reg-1
3125	3125	ister seeking comment from interested parties 2
3126	3126	about the proposed community; and 3
3127	3127	‘‘(B) conduct a public hearing regarding 4
3128	3128	the application of the Federal credit union.’’. 5
3129	3129	(b) R
3130	3130	EGULATIONS.—Not later than 1 year after the 6
3131	3131	date of enactment of this Act, the National Credit Union 7
3132	3132	Administration Board shall issue final regulations to im-8
3133	3133	plement the amendments made by subsection (a). 9
3134	3134	SEC. 205. RAISING PUBLIC WELFARE CAPS. 10
3135	3135	(a) N
3136	3136	ATIONALBANKS.—The paragraph designated 11
3137	3137	as the ‘‘Eleventh.’’ of section 5136 of the Revised Statutes 12
3138	3138	of the United States (12 U.S.C. 24) is amended to read 13
3139	3139	as follows: ‘‘Eleventh. To make investments directly or in-14
3140	3140	directly, each of which promotes the public welfare by ben-15
3141	3141	efitting primarily low- and moderate-income communities 16
3142	3142	or families (such as by providing housing, services, or 17
3143	3143	jobs). An association shall not make any such investment 18
3144	3144	if the investment would expose the association to unlimited 19
3145	3145	liability. The Comptroller of the Currency shall limit an 20
3146	3146	association’s investments in any 1 project and an associa-21
3147	3147	tion’s aggregate investments under this paragraph. Aggre-22
3148	3148	gate investments for associations that do not meet the cri-23
3149	3149	teria of being well capitalized, as defined in section 24.2(e) 24
3150	3150	of title 12, Code of Federal Regulations, or any successor 25
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3152	3152	kjohnson on DSK7ZCZBW3PROD with $$_JOB 108
3153	3153	•HR 2038 IH
3154	3154	regulation, under this paragraph shall not exceed an 1
3155	3155	amount equal to the sum of 5 percent of the association’s 2
3156	3156	capital stock actually paid in and unimpaired and 5 per-3
3157	3157	cent of the association’s unimpaired surplus fund, unless 4
3158	3158	the Comptroller determines by order that the higher 5
3159	3159	amount will pose no significant risk to the affected deposit 6
3160	3160	insurance fund, and the association is adequately capital-7
3161	3161	ized. In no case shall aggregate investments of an associa-8
3162	3162	tion that do not meet the criteria for being well capitalized 9
3163	3163	under this paragraph exceed an amount equal to the sum 10
3164	3164	of 15 percent of the association’s capital stock actually 11
3165	3165	paid in and unimpaired and 15 percent of the association’s 12
3166	3166	unimpaired surplus fund. Aggregate investments of well 13
3167	3167	capitalized associations, as defined in section 24.2(e) of 14
3168	3168	title 12, Code of Federal Regulations, or any successor 15
3169	3169	regulation, under this paragraph shall not exceed an 16
3170	3170	amount equal to the sum of 15 percent of the association’s 17
3171	3171	capital stock actually paid in and unimpaired and 15 per-18
3172	3172	cent of the association’s unimpaired surplus fund, unless 19
3173	3173	the Comptroller determines by order that the higher 20
3174	3174	amount will pose no significant risk to the affected deposit 21
3175	3175	insurance fund. With respect to any association that meets 22
3176	3176	the criteria for being well capitalized, as defined in section 23
3177	3177	24.2(e) of title 12, Code of Federal Regulations, or any 24
3178	3178	successor regulation, aggregate investments under this 25
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3180	3180	kjohnson on DSK7ZCZBW3PROD with $$_JOB 109
3181	3181	•HR 2038 IH
3182	3182	paragraph shall not exceed an amount equal to the sum 1
3183	3183	of 25 percent of the association’s capital stock actually 2
3184	3184	paid in and unimpaired and 25 percent of the association’s 3
3185	3185	unimpaired surplus fund. The foregoing standards and 4
3186	3186	limitations apply to investments under this paragraph 5
3187	3187	made by a national bank directly and by its subsidiaries.’’. 6
3188	3188	(b) C
3189	3189	ONFORMINGAMENDMENTS FOR STATEMEM-7
3190	3190	BERBANKS.—The 23rd undesignated paragraph of sec-8
3191	3191	tion 9 of the Federal Reserve Act (12 U.S.C. 338a) is 9
3192	3192	amended to read as follows: 10
3193	3193	‘‘A State member bank may make investments di-11
3194	3194	rectly or indirectly, each of which promotes the pub-12
3195	3195	lic welfare by benefitting primarily low- and mod-13
3196	3196	erate-income communities or families (such as by 14
3197	3197	providing housing, services, or jobs), to the extent 15
3198	3198	permissible under State law. A State member bank 16
3199	3199	shall not make any such investment if the invest-17
3200	3200	ment would expose the State member bank to unlim-18
3201	3201	ited liability. Aggregate investments for State mem-19
3202	3202	ber banks that do not meet the criteria of being well 20
3203	3203	capitalized, as defined in section 208.43(b) of title 21
3204	3204	12, Code of Federal Regulations, or any successor 22
3205	3205	regulation, under this paragraph shall not exceed an 23
3206	3206	amount equal to the sum of 5 percent of the associa-24
3207	3207	tion’s capital stock actually paid in and unimpaired 25
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3209	3209	kjohnson on DSK7ZCZBW3PROD with $$_JOB 110
3210	3210	•HR 2038 IH
3211	3211	and 5 percent of the association’s unimpaired sur-1
3212	3212	plus fund, unless the Board determines by order 2
3213	3213	that the higher amount will pose no significant risk 3
3214	3214	to the affected deposit insurance fund, and the asso-4
3215	3215	ciation is adequately capitalized. In no case shall ag-5
3216	3216	gregate investments of a State member bank that 6
3217	3217	does not meet the criteria for being well capitalized 7
3218	3218	under this paragraph exceed an amount equal to the 8
3219	3219	sum of 15 percent of the association’s capital stock 9
3220	3220	actually paid in and unimpaired and 15 percent of 10
3221	3221	the association’s unimpaired surplus fund. Aggre-11
3222	3222	gate investments of well capitalized State member 12
3223	3223	banks, as defined in section 208.43(b) of title 12, 13
3224	3224	Code of Federal Regulations, or any successor regu-14
3225	3225	lation, with an examination rating under section 804 15
3226	3226	of the Community Reinvestment Act of 1977 (12 16
3227	3227	U.S.C. 2903) of ‘outstanding’ or ‘satisfactory’, 17
3228	3228	under this paragraph shall not exceed an amount 18
3229	3229	equal to the sum of 15 percent of the State member 19
3230	3230	bank’s capital stock actually paid in and unimpaired 20
3231	3231	and 15 percent of the state member Bank’s 21
3232	3232	unimpaired surplus fund, unless the Board deter-22
3233	3233	mines by order that the higher amount will pose no 23
3234	3234	significant risk to the affected deposit insurance 24
3235	3235	fund. With respect to any State member bank that 25
3236	3236	VerDate Sep 11 2014 23:05 Mar 22, 2025 Jkt 059200 PO 00000 Frm 00110 Fmt 6652 Sfmt 6201 E:\BILLS\H2038.IH H2038
3237	3237	kjohnson on DSK7ZCZBW3PROD with $$_JOB 111
3238	3238	•HR 2038 IH
3239	3239	meets meet the criteria for being well capitalized as 1
3240	3240	defined in section 208.43(b) of title 12, Code of 2
3241	3241	Federal Regulations, or any successor regulation, 3
3242	3242	with an examination rating under section 804 of the 4
3243	3243	Community Reinvestment Act of 1977 (12 U.S.C. 5
3244	3244	2903) of ‘outstanding’ or ‘satisfactory’, aggregate 6
3245	3245	investments under this paragraph shall not exceed 7
3246	3246	an amount equal to the sum of 25 percent of the 8
3247	3247	State member bank’s capital stock actually paid in 9
3248	3248	and unimpaired and 25 percent of the State member 10
3249	3249	bank’s unimpaired surplus fund. The foregoing 11
3250	3250	standards and limitations apply to investments 12
3251	3251	under this paragraph made by a State member bank 13
3252	3252	directly and by its subsidiaries.’’. 14
3253	3253	SEC. 206. TEMPORARY ELIGIBILITY OF CERTAIN DIRECT 15
3254	3254	DESCENDANTS OF CERTAIN VETERANS FOR 16
3255	3255	HOUSING LOANS GUARANTEED BY THE SEC-17
3256	3256	RETARY OF VETERANS AFFAIRS. 18
3257	3257	(a) I
3258	3258	NGENERAL.—During the period described in 19
3259	3259	subsection (b)— 20
3260	3260	(1) section 3701(b) of title 38, United States 21
3261	3261	Code, shall be applied and administered by adding at 22
3262	3262	the end the following new paragraph: 23
3263	3263	‘‘(8)(A) The term ‘veteran’ also includes, for 24
3264	3264	purposes of home loans, any direct descendant of a 25
3265	3265	VerDate Sep 11 2014 23:05 Mar 22, 2025 Jkt 059200 PO 00000 Frm 00111 Fmt 6652 Sfmt 6201 E:\BILLS\H2038.IH H2038
3266	3266	kjohnson on DSK7ZCZBW3PROD with $$_JOB 112
3267	3267	•HR 2038 IH
3268	3268	veteran described in subparagraph (B) if the de-1
3269	3269	scendant— 2
3270	3270	‘‘(i) is living on the date of the enactment 3
3271	3271	of the American Housing and Economic Mobil-4
3272	3272	ity Act of 2025; 5
3273	3273	‘‘(ii) is a first-time homebuyer; and 6
3274	3274	‘‘(iii) is a first-generation homebuyer. 7
3275	3275	‘‘(B) A veteran described in this clause is a vet-8
3276	3276	eran who— 9
3277	3277	‘‘(i) served on active duty at any time dur-10
3278	3278	ing the period between June 22, 1944, and 11
3279	3279	April 11, 1968; 12
3280	3280	‘‘(ii) is deceased; and 13
3281	3281	‘‘(iii) did not receive a housing loan benefit 14
3282	3282	under this chapter during his or her lifetime. 15
3283	3283	‘‘(C) In this paragraph: 16
3284	3284	‘‘(i) The term ‘direct descendant’ includes 17
3285	3285	a legally adopted descendant. 18
3286	3286	‘‘(ii) The terms ‘first-generation home-19
3287	3287	buyer’ and ‘first-time homebuyer’ have the 20
3288	3288	meanings given those terms in section 201(a) of 21
3289	3289	the American Housing and Economic Mobility 22
3290	3290	Act of 2025.’’; and 23
3291	3291	VerDate Sep 11 2014 23:05 Mar 22, 2025 Jkt 059200 PO 00000 Frm 00112 Fmt 6652 Sfmt 6201 E:\BILLS\H2038.IH H2038
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3293	3293	•HR 2038 IH
3294	3294	(2) section 3702(a)(2) of such title shall be ap-1
3295	3295	plied and administered by adding at the end the fol-2
3296	3296	lowing new subparagraph: 3
3297	3297	‘‘(H) Each direct descendant described in sec-4
3298	3298	tion 3701(b)(8) of this title.’’. 5
3299	3299	(b) P
3300	3300	ERIODDESCRIBED.—The period described in 6
3301	3301	this subsection is the period beginning one year after the 7
3302	3302	date of the enactment of this Act and ending ten years 8
3303	3303	after the date on which the Secretary of Veterans Affairs 9
3304	3304	prescribes the regulations required by subsection (c). 10
3305	3305	(c) R
3306	3306	EGULATIONS.— 11
3307	3307	(1) I
3308	3308	N GENERAL.—Not later than 180 days 12
3309	3309	after the date of the enactment of this Act, the Sec-13
3310	3310	retary of Veterans Affairs shall prescribe regulations 14
3311	3311	to carry out this section. 15
3312	3312	(2) E
3313	3313	LEMENTS.—The regulations required by 16
3314	3314	paragraph (1) shall provide rules and procedures for 17
3315	3315	determining— 18
3316	3316	(A) the eligibility of a direct descendant 19
3317	3317	for housing loan benefits under this section 20
3318	3318	when the records of the Veterans Benefits Ad-21
3319	3319	ministration are incomplete or otherwise inad-22
3320	3320	equate to verify eligibility; and 23
3321	3321	(B) appropriate implementation of this sec-24
3322	3322	tion if more than one direct descendant of a 25
3323	3323	VerDate Sep 11 2014 23:05 Mar 22, 2025 Jkt 059200 PO 00000 Frm 00113 Fmt 6652 Sfmt 6201 E:\BILLS\H2038.IH H2038
3324	3324	kjohnson on DSK7ZCZBW3PROD with $$_JOB 114
3325	3325	•HR 2038 IH
3326	3326	veteran seeks housing loan benefits under this 1
3327	3327	section. 2
3328	3328	TITLE III—REMOVING BARRIERS 3
3329	3329	THAT ISOLATE COMMUNITIES 4
3330	3330	SEC. 301. EXPANDING RIGHTS UNDER THE FAIR HOUSING 5
3331	3331	ACT. 6
3332	3332	(a) P
3333	3333	URPOSES.—The purposes of the amendments 7
3334	3334	made by this section are— 8
3335	3335	(1) to expand, as well as clarify, confirm, and 9
3336	3336	create greater consistency in, the protections against 10
3337	3337	discrimination on the basis of all covered character-11
3338	3338	istics; and 12
3339	3339	(2) to provide guidance and notice to individ-13
3340	3340	uals, organizations, corporations, and agencies re-14
3341	3341	garding their obligations under Federal law. 15
3342	3342	(b) A
3343	3343	MENDMENTS TO THE FAIRHOUSINGACT.— 16
3344	3344	The Fair Housing Act (42 U.S.C. 3601 et seq.) is amend-17
3345	3345	ed— 18
3346	3346	(1) in section 802 (42 U.S.C. 3602), by adding 19
3347	3347	at the end the following: 20
3348	3348	‘‘(p) ‘Gender identity’ means the gender-related iden-21
3349	3349	tity, appearance, or mannerisms or other gender-related 22
3350	3350	characteristics of an individual, regardless of the individ-23
3351	3351	ual’s designated sex at birth. 24
3352	3352	VerDate Sep 11 2014 23:05 Mar 22, 2025 Jkt 059200 PO 00000 Frm 00114 Fmt 6652 Sfmt 6201 E:\BILLS\H2038.IH H2038
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3354	3354	•HR 2038 IH
3355	3355	‘‘(q) ‘Marital status’ has the meaning given the term 1
3356	3356	in section 202.2 of title 12, Code of Federal Regulations, 2
3357	3357	or any successor regulation. 3
3358	3358	‘‘(r) ‘Sexual orientation’ means homosexuality, het-4
3359	3359	erosexuality, or bisexuality. 5
3360	3360	‘‘(s) ‘Source of income’ includes income for which 6
3361	3361	there is a reasonable expectation that the income will con-7
3362	3362	tinue from— 8
3363	3363	‘‘(1) a profession, occupation, or job; 9
3364	3364	‘‘(2) any government or private assistance, 10
3365	3365	grant, loan, or rental assistance program, including 11
3366	3366	vouchers issued under the United States Housing 12
3367	3367	Act of 1937 (42 U.S.C. 1437 et seq.); 13
3368	3368	‘‘(3) a gift, an inheritance, a pension, an annu-14
3369	3369	ity, alimony, child support, or other consideration or 15
3370	3370	benefit; or 16
3371	3371	‘‘(4) the sale or pledge of property or an inter-17
3372	3372	est in property. 18
3373	3373	‘‘(t) ‘Veteran status’ means— 19
3374	3374	‘‘(1) a member of the uniformed services, as de-20
3375	3375	fined in section 101 of title 10, United States Code; 21
3376	3376	or 22
3377	3377	‘‘(2) a veteran, as defined in section 101 of title 23
3378	3378	38, United States Code.’’; 24
3379	3379	(2) in section 804 (42 U.S.C. 3604)— 25
3380	3380	VerDate Sep 11 2014 23:05 Mar 22, 2025 Jkt 059200 PO 00000 Frm 00115 Fmt 6652 Sfmt 6201 E:\BILLS\H2038.IH H2038
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3382	3382	•HR 2038 IH
3383	3383	(A) by inserting ‘‘actual or perceived’’ be-1
3384	3384	fore ‘‘race, color’’ each place that term appears; 2
3385	3385	(B) by striking ‘‘sex,’’ each place that term 3
3386	3386	appears and inserting ‘‘sex (including sexual 4
3387	3387	orientation and gender identity), marital status, 5
3388	3388	source of income, veteran status,’’; and 6
3389	3389	(C) in subsection (c)— 7
3390	3390	(i) by inserting ‘‘(1)’’ before ‘‘To 8
3391	3391	make’’; and 9
3392	3392	(ii) by adding at the end the fol-10
3393	3393	lowing: 11
3394	3394	‘‘(2) Nothing in this title shall be construed to— 12
3395	3395	‘‘(A) prohibit a lender from implementing a 13
3396	3396	loan program for veterans or based upon veteran 14
3397	3397	status; or 15
3398	3398	‘‘(B) prohibit an entity from providing housing 16
3399	3399	assistance under— 17
3400	3400	‘‘(i) section 8(o)(19) of the United States 18
3401	3401	Housing Act of 1937 (42 U.S.C. 1437f(o)(19)); 19
3402	3402	‘‘(ii) the Homeless Providers Grant and 20
3403	3403	Per Diem program of the Department of Vet-21
3404	3404	erans Affairs; or 22
3405	3405	‘‘(iii) any other Federal housing assistance 23
3406	3406	program for veterans or based on veteran sta-24
3407	3407	tus.’’; 25
3408	3408	VerDate Sep 11 2014 23:05 Mar 22, 2025 Jkt 059200 PO 00000 Frm 00116 Fmt 6652 Sfmt 6201 E:\BILLS\H2038.IH H2038
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3410	3410	•HR 2038 IH
3411	3411	(3) in section 805 (42 U.S.C. 3605)— 1
3412	3412	(A) by inserting ‘‘actual or perceived’’ be-2
3413	3413	fore ‘‘race, color’’ each place that term appears; 3
3414	3414	and 4
3415	3415	(B) by striking ‘‘sex,’’ each place that term 5
3416	3416	appears and inserting ‘‘sex (including sexual 6
3417	3417	orientation and gender identity), marital status, 7
3418	3418	source of income, veteran status,’’; 8
3419	3419	(4) in section 806 (42 U.S.C. 3606)— 9
3420	3420	(A) by inserting ‘‘actual or perceived’’ be-10
3421	3421	fore ‘‘race, color’’; and 11
3422	3422	(B) by striking ‘‘sex,’’ each place that term 12
3423	3423	appears and inserting ‘‘sex (including sexual 13
3424	3424	orientation and gender identity), marital status, 14
3425	3425	source of income, veteran status,’’; and 15
3426	3426	(5) in section 808(e)(6) (42 U.S.C. 3608(e)(6)), 16
3427	3427	by striking ‘‘sex,’’ and inserting ‘‘sex (including sex-17
3428	3428	ual orientation and gender identity), marital status, 18
3429	3429	source of income, veteran status,’’. 19
3430	3430	(c) P
3431	3431	REVENTION OFINTIMIDATION.—Section 901 of 20
3432	3432	the Civil Rights Act of 1968 (42 U.S.C. 3631) is amend-21
3433	3433	ed— 22
3434	3434	(1) by inserting ‘‘actual or perceived’’ before 23
3435	3435	‘‘race, color’’ each place that term appears; and 24
3436	3436	VerDate Sep 11 2014 23:05 Mar 22, 2025 Jkt 059200 PO 00000 Frm 00117 Fmt 6652 Sfmt 6201 E:\BILLS\H2038.IH H2038
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3438	3438	•HR 2038 IH
3439	3439	(2) by striking ‘‘sex,’’ each place that term ap-1
3440	3440	pears and inserting ‘‘sex (including sexual orienta-2
3441	3441	tion (as such term is defined in section 802 of this 3
3442	3442	Act) and gender identity (as defined in section 802 4
3443	3443	of this Act)), marital status (as defined in section 5
3444	3444	802), source of income (as defined in section 802), 6
3445	3445	veteran status (as defined in section 802),’’. 7
3446	3446	(d) R
3447	3447	ULE OF CONSTRUCTION.—Nothing in the 8
3448	3448	amendments made by this section shall be construed to 9
3449	3449	mean that a particular class of individuals was not pro-10
3450	3450	tected against discrimination under Federal law as in ef-11
3451	3451	fect on the day before the date of enactment of this Act. 12
3452	3452	SEC. 302. IMPROVING OUTCOMES IN HOUSING ASSISTANCE 13
3453	3453	PROGRAMS. 14
3454	3454	(a) I
3455	3455	NDIANHOUSINGASSISTANCE.—Section 502 of 15
3456	3456	the Native American Housing Assistance and Self-Deter-16
3457	3457	mination Act of 1996 (25 U.S.C. 4181) is amended by 17
3458	3458	adding at the end the following: 18
3459	3459	‘‘(c) A
3460	3460	PPLICABILITY.—Subsections (a) and (b) shall 19
3461	3461	not apply with respect to tenant-based assistance provided 20
3462	3462	under section 8(o) of the United States Housing Act of 21
3463	3463	1937 (42 U.S.C. 1437f(o)).’’. 22
3464	3464	(b) S
3465	3465	UPPLEMENTAL ADMINISTRATIVEFEE.—Section 23
3466	3466	8(q)(2)(B) of the United States Housing Act of 1937 (42 24
3467	3467	U.S.C. 1437f(q)(2)(B)) is amended by inserting ‘‘, includ-25
3468	3468	VerDate Sep 11 2014 23:05 Mar 22, 2025 Jkt 059200 PO 00000 Frm 00118 Fmt 6652 Sfmt 6201 E:\BILLS\H2038.IH H2038
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3470	3470	•HR 2038 IH
3471	3471	ing the cost of assisting families with children or families 1
3472	3472	with a member with a disability that move to lower pov-2
3473	3473	erty, higher opportunity neighborhoods (as determined by 3
3474	3474	the Secretary based on objective, evidence-based criteria)’’ 4
3475	3475	after ‘‘programs’’. 5
3476	3476	(c) R
3477	3477	EGIONALPLANNINGTOINCREASEACCESS TO 6
3478	3478	H
3479	3479	IGHEROPPORTUNITY AREAS.—Section 8(o) of the 7
3480	3480	United States Housing Act of 1937 (42 U.S.C. 1437f(o)) 8
3481	3481	is amended by adding at the end the following: 9
3482	3482	‘‘(23) I
3483	3483	NCREASING ACCESS TO HIGHER OPPOR -10
3484	3484	TUNITY AREAS.— 11
3485	3485	‘‘(A) L
3486	3486	OCATION ANALYSIS.— 12
3487	3487	‘‘(i) I
3488	3488	N GENERAL.—A public housing 13
3489	3489	agency that administers the program 14
3490	3490	under this subsection in a metropolitan 15
3491	3491	area shall— 16
3492	3492	‘‘(I) analyze the locations where 17
3493	3493	the participants in the program of the 18
3494	3494	public housing agency live; and 19
3495	3495	‘‘(II) based on the analysis de-20
3496	3496	scribed in subclause (I), establish poli-21
3497	3497	cies and practices to reduce disparities 22
3498	3498	and barriers to access to locations 23
3499	3499	throughout the metropolitan area that 24
3500	3500	evidence indicates are more likely to 25
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3503	3503	•HR 2038 IH
3504	3504	improve outcomes for children or 1
3505	3505	adults. 2
3506	3506	‘‘(ii) C
3507	3507	ONSIDERATIONS.—The location 3
3508	3508	analysis required under this subparagraph 4
3509	3509	shall— 5
3510	3510	‘‘(I) consider separately the loca-6
3511	3511	tions of families with children, house-7
3512	3512	holds that include a person with dis-8
3513	3513	abilities, and other groups protected 9
3514	3514	under the Fair Housing Act (42 10
3515	3515	U.S.C. 3601 et seq.); and 11
3516	3516	‘‘(II) include an analysis of the 12
3517	3517	locations in relation to dwelling units 13
3518	3518	with rents that are potentially afford-14
3519	3519	able to voucher holders and the likely 15
3520	3520	impact of key neighborhood attributes 16
3521	3521	on their well-being and long-term suc-17
3522	3522	cess, based on Federal and available 18
3523	3523	local data. 19
3524	3524	‘‘(iii) M
3525	3525	APPING TOOLS.—The Sec-20
3526	3526	retary shall— 21
3527	3527	‘‘(I) provide mapping tools and 22
3528	3528	other information necessary for a pub-23
3529	3529	lic housing agency to perform the lo-24
3530	3530	cation analysis under this subpara-25
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3533	3533	•HR 2038 IH
3534	3534	graph using the demographic data on 1
3535	3535	participating families submitted to the 2
3536	3536	Secretary under part 908 of title 24, 3
3537	3537	Code of Federal Regulations, or any 4
3538	3538	successor regulation; 5
3539	3539	‘‘(II) publish a notice in the Fed-6
3540	3540	eral Register, subject to public com-7
3541	3541	ment, that specifies the data sources 8
3542	3542	and definitions that will be incor-9
3543	3543	porated in each mapping tool required 10
3544	3544	under subclause (I); and 11
3545	3545	‘‘(III) update the notice required 12
3546	3546	under subclause (II) as needed based 13
3547	3547	on changes in the availability of rel-14
3548	3548	evant data or evidence of neighbor-15
3549	3549	hood attributes likely to impact the 16
3550	3550	well-being and long-term success of 17
3551	3551	participants in the program under this 18
3552	3552	subsection. 19
3553	3553	‘‘(iv) F
3554	3554	REQUENCY AND AVAIL -20
3555	3555	ABILITY.—The location analysis required 21
3556	3556	under this subparagraph shall— 22
3557	3557	‘‘(I) be performed by each public 23
3558	3558	housing agency described in clause (i) 24
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3561	3561	•HR 2038 IH
3562	3562	not less frequently than once every 5 1
3563	3563	years; 2
3564	3564	‘‘(II) be performed by all public 3
3565	3565	housing agencies in a metropolitan 4
3566	3566	area in the same year, as determined 5
3567	3567	by the Secretary; and 6
3568	3568	‘‘(III) be made available to the 7
3569	3569	public in a manner that protects the 8
3570	3570	privacy of program participants. 9
3571	3571	‘‘(B) R
3572	3572	EGIONAL POLICIES TO INCREASE 10
3573	3573	ACCESS TO HIGHER OPPORTUNITY NEIGHBOR -11
3574	3574	HOODS.—Each public housing agency described 12
3575	3575	in subparagraph (A)(i) shall— 13
3576	3576	‘‘(i) consult with other such public 14
3577	3577	housing agencies in the same metropolitan 15
3578	3578	area, or smaller regional area approved by 16
3579	3579	the Secretary, about the possible barriers 17
3580	3580	and other reasons for the disparities iden-18
3581	3581	tified in the location analysis required 19
3582	3582	under subparagraph (A); 20
3583	3583	‘‘(ii) identify policies or practices that 21
3584	3584	those public housing agencies could adopt 22
3585	3585	individually or in collaboration, or other 23
3586	3586	strategies that recipients of grants or other 24
3587	3587	funding from the Secretary could adopt, to 25
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3590	3590	•HR 2038 IH
3591	3591	reduce the barriers and disparities and in-1
3592	3592	crease the share of families with children 2
3593	3593	and other demographic groups using 3
3594	3594	vouchers in higher-opportunity neighbor-4
3595	3595	hoods in the metropolitan area or region; 5
3596	3596	and 6
3597	3597	‘‘(iii) include in the administrative 7
3598	3598	plan required under section 982.54 of title 8
3599	3599	24, Code of Federal Regulations, or any 9
3600	3600	successor regulation, the policies that the 10
3601	3601	public housing agency has adopted under 11
3602	3602	this paragraph. 12
3603	3603	‘‘(C) A
3604	3604	SSESSMENT.—The Secretary shall 13
3605	3605	include public housing agency performance in 14
3606	3606	achieving the goal described in subparagraph 15
3607	3607	(A)(i)(II) in the periodic assessment of agency 16
3608	3608	performance in managing the program under 17
3609	3609	this subsection required under part 985 of title 18
3610	3610	24, Code of Federal Regulations, or any suc-19
3611	3611	cessor regulation.’’. 20
3612	3612	(d) R
3613	3613	EQUIREDREGULATORYCHANGES TOPUBLIC 21
3614	3614	H
3615	3615	OUSINGAGENCYCONSORTIA.— 22
3616	3616	(1) D
3617	3617	EFINITIONS.—In this subsection: 23
3618	3618	(A) M
3619	3619	OVING TO WORK DEMONSTRATION 24
3620	3620	PROGRAM.—The term ‘‘Moving to Work dem-25
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3623	3623	•HR 2038 IH
3624	3624	onstration program’’ means the program estab-1
3625	3625	lished under section 204 of the Departments of 2
3626	3626	Veterans Affairs and Housing and Urban De-3
3627	3627	velopment, and Independent Agencies Appro-4
3628	3628	priations Act, 1996 (Public Law 104–134; 110 5
3629	3629	Stat. 1321–281). 6
3630	3630	(B) P
3631	3631	UBLIC HOUSING AGENCY .—The term 7
3632	3632	‘‘public housing agency’’ has the meaning given 8
3633	3633	the term in section 3(b)(6) of the United States 9
3634	3634	Housing Act of 1937 (42 U.S.C. 1437a(b)(6)). 10
3635	3635	(2) R
3636	3636	EQUIREMENT.—Not later than 1 year 11
3637	3637	after the date of enactment of this Act, the Sec-12
3638	3638	retary of Housing and Urban Development shall es-13
3639	3639	tablish policies and procedures that— 14
3640	3640	(A) enable public housing agencies that 15
3641	3641	elect to operate in consortia under section 13(a) 16
3642	3642	of the United States Housing Act of 1937 (42 17
3643	3643	U.S.C. 1437k(a)), excluding public housing 18
3644	3644	agencies participating in the Moving to Work 19
3645	3645	demonstration program— 20
3646	3646	(i) to consolidate their funding con-21
3647	3647	tracts for assistance provided under section 22
3648	3648	8(o) of such Act (42 U.S.C. 1437f(o)) into 23
3649	3649	a single contract; 24
3650	3650	VerDate Sep 11 2014 23:05 Mar 22, 2025 Jkt 059200 PO 00000 Frm 00124 Fmt 6652 Sfmt 6201 E:\BILLS\H2038.IH H2038
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3652	3652	•HR 2038 IH
3653	3653	(ii) to consolidate their funding con-1
3654	3654	tracts for assistance provided under sub-2
3655	3655	sections (d) and (e) of section 9 of such 3
3656	3656	Act (42 U.S.C. 1437g); or 4
3657	3657	(iii) to exercise the consolidation op-5
3658	3658	tions under each of clauses (i) and (ii); and 6
3659	3659	(B) enable public housing agencies to form 7
3660	3660	partial consortia under such section 13(a) (42 8
3661	3661	U.S.C. 1437k(a)) that consolidate the adminis-9
3662	3662	tration of certain aspects of their housing pro-10
3663	3663	grams to increase access to higher-opportunity 11
3664	3664	areas or for other purposes, subject to such re-12
3665	3665	quirements as the Secretary may establish. 13
3666	3666	(3) M
3667	3667	OVING TO WORK AGENCIES .—Any flexi-14
3668	3668	bility or waiver applicable to the Moving to Work 15
3669	3669	demonstration program shall not apply to any activi-16
3670	3670	ties or funds administered through a partial consor-17
3671	3671	tium formed under paragraph (2)(B) by 1 or more 18
3672	3672	public housing agencies participating in the Moving 19
3673	3673	to Work demonstration program. 20
3674	3674	TITLE IV—ESTATE TAX REFORM 21
3675	3675	SEC. 401. AMENDMENT TO INTERNAL REVENUE CODE OF 22
3676	3676	1986. 23
3677	3677	Except as otherwise expressly provided, whenever in 24
3678	3678	this title an amendment or repeal is expressed in terms 25
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3681	3681	•HR 2038 IH
3682	3682	of an amendment to, or repeal of, a section or other provi-1
3683	3683	sion, the reference shall be considered to be made to a 2
3684	3684	section or other provision of the Internal Revenue Code 3
3685	3685	of 1986. 4
3686	3686	SEC. 402. RATE ADJUSTMENT. 5
3687	3687	(a) I
3688	3688	NCREASE INESTATETAXRATES.—The table 6
3689	3689	contained in section 2001(c) is amended to read as follows: 7
3690	3690	If the amount with respect to
3691	3691	which the tentative tax to
3692	3692	be computed is:
3693	3693	The tentative tax is:
3694	3694	Not over $13,000,000 ................... 55 percent of such amount.
3695	3695	Over $13,000,000 but not over
3696	3696	$93,000,000.
3697	3697	$7,150,000, plus 60 percent of the
3698	3698	excess of such amount over
3699	3699	$13,000,000.
3700	3700	Over $93,000,000 .......................... $55,150,000, plus 65 percent of the
3701	3701	excess of such amount over
3702	3702	$93,000,000.
3703	3703	(b) REDUCTION OFBASICEXCLUSIONAMOUNT.— 8
3704	3704	Paragraph (3) of section 2010(c) is amended to read as 9
3705	3705	follows: 10
3706	3706	‘‘(3) B
3707	3707	ASIC EXCLUSION AMOUNT .—For pur-11
3708	3708	poses of this subsection, the basic exclusion amount 12
3709	3709	is $3,500,000.’’. 13
3710	3710	(c) S
3711	3711	URTAX ONBILLIONDOLLARESTATES.—Section 14
3712	3712	2001 is amended— 15
3713	3713	(1) in subsection (b), by striking ‘‘The tax’’ and 16
3714	3714	inserting ‘‘Subject to subsection (h), the tax’’, and 17
3715	3715	(2) by adding at the end the following new sub-18
3716	3716	section: 19
3717	3717	‘‘(h) S
3718	3718	URTAX ONBILLIONDOLLARESTATES.— 20
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3721	3721	•HR 2038 IH
3722	3722	‘‘(1) IN GENERAL.—In the case of a taxable es-1
3723	3723	tate for which the applicable amount is in excess of 2
3724	3724	$1,000,000,000, the tax determined under sub-3
3725	3725	section (b) shall be increased by an amount equal to 4
3726	3726	10 percent of such applicable amount. 5
3727	3727	‘‘(2) A
3728	3728	PPLICABLE AMOUNT .—For purposes of 6
3729	3729	this subsection, the applicable amount shall be equal 7
3730	3730	to the sum of the amounts under subparagraphs (A) 8
3731	3731	and (B) of paragraph (1) of subsection (b) for the 9
3732	3732	taxable estate.’’. 10
3733	3733	(d) E
3734	3734	FFECTIVEDATE.—The amendments made by 11
3735	3735	this section shall apply to estates of decedents dying, and 12
3736	3736	generation-skipping transfers and gifts made, after the 13
3737	3737	date of the enactment of this Act. 14
3738	3738	SEC. 403. REQUIRED MINIMUM 10-YEAR TERM, ETC., FOR 15
3739	3739	GRANTOR RETAINED ANNUITY TRUSTS. 16
3740	3740	(a) I
3741	3741	NGENERAL.—Subsection (b) of section 2702 is 17
3742	3742	amended— 18
3743	3743	(1) by redesignating paragraphs (1), (2), and 19
3744	3744	(3) as subparagraphs (A), (B), and (C), respectively, 20
3745	3745	and by moving such subparagraphs (as so redesig-21
3746	3746	nated) 2 ems to the right, 22
3747	3747	(2) by striking ‘‘For purposes of’’ and inserting 23
3748	3748	the following: 24
3749	3749	‘‘(1) I
3750	3750	N GENERAL.—For purposes of’’, 25
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3753	3753	•HR 2038 IH
3754	3754	(3) by striking ‘‘paragraph (1) or (2)’’ in para-1
3755	3755	graph (1)(C) (as so redesignated) and inserting 2
3756	3756	‘‘subparagraph (A) or (B)’’, and 3
3757	3757	(4) by adding at the end the following new 4
3758	3758	paragraph: 5
3759	3759	‘‘(2) A
3760	3760	DDITIONAL REQUIREMENTS WITH RE -6
3761	3761	SPECT TO GRANTOR RETAINED ANNUITIES .—For 7
3762	3762	purposes of subsection (a), in the case of an interest 8
3763	3763	described in paragraph (1)(A) (determined without 9
3764	3764	regard to this paragraph) which is retained by the 10
3765	3765	transferor, such interest shall be treated as de-11
3766	3766	scribed in such paragraph only if— 12
3767	3767	‘‘(A) the right to receive the fixed amounts 13
3768	3768	referred to in such paragraph is for a term of 14
3769	3769	not less than 10 years, 15
3770	3770	‘‘(B) such fixed amounts, when determined 16
3771	3771	on an annual basis, do not decrease relative to 17
3772	3772	any prior year during the first 10 years of the 18
3773	3773	term referred to in subparagraph (A), and 19
3774	3774	‘‘(C) the remainder interest has a value 20
3775	3775	equal to or greater than 10 percent of the value 21
3776	3776	of the assets transferred to the trust, deter-22
3777	3777	mined as of the time of the transfer.’’. 23
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3780	3780	•HR 2038 IH
3781	3781	(b) EFFECTIVEDATE.—The amendments made by 1
3782	3782	this section shall apply to transfers made after the date 2
3783	3783	of the enactment of this Act. 3
3784	3784	SEC. 404. CERTAIN TRANSFER TAX RULES APPLICABLE TO 4
3785	3785	GRANTOR TRUSTS. 5
3786	3786	(a) I
3787	3787	NGENERAL.—Subtitle B is amended by adding 6
3788	3788	at the end the following new chapter: 7
3789	3789	‘‘CHAPTER 16—SPECIAL RULES FOR 8
3790	3790	GRANTOR TRUSTS 9
3791	3791	‘‘Sec. 2901. Application of transfer taxes.
3792	3792	‘‘SEC. 2901. APPLICATION OF TRANSFER TAXES.
3793	3793	10
3794	3794	‘‘(a) I
3795	3795	NGENERAL.—In the case of any portion of a 11
3796	3796	trust to which this section applies— 12
3797	3797	‘‘(1) the value of the gross estate of the de-13
3798	3798	ceased deemed owner of such portion shall include 14
3799	3799	all assets attributable to that portion at the time of 15
3800	3800	the death of such owner, 16
3801	3801	‘‘(2) any distribution from such portion to one 17
3802	3802	or more beneficiaries during the life of the deemed 18
3803	3803	owner of such portion shall be treated as a transfer 19
3804	3804	by gift for purposes of chapter 12, and 20
3805	3805	‘‘(3) if at any time during the life of the 21
3806	3806	deemed owner of such portion, such owner ceases to 22
3807	3807	be treated as the owner of such portion under sub-23
3808	3808	part E of part 1 of subchapter J of chapter 1, all 24
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3811	3811	•HR 2038 IH
3812	3812	assets attributable to such portion at such time shall 1
3813	3813	be treated for purposes of chapter 12 as a transfer 2
3814	3814	by gift made by the deemed owner. 3
3815	3815	‘‘(b) P
3816	3816	ORTION OFTRUST TOWHICHSECTIONAP-4
3817	3817	PLIES.—This section shall apply to— 5
3818	3818	‘‘(1) the portion of a trust with respect to 6
3819	3819	which the grantor is the deemed owner, and 7
3820	3820	‘‘(2) the portion of the trust to which a person 8
3821	3821	who is not the grantor is a deemed owner by reason 9
3822	3822	of the rules of subpart E of part 1 of subchapter J 10
3823	3823	of chapter 1, and such deemed owner engages in a 11
3824	3824	sale, exchange, or comparable transaction with the 12
3825	3825	trust that is disregarded for purposes of subtitle A. 13
3826	3826	For purposes of paragraph (2), the portion of the trust 14
3827	3827	described with respect to a transaction is the portion of 15
3828	3828	the trust attributable to the property received by the trust 16
3829	3829	in such transaction, including all retained income there-17
3830	3830	from, appreciation thereon, and reinvestments thereof, net 18
3831	3831	of the amount of consideration received by the deemed 19
3832	3832	owner in such transaction. 20
3833	3833	‘‘(c) E
3834	3834	XCEPTIONS.—This section shall not apply to— 21
3835	3835	‘‘(1) any trust that is includible in the gross es-22
3836	3836	tate of the deemed owner (without regard to sub-23
3837	3837	section (a)(1)), and 24
3838	3838	VerDate Sep 11 2014 23:05 Mar 22, 2025 Jkt 059200 PO 00000 Frm 00130 Fmt 6652 Sfmt 6201 E:\BILLS\H2038.IH H2038
3839	3839	kjohnson on DSK7ZCZBW3PROD with $$_JOB 131
3840	3840	•HR 2038 IH
3841	3841	‘‘(2) any other type of trust that the Secretary 1
3842	3842	determines by regulations or other guidance does not 2
3843	3843	have as a significant purpose the avoidance of trans-3
3844	3844	fer taxes. 4
3845	3845	‘‘(d) D
3846	3846	EEMEDOWNERDEFINED.—For purposes of 5
3847	3847	this section, the term ‘deemed owner’ means any person 6
3848	3848	who is treated as the owner of a portion of a trust under 7
3849	3849	subpart E of part 1 of subchapter J of chapter 1. 8
3850	3850	‘‘(e) R
3851	3851	EDUCTION FOR TAXABLEGIFTS TOTRUST 9
3852	3852	M
3853	3853	ADE BYOWNER.—The amount to which subsection (a) 10
3854	3854	applies shall be reduced by the value of any transfer by 11
3855	3855	gift by the deemed owner to the trust previously taken 12
3856	3856	into account by the deemed owner under chapter 12. 13
3857	3857	‘‘(f) L
3858	3858	IABILITY FORPAYMENT OFTAX.—Any tax im-14
3859	3859	posed pursuant to subsection (a) shall be a liability of the 15
3860	3860	trust.’’. 16
3861	3861	(b) C
3862	3862	LERICALAMENDMENT.—The table of chapters 17
3863	3863	for subtitle B is amended by adding at the end the fol-18
3864	3864	lowing new item: 19
3865	3865	‘‘CHAPTER16. SPECIALRULES FORGRANTORTRUSTS’’.
3866	3866	(c) EFFECTIVEDATE.—The amendments made by 20
3867	3867	this section shall apply— 21
3868	3868	(1) to trusts created on or after the date of the 22
3869	3869	enactment of this Act, 23
3870	3870	(2) to any portion of a trust established before 24
3871	3871	the date of the enactment of this Act which is attrib-25
3872	3872	VerDate Sep 11 2014 23:05 Mar 22, 2025 Jkt 059200 PO 00000 Frm 00131 Fmt 6652 Sfmt 6201 E:\BILLS\H2038.IH H2038
3873	3873	kjohnson on DSK7ZCZBW3PROD with $$_JOB 132
3874	3874	•HR 2038 IH
3875	3875	utable to a contribution made on or after such date, 1
3876	3876	and 2
3877	3877	(3) to any portion of a trust established before 3
3878	3878	the date of the enactment of this Act to which sec-4
3879	3879	tion 2901(a) of the Internal Revenue Code of 1986 5
3880	3880	(as added by subsection (a)) applies by reason of a 6
3881	3881	transaction described in section 2901(b)(2) of such 7
3882	3882	Code on or after such date. 8
3883	3883	SEC. 405. ELIMINATION OF GENERATION-SKIPPING TRANS-9
3884	3884	FER TAX EXEMPTION FOR TRANSFERS TO 10
3885	3885	CERTAIN PERSONS. 11
3886	3886	(a) I
3887	3887	NGENERAL.—Section 2642 is amended by add-12
3888	3888	ing at the end the following new subsection: 13
3889	3889	‘‘(h) E
3890	3890	LIMINATION OFGST EXEMPTION FORTRANS-14
3891	3891	FERS TOCERTAINPERSONS.— 15
3892	3892	‘‘(1) I
3893	3893	N GENERAL.— 16
3894	3894	‘‘(A) T
3895	3895	RANSFER TO NON -EXEMPT PER-17
3896	3896	SON.—In the case of any direct skip or taxable 18
3897	3897	distribution made to any person who is not an 19
3898	3898	exempt person, the inclusion ratio shall be 1. 20
3899	3899	‘‘(B) T
3900	3900	AXABLE TERMINATION .—In the 21
3901	3901	case of any taxable termination which occurs at 22
3902	3902	any time immediately after no exempt person is 23
3903	3903	a beneficiary of the trust, the inclusion ratio 24
3904	3904	shall be 1. 25
3905	3905	VerDate Sep 11 2014 23:05 Mar 22, 2025 Jkt 059200 PO 00000 Frm 00132 Fmt 6652 Sfmt 6201 E:\BILLS\H2038.IH H2038
3906	3906	kjohnson on DSK7ZCZBW3PROD with $$_JOB 133
3907	3907	•HR 2038 IH
3908	3908	‘‘(C) EXEMPT PERSON.— 1
3909	3909	‘‘(i) I
3910	3910	N GENERAL.—For purposes of 2
3911	3911	this subsection, the term ‘exempt person’ 3
3912	3912	means— 4
3913	3913	‘‘(I) a natural person— 5
3914	3914	‘‘(aa) who is assigned to a 6
3915	3915	generation which is 2 or fewer 7
3916	3916	generations below the generation 8
3917	3917	assignment of the transferor, or 9
3918	3918	‘‘(bb) whose date of birth 10
3919	3919	precedes the date on which the 11
3920	3920	trust was created, or 12
3921	3921	‘‘(II) a trust in which all inter-13
3922	3922	ests are held by persons described in 14
3923	3923	subclause (I). 15
3924	3924	‘‘(ii) E
3925	3925	XCEPTION.—For purposes of 16
3926	3926	clause (i)(II), any interest which is used 17
3927	3927	primarily to postpone or avoid the applica-18
3928	3928	tion of this subsection shall be disregarded. 19
3929	3929	‘‘(2) D
3930	3930	ATE OF CREATION.— 20
3931	3931	‘‘(A) I
3932	3932	N GENERAL.—For purposes of deter-21
3933	3933	mining the date on which a trust was created 22
3934	3934	under paragraph (1)(C)(i)(I)(bb), if the trust 23
3935	3935	was created before January 1, 2026, such trust 24
3936	3936	VerDate Sep 11 2014 23:05 Mar 22, 2025 Jkt 059200 PO 00000 Frm 00133 Fmt 6652 Sfmt 6201 E:\BILLS\H2038.IH H2038
3937	3937	kjohnson on DSK7ZCZBW3PROD with $$_JOB 134
3938	3938	•HR 2038 IH
3939	3939	shall be deemed to have been created on Janu-1
3940	3940	ary 1, 2026. 2
3941	3941	‘‘(B) D
3942	3942	ATE OF CREATION OF POUR -OVER 3
3943	3943	TRUSTS.— 4
3944	3944	‘‘(i) I
3945	3945	N GENERAL.—In the case of any 5
3946	3946	generation-skipping transfer of property 6
3947	3947	which involves the transfer of property 7
3948	3948	from one trust to another trust, the date 8
3949	3949	of the creation of the transferee trust shall 9
3950	3950	be treated as being the earlier of— 10
3951	3951	‘‘(I) the date of the creation of 11
3952	3952	such transferee trust, or 12
3953	3953	‘‘(II) the date of the creation of 13
3954	3954	the transferor trust. 14
3955	3955	‘‘(ii) M
3956	3956	ULTIPLE TRANSFERS .—In the 15
3957	3957	case of multiple transfers to which clause 16
3958	3958	(i) applies— 17
3959	3959	‘‘(I) the date of the creation of 18
3960	3960	the transferor trust shall be deter-19
3961	3961	mined under such clause, and 20
3962	3962	‘‘(II) subsequent to the deter-21
3963	3963	mination described in subclause (I), 22
3964	3964	the date of the creation of the trans-23
3965	3965	feree trust shall be determined under 24
3966	3966	such clause. 25
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3968	3968	kjohnson on DSK7ZCZBW3PROD with $$_JOB 135
3969	3969	•HR 2038 IH
3970	3970	‘‘(3) GENERATION ASSIGNMENT .—For purposes 1
3971	3971	of this subsection, the provisions of section 2653(a) 2
3972	3972	shall not apply. 3
3973	3973	‘‘(4) R
3974	3974	EGULATIONS.—The Secretary may pre-4
3975	3975	scribe such regulations or other guidance as may be 5
3976	3976	necessary or appropriate to carry out this sub-6
3977	3977	section.’’. 7
3978	3978	(b) R
3979	3979	EPEAL.—Section 1433(b)(2) of the Tax Reform 8
3980	3980	Act of 1986 (Public Law 99–514) is repealed. 9
3981	3981	(c) E
3982	3982	FFECTIVEDATES.— 10
3983	3983	(1) I
3984	3984	N GENERAL.—The amendment made by 11
3985	3985	subsection (a) shall take effect on the date of the en-12
3986	3986	actment of this Act. 13
3987	3987	(2) R
3988	3988	EPEAL.—The amendment made by sub-14
3989	3989	section (b) shall apply to generation-skipping trans-15
3990	3990	fers (within the meaning of section 2611 of the In-16
3991	3991	ternal Revenue Code of 1986) made after the date 17
3992	3992	of enactment of this Act. 18
3993	3993	SEC. 406. SIMPLIFYING GIFT TAX EXCLUSION FOR ANNUAL 19
3994	3994	GIFTS. 20
3995	3995	(a) I
3996	3996	NGENERAL.—Paragraph (1) of section 2503(b) 21
3997	3997	is amended to read as follows: 22
3998	3998	‘‘(1) I
3999	3999	N GENERAL.— 23
4000	4000	‘‘(A) L
4001	4001	IMIT PER DONEE.—In the case of 24
4002	4002	gifts made to any person by the donor during 25
4003	4003	VerDate Sep 11 2014 23:05 Mar 22, 2025 Jkt 059200 PO 00000 Frm 00135 Fmt 6652 Sfmt 6201 E:\BILLS\H2038.IH H2038
4004	4004	kjohnson on DSK7ZCZBW3PROD with $$_JOB 136
4005	4005	•HR 2038 IH
4006	4006	the calendar year, the first $10,000 of such 1
4007	4007	gifts to such person shall not, for purposes of 2
4008	4008	subsection (a), be included in the total amount 3
4009	4009	of gifts made during such year. 4
4010	4010	‘‘(B) C
4011	4011	UMULATIVE LIMIT PER DONOR .— 5
4012	4012	‘‘(i) I
4013	4013	N GENERAL.—The aggregate 6
4014	4014	amount excluded under subparagraph (A) 7
4015	4015	with respect to all transfers described in 8
4016	4016	clause (ii) made by the donor during the 9
4017	4017	calendar year shall not exceed twice the 10
4018	4018	dollar amount in effect under such sub-11
4019	4019	paragraph for such calendar year. 12
4020	4020	‘‘(ii) T
4021	4021	RANSFERS SUBJECT TO LIMITA -13
4022	4022	TION.—The transfers described in this 14
4023	4023	clause are— 15
4024	4024	‘‘(I) a transfer in trust, 16
4025	4025	‘‘(II) a transfer of an interest in 17
4026	4026	a passthrough entity, 18
4027	4027	‘‘(III) a transfer of an interest 19
4028	4028	subject to a prohibition on sale, and 20
4029	4029	‘‘(IV) any other transfer of prop-21
4030	4030	erty that, without regard to with-22
4031	4031	drawal, put, or other such rights in 23
4032	4032	the donee, cannot immediately be liq-24
4033	4033	uidated by the donee.’’. 25
4034	4034	VerDate Sep 11 2014 23:05 Mar 22, 2025 Jkt 059200 PO 00000 Frm 00136 Fmt 6652 Sfmt 6201 E:\BILLS\H2038.IH H2038
4035	4035	kjohnson on DSK7ZCZBW3PROD with $$_JOB 137
4036	4036	•HR 2038 IH
4037	4037	(b) CONFORMING AMENDMENT.—Section 2503 is 1
4038	4038	amended by striking subsection (c). 2
4039	4039	(c) R
4040	4040	EGULATIONS.—The Secretary of the Treasury, 3
4041	4041	or the Secretary of the Treasury’s delegate, may prescribe 4
4042	4042	such regulations or other guidance as may be necessary 5
4043	4043	or appropriate to carry out the amendments made by this 6
4044	4044	section. 7
4045	4045	(d) E
4046	4046	FFECTIVEDATE.—The amendments made by 8
4047	4047	this section shall apply to any calendar year beginning 9
4048	4048	after the date of the enactment of this Act. 10
4049	4049	SEC. 407. CLARIFICATION REGARDING DISALLOWANCE OF 11
4050	4050	STEP-UP IN BASIS FOR PROPERTY HELD IN 12
4051	4051	CERTAIN GRANTOR TRUSTS. 13
4052	4052	(a) I
4053	4053	NGENERAL.—Section 1014 is amended— 14
4054	4054	(1) by redesignating subsection (f) as sub-15
4055	4055	section (g), and 16
4056	4056	(2) by inserting after subsection (e) the fol-17
4057	4057	lowing: 18
4058	4058	‘‘(f) P
4059	4059	ROPERTYHELD IN CERTAINGRANTOR 19
4060	4060	T
4061	4061	RUSTS.—This section shall not apply to property— 20
4062	4062	‘‘(1) held in a trust of which the transferor is 21
4063	4063	considered the owner under subpart E of part I of 22
4064	4064	subchapter J, and 23
4065	4065	VerDate Sep 11 2014 23:05 Mar 22, 2025 Jkt 059200 PO 00000 Frm 00137 Fmt 6652 Sfmt 6201 E:\BILLS\H2038.IH H2038
4066	4066	kjohnson on DSK7ZCZBW3PROD with $$_JOB 138
4067	4067	•HR 2038 IH
4068	4068	‘‘(2) if, after the transfer of such property to 1
4069	4069	the trust, such property is not includible in the gross 2
4070	4070	estate of the transferor for purposes of chapter 11.’’. 3
4071	4071	(b) C
4072	4072	ONFORMINGAMENDMENT.—Section 6662(k) is 4
4073	4073	amended by striking ‘‘1014(f)’’ and inserting ‘‘1014(g)’’. 5
4074	4074	(c) E
4075	4075	FFECTIVEDATE.—The amendments made by 6
4076	4076	this section shall apply to transfers after the date of the 7
4077	4077	enactment of this Act. 8
4078	4078	(d) N
4079	4079	OINFERENCE.—No inference may be drawn 9
4080	4080	from the amendments made by this section with respect 10
4081	4081	to the application of section 1014 of the Internal Revenue 11
4082	4082	Code of 1986 to property described in subsection (f) of 12
4083	4083	such section (as added by subsection (a)) which was trans-13
4084	4084	ferred on or before the date of enactment of this Act. 14
4085	4085	SEC. 408. LIMITATION ON DISCOUNTS; VALUATION RULES 15
4086	4086	FOR CERTAIN TRANSFERS OF NONBUSINESS 16
4087	4087	ASSETS. 17
4088	4088	(a) I
4089	4089	NGENERAL.—Chapter 14 of subtitle B is 18
4090	4090	amended by adding at the end the following new section: 19
4091	4091	‘‘SEC. 2705. LIMITATION ON DISCOUNTS; VALUATION RULES 20
4092	4092	FOR CERTAIN TRANSFERS OF NONBUSINESS 21
4093	4093	ASSETS. 22
4094	4094	‘‘(a) L
4095	4095	IMITATION ONDISCOUNT BYREASON OFFAM-23
4096	4096	ILYCONTROL.— 24
4097	4097	VerDate Sep 11 2014 23:05 Mar 22, 2025 Jkt 059200 PO 00000 Frm 00138 Fmt 6652 Sfmt 6201 E:\BILLS\H2038.IH H2038
4098	4098	kjohnson on DSK7ZCZBW3PROD with $$_JOB 139
4099	4099	•HR 2038 IH
4100	4100	‘‘(1) IN GENERAL.—For purposes of this sub-1
4101	4101	title, in the case of the transfer of any interest in 2
4102	4102	an entity other than an interest which is actively 3
4103	4103	traded (within the meaning of section 1092), if the 4
4104	4104	transferor, the transferee, and members of the fam-5
4105	4105	ily of the transferor and transferee have control of 6
4106	4106	such entity immediately before such transfer, no dis-7
4107	4107	count shall be allowed— 8
4108	4108	‘‘(A) by reason of the fact that the trans-9
4109	4109	feror or transferee does not have control of 10
4110	4110	such entity, 11
4111	4111	‘‘(B) by reason of the lack of marketability 12
4112	4112	of the interest, or 13
4113	4113	‘‘(C) for any other reason. 14
4114	4114	‘‘(2) D
4115	4115	EFINITIONS.—In this subsection, the 15
4116	4116	terms ‘control’ and ‘member of the family’ have the 16
4117	4117	same meanings given such terms in section 2704(c). 17
4118	4118	‘‘(3) A
4119	4119	TTRIBUTION.—For purposes of this sec-18
4120	4120	tion, the rule of section 2701(e)(3) shall apply for 19
4121	4121	purposes of determining the interests held by any in-20
4122	4122	dividual. 21
4123	4123	‘‘(b) V
4124	4124	ALUATIONRULES FORCERTAINTRANSFERS 22
4125	4125	OFNONBUSINESSASSETS.— 23
4126	4126	‘‘(1) I
4127	4127	N GENERAL.—For purposes of this sub-24
4128	4128	title, in the case of the transfer of any interest in 25
4129	4129	VerDate Sep 11 2014 23:05 Mar 22, 2025 Jkt 059200 PO 00000 Frm 00139 Fmt 6652 Sfmt 6201 E:\BILLS\H2038.IH H2038
4130	4130	kjohnson on DSK7ZCZBW3PROD with $$_JOB 140
4131	4131	•HR 2038 IH
4132	4132	an entity other than an interest which is actively 1
4133	4133	traded (within the meaning of section 1092)— 2
4134	4134	‘‘(A) the value of any nonbusiness assets 3
4135	4135	held by the entity with respect to such interest 4
4136	4136	shall be determined as if the transferor had 5
4137	4137	transferred such assets directly to the trans-6
4138	4138	feree (and no valuation discount shall be al-7
4139	4139	lowed with respect to such nonbusiness assets), 8
4140	4140	and 9
4141	4141	‘‘(B) such nonbusiness assets shall not be 10
4142	4142	taken into account in determining the value of 11
4143	4143	the interest in the entity. 12
4144	4144	‘‘(2) N
4145	4145	ONBUSINESS ASSETS.—For purposes of 13
4146	4146	this subsection— 14
4147	4147	‘‘(A) I
4148	4148	N GENERAL.—The term ‘nonbusi-15
4149	4149	ness asset’ means any asset other than an asset 16
4150	4150	which is used in the active conduct of a trade 17
4151	4151	or business. 18
4152	4152	‘‘(B) P
4153	4153	ASSIVE ASSETS TREATED AS NON -19
4154	4154	BUSINESS ASSETS.— 20
4155	4155	‘‘(i) I
4156	4156	N GENERAL.—For purposes of 21
4157	4157	subparagraph (A), a passive asset shall be 22
4158	4158	treated as a nonbusiness asset unless— 23
4159	4159	‘‘(I) the asset is property de-24
4160	4160	scribed in paragraph (1) or (4) of sec-25
4161	4161	VerDate Sep 11 2014 23:05 Mar 22, 2025 Jkt 059200 PO 00000 Frm 00140 Fmt 6652 Sfmt 6201 E:\BILLS\H2038.IH H2038
4162	4162	kjohnson on DSK7ZCZBW3PROD with $$_JOB 141
4163	4163	•HR 2038 IH
4164	4164	tion 1221(a) or is a hedge with re-1
4165	4165	spect to such property, or 2
4166	4166	‘‘(II) the asset is real property 3
4167	4167	used in the active conduct of 1 or 4
4168	4168	more real property trades or busi-5
4169	4169	nesses (within the meaning of section 6
4170	4170	469(c)(7)(C)) in which the transferor 7
4171	4171	materially participates and with re-8
4172	4172	spect to which the transferor meets 9
4173	4173	the requirements of section 10
4174	4174	469(c)(7)(B)(ii). 11
4175	4175	‘‘(ii) M
4176	4176	ATERIAL PARTICIPATION.—For 12
4177	4177	purposes of clause (i)(II), material partici-13
4178	4178	pation shall be determined under the rules 14
4179	4179	of section 469(h), except that section 15
4180	4180	469(h)(3) shall be applied without regard 16
4181	4181	to the limitation to farming activity. 17
4182	4182	‘‘(C) W
4183	4183	ORKING CAPITAL TREATED AS 18
4184	4184	USED IN TRADE OR BUSINESS .—Any asset (in-19
4185	4185	cluding a passive asset) which is held as a part 20
4186	4186	of the reasonably required working capital 21
4187	4187	needs of a trade or business shall be treated as 22
4188	4188	used in the active conduct of a trade or busi-23
4189	4189	ness. 24
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4191	4191	kjohnson on DSK7ZCZBW3PROD with $$_JOB 142
4192	4192	•HR 2038 IH
4193	4193	‘‘(3) PASSIVE ASSET.—For purposes of this 1
4194	4194	subsection, the term ‘passive asset’ means any— 2
4195	4195	‘‘(A) cash or cash equivalents, 3
4196	4196	‘‘(B) stock in a corporation or any other 4
4197	4197	equity, profits, or capital interest in any entity, 5
4198	4198	‘‘(C) evidence of indebtedness, option, for-6
4199	4199	ward or futures contract, notional principal con-7
4200	4200	tract, or derivative, 8
4201	4201	‘‘(D) asset described in clause (iii), (iv), or 9
4202	4202	(v) of section 351(e)(1)(B), 10
4203	4203	‘‘(E) annuity, 11
4204	4204	‘‘(F) real property used in 1 or more real 12
4205	4205	property trades or businesses (as defined in sec-13
4206	4206	tion 469(c)(7)(C)), 14
4207	4207	‘‘(G) asset (other than a patent, trade-15
4208	4208	mark, or copyright) which produces royalty in-16
4209	4209	come, 17
4210	4210	‘‘(H) commodity, 18
4211	4211	‘‘(I) collectible (within the meaning of sec-19
4212	4212	tion 408(m)), or 20
4213	4213	‘‘(J) any other asset specified in regula-21
4214	4214	tions prescribed by the Secretary. 22
4215	4215	‘‘(4) L
4216	4216	OOK-THRU RULE.— 23
4217	4217	‘‘(A) I
4218	4218	N GENERAL.—If a nonbusiness asset 24
4219	4219	of an entity described in paragraph (1) consists 25
4220	4220	VerDate Sep 11 2014 23:05 Mar 22, 2025 Jkt 059200 PO 00000 Frm 00142 Fmt 6652 Sfmt 6201 E:\BILLS\H2038.IH H2038
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4222	4222	•HR 2038 IH
4223	4223	of a 10-percent interest in any other entity, this 1
4224	4224	subsection shall be applied by disregarding the 2
4225	4225	10-percent interest and by treating the entity 3
4226	4226	as holding directly its ratable share of the as-4
4227	4227	sets of the other entity. 5
4228	4228	‘‘(B) 10-
4229	4229	PERCENT INTEREST .—The term 6
4230	4230	‘10-percent interest’ means— 7
4231	4231	‘‘(i) in the case of an interest in a cor-8
4232	4232	poration, direct ownership of at least 10 9
4233	4233	percent (by vote or value) of the stock in 10
4234	4234	such corporation, 11
4235	4235	‘‘(ii) in the case of an interest in a 12
4236	4236	partnership, direct ownership of at least 10 13
4237	4237	percent of the capital or profits interest in 14
4238	4238	the partnership, and 15
4239	4239	‘‘(iii) in any other case, direct owner-16
4240	4240	ship of at least 10 percent of the beneficial 17
4241	4241	interests in the entity.’’. 18
4242	4242	(b) C
4243	4243	ONFORMINGAMENDMENTS.— 19
4244	4244	(1) Section 2031(b) of the Internal Revenue 20
4245	4245	Code of 1986 is amended by inserting ‘‘(after appli-21
4246	4246	cation of section 2705(b))’’ after ‘‘shall be deter-22
4247	4247	mined’’. 23
4248	4248	VerDate Sep 11 2014 23:05 Mar 22, 2025 Jkt 059200 PO 00000 Frm 00143 Fmt 6652 Sfmt 6201 E:\BILLS\H2038.IH H2038
4249	4249	kjohnson on DSK7ZCZBW3PROD with $$_JOB 144
4250	4250	•HR 2038 IH
4251	4251	(2) The table of sections of chapter 14 of sub-1
4252	4252	title B of such Code is amended by adding at the 2
4253	4253	end the following: 3
4254	4254	‘‘Sec. 2705. Limitation on discounts; valuation rules for certain transfers of
4255	4255	nonbusiness assets.’’.
4256	4256	(c) EFFECTIVEDATE.—The amendments made by 4
4257	4257	this section shall apply to transfers after the date of the 5
4258	4258	enactment of this Act. 6
4259	4259	SEC. 409. SURCHARGE ON HIGH INCOME ESTATES AND 7
4260	4260	TRUSTS. 8
4261	4261	(a) I
4262	4262	NGENERAL.—Subchapter A of chapter 1 is 9
4263	4263	amended by adding at the end the following new part: 10
4264	4264	‘‘PART VIII—SURCHARGE ON HIGH INCOME 11
4265	4265	ESTATES AND TRUSTS 12
4266	4266	‘‘Sec. 59B. Surcharge on high income estates and trusts.
4267	4267	‘‘SEC. 59B. SURCHARGE ON HIGH INCOME ESTATES AND
4268	4268	13
4269	4269	TRUSTS. 14
4270	4270	‘‘(a) G
4271	4271	ENERALRULE.—In the case of an estate or 15
4272	4272	trust, there is hereby imposed (in addition to any other 16
4273	4273	tax imposed by this subtitle) a tax equal to the sum of— 17
4274	4274	‘‘(1) 5 percent of so much of the modified ad-18
4275	4275	justed gross income of the taxpayer as exceeds 19
4276	4276	$200,000, plus 20
4277	4277	‘‘(2) 3 percent of so much of the modified ad-21
4278	4278	justed gross income of the taxpayer as exceeds 22
4279	4279	$500,000. 23
4280	4280	VerDate Sep 11 2014 23:05 Mar 22, 2025 Jkt 059200 PO 00000 Frm 00144 Fmt 6652 Sfmt 6201 E:\BILLS\H2038.IH H2038
4281	4281	kjohnson on DSK7ZCZBW3PROD with $$_JOB 145
4282	4282	•HR 2038 IH
4283	4283	‘‘(b) MODIFIEDADJUSTEDGROSSINCOME.—For 1
4284	4284	purposes of this section— 2
4285	4285	‘‘(1) I
4286	4286	N GENERAL.—The term ‘modified ad-3
4287	4287	justed gross income’ means adjusted gross income 4
4288	4288	reduced by any deduction (not taken into account in 5
4289	4289	determining adjusted gross income) allowed for in-6
4290	4290	vestment interest (as defined in section 163(d)) or 7
4291	4291	business interest (as defined in section 163(j)). 8
4292	4292	‘‘(2) A
4293	4293	DJUSTED GROSS INCOME .—Adjusted 9
4294	4294	gross income shall be determined as provided in sec-10
4295	4295	tion 67(e) and reduced by the amount allowed as a 11
4296	4296	deduction under section 642(c). 12
4297	4297	‘‘(c) S
4298	4298	PECIALRULES.— 13
4299	4299	‘‘(1) C
4300	4300	HARITABLE TRUSTS .—Subsection (a) 14
4301	4301	shall not apply to a trust all the unexpired interests 15
4302	4302	in which are devoted to one or more of the purposes 16
4303	4303	described in section 170(c)(2)(B). 17
4304	4304	‘‘(2) N
4305	4305	OT TREATED AS TAX IMPOSED BY THIS 18
4306	4306	CHAPTER FOR CERTAIN PURPOSES .—The tax im-19
4307	4307	posed under this section shall not be treated as tax 20
4308	4308	imposed by this chapter for purposes of determining 21
4309	4309	the amount of any credit under this chapter (other 22
4310	4310	than sections 27 and 901) or for purposes of section 23
4311	4311	55. 24
4312	4312	VerDate Sep 11 2014 23:05 Mar 22, 2025 Jkt 059200 PO 00000 Frm 00145 Fmt 6652 Sfmt 6201 E:\BILLS\H2038.IH H2038
4313	4313	kjohnson on DSK7ZCZBW3PROD with $$_JOB 146
4314	4314	•HR 2038 IH
4315	4315	‘‘(3) ELECTING SMALL BUSINESS TRUSTS .—For 1
4316	4316	purposes of the determination of adjusted gross in-2
4317	4317	come, section 641(c)(1)(A) shall not apply and all 3
4318	4318	portions of any electing small business trust shall be 4
4319	4319	treated as a single trust. 5
4320	4320	‘‘(d) R
4321	4321	EGULATIONS.—The Secretary shall issue such 6
4322	4322	regulations or other guidance as may be necessary or ap-7
4323	4323	propriate to carry out the purposes of this section, includ-8
4324	4324	ing regulations or other guidance to prevent the avoidance 9
4325	4325	of the purposes of this section.’’. 10
4326	4326	(b) C
4327	4327	OORDINATIONWITHCERTAINPROVISIONS.— 11
4328	4328	(1) I
4329	4329	NTEREST ON CERTAIN DEFERRED TAX LI -12
4330	4330	ABILITY.—Section 453A(c) is amended by redesig-13
4331	4331	nating paragraph (6) as paragraph (7) and by in-14
4332	4332	serting after paragraph (5) the following new para-15
4333	4333	graph: 16
4334	4334	‘‘(6) S
4335	4335	URCHARGE ON HIGH INCOME ESTATES 17
4336	4336	AND TRUSTS TAKEN INTO ACCOUNT IN DETER -18
4337	4337	MINING MAXIMUM RATE OF TAX .—For purposes of 19
4338	4338	paragraph (3)(B), in the case of an estate or trust, 20
4339	4339	the maximum rate of tax in effect under section 1 21
4340	4340	shall be treated as being equal to the sum of such 22
4341	4341	rate and the rates in effect under paragraphs (1) 23
4342	4342	and (2) of section 59B(a).’’. 24
4343	4343	(2) L
4344	4344	IMITATION ON FOREIGN TAX CREDIT .— 25
4345	4345	VerDate Sep 11 2014 23:05 Mar 22, 2025 Jkt 059200 PO 00000 Frm 00146 Fmt 6652 Sfmt 6201 E:\BILLS\H2038.IH H2038
4346	4346	kjohnson on DSK7ZCZBW3PROD with $$_JOB 147
4347	4347	•HR 2038 IH
4348	4348	(A) Section 904(b)(3)(E)(i)(I) is amended 1
4349	4349	by inserting ‘‘increased, in the case of an estate 2
4350	4350	or trust, by the sum of the rates set forth in 3
4351	4351	paragraphs (1) and (2) of section 1A(a)’’ after 4
4352	4352	‘‘(whichever applies)’’. 5
4353	4353	(B) Section 904(d)(2)(F) is amended by 6
4354	4354	adding at the end the following: ‘‘For purposes 7
4355	4355	of the first sentence of this subparagraph, in 8
4356	4356	the case of an estate or trust, the highest rate 9
4357	4357	of tax specified in section 1 shall be treated as 10
4358	4358	being equal to the sum of such rate and the 11
4359	4359	rates in effect under paragraphs (1) and (2) of 12
4360	4360	section 59B(a).’’. 13
4361	4361	(3) E
4362	4362	LECTION BY INDIVIDUALS TO BE SUBJECT 14
4363	4363	TO TAX AT CORPORATE RATES .—Section 962(a)(1) 15
4364	4364	is amended by striking ‘‘and 55’’ and inserting 55‘‘, 16
4365	4365	and 59B’’. 17
4366	4366	(4) I
4367	4367	NTEREST ON CERTAIN TAX DEFERRAL .— 18
4368	4368	Section 1291(c)(2) is amended by adding at the end 19
4369	4369	the following: ‘‘For purposes of the preceding sen-20
4370	4370	tence, in the case of an estate or trust, the highest 21
4371	4371	rate of tax in effect under section 1 shall be treated 22
4372	4372	as being equal to the sum of such rate and the rates 23
4373	4373	in effect under paragraphs (1) and (2) of section 24
4374	4374	59B(a).’’. 25
4375	4375	VerDate Sep 11 2014 23:05 Mar 22, 2025 Jkt 059200 PO 00000 Frm 00147 Fmt 6652 Sfmt 6201 E:\BILLS\H2038.IH H2038
4376	4376	kjohnson on DSK7ZCZBW3PROD with $$_JOB 148
4377	4377	•HR 2038 IH
4378	4378	(5) WITHHOLDING OF TAX ON FOREIGN PART -1
4379	4379	NERS’ SHARE OF EFFECTIVELY CONNECTED IN -2
4380	4380	COME.—Section 1446(b)(2) is amended by adding at 3
4381	4381	the end the following flush sentence: 4
4382	4382	‘‘For purposes of subparagraph (A), in the case of 5
4383	4383	a partner which is an estate or trust, the highest 6
4384	4384	rate of tax in effect under section 1 shall be treated 7
4385	4385	as being equal to the sum of such rate and the rates 8
4386	4386	in effect under paragraphs (1) and (2) of section 9
4387	4387	59B(a).’’. 10
4388	4388	(6) P
4389	4389	ARTNERSHIP ADJUSTMENTS .— 11
4390	4390	(A) Section 6225(b)(1) is amended by add-12
4391	4391	ing at the end the following flush sentence: 13
4392	4392	‘‘For purposes of subparagraph (B), in the case of 14
4393	4393	an estate or trust, the highest rate of tax in effect 15
4394	4394	under section 1 shall be treated as being equal to 16
4395	4395	the sum of such rate and the rates in effect under 17
4396	4396	paragraphs (1) and (2) of section 59B(a).’’. 18
4397	4397	(B) Section 6225(c)(4)(A) is amended— 19
4398	4398	(i) by striking ‘‘subsection (b)(1)(A)’’ 20
4399	4399	and inserting ‘‘subsection (b)(1)(B)’’, and 21
4400	4400	(ii) by striking ‘‘or’’ at the end of 22
4401	4401	clause (i), by adding ‘‘or’’ at the end of 23
4402	4402	clause (ii), and by inserting after clause 24
4403	4403	(ii) the following new clause: 25
4404	4404	VerDate Sep 11 2014 23:05 Mar 22, 2025 Jkt 059200 PO 00000 Frm 00148 Fmt 6652 Sfmt 6201 E:\BILLS\H2038.IH H2038
4405	4405	kjohnson on DSK7ZCZBW3PROD with $$_JOB 149
4406	4406	•HR 2038 IH
4407	4407	‘‘(iii) is not an estate or trust subject 1
4408	4408	to one or both of the rates of tax in effect 2
4409	4409	under paragraphs (1) and (2) of section 3
4410	4410	59B(a),’’. 4
4411	4411	(7) R
4412	4412	EQUIRED PAYMENTS FOR ENTITIES 5
4413	4413	ELECTING NOT TO HAVE REQUIRED TAXABLE 6
4414	4414	YEAR.—The second sentence of section 7519(b) is 7
4415	4415	amended by inserting ‘‘and, in the case of an estate 8
4416	4416	or trust, increased by the sum of the rates in effect 9
4417	4417	under paragraphs (1) and (2) of section 59B(a)’’ be-10
4418	4418	fore the period at the end. 11
4419	4419	(c) C
4420	4420	LERICALAMENDMENT.—The table of parts for 12
4421	4421	subchapter A of chapter 1 is amended by adding at the 13
4422	4422	end the following new item: 14
4423	4423	‘‘PART VIII—SURCHARGE ON HIGHINCOMEESTATES ANDTRUSTS’’.
4424	4424	(d) EFFECTIVEDATE.—The amendments made by 15
4425	4425	this section shall apply to taxable years beginning after 16
4426	4426	the date of the enactment of this Act. 17
4427	4427	SEC. 410. MODIFICATION OF RULES FOR VALUE OF CER-18
4428	4428	TAIN FARM, ETC., REAL PROPERTY. 19
4429	4429	(a) I
4430	4430	NGENERAL.—Paragraph (2) of section 20
4431	4431	2032A(a) of the Internal Revenue Code of 1986 is amend-21
4432	4432	ed by striking ‘‘$750,000’’ and inserting ‘‘$3,000,000’’. 22
4433	4433	(b) I
4434	4434	NFLATIONADJUSTMENT.—Paragraph (3) of sec-23
4435	4435	tion 2032A(a) of such Code is amended— 24
4436	4436	(1) by striking ‘‘1998’’ and inserting ‘‘2026’’, 25
4437	4437	VerDate Sep 11 2014 23:05 Mar 22, 2025 Jkt 059200 PO 00000 Frm 00149 Fmt 6652 Sfmt 6201 E:\BILLS\H2038.IH H2038
4438	4438	kjohnson on DSK7ZCZBW3PROD with $$_JOB 150
4439	4439	•HR 2038 IH
4440	4440	(2) by striking ‘‘$750,000’’ each place it ap-1
4441	4441	pears and inserting ‘‘$3,000,000’’, and 2
4442	4442	(3) by striking ‘‘calendar year 1997’’ and in-3
4443	4443	serting ‘‘calendar year 2025’’ in subparagraph (B). 4
4444	4444	(c) E
4445	4445	FFECTIVEDATE.—The amendments made by 5
4446	4446	this section shall apply to estates of decedents dying, and 6
4447	4447	gifts made, after December 31, 2025. 7
4448	4448	SEC. 411. MODIFICATION OF ESTATE TAX RULES WITH RE-8
4449	4449	SPECT TO LAND SUBJECT TO CONSERVATION 9
4450	4450	EASEMENTS. 10
4451	4451	(a) M
4452	4452	ODIFICATION OF EXCLUSIONLIMITATION.— 11
4453	4453	Subparagraph (B) of section 2031(c)(1) of the Internal 12
4454	4454	Revenue Code of 1986 is amended by striking ‘‘$500,000’’ 13
4455	4455	and inserting ‘‘$2,000,000’’. 14
4456	4456	(b) M
4457	4457	ODIFICATION OFAPPLICABLEPERCENTAGE.— 15
4458	4458	Paragraph (2) of section 2031(c) of the Internal Revenue 16
4459	4459	Code of 1986 is amended by striking ‘‘40 percent’’ and 17
4460	4460	inserting ‘‘60 percent’’. 18
4461	4461	(c) E
4462	4462	FFECTIVEDATE.—The amendments made by 19
4463	4463	this section shall apply to estates of decedents dying, and 20
4464	4464	gifts made, after December 31, 2025. 21
4465	4465	VerDate Sep 11 2014 23:05 Mar 22, 2025 Jkt 059200 PO 00000 Frm 00150 Fmt 6652 Sfmt 6201 E:\BILLS\H2038.IH H2038
4466	4466	kjohnson on DSK7ZCZBW3PROD with $$_JOB 151
4467	4467	•HR 2038 IH
4468	4468	TITLE V—ACCESSIBILITY 1
4469	4469	REQUIREMENTS 2
4470	4470	SEC. 501. ACCESSIBILITY REQUIREMENTS. 3
4471	4471	In the case of housing that is constructed, altered, 4
4472	4472	or otherwise assisted using amounts made available to the 5
4473	4473	Secretary of Housing and Urban Development under this 6
4474	4474	Act or an amendment made by this Act, sections 8.22 and 7
4475	4475	8.23 of title 24, Code of Federal Regulations (or any suc-8
4476	4476	cessor regulations) shall be applied such that the number 9
4477	4477	of dwelling units required to be accessible under those sec-10
4478	4478	tions is twice the number that would otherwise be required 11
4479	4479	to be accessible under those sections. 12
4480	4480	Æ
4481	4481	VerDate Sep 11 2014 23:05 Mar 22, 2025 Jkt 059200 PO 00000 Frm 00151 Fmt 6652 Sfmt 6301 E:\BILLS\H2038.IH H2038
4482	4482	kjohnson on DSK7ZCZBW3PROD with $$_JOB