Us Congress Senate Bill SB934 Latest Draft

                            II 
119THCONGRESS 
1
STSESSION S. 934 
To make housing more affordable, and for other purposes. 
IN THE SENATE OF THE UNITED STATES 
MARCH11 (legislative day, MARCH10), 2025 
Ms. W
ARREN(for herself, Mr. WARNOCK, Mr. MARKEY, Mr. SANDERS, Ms. 
H
IRONO, Mr. WELCH, Mr. BLUMENTHAL, Mr. VANHOLLEN, and Mr. 
K
IM) introduced the following bill; which was read twice and referred to 
the Committee on Finance 
A BILL 
To make housing more affordable, and for other purposes. 
Be it enacted by the Senate and House of Representa-1
tives of the United States of America in Congress assembled, 2
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 3
(a) S
HORTTITLE.—This Act may be cited as the 4
‘‘American Housing and Economic Mobility Act of 2025’’. 5
(b) T
ABLE OFCONTENTS.—The table of contents for 6
this Act is as follows: 7
Sec. 1. Short title; table of contents. 
TITLE I—MAKING HOUSING MORE AFFORDABLE 
Sec. 101. Local housing innovation grants. 
Sec. 102. Investing in affordable housing infrastructure. 
Sec. 103. Conditions for the sale of real estate-owned properties and non-per-
forming loans. 
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TITLE II—TAKING THE FIRST STEPS TO REVERSE THE LEGACY 
OF HOUSING DISCRIMINATION AND GOVERNMENT NEGLIGENCE 
Sec. 201. Down payment assistance program for first-time, first-generation 
homebuyers. 
Sec. 202. Formula grant program for communities with an appraisal gap. 
Sec. 203. Strengthening the Community Reinvestment Act of 1977. 
Sec. 204. Amendments relating to credit union service to underserved areas. 
Sec. 205. Raising public welfare caps. 
Sec. 206. Temporary eligibility of certain direct descendants of certain veterans 
for housing loans guaranteed by the Secretary of Veterans Af-
fairs. 
TITLE III—REMOVING BARRIERS THAT ISOLATE COMMUNITIES 
Sec. 301. Expanding rights under the Fair Housing Act. 
Sec. 302. Improving outcomes in housing assistance programs. 
TITLE IV—ESTATE TAX REFORM 
Sec. 401. Amendment to Internal Revenue Code of 1986. 
Sec. 402. Rate adjustment. 
Sec. 403. Required minimum 10-year term, etc., for grantor retained annuity 
trusts. 
Sec. 404. Certain transfer tax rules applicable to grantor trusts. 
Sec. 405. Elimination of generation-skipping transfer tax exemption for trans-
fers to certain persons. 
Sec. 406. Simplifying gift tax exclusion for annual gifts. 
Sec. 407. Clarification regarding disallowance of step-up in basis for property 
held in certain grantor trusts. 
Sec. 408. Limitation on discounts; valuation rules for certain transfers of non-
business assets. 
Sec. 409. Surcharge on high income estates and trusts. 
Sec. 410. Modification of rules for value of certain farm, etc., real property. 
Sec. 411. Modification of estate tax rules with respect to land subject to con-
servation easements. 
TITLE V—ACCESSIBILITY REQUIREMENTS 
Sec. 501. Accessibility requirements. 
TITLE I—MAKING HOUSING 1
MORE AFFORDABLE 2
SEC. 101. LOCAL HOUSING INNOVATION GRANTS. 3
(a) D
EFINITIONS.—In this section: 4
(1) E
LEMENTARY SCHOOL ; SECONDARY 5
SCHOOL.—The terms ‘‘elementary school’’ and ‘‘sec-6
ondary school’’ have the meanings given those terms 7
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in section 8101 of the Elementary and Secondary 1
Education Act of 1965 (20 U.S.C. 7801). 2
(2) E
LIGIBLE ENTITY.—The term ‘‘eligible enti-3
ty’’ means— 4
(A) a State; 5
(B) a unit of general local government; or 6
(C) an Indian tribe. 7
(3) I
NDIAN TRIBE.—The term ‘‘Indian tribe’’ 8
has the meaning given the term in section 4 of the 9
Native American Housing Assistance and Self-De-10
termination Act of 1996 (25 U.S.C. 4103). 11
(4) I
NSTITUTION OF HIGHER EDUCATION .—The 12
term ‘‘institution of higher education’’ has the 13
meaning given the term in section 101 of the Higher 14
Education Act of 1965 (20 U.S.C. 1001). 15
(5) M
ETROPOLITAN AREA ; STATE; UNIT OF 16
GENERAL LOCAL GOVERNMENT .—The terms ‘‘metro-17
politan area’’, ‘‘State’’, and ‘‘unit of general local 18
government’’ have the meanings given those terms in 19
section 102 of the Housing and Community Devel-20
opment Act of 1974 (42 U.S.C. 5302). 21
(6) S
ECRETARY.—The term ‘‘Secretary’’ means 22
the Secretary of Housing and Urban Development. 23
(b) E
STABLISHMENT.—Not later than 1 year after 24
the date of enactment of this Act, the Secretary shall es-25
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tablish a program to award grants on a competitive basis 1
to eligible entities to— 2
(1) reform local land use restrictions to bring 3
down the costs of producing affordable housing; and 4
(2) remove unnecessary barriers to building af-5
fordable units in their communities. 6
(c) E
LIGIBLEACTIVITIES.—An eligible entity receiv-7
ing a grant under this section may use funds to— 8
(1) carry out any of the activities described in 9
section 105 of the Housing and Community Devel-10
opment Act of 1974 (42 U.S.C. 5305); 11
(2) carry out any of the activities permitted 12
under the Local and Regional Project Assistance 13
Program under section 6702 of title 49, United 14
States Code; or 15
(3) modernize, renovate, or repair facilities used 16
by public elementary schools, public secondary 17
schools, and public institutions of higher education, 18
including modernization, renovation, and repairs 19
that— 20
(A) promote physical, sensory, and envi-21
ronmental accessibility; and 22
(B) are consistent with a recognized green 23
building rating system. 24
(d) A
PPLICATION.— 25
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(1) IN GENERAL.—An eligible entity desiring a 1
grant under this section shall submit to the Sec-2
retary an application that demonstrates that the eli-3
gible entity has carried out, or is in the process of 4
carrying out, initiatives that facilitate the expansion 5
of the supply of well-located affordable housing. 6
(2) A
CTIVITIES.—Initiatives that meet the cri-7
teria described in paragraph (1)— 8
(A) include— 9
(i) establishing ‘‘by-right’’ develop-10
ment, which allows jurisdictions to admin-11
istratively approve new developments that 12
are consistent with their zoning code; 13
(ii) revising or eliminating off-street 14
parking requirements to reduce the cost of 15
housing production; 16
(iii) instituting measures that 17
incentivize owners of vacant land to rede-18
velop the space into affordable housing or 19
other productive uses; 20
(iv) revising minimum lot size require-21
ments and bans or limits on multifamily 22
construction to allow for denser and more 23
affordable development; 24
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(v) instituting incentives to promote 1
dense development, such as density bo-2
nuses; 3
(vi) passing inclusionary zoning ordi-4
nances that require a portion of newly de-5
veloped units to be reserved for low- and 6
moderate-income renters or homebuyers; 7
(vii) streamlining regulatory require-8
ments and shortening processes, reforming 9
zoning codes, or other initiatives that re-10
duce barriers to housing supply elasticity 11
and affordability; 12
(viii) allowing accessory dwelling 13
units; 14
(ix) using local tax incentives to pro-15
mote development of affordable housing; 16
and 17
(x) implementing measures that pro-18
tect tenants from harassment and displace-19
ment, including— 20
(I) providing access to counsel 21
for tenants facing eviction; 22
(II) the prohibition of eviction ex-23
cept for just cause; 24
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(III) measures intended to pre-1
vent or mitigate sudden increases in 2
rents; 3
(IV) the repeal of laws that pre-4
vent localities from implementing a 5
measure described in subclause (I), 6
(II), or (III); 7
(V) protections against construc-8
tive eviction; 9
(VI) tenant right-to-organize 10
laws; 11
(VII) a cause of action for ten-12
ants to sue landlords who threaten or 13
begin an illegal eviction; and 14
(VIII) landlord-tenant mediation 15
or other non-eviction diversion pro-16
grams; and 17
(B) do not include activities that alter or-18
dinances that govern wage and hour laws, fam-19
ily and medical leave laws, health and safety re-20
quirements, prevailing wage laws, or protections 21
for workers’ health and safety, anti-discrimina-22
tion, and right to organize. 23
(3) R
ELATION TO CONSOLIDATED PLAN .—An 24
eligible entity shall include in an application sub-25
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mitted under paragraph (1) a description of how the 1
planning and development of eligible activities de-2
scribed in subsection (c) may advance an objective, 3
or an aspect of an objective, included in the com-4
prehensive housing affordability strategy and com-5
munity development plan of the eligible entity under 6
part 91 of title 24, Code of Federal Regulations, or 7
any successor regulation (commonly referred to as a 8
‘‘consolidated plan’’). 9
(e) L
ABORLAWS.— 10
(1) I
N GENERAL.—All laborers and mechanics 11
employed by contractors or subcontractors in the 12
performance of construction work financed in whole 13
or in part with a grant received under this section 14
shall be paid wages at rates not less than those pre-15
vailing on similar construction in the locality, as de-16
termined by the Secretary of Labor in accordance 17
with subchapter IV of chapter 31 of title 40, United 18
States Code (commonly known as the ‘‘Davis-Bacon 19
Act’’). 20
(2) A
UTHORITY AND FUNCTIONS .—With re-21
spect to the labor standards specified in paragraph 22
(1), the Secretary of Labor shall have the authority 23
and functions set forth in Reorganization Plan 24
Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C. 25
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App.) and section 3145 of title 40, United States 1
Code. 2
(f) A
UTHORIZATION OF APPROPRIATIONS.—There is 3
authorized to be appropriated to carry out this section 4
$2,000,000,000 for each of fiscal years 2025 through 5
2029. 6
SEC. 102. INVESTING IN AFFORDABLE HOUSING INFRA-7
STRUCTURE. 8
(a) H
OUSINGTRUSTFUND.—Section 1338(a) of the 9
Federal Housing Enterprises Financial Safety and Sound-10
ness Act of 1992 (12 U.S.C. 4568(a)) is amended by add-11
ing at the end the following: 12
‘‘(3) A
UTHORIZATION OF APPROPRIATIONS .— 13
There is authorized to be appropriated to the Hous-14
ing Trust Fund $48,000,000,000 for each of fiscal 15
years 2025 through 2034.’’. 16
(b) C
APITALMAGNETFUND.—Section 1339 of the 17
Federal Housing Enterprises Financial Safety and Sound-18
ness Act of 1992 (12 U.S.C. 4569) is amended by adding 19
at the end the following: 20
‘‘(k) A
UTHORIZATION OF APPROPRIATIONS.—There 21
is authorized to be appropriated to the Capital Magnet 22
Fund $3,000,000,000 for each of fiscal years 2025 23
through 2034.’’. 24
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(c) PUBLICHOUSINGCAPITALFUND.—Section 1
9(c)(2)(A) of the United States Housing Act of 1937 (42 2
U.S.C. 1437g(c)(2)(A)) is amended to read as follows: 3
‘‘(A) C
APITAL FUND.—For allocations of 4
assistance from the Capital Fund, 5
$70,000,000,000 for fiscal year 2025.’’. 6
(d) I
NDIANHOUSINGBLOCKGRANTPROGRAM.— 7
Section 108 of the Native American Housing Assistance 8
and Self-Determination Act of 1996 (25 U.S.C. 4117) is 9
amended— 10
(1) by striking ‘‘such sums as may be necessary 11
for each of fiscal years 2009 through 2013’’ and in-12
serting ‘‘$2,500,000,000 for fiscal year 2025 and 13
such sums as may be necessary for each of fiscal 14
years 2026 through 2034’’; and 15
(2) by striking the second sentence. 16
(e) N
ATIVEHAWAIIANHOUSINGBLOCKGRANTPRO-17
GRAM.—Section 824 of the Native American Housing As-18
sistance and Self-Determination Act of 1996 (25 U.S.C. 19
4243) is amended by striking ‘‘such sums as may be nec-20
essary for each of fiscal years 2001, 2002, 2003, 2004, 21
and 2005’’ and inserting ‘‘$50,000,000 for fiscal year 22
2025 and such sums as may be necessary for each of fiscal 23
years 2026 through 2034’’. 24
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(f) RURALHOUSINGPROGRAMS.—Out of funds in 1
the Treasury not otherwise appropriated, there is appro-2
priated for fiscal year 2025— 3
(1) to provide direct loans under section 502 of 4
the Housing Act of 1949 (42 U.S.C. 1472), 5
$420,000,000; 6
(2) to provide assistance under section 514 of 7
such Act (42 U.S.C. 1484), $54,000,000; 8
(3) to provide assistance under section 515 of 9
such Act (42 U.S.C. 1485), $420,000,000; 10
(4) to provide assistance under section 516 of 11
such Act (42 U.S.C. 1486), $75,000,000; 12
(5) to provide grants under section 523 of such 13
Act (42 U.S.C. 1490c), $75,000,000; and 14
(6) to provide funding to carry out the Multi-15
family Preservation and Revitalization Demonstra-16
tion Program of the Rural Housing Service (as au-17
thorized under sections 514, 515, and 516 of such 18
Act (42 U.S.C. 1484, 1485, 1486)), $240,000,000. 19
(g) M
IDDLECLASSHOUSINGEMERGENCYFUND.— 20
(1) D
EFINITIONS.—In this subsection— 21
(A) the term ‘‘affordable rental housing 22
unit’’ means a unit for which monthly rent is 23
not more than 30 percent of the monthly area 24
median income; and 25
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(B) the term ‘‘State’’ has the meaning 1
given the term in section 3(b)(7) of the United 2
States Housing Act of 1937 (42 U.S.C. 3
1437a(b)(7)). 4
(2) E
STABLISHMENT.—The Secretary of Hous-5
ing and Urban Development shall establish and 6
manage a fund, to be known as the ‘‘Middle Class 7
Housing Emergency Fund’’, which shall be funded 8
with any amounts as may be appropriated, trans-9
ferred, or credited to the Fund under any provision 10
law. 11
(3) G
RANTS.—From amounts available in the 12
fund established under paragraph (2), the Secretary 13
of Housing and Urban Development shall award 14
grants on a competitive basis to State housing fi-15
nance agencies located in a State in which— 16
(A) there is a shortage of affordable rental 17
housing units available to individuals with an 18
income that is at or below the area median in-19
come and median rents have risen on average 20
over the preceding 5 years substantially faster 21
than the area median income; or 22
(B) there is a shortage of housing units 23
available for sale that are affordable to individ-24
uals with an income that is at or below the area 25
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median income and median home prices have 1
risen on average over the preceding 5 years 2
substantially faster than the area median in-3
come. 4
(4) U
SE OF FUNDS.—Grants received under 5
this subsection shall be used to fund— 6
(A) the construction or acquisition, by non-7
profit organizations, State or local agencies, 8
special-purpose units of local government, resi-9
dent councils organized to acquire housing, and 10
other qualified purchasers (as defined by the 11
Secretary of Housing and Urban Development), 12
of rental housing units or units for purchase 13
that are affordable to residents making less 14
than 120 percent of the area median income; 15
and 16
(B) measures to prevent tenant displace-17
ment and harassment, including— 18
(i) the provision of legal advice and 19
representation for tenants facing eviction; 20
(ii) enforcement of anti-harassment 21
laws; 22
(iii) emergency rental assistance; and 23
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(iv) other measures as specified by the 1
Secretary of Housing and Urban Develop-2
ment. 3
(5) L
ABOR LAWS.— 4
(A) I
N GENERAL.—All laborers and me-5
chanics employed by contractors or subcontrac-6
tors in the performance of construction work fi-7
nanced in whole or in part with a grant received 8
under this subsection shall be paid wages at 9
rates not less than those prevailing on similar 10
construction in the locality as determined by 11
the Secretary of Labor in accordance with sub-12
chapter IV of chapter 31 of title 40, United 13
States Code (commonly known as the ‘‘Davis- 14
Bacon Act’’). 15
(B) A
UTHORITY AND FUNCTIONS .—With 16
respect to the labor standards specified in sub-17
paragraph (A), the Secretary of Labor shall 18
have the authority and functions set forth in 19
Reorganization Plan Numbered 14 of 1950 (64 20
Stat. 1267; 5 U.S.C. App.) and section 3145 of 21
title 40, United States Code. 22
(6) R
EGULATIONS.—The Secretary of Housing 23
and Urban Development shall promulgate regula-24
tions to carry out this subsection that include— 25
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(A) the metrics that the Secretary will use 1
to determine eligibility for a grant under this 2
subsection; 3
(B) a requirement that grantees and sub-4
grantees consult with impacted communities in 5
policymaking and planning for the construction 6
or acquisition of housing units as described in 7
paragraph (4)(A); and 8
(C) a requirement that all housing units 9
constructed or acquired using grants awarded 10
under the subsection are affordable to residents 11
making less than 120 percent of the area me-12
dian income in perpetuity. 13
(7) A
PPROPRIATIONS.—Out of funds in the 14
Treasury not otherwise appropriated, there is appro-15
priated to the fund established under this subsection 16
$4,000,000,000 for fiscal year 2025. 17
SEC. 103. CONDITIONS FOR THE SALE OF REAL ESTATE- 18
OWNED PROPERTIES AND NON-PERFORMING 19
LOANS. 20
(a) F
INDINGS.—Congress finds that— 21
(1) the Federal Housing Administration, the 22
Federal National Mortgage Association, and the 23
Federal Home Loan Mortgage Corporation provide 24
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critical homeownership opportunities that greatly 1
benefit individuals, families, and communities; and 2
(2) it is the purpose of this section to— 3
(A) preserve owner-occupied homes with 4
mortgages insured by the Federal Housing Ad-5
ministration or purchased by the Federal Na-6
tional Mortgage Association or the Federal 7
Home Loan Mortgage Corporation for contin-8
ued use as owner-occupied homes; and 9
(B) direct that, upon the sale of those 10
properties or transfer of those mortgages, cer-11
tain percentages of those properties are sold to 12
low- and moderate-income homeowners. 13
(b) L
OANSINSURED BY THEFEDERALHOUSINGAD-14
MINISTRATION.—Title II of the National Housing Act (12 15
U.S.C. 1707 et seq.) is amended by adding at the end 16
the following: 17
‘‘SEC. 259. SALE OF REAL ESTATE-OWNED PROPERTIES. 18
‘‘(a) D
EFINITIONS.—In this section— 19
‘‘(1) the term ‘Claim Without Conveyance of 20
Title program’ means the program of the Federal 21
Housing Administration carried out under section 22
203.368 of title 24, Code of Federal Regulations, or 23
any successor regulation; and 24
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‘‘(2) the term ‘community partner’ has the 1
meaning given the term ‘nonprofit organization’ in 2
section 229 of the Low-Income Housing Preserva-3
tion and Resident Homeownership Act of 1990 (12 4
U.S.C. 4119). 5
‘‘(b) R
EQUIREMENT.—Not later than 1 year after the 6
date of enactment of this section, the Secretary shall de-7
velop programs within the Federal Housing Administra-8
tion to ensure that not less than 75 percent of the single- 9
family residential properties conveyed to the Federal 10
Housing Administration after foreclosure or conveyed to 11
third parties under the Claim Without Conveyance of Title 12
program are sold— 13
‘‘(1) directly to an owner-occupant; or 14
‘‘(2) to community partners that will— 15
‘‘(A) rehabilitate or develop the property; 16
and 17
‘‘(B) sell the property to an owner-occu-18
pant. 19
‘‘(c) G
UIDELINES.—Not later than 1 year after the 20
date of enactment of this section, the Secretary shall de-21
velop guidelines for the Claim Without Conveyance of Title 22
program that provide an exclusive listing period during 23
which only eligible governmental entities, nonprofit organi-24
zations approved by the Department of Housing and 25
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Urban Development, and owner-occupant buyers may sub-1
mit bids. 2
‘‘(d) A
NTI-PREDATORYFEATURE.—Unless the Sec-3
retary provides prior approval, the Secretary shall prohibit 4
any purchaser of a real estate-owned property of the Fed-5
eral Housing Administration from reselling the property 6
within 15 years of purchase using a land installment con-7
tract or through any other mechanism that does not trans-8
fer title to the buyer at the time of sale. 9
‘‘SEC. 260. SALE OF NON-PERFORMING LOANS. 10
‘‘(a) D
EFINITIONS.—In this section— 11
‘‘(1) the term ‘community partner’ has the 12
meaning given the term in section 259; and 13
‘‘(2) the term ‘covered mortgage’— 14
‘‘(A) means any mortgage insured under 15
this title that is secured by a single-family resi-16
dential property; and 17
‘‘(B) includes the promissory note secured 18
by the mortgage described in subparagraph (A). 19
‘‘(b) R
ESTRICTION ONSALE ORTRANSFER.—Except 20
as provided in this section, the Secretary may not sell or 21
transfer any covered mortgage. 22
‘‘(c) C
ONDITIONS FORSALE ORTRANSFER.— 23
‘‘(1) I
N GENERAL.—The Secretary— 24
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‘‘(A) may sell or transfer a covered mort-1
gage only if— 2
‘‘(i) the capital level of the Fund is 3
substantially below the capital ratio re-4
quired under section 205(f)(2); 5
‘‘(ii) the Secretary certifies that other 6
reasonable measures are not available to 7
restore the Fund to that capital ratio; and 8
‘‘(iii) the Secretary complies with 9
paragraph (2)(C), if applicable; and 10
‘‘(B) may sell or transfer only such covered 11
mortgages as are necessary to assist in restora-12
tion of that capital ratio. 13
‘‘(2) R
EQUIREMENTS FOR THE SECRETARY .— 14
‘‘(A) I
N GENERAL.—If the Secretary in-15
tends to sell or transfer a covered mortgage, the 16
Secretary shall provide the current borrower 17
and all owners of record of the property secur-18
ing the covered mortgage, or require that the 19
current borrower and owners of record be pro-20
vided, a separate written notice of the intent to 21
sell the covered mortgage that— 22
‘‘(i) is mailed via certified and first 23
class mail not less than 90 days before the 24
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date on which the loan is included in any 1
proposed sale; and 2
‘‘(ii) includes— 3
‘‘(I) a description of the loss 4
mitigation options of the Federal 5
Housing Administration that are 6
available to borrowers in financial dis-7
tress and the obligation of servicers to 8
consider borrowers in default for those 9
options; 10
‘‘(II) a description of the actions 11
that the servicer of the loan has taken 12
to review and implement those options 13
for the borrower; and 14
‘‘(III) a description of the proce-15
dures the borrower may use to contest 16
with the Secretary the compliance by 17
the servicer with that obligation. 18
‘‘(B) J
UDICIAL REVIEW.—The determina-19
tion of the Secretary to authorize the sale of a 20
mortgage insured under this title shall be re-21
viewable under chapter 7 of title 5, United 22
States Code, for abuse of discretion and arbi-23
trary and capricious agency action. 24
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‘‘(C) AUCTIONS.—The Secretary may not 1
sell any covered mortgage through any type of 2
non-performing loan sale auction program until 3
the Secretary issues rules, through the notice 4
and comment rulemaking procedures under sec-5
tion 553 of title 5, United States Code, that ad-6
dress essential aspects of any non-performing 7
loan sale program, including— 8
‘‘(i) the method of selection of loans 9
for sale; 10
‘‘(ii) notice to borrowers prior to in-11
clusion of the loan in a sale; and 12
‘‘(iii) review of loss mitigation status 13
prior to the sale, selection of eligible bid-14
ders, loss mitigation guidelines applicable 15
to loan purchasers, and reporting require-16
ments for purchasers. 17
‘‘(3) C
ERTIFICATION REQUIREMENT FOR LEND -18
ERS AND SERVICERS.— 19
‘‘(A) C
ERTIFICATION.—As a condition to 20
payment of an insurance claim under this title 21
in connection with any non-performing loan 22
sale, the lender or servicer of the loan shall pro-23
vide the Secretary and the borrower with writ-24
ten certification of the loss mitigation review 25
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•S 934 IS
contained in the FHA Single Family Housing 1
Policy Handbook 4000.1, or any successor 2
handbook, which certification shall include a de-3
scription of the actions the lender or servicer 4
has taken, prior to transfer of the loan to the 5
Secretary, to— 6
‘‘(i) review the borrower for all avail-7
able loss mitigation options of the Federal 8
Housing Administration; and 9
‘‘(ii) implement the options described 10
in clause (i) that are appropriate to the 11
borrower. 12
‘‘(B) F
ALSE STATEMENTS.— 13
‘‘(i) I
N GENERAL.—Any false state-14
ment provided in a certification described 15
in subparagraph (A) shall be a basis for— 16
‘‘(I) recovery by the Secretary of 17
any amounts paid under the insurance 18
claim and any other penalties and 19
sanctions authorized under Federal 20
law; and 21
‘‘(II) a private right of action by 22
the borrower against the lender and 23
servicer, with remedies to include 24
compensatory and punitive damages 25
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•S 934 IS
and an assessment of costs and attor-1
ney’s fees. 2
‘‘(ii) T
RANSFERS.—Unless a bona fide 3
purchaser has acquired title to the prop-4
erty as a primary residence— 5
‘‘(I) a certification described in 6
subparagraph (A) that contains a 7
false statement shall be a basis for re-8
voking the transfer of the property; 9
and 10
‘‘(II) the pre-sale lender and 11
servicer of the property shall— 12
‘‘(aa) resume servicing the 13
loan as a loan insured under this 14
title; and 15
‘‘(bb) reimburse the Sec-16
retary for any insurance claim 17
paid and all costs related to the 18
sale of the property. 19
‘‘(4) R
EQUIREMENTS FOR PURCHASERS .— 20
‘‘(A) I
N GENERAL.—Each purchaser of a 21
covered mortgage shall offer the borrower on 22
the covered mortgage loss mitigation options 23
that allow for payment reduction at least as 24
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•S 934 IS
great as would be available to the borrower if 1
the loan had not been sold. 2
‘‘(B) L
OSS MITIGATION OPTIONS .—The 3
specific formula, calculations, waterfall steps, 4
and other terms for appropriate loss mitigation 5
options described in subparagraph (A) shall be 6
published by the Secretary, made available to 7
the public, and included in a written notice 8
given to borrowers before any acceleration or 9
foreclosure is initiated after a loan sale. 10
‘‘(5) R
EQUIREMENTS FOR TRANSFEREES .— 11
With respect to a transferee, including any subse-12
quent transferee, of a covered mortgage that is sold 13
under this title— 14
‘‘(A) the transferee shall certify in writing 15
to the Secretary that the transferee will comply 16
with the provisions of this section in the mar-17
keting and transfer of any property received in 18
the disposition of any transferred loan; 19
‘‘(B) the transferee shall provide to the 20
Secretary records documenting that the trans-21
fers of those properties are in compliance with 22
this section; and 23
‘‘(C) the failure of the Secretary or the 24
transferee to comply with the requirements 25
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under this section for a loan in default shall be 1
a defense to foreclosure, and a transferee may 2
not execute a foreclosure judgment or order of 3
sale, or conduct a foreclosure sale, until the 4
transferee has complied with all requirements 5
under this section. 6
‘‘(d) L
IMITATIONS.—With respect to covered mort-7
gages that are sold under this title and acquired by the 8
buyer through foreclosure sale, not less than 90 percent 9
of the properties that are the subject of the covered mort-10
gages shall be— 11
‘‘(1) sold to owner-occupants; 12
‘‘(2) operated or transferred to an entity that 13
will operate the property as affordable rental hous-14
ing for households below 80 percent of the area me-15
dian income for a period of not less than 15 years; 16
or 17
‘‘(3) transferred or donated to a nonprofit 18
agency that is certified by the Secretary and will re-19
develop the property for owner occupancy or afford-20
able rental housing. 21
‘‘(e) P
RIORITIZATION OF SALES.—The Secretary 22
shall implement policies, procedures, and controls to— 23
‘‘(1) identify and recruit community partners; 24
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‘‘(2) engage in consultations with community 1
partners before the sale of a pool of covered mort-2
gages under this title to determine whether that sale 3
can be designed to meet the specific needs of the 4
communities served by the community partners; and 5
‘‘(3) prioritize the sale of pools of single-family 6
mortgages to community partners by— 7
‘‘(A) designing pools of covered mortgages 8
for direct sale to a community partner, the 9
price of which shall be set by the Secretary 10
based on a pricing model that considers— 11
‘‘(i) the current fair market value of 12
the properties; and 13
‘‘(ii) the potential impact of fore-14
closures on those properties to the value of 15
other homes that secure mortgages insured 16
under this title in the same census tract; 17
or 18
‘‘(B) in the case of an auction, if the win-19
ning bid is not from a community partner, per-20
mitting any community partner that bid during 21
that same auction to have a final opportunity to 22
enter a higher bid on the pool.’’. 23
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•S 934 IS
(c) FANNIEMAE.—Section 302 of the Federal Na-1
tional Mortgage Association Charter Act (12 U.S.C. 1717) 2
is amended by adding at the end the following: 3
‘‘(d)(1) In this subsection, the term ‘covered mort-4
gage’— 5
‘‘(A) means any mortgage that is secured by a 6
single-family residential property; and 7
‘‘(B) includes the promissory note secured by 8
the mortgage described in subparagraph (A). 9
‘‘(2) The corporation may not sell or transfer any 10
covered mortgage under this section unless the require-11
ments of this subsection are met. 12
‘‘(3)(A) If the corporation intends to sell or transfer 13
a covered mortgage, the corporation shall provide the cur-14
rent borrower and all owners of record of the property se-15
curing the covered mortgage, or require that the current 16
borrower and owners of record be provided, a separate 17
written notice of the intent to sell the covered mortgage 18
that— 19
‘‘(i) is mailed via certified and first class mail 20
not less than 90 days before the date on which the 21
loan is included in any proposed sale; and 22
‘‘(ii) includes— 23
‘‘(I) a description of the loss mitigation op-24
tions of the corporation that are available to 25
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•S 934 IS
borrowers in financial distress and the obliga-1
tion of servicers to consider borrowers in de-2
fault for those options; 3
‘‘(II) a description of the actions that the 4
servicer of the loan has taken to review and im-5
plement those options for the borrower; and 6
‘‘(III) a description of the procedures the 7
borrower may use to contest with the corpora-8
tion the compliance by the servicer with that 9
obligation. 10
‘‘(B) The Federal Housing Finance Agency, as re-11
ceiver for the corporation, may not authorize the corpora-12
tion to sell any covered mortgage through any type of non- 13
performing loan sale auction program until the Director 14
of the Federal Housing Finance Agency issues rules, 15
through the notice and comment rule making procedures 16
under section 553 of title 5, United States Code, that ad-17
dress essential aspects of any non-performing loan sale 18
program, including— 19
‘‘(i) the method of selection of loans for sale; 20
‘‘(ii) notice to borrowers prior to inclusion of 21
the loan in a sale; and 22
‘‘(iii) review of loss mitigation status prior to 23
the sale, selection of eligible bidders, loss mitigation 24
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•S 934 IS
guidelines applicable to loan purchasers, and report-1
ing requirements for purchasers. 2
‘‘(4)(A) Each purchaser of a covered mortgage shall 3
offer the borrower on the covered mortgage loss mitigation 4
options that allow for payment reduction at least as great 5
as would be available to the borrower if the loan had not 6
been sold. 7
‘‘(B) The specific formula, calculations, waterfall 8
steps, and other terms for loss mitigation options de-9
scribed in subparagraph (A) shall be published by the cor-10
poration, made available to the public, and included in a 11
written notice given to borrowers before any acceleration 12
or foreclosure is initiated after a loan sale. 13
‘‘(5) With respect to a transferee, including any sub-14
sequent transferee, of a covered mortgage that is sold by 15
the corporation under this section— 16
‘‘(A) the transferee shall certify in writing to 17
the corporation that the transferee will comply with 18
the provisions of this subsection in the marketing 19
and transfer of any property received in the disposi-20
tion of any transferred loan; 21
‘‘(B) the transferee shall provide to the corpora-22
tion records documenting that the transfers of those 23
properties are in compliance with this subsection; 24
and 25
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‘‘(C) the failure of the corporation or the trans-1
feree to comply with the requirements under this 2
subsection for a loan in default shall be a defense to 3
foreclosure, and a transferee may not execute a fore-4
closure judgment or order of sale, or conduct a fore-5
closure sale, until the transferee has complied with 6
all requirements under this subsection. 7
‘‘(6) With respect to covered mortgages that are sold 8
by the corporation under this section and foreclosed upon 9
by the buyer, not less than 90 percent of the properties 10
that are the subject of the covered mortgages in an auc-11
tion shall be— 12
‘‘(A) sold to owner-occupants; 13
‘‘(B) operated or transferred to an entity that 14
will operate the property as affordable rental hous-15
ing for households below 80 percent of the area me-16
dian income for a period of not less than 15 years; 17
or 18
‘‘(C) transferred or donated to a nonprofit 19
agency that is certified by the corporation and will 20
redevelop the property for owner occupancy or af-21
fordable rental housing. 22
‘‘(7) The corporation shall implement policies, proce-23
dures, and controls to— 24
‘‘(A) identify and recruit community partners; 25
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•S 934 IS
‘‘(B) engage in consultations with community 1
partners before the sale of a pool of covered mort-2
gages under this section to determine whether that 3
sale can be designed to meet the specific needs of 4
the communities served by the community partners; 5
and 6
‘‘(C) prioritize the sale of pools of single-family 7
mortgages to community partners by— 8
‘‘(i) designing pools of covered mortgages 9
for direct sale to a community partner, the 10
price of which shall be set by the corporation 11
based on a pricing model that considers— 12
‘‘(I) the current fair market value of 13
the properties; and 14
‘‘(II) the potential impact of fore-15
closures on those properties to the value of 16
other homes in the same census tract; or 17
‘‘(ii) in the case of an auction, if the win-18
ning bid is not from a community partner, per-19
mitting any community partner that bid during 20
that same auction to have a final opportunity to 21
enter a higher bid on the pool.’’. 22
(d) F
REDDIEMAC.—Section 305 of the Federal 23
Home Loan Mortgage Corporation Act (12 U.S.C. 1454) 24
is amended by adding at the end the following: 25
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‘‘(e)(1) In this subsection, the term ‘covered mort-1
gage’— 2
‘‘(A) means any mortgage that is secured by a 3
single-family residential property; and 4
‘‘(B) includes the promissory note secured by 5
the mortgage described in subparagraph (A). 6
‘‘(2) The Corporation may not sell or transfer any 7
covered mortgage under this section unless the require-8
ments of this subsection are met. 9
‘‘(3)(A) If the Corporation intends to sell or transfer 10
a covered mortgage, the Corporation shall provide the cur-11
rent borrower and all owners of record of the property se-12
curing the covered mortgage, or require that the current 13
borrower and owners of record be provided, a separate 14
written notice of the intent to sell the covered mortgage 15
that— 16
‘‘(i) is mailed via certified and first class mail 17
not less than 90 days before the date on which the 18
loan is included in any proposed sale; and 19
‘‘(ii) includes— 20
‘‘(I) a description of the loss mitigation op-21
tions of the Corporation that are available to 22
borrowers in financial distress and the obliga-23
tion of servicers to consider borrowers in de-24
fault for those options; 25
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•S 934 IS
‘‘(II) a description of the actions that the 1
servicer of the loan has taken to review and im-2
plement those options for the borrower; and 3
‘‘(III) a description of the procedures the 4
borrower may use to contest with the Corpora-5
tion the compliance by the servicer with that 6
obligation. 7
‘‘(B) The Federal Housing Finance Agency, as re-8
ceiver for the Corporation, may not sell any covered mort-9
gage through any type of non-performing loan sale auction 10
program until the Director of the Federal Housing Fi-11
nance Agency issues rules, through the notice and com-12
ment rulemaking procedures under section 553 of title 5, 13
United States Code, that address essential aspects of any 14
non-performing loan sale program, including— 15
‘‘(i) the method of selection of loans for sale; 16
‘‘(ii) notice to borrowers prior to inclusion of 17
the loan in a sale; and 18
‘‘(iii) review of loss mitigation status prior to 19
the sale, selection of eligible bidders, loss mitigation 20
guidelines applicable to loan purchasers, and report-21
ing requirements for purchasers. 22
‘‘(4)(A) Each purchaser of a covered mortgage shall 23
offer the borrower on the covered mortgage loss mitigation 24
options that allow for payment reduction at least as great 25
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•S 934 IS
as would be available to the borrower if the loan had not 1
been sold. 2
‘‘(B) The specific formula, calculations, waterfall 3
steps, and other terms for loss mitigation options de-4
scribed in subparagraph (A) shall be published by the Cor-5
poration, made available to the public, and included in a 6
written notice given to borrowers before any acceleration 7
or foreclosure is initiated after a loan sale. 8
‘‘(5) With respect to a transferee, including any sub-9
sequent transferee, of a covered mortgage that is sold by 10
the Corporation under this section— 11
‘‘(A) the transferee shall certify in writing to 12
the Corporation that the transferee will comply with 13
the provisions of this subsection in the marketing 14
and transfer of any property received in the disposi-15
tion of any transferred loan; 16
‘‘(B) the transferee shall provide to the Cor-17
poration records documenting that the transfers of 18
those properties are in compliance with this sub-19
section; and 20
‘‘(C) the failure of the Corporation or the trans-21
feree to comply with the requirements under this 22
subsection for a loan in default shall be a defense to 23
foreclosure, and a transferee may not execute a fore-24
closure judgment or order of sale, or conduct a fore-25
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•S 934 IS
closure sale, until the transferee has complied with 1
all requirements under this subsection. 2
‘‘(6) With respect to covered mortgages that are sold 3
by the Corporation under this section and foreclosed upon 4
by the buyer, not less than 90 percent of the properties 5
that are the subject of the covered mortgages in an auc-6
tion shall be— 7
‘‘(A) sold to owner-occupants; 8
‘‘(B) operated or transferred to an entity that 9
will operate the property as affordable rental hous-10
ing for households below 80 percent of the area me-11
dian income for a period of not less than 15 years; 12
or 13
‘‘(C) transferred or donated to a nonprofit 14
agency that is certified by the Corporation and will 15
redevelop the property for owner occupancy or af-16
fordable rental housing. 17
‘‘(7) The Corporation shall implement policies, proce-18
dures, and controls to— 19
‘‘(A) identify and recruit community partners; 20
‘‘(B) engage in consultations with community 21
partners before the sale of a pool of covered mort-22
gages under this section to determine whether that 23
sale can be designed to meet the specific needs of 24
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the communities served by the community partners; 1
and 2
‘‘(C) prioritize the sale of pools of single-family 3
mortgages to community partners by— 4
‘‘(i) designing pools of covered mortgages 5
for direct sale to a community partner, the 6
price of which shall be set by the Corporation 7
based on a pricing model that considers— 8
‘‘(I) the current fair market value of 9
the properties; and 10
‘‘(II) the potential impact of fore-11
closures on those properties to the value of 12
other homes in the same census tract; or 13
‘‘(ii) in the case of an auction, if the win-14
ning bid is not from a community partner, per-15
mitting any community partner that bid during 16
that same auction to have a final opportunity to 17
enter a higher bid on the pool.’’. 18
(e) S
ALE OFRE-PERFORMINGLOANS.—The Federal 19
Housing Enterprises Financial Safety and Soundness Act 20
of 1992 (12 U.S.C. 4501 et seq.) is amended by inserting 21
after section 1328 (12 U.S.C. 4548) the following: 22
‘‘SEC. 1329. SALE OF RE-PERFORMING LOANS. 23
‘‘(a) B
ULKAUCTION ORGROUPSALES.—An enter-24
prise may not conduct bulk auctions or other group sales 25
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of single family re-performing residential loans unless the 1
following requirements are met: 2
‘‘(1) The enterprise establishes a system that 3
provides priority to Federal, State, local, or Tribal 4
governments or nonprofit organizations that have 5
the capacity and experience required for buying, 6
servicing, and resolving single family mortgage loans 7
in a manner that promotes affordable housing, fair 8
housing, affordable homeownership, provision of 9
housing counseling, or neighborhood stabilization. 10
‘‘(2) Clear, written notice is sent by the enter-11
prise or servicer through certified and first-class 12
mail to the borrower and all owners of record, with 13
a copy sent to the enterprise if sent by the servicer, 14
not less than 90 days before the inclusion of the 15
loan in any proposed sale— 16
‘‘(A) stating that the loan will be included 17
in a bulk auction or group sale of re-performing 18
loans; and 19
‘‘(B) describing the bulk auction or group 20
sale process, including— 21
‘‘(i) the loss mitigation or other pro-22
tections available to the borrower and 23
other owners of record both before and 24
after the auction or sale; and 25
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‘‘(ii) the obligations of the servicer of 1
the loan before and after the auction or 2
sale, including loss mitigation require-3
ments. 4
‘‘(3) The enterprise requires in the terms of the 5
bulk auction or group sale that purchasers take 6
loans subject to the following requirements: 7
‘‘(A) The purchaser is required to offer 8
targeted payment relief options to borrowers 9
that become more than 60 days delinquent on 10
their mortgage after their loan is sold that in-11
cludes deferral of principal and term extension 12
options that reduce payments to an affordable 13
level. 14
‘‘(B) The purchaser is required to offer a 15
deferral program to borrowers that become 16
more than 60 days delinquent on their mort-17
gage after their loan is sold that offers terms 18
and protections at least as favorable as those 19
available under loss mitigation guidelines of the 20
enterprise, including the absence of fees, to bor-21
rowers who can afford their pre-hardship mort-22
gage payment. 23
‘‘(C) Failure by the purchaser to follow the 24
established loss mitigation guidelines shall serve 25
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as a defense to a judicial foreclosure and a 1
basis to enjoin or otherwise stay a non-judicial 2
foreclosure. 3
‘‘(D) Data reporting as provided under 4
subsection (b)(1). 5
‘‘(E) If a property becomes vacant, the 6
purchaser shall not release the lien until the 7
property is sold or donated. 8
‘‘(F) Use of contract for deed, lease to 9
own, or a land installment contract to sell or 10
otherwise transfer any property that is secured 11
by a purchased loan shall be prohibited unless 12
the tenant or purchaser is a nonprofit organiza-13
tion. 14
‘‘(b) D
ATA ANDREPORTING.— 15
‘‘(1) P
URCHASER REPORTING .—During the 4- 16
year period following any auction or sale of single 17
family re-performing residential mortgage loans 18
under subsection (a), the Director shall require the 19
enterprise to collect from each purchaser of such 20
loans, including any subsequent purchaser of a loan, 21
quarterly loan-level data regarding the treatment 22
and outcome of the loan, including— 23
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‘‘(A) loan characteristics, including loan 1
type, remaining loan term, loan to value ratio, 2
number of months in arrears, and loan status; 3
‘‘(B) loss mitigation data, including wheth-4
er loss mitigation was provided by the pur-5
chaser, debt-to-income ratio and percent pay-6
ment reduction for any modified loans, and per-7
formance of modified loans; 8
‘‘(C) demographic data for each borrower 9
and any co-borrower, including race, national 10
origin, sex, ZIP Code, and census tract, and, if 11
available, disability status and veteran status; 12
and 13
‘‘(D) other purchaser actions, including 14
charge offs and resales of loans and dates for 15
such actions. 16
‘‘(2) S
EMIANNUAL REPORTS TO CONGRESS .— 17
The Director shall submit to Congress, and make 18
publicly available at no cost to the public in a readily 19
accessible format on the website of the Agency, 20
semi-annual reports on— 21
‘‘(A) loans sold in an auction or sale under 22
subsection (a) by each enterprise, disaggregated 23
by pool, including— 24
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‘‘(i) the number of loans and types of 1
loans; 2
‘‘(ii) mean and median delinquency 3
and loan to value ratios at the time of the 4
sale; 5
‘‘(iii) the number and percentage of 6
loans modified prior to auction or sale; and 7
‘‘(iv) demographic and geographic 8
data, including property locations by cen-9
sus tract or larger geographic location if 10
necessary to protect personally identifiable 11
information; 12
‘‘(B) the performance of loans after an 13
auction or sale under subsection (a), 14
disaggregated by loan pool, including the initial 15
purchaser, current owner, current servicer, data 16
summarizing any alternatives to foreclosure of-17
fered and enacted, and data summarizing the 18
data collected under subparagraph (A); and 19
‘‘(C) the results of a fair lending analysis 20
conducted based on the data in subparagraphs 21
(A) and (B) to identify any discriminatory im-22
pacts or outcomes associated with the auctions 23
or sales. 24
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‘‘(c) PENALTIES FORNONCOMPLIANCE.—The enter-1
prises may forcibly retain loans or properties, without pro-2
viding compensation, from purchasers that do not meet 3
the requirements under subsection (a)(3). 4
‘‘(d) R
EGULATIONS.—The Director shall issue regu-5
lations defining the terms of permissible auctions or sales 6
in accordance with the requirements in this section.’’. 7
TITLE II—TAKING THE FIRST 8
STEPS TO REVERSE THE LEG-9
ACY OF HOUSING DISCRIMI-10
NATION AND GOVERNMENT 11
NEGLIGENCE 12
SEC. 201. DOWN PAYMENT ASSISTANCE PROGRAM FOR 13
FIRST-TIME, FIRST-GENERATION HOME-14
BUYERS. 15
(a) D
EFINITIONS.—In this section: 16
(1) E
LIGIBLE RESIDENT.—The term ‘‘eligible 17
resident’’ means an individual who— 18
(A) is a first-time homebuyer; 19
(B) is a first-generation homebuyer; and 20
(C) has an income that is less than— 21
(i) 120 percent of the area median in-22
come; or 23
(ii) in the case of a homebuyer acquir-24
ing a property for use as a principal resi-25
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dence that is located in a high-cost area, 1
as determined by the Secretary, 140 per-2
cent of the area median income. 3
(2) F
IRST-GENERATION HOMEBUYER .—The 4
term ‘‘first-generation homebuyer’’ means a home-5
buyer who is, as self-attested by the homebuyer, an 6
individual— 7
(A) whose parents do not, or did not at the 8
time of their death, to the best of the individ-9
ual’s knowledge, have any present ownership in-10
terest in a principal residence in any State, ex-11
cluding ownership of heir property; and 12
(B) whose spouse or domestic partner has 13
not, during the 3-year period ending on the 14
date of purchase of a property using a grant 15
under subsection (b), had any present owner-16
ship interest in a principal residence in any 17
State, excluding ownership of heir property, 18
without regard to whether the spouse or domes-19
tic partner is a co-borrower on a mortgage for 20
the property being purchased. 21
(3) F
IRST-TIME HOMEBUYER.—The term ‘‘first- 22
time homebuyer’’ means a homebuyer who is, as 23
self-attested by the homebuyer, an individual (and if 24
married or in a domestic partnership, the spouse or 25
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domestic partner of the individual) who, during the 1
3-year period ending on the date of purchase of a 2
property using a grant under subsection (b)— 3
(A) has had no present ownership in a 4
principal residence in any State, excluding own-5
ership of heir property; or 6
(B) surrendered any present ownership in-7
terest in a principal residence in any State, ex-8
cluding ownership of heir property, as part of 9
a divorce proceeding. 10
(4) H
EIR PROPERTY.—The term ‘‘heir prop-11
erty’’ means residential property for which title— 12
(A) passed by operation of law through in-13
testacy; and 14
(B) is held by 2 or more heirs as tenants 15
in common. 16
(5) S
ECRETARY.—The term ‘‘Secretary’’ means 17
the Secretary of Housing and Urban Development. 18
(6) S
TATE.—The term ‘‘State’’ includes the 19
District of Columbia and any territory or possession 20
of the United States. 21
(b) E
STABLISHMENT.—There is established in the 22
Treasury of the United States a fund that— 23
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(1) shall be administered by the Secretary, act-1
ing through the Office of Housing of the Depart-2
ment of Housing and Urban Development; and 3
(2) shall be used— 4
(A) to provide grants to eligible residents 5
to purchase a property for use as a principal 6
residence; 7
(B) for outreach to financial institutions in 8
targeted areas and eligible residents, including 9
for the administration of that outreach; 10
(C) for counseling or financial education 11
administered by counseling agencies approved 12
by the Secretary in order to ensure sustainable 13
homeownership; and 14
(D) to maintain any records required to 15
implement this section. 16
(c) G
RANTAMOUNT.—An eligible resident may re-17
ceive a grant under subsection (b) in an amount equal 18
to— 19
(1) not more than 3.5 percent of the appraised 20
value of the property to be purchased; or 21
(2) if the appraised value of the property to be 22
purchased exceeds the principal obligation amount 23
limitation for mortgages insured under title II of the 24
National Housing Act (12 U.S.C. 1707 et seq.), 3.5 25
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percent of the maximum principal obligation limita-1
tion for the property to be purchased. 2
(d) R
ELATION TOFHA LOAN.—An eligible resident 3
shall not be required to obtain a mortgage that is insured 4
under title II of the National Housing Act (12 U.S.C. 5
1707 et seq.) as a condition of receiving a grant under 6
subsection (b). 7
(e) L
AYERING OFASSISTANCE.—Receipt by an eligi-8
ble recipient of assistance for a down payment from a 9
source other than the fund established under subsection 10
(b), including assistance from the Federal Government, a 11
State or local government, or any other public, private, 12
or nonprofit source, shall not affect the eligibility of the 13
eligible recipient for assistance under subsection (b). 14
(f) R
EGULATIONS AND DATABASE.—Not later than 15
1 year after the date of enactment of this Act, the Sec-16
retary shall— 17
(1) in consultation with interested parties, in-18
cluding housing counseling agencies approved by the 19
Secretary and individuals or groups with expertise in 20
fair housing, promulgate regulations relating to the 21
use of the fund established under subsection (b); 22
(2) promulgate regulations relating to the dis-23
bursement of funds under this section to ensure that 24
an eligible resident is able to receive funds before 25
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the closing date for the home of the eligible resident, 1
which may include creating a program that allows a 2
lender to be reimbursed by the fund established 3
under subsection (b) if the lender— 4
(A) provides an eligible resident with funds 5
for the closing; or 6
(B) allows an eligible resident to be 7
preapproved to receive assistance under this 8
section when arranging financing for the home 9
of the eligible resident; and 10
(3) establish methods to verify that an indi-11
vidual is an eligible resident. 12
(g) A
PPROPRIATION.—Out of funds in the Treasury 13
not otherwise appropriated, there is appropriated to the 14
fund established under subsection (b) such sums as may 15
be necessary for each of fiscal years 2025 through 2034 16
to carry out the activities under subsection (b)(2). 17
(h) I
NCLUSION OFPROGRAM INHOMEBUYINGIN-18
FORMATIONBOOKLETS.—Section 5(b) of the Real Estate 19
Settlement Procedures Act of 1974 (12 U.S.C. 2604(b)) 20
is amended by inserting after paragraph (14) the fol-21
lowing: 22
‘‘(15) Information relating to the down pay-23
ment assistance program established under section 24
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201 of the American Housing and Economic Mobil-1
ity Act of 2025.’’. 2
(i) I
NCLUSION OFPROGRAM ASMORTGAGEPROD-3
UCT.—Section 203(f)(1) of the National Housing Act (12 4
U.S.C. 1709(f)(1)) is amended by inserting ‘‘, including 5
the down payment assistance program established under 6
section 201 of the American Housing and Economic Mo-7
bility Act of 2025,’’ after ‘‘mortgage products’’. 8
(j) R
ELIANCE ONBORROWERATTESTATIONS.—No 9
additional documentation beyond the borrower’s attesta-10
tion shall be required to demonstrate eligibility under 11
paragraphs (2) and (3) of subsection (a), and no creditor 12
shall be subject to liability, including monetary penalties 13
or requirements to indemnify a Federal agency or repur-14
chase a loan that has been sold or securitized, for the pro-15
vision of down payment assistance under this section to 16
a borrower who does not meet the eligibility requirements 17
under those paragraphs if the creditor does so in good 18
faith reliance on borrower attestations of eligibility re-19
quired by those paragraphs or any regulation promulgated 20
to carry out those paragraphs. 21
(k) R
EPAYMENT OFASSISTANCE.— 22
(1) R
EQUIREMENT.—An eligible resident who 23
receives a grant under subsection (b) to purchase a 24
property for use as a principal residence and does 25
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not occupy the property as a principal residence for 1
5 years or more shall repay to the Secretary a pro-2
portional amount of the grant based on the number 3
of years, if any, for which the eligible resident has 4
occupied the property as a principal residence. 5
(2) L
IMITATION.—Notwithstanding paragraph 6
(1), an eligible resident who receives a grant under 7
subsection (b) to purchase a property for use as a 8
principal residence and does not occupy the property 9
as a principal residence for 5 years or more shall not 10
be liable to the Secretary for repayment under para-11
graph (1) of this subsection if— 12
(A) the failure to occupy the property as a 13
principal residence is due at least in part to a 14
hardship; or 15
(B) the eligible resident sells the property 16
before the expiration of the 5-year period begin-17
ning on the date of acquisition and the capital 18
gains from the sale to a bona fide purchaser in 19
an arm’s length transaction are less than the 20
amount the eligible resident would be required 21
to repay under paragraph (1). 22
SEC. 202. FORMULA GRANT PROGRAM FOR COMMUNITIES 23
WITH AN APPRAISAL GAP. 24
(a) D
EFINITIONS.—In this section— 25
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(1) the term ‘‘neighborhood with an appraisal 1
gap’’ means a census tract in which the median sales 2
price of a dwelling unit is lower than the median 3
cost to acquire and rehabilitate, or build, a new 4
dwelling unit; 5
(2) the term ‘‘Secretary’’ means the Secretary 6
of Housing and Urban Development; and 7
(3) the term ‘‘State’’ has the meaning given the 8
term in section 3(b)(7) of the United States Hous-9
ing Act of 1937 (42 U.S.C. 1437a(b)(7)). 10
(b) E
STABLISHMENT.—The Secretary shall establish 11
a formula grant program to provide funding to States to 12
support neighborhoods with an appraisal gap, including 13
borrowers with negative equity in their primary residence 14
in those neighborhoods, through— 15
(1) measures that provide funds to borrowers 16
to— 17
(A) pay down arrears on an otherwise af-18
fordable loan; 19
(B) pay down arrears or principal on a 20
loan in order to qualify for a loan modification 21
that will allow the borrower to keep the home; 22
(C) pay off, or pay down part of, a second 23
mortgage or home equity line of credit; 24
(D) pay off a small-dollar mortgage; 25
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(E) pay delinquent taxes and tax liens; 1
(F) pay off delinquent water or sewer bills 2
and liens; and 3
(G) pay for home repairs or maintenance 4
or for modifications to bring the home into 5
compliance with any applicable codes; and 6
(2) programs to purchase or rehabilitate vacant 7
or distressed properties to enhance neighborhood 8
property values. 9
(c) F
ORMULA.—The Secretary shall distribute 10
amounts under this section to States based on— 11
(1) the number of borrowers with a primary 12
residence with negative equity in each State; and 13
(2) the share of neighborhoods with an ap-14
praisal gap in each State. 15
(d) A
UTHORIZATION OFAPPROPRIATIONS.—There is 16
authorized to be appropriated to carry out this section 17
$5,000,000,000 for fiscal year 2025. 18
SEC. 203. STRENGTHENING THE COMMUNITY REINVEST-19
MENT ACT OF 1977. 20
(a) S
HORTTITLE.—This section may be cited as the 21
‘‘Community Reinvestment Reform Act of 2025’’. 22
(b) A
MENDMENTS TO THE COMMUNITYREINVEST-23
MENTACT OF1977.—The Community Reinvestment Act 24
of 1977 (12 U.S.C. 2901 et seq.) is amended— 25
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(1) by striking sections 802 and 803 (12 U.S.C. 1
2901, 2902) and inserting the following: 2
‘‘SEC. 802. FINDINGS AND PURPOSE. 3
‘‘(a) F
INDINGS.—Congress finds that— 4
‘‘(1) regulated financial institutions are re-5
quired by law to demonstrate that they serve the 6
convenience and needs of the communities in which 7
they are chartered or do business, in particular low- 8
and moderate-income communities; 9
‘‘(2) the convenience and needs of communities 10
include the need for credit services, deposit services, 11
transaction services, other financial services, and 12
community development loans and investments; and 13
‘‘(3) regulated financial institutions have a con-14
tinuing and affirmative obligation to meet the credit 15
or other financial needs of all the local communities 16
in which they are chartered or do business, including 17
communities in which— 18
‘‘(A) the institutions make loans and do 19
not accept deposits; or 20
‘‘(B) the institutions accept deposits but 21
do not make loans. 22
‘‘(b) P
URPOSE.—It is the purpose of this title to re-23
quire each appropriate Federal financial supervisory agen-24
cy to use its authority when examining regulated financial 25
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institutions to ensure that those institutions meet the 1
credit and other financial needs of the local communities 2
in which they are chartered or do business consistent with 3
the safe and sound operation of those institutions. 4
‘‘SEC. 803. DEFINITIONS. 5
‘‘In this title: 6
‘‘(1) A
PPLICATION FOR A DEPOSIT FACILITY .— 7
The term ‘application for a deposit facility’ means 8
an application to the appropriate Federal financial 9
supervisory agency otherwise required under Federal 10
law or regulations thereunder for— 11
‘‘(A) a charter for a national bank or Fed-12
eral savings and loan association; 13
‘‘(B) deposit insurance in connection with 14
a newly chartered State bank, savings bank, 15
savings and loan association, or similar institu-16
tion; 17
‘‘(C) the establishment of a domestic 18
branch or other facility with the ability to ac-19
cept deposits of a regulated financial institu-20
tion; 21
‘‘(D) the relocation of the home office or a 22
branch office of a regulated financial institu-23
tion; 24
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‘‘(E) the merger or consolidation with, the 1
acquisition of the assets of, or the assumption 2
of the liabilities of a regulated financial institu-3
tion requiring approval under section 18(c) of 4
the Federal Deposit Insurance Act (12 U.S.C. 5
1828(c)); or 6
‘‘(F) the acquisition of shares in, or the as-7
sets of, a regulated financial institution requir-8
ing approval under section 3 of the Bank Hold-9
ing Company Act of 1956 (12 U.S.C. 1842). 10
‘‘(2) A
PPROPRIATE FEDERAL BANKING AGEN -11
CY.—The term ‘appropriate Federal banking agency’ 12
has the meaning given the term in section 3 of the 13
Federal Deposit Insurance Act (12 U.S.C. 1813). 14
‘‘(3) A
PPROPRIATE FEDERAL FINANCIAL SU -15
PERVISORY AGENCY .—The term ‘appropriate Fed-16
eral financial supervisory agency’ means— 17
‘‘(A) the appropriate Federal banking 18
agency with respect to depository institutions 19
and depository institution holding companies; 20
and 21
‘‘(B) the Bureau of Consumer Financial 22
Protection with respect to any covered person 23
supervised by the Bureau pursuant to section 24
1024 of the Dodd-Frank Wall Street Reform 25
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and Consumer Protection Act (12 U.S.C. 1
5514). 2
‘‘(4) A
SSESSMENT AREA .—The term ‘assess-3
ment area’ means, with respect to a regulated finan-4
cial institution, each community, including a State, 5
metropolitan area, or urban or rural county, in 6
which the institution— 7
‘‘(A) maintains deposit-taking branches, 8
automated teller machines, or retail offices; 9
‘‘(B) is represented by an agent; or 10
‘‘(C) issues a significant number of loans 11
or other products relative to the total number 12
of loans or other products made by the institu-13
tion or relative to the total number of loans or 14
other products offered by the private sector 15
market. 16
‘‘(5) C
LIMATE RESILIENCY AND DISASTER MITI -17
GATION.—The term ‘climate resiliency and disaster 18
mitigation’ means activities that— 19
‘‘(A) assist individuals and communities to 20
prepare for, adapt to, and withstand climate-re-21
lated risks, natural disasters, or weather-related 22
disasters; 23
‘‘(B) benefit or serve residents of low- to 24
moderate-income census tracts or climate vul-25
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nerable communities and do not directly result 1
in forced or involuntary relocation of those resi-2
dents; and 3
‘‘(C) are done in conjunction with— 4
‘‘(i) a plan, program or initiative of a 5
Federal, State, local or Tribal government; 6
or 7
‘‘(ii) a mission-driven nonprofit orga-8
nization that is focused on benefiting or 9
serving targeted census tracts or climate 10
vulnerable communities. 11
‘‘(6) C
LIMATE VULNERABLE COMMUNITIES .— 12
The term ‘climate vulnerable communities’ means 13
communities experiencing heightened risk and in-14
creased sensitivity to climate change with less capac-15
ity and fewer resources to cope with, adapt to, or re-16
cover from climate impacts, as determined by the 17
appropriate Federal financial supervisory agencies. 18
‘‘(7) C
OMMUNITY BENEFITS PLAN .—The term 19
‘community benefits plan’ means a plan that pro-20
vides measurable goals for future amounts of safe 21
and sound loans, investments, services, and other fi-22
nancial products for low- and moderate-income com-23
munities and other distressed or underserved com-24
munities. 25
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‘‘(8) COMMUNITY DEVELOPMENT .—The term 1
‘community development’ includes— 2
‘‘(A) affordable housing for low- or mod-3
erate-income individuals and avoidance of pat-4
terns of lending resulting in the loss of afford-5
able housing units and housing for low- and 6
moderate-income individuals in high-opportunity 7
areas; 8
‘‘(B) community development services, in-9
cluding counseling and successful mortgage or 10
loan modifications of delinquent loans; 11
‘‘(C) activities that promote integration; 12
‘‘(D) activities that promote economic de-13
velopment by financing small businesses or 14
farms that meet the size eligibility requirements 15
of the development company or small business 16
investment company programs under section 17
121.301 of title 13, Code of Federal Regula-18
tions, or any successor regulation, with an em-19
phasis on small businesses that have gross an-20
nual revenues of not more than $1,000,000; 21
‘‘(E) activities that revitalize or stabilize— 22
‘‘(i) low- or moderate-income geog-23
raphies; 24
‘‘(ii) designated disaster areas; 25
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‘‘(iii) distressed or underserved non-1
metropolitan middle-income geographies 2
designated by the Federal Financial Insti-3
tutions Examination Council, based on— 4
‘‘(I) rates of poverty, unemploy-5
ment, and population loss; or 6
‘‘(II) population size, density, 7
and dispersion, if those activities help 8
to meet essential community needs, 9
including the needs of low- and mod-10
erate-income individuals; or 11
‘‘(iv) other distressed or underserved 12
communities; 13
‘‘(F) activities that promote physical, envi-14
ronmental, and sensory accessibility in housing 15
stock that is integrated into the community; 16
and 17
‘‘(G) other activities that promote the ob-18
jectives of this title, as determined by the ap-19
propriate Federal financial supervisory agen-20
cies. 21
‘‘(9) D
EPOSITORY INSTITUTION ; DEPOSITORY 22
INSTITUTION HOLDING COMPANY ; INSURED DEPOSI-23
TORY INSTITUTION.—The terms ‘depository institu-24
tion’, ‘depository institution holding company’, and 25
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‘insured depository institution’ have the meanings 1
given those terms in section 3 of the Federal De-2
posit Insurance Act (12 U.S.C. 1813). 3
‘‘(10) E
NTIRE COMMUNITY .—The term ‘entire 4
community’ means— 5
‘‘(A) all of the assessment areas of a regu-6
lated financial institution; and 7
‘‘(B) areas outside of assessment areas de-8
scribed in subparagraph (A) in which a regu-9
lated financial institution has made loans or re-10
ceived deposits. 11
‘‘(11) E
NUMERATED CONSUMER LAWS .—The 12
term ‘enumerated consumer laws’ has the meaning 13
given the term in section 1002 of the Consumer Fi-14
nancial Protection Act of 2010 (12 U.S.C. 5481). 15
‘‘(12) F
OSSIL FUEL.—The term ‘fossil fuel’ 16
means coal, petroleum, methane gas (often referred 17
to as ‘natural gas’), or any derivative of coal, petro-18
leum, or methane gas that is used for fuel directly 19
or indirectly, such as for generating electricity. 20
‘‘(13) F
OSSIL FUEL COMPANY .—The term ‘fos-21
sil fuel company’ means any company that— 22
‘‘(A) is among the 200 companies with the 23
largest fossil fuel reserves in the world; 24
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‘‘(B) is among the 30 largest public com-1
pany owners in the world of coal-fired power 2
plants; 3
‘‘(C) has as its core business— 4
‘‘(i) the construction or operation of 5
fossil fuel infrastructure; or 6
‘‘(ii) the exploration, extraction, refin-7
ing, processing or distribution of fossil 8
fuels; or 9
‘‘(D) receives more than 50 percent of its 10
gross revenue from companies that meet the 11
definition under subparagraph (A), (B), or (C). 12
‘‘(14) F
OSSIL FUEL EXPANSION .—The term 13
‘fossil fuel expansion’ means financing for new fossil 14
fuel infrastructure projects, including financing of 15
exploration activities, that would— 16
‘‘(A) increase greenhouse gas emissions; 17
and 18
‘‘(B) increase the difficulty of achieving 19
Federal, State, or local carbon emission reduc-20
tion goals. 21
‘‘(15) F
OSSIL FUEL INFRASTRUCTURE .—The 22
term ‘fossil fuel infrastructure’ means oil or gas 23
wells, oil or gas pipelines and refineries, oil, coal or 24
gas-fired power plants, oil and gas storage tanks, 25
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fossil fuel export terminals, and any other infra-1
structure used exclusively for fossil fuels, including 2
facilities with carbon capture, utilization, and stor-3
age. 4
‘‘(16) G
EOGRAPHY.—The term ‘geography’ 5
means a census tract delineated by the Bureau of 6
the Census in the most recent decennial census. 7
‘‘(17) I
NTERMEDIATE BANK .—The term ‘inter-8
mediate bank’ is a depository institution with assets 9
of not less than $402,000,000 and less than 10
$1,609,000,000, as adjusted annually for purposes 11
of an examination under section 804. 12
‘‘(18) L
ARGE BANK.—The term ‘large bank’ is 13
a depository institution with assets of not less than 14
$1,609,000,000, as adjusted annually for purposes 15
of an examination under section 804. 16
‘‘(19) O
THER DISTRESSED OR UNDERSERVED 17
COMMUNITY.—The term ‘other distressed or under-18
served community’ means an area or census tract 19
that, according to a periodic review and data anal-20
ysis by the appropriate Federal financial supervisory 21
agencies on an interagency basis through the Fed-22
eral Financial Institutions Examination Council of 23
certain metrics, such as loans per households or 24
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small business, is experiencing economic hardship or 1
is underserved by financial institutions. 2
‘‘(20) O
THER UNDERSERVED POPULATION .— 3
The term ‘other underserved population’ means a 4
population that is experiencing ongoing effects of 5
discrimination or is relatively underserved by finan-6
cial institutions, as measured by loans per house-7
holds or other similar metrics. 8
‘‘(21) R
EGULATED FINANCIAL INSTITUTION .— 9
The term ‘regulated financial institution’ means— 10
‘‘(A) an insured depository institution; 11
‘‘(B) a depository institution holding com-12
pany; and 13
‘‘(C) a U.S. nonbank mortgage originator. 14
‘‘(22) R
ETAIL LENDING ASSESSMENT AREA .— 15
The term ‘retail lending assessment area’ means a 16
geographical area in which a regulated financial in-17
stitution— 18
‘‘(A) makes a threshold number of loans, 19
as determined by the appropriated Federal su-20
pervisory agencies; 21
‘‘(B) does not have branches, deposit-tak-22
ing automated teller machines, or offices; and 23
‘‘(C) is not represented by agents. 24
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‘‘(23) SMALL BANK.—The term ‘small bank’ is 1
a depository institution with assets of less than 2
$402,000,000, as adjusted annually to take into ac-3
count inflation for purposes of determining which in-4
stitutions are subject to an examination under sec-5
tion 804. 6
‘‘(24) U.S. 
NONBANK MORTGAGE ORIGI -7
NATOR.—The term ‘U.S. nonbank mortgage origi-8
nator’ means a covered person subject to section 9
1024 of the Dodd-Frank Wall Street Reform and 10
Consumer Protection Act (12 U.S.C. 5514) that of-11
fers or provides— 12
‘‘(A) origination of loans secured by real 13
estate for use by consumers primarily for per-14
sonal, family, or household purposes; or 15
‘‘(B) loan modification or foreclosure relief 16
services in connection with a loan described in 17
subparagraph (A).’’; 18
(2) in section 804 (12 U.S.C. 2903)— 19
(A) by redesignating subsections (c) and 20
(d) as subsections (f) and (g), respectively; 21
(B) by striking subsections (a) and (b) and 22
inserting the following: 23
‘‘(a) D
EPOSITORYINSTITUTIONS AND BANKHOLD-24
INGCOMPANIES.— 25
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‘‘(1) IN GENERAL.—In connection with its ex-1
amination of a regulated financial institution other 2
than a U.S. nonbank mortgage originator, the ap-3
propriate Federal financial supervisory agency shall 4
perform the following: 5
‘‘(A) Assess the record of the institution in 6
meeting the credit and other financial needs of 7
its entire community, in particular low- and 8
moderate-income people and communities, and 9
other distressed or underserved communities, 10
and other underserved populations consistent 11
with the safe and sound operation of the insti-12
tution. 13
‘‘(B) Assess the effectiveness of the fol-14
lowing activities in meeting the credit and other 15
financial needs of the assessment areas of the 16
institution, consistent with the safe and sound 17
operation of the institution: 18
‘‘(i) Retail lending, including home, 19
small business, consumer, automobile, and 20
other lending and financial products, that 21
responds to credit needs or other financial 22
needs. 23
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‘‘(ii) Community development lending 1
and investments, which may include a con-2
sideration of— 3
‘‘(I) the origination of loans and 4
other efforts by the institution to as-5
sist existing low- and moderate-income 6
residents to remain in affordable 7
housing in their community; and 8
‘‘(II) the origination of loans by 9
the institution that result in the con-10
struction, rehabilitation, or preserva-11
tion of affordable housing units. 12
‘‘(iii) Community development finance 13
tests or similar tests developed by the ap-14
propriate Federal banking agencies shall 15
include separate quantitative measures for 16
community development investments. The 17
evaluation of investments shall positively or 18
negatively affect test scores depending on 19
bank performance, in community develop-20
ment finance tests or similar tests. 21
‘‘(iv) Retail financial services and 22
community development services. 23
‘‘(v) Evaluation of the responsiveness, 24
affordability, and sustainability of retail fi-25
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nancial services including credit and de-1
posit products shall positively or negatively 2
affect tests scores, depending on bank per-3
formance, in the retail products and serv-4
ice test or similar tests. 5
‘‘(vi) Retail lending assessment areas 6
shall be established for large banks and in-7
termediate banks if not more than 90 per-8
cent of the retail loans of the bank are in 9
assessment areas containing their branches 10
and deposit-taking automated teller ma-11
chines. Large banks and intermediate bank 12
evaluations shall also examine lending out-13
side of retail lending assessment areas and 14
assessment areas containing branches and 15
deposit-taking automated teller machines. 16
Evaluations of these loans shall be consid-17
ered when assigning an institution level 18
rating to the bank. 19
‘‘(C) With respect to its evaluation of an 20
application for a deposit facility by the institu-21
tion— 22
‘‘(i) consider the record described in 23
subparagraph (A), the effectiveness of the 24
activities described in subparagraph (B), 25
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the overall rating of the institution under 1
this section, and any improvement plans 2
submitted pursuant to this section; 3
‘‘(ii) provide an opportunity for public 4
comment for a period of not less than 60 5
days; 6
‘‘(iii) consider changes in the commu-7
nity reinvestment performance of the insti-8
tution since the most recent rating under 9
this section by the appropriate Federal fi-10
nancial supervisory agency; and 11
‘‘(iv) require— 12
‘‘(I) a demonstration of public 13
benefit, including a community bene-14
fits plan with measurable goals re-15
garding increasing responsible lending 16
and other financial products that is 17
commensurate with the ability of the 18
institution to accomplish those goals; 19
‘‘(II) that the institution consult 20
with community-based organizations 21
and other community stakeholders in 22
developing the community benefits 23
plan; and 24
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‘‘(III) a public hearing for any 1
institution that has a received a ‘need- 2
to-improve’ or ‘low satisfactory’ grade 3
in any individual assessment area dur-4
ing the most recent examination. 5
‘‘(2) C
ONSIDERATION OF LENDING IN PART -6
NERSHIP WITH NON-DEPOSITORY LENDERS .— 7
‘‘(A) I
N GENERAL.—As part of assessing a 8
financial institution under paragraph (1), the 9
appropriate Federal financial supervisory agen-10
cy shall evaluate the performance of the finan-11
cial institution in originating loans for small 12
farms, consumer loans (including residential 13
mortgages, unsecured installment loans, ad-14
vances, and lines of credit), and loans for small 15
businesses (including unsecured installment 16
loans, advances, and lines of credit) in partner-17
ship with 1 or more non-depository lenders. 18
‘‘(B) A
FFORDABILITY AND SUSTAIN -19
ABILITY.—In making the evaluation described 20
in subparagraph (A), the appropriate Federal 21
financial supervisory agency shall consider the 22
affordability and sustainability of the loan origi-23
nations made in partnership with 1 or more 24
non-depository lenders. 25
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‘‘(C) DEFINITIONS.—In this paragraph: 1
‘‘(i) N
ON-DEPOSITORY LENDER .—The 2
term ‘non-depository lender’ means a lend-3
er that is not an insured depository institu-4
tion. 5
‘‘(ii) S
MALL BUSINESS ; SMALL 6
FARM.—The terms ‘small business’ and 7
‘small farm’ have the meanings given those 8
terms under the regulations promulgated 9
by the Bureau implementing the amend-10
ments made by section 1071 of the Dodd 11
Frank Wall Street Reform and Consumer 12
Protection Act of 2010 (Public Law 111– 13
203; 124 Stat. 2056) under part 1002 of 14
title 12, Code of Federal Regulations, or 15
any successor regulation. 16
‘‘(3) D
EDUCTIONS FOR FOSSIL EXPANSION .— 17
‘‘(A) I
N GENERAL.—As part of assessing a 18
financial institution under paragraph (1), the 19
appropriate Federal financial supervisory agen-20
cy shall— 21
‘‘(i) determine the total dollar amount 22
of loans and investments to fossil fuel com-23
panies for the purposes of fossil fuel ex-24
pansion that were originated or held by the 25
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financial institution during the period cov-1
ered by an examination under section 804; 2
and 3
‘‘(ii) deduct not more than that total 4
dollar amount from the reported commu-5
nity development loans and investments of 6
the financial institution, both in the aggre-7
gate and at the local market, or assess-8
ment area, level. 9
‘‘(B) A
CTIVITIES.—The deduction de-10
scribed in subparagraph (A)(ii) may only be off-11
set by financing by the institution of climate re-12
siliency and disaster mitigation activities spe-13
cifically targeted to underserved communities, 14
such as— 15
‘‘(i) the development of climate resil-16
ient affordable housing, schools, and small 17
businesses (as defined in paragraph 18
(2)(C)); 19
‘‘(ii) clean electricity projects and 20
microgrids; 21
‘‘(iii) nature-based protective infra-22
structure; 23
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‘‘(iv) building decarbonization, which 1
includes holistic home weatherization and 2
health interventions; 3
‘‘(v) lending to green small businesses 4
and companies with legitimate public 5
decarbonization transition plans, strate-6
gies, and targets; 7
‘‘(vi) electric public transit and elec-8
tric vehicle charging infrastructure; 9
‘‘(vii) investments in weatherization 10
and climate resilience for local businesses; 11
‘‘(viii) operational and technical sup-12
port and capacity building for environ-13
mental and climate justice organizations, 14
including support for community groups 15
active in environmental testing and train-16
ing of community members to identify cli-17
mate or environmental risks and opportu-18
nities in their communities; and 19
‘‘(ix) workforce development related to 20
the transition away from fossil fuels, in-21
cluding activities to train workers on skills 22
needed to participate in carbon-pollution- 23
free energy sectors. 24
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‘‘(4) PENALTIES FOR SUSTAINED FAILING PER -1
FORMANCE.—A regulated financial institution other 2
than a U.S. nonbank mortgage originator that re-3
ceives overall performance ratings under this section 4
of ‘needs to improve’ or ‘substantial noncompliance’ 5
for 2 consecutive examinations shall be subject to 6
the following penalties, as deemed applicable by the 7
appropriate Federal financial supervisory agency: 8
‘‘(A) Restrictions on the institution’s 9
growth (overall or in discrete areas), business 10
activities, or payment of dividends, including re-11
strictions on ability to sell loans originated by 12
the institution to enterprises, as defined in sec-13
tion 1303 of the Federal Housing Enterprises 14
Financial Safety and Soundness Act of 1992 15
(12 U.S.C. 4502). 16
‘‘(B) Recommendations to appropriate 17
State agencies that State mortgage licenses be 18
suspended or revoked with a statement of facts 19
covering the justification for the recommended 20
suspension or revocation. 21
‘‘(C) Requiring the institution to simplify 22
or reduce its operations, including that the in-23
stitution reduce its asset size, divest subsidi-24
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aries or business lines, or exit from 1 or more 1
markets of operation. 2
‘‘(D) Recovery, or claw back, of portions of 3
executive compensation received during consecu-4
tive evaluation periods under this section of 5
which the institution received an overall per-6
formance rating of ‘needs to improve’ or ‘sub-7
stantial noncompliance’. 8
‘‘(b) U.S. N
ONBANKMORTGAGEORIGINATOR.— 9
‘‘(1) I
N GENERAL.—In connection with its ex-10
amination of a U.S. nonbank mortgage originator, 11
the appropriate Federal financial supervisory agency 12
shall perform the following: 13
‘‘(A) Assess the record of the U.S. 14
nonbank mortgage originator in meeting the 15
credit or other financial needs of its entire com-16
munity, in particular low-income and moderate- 17
income people and communities and other dis-18
tressed or underserved communities and other 19
underserved populations, consistent with the 20
safe and sound operation of the U.S. nonbank 21
mortgage originator. 22
‘‘(B) Assess, as appropriate, the following 23
activities in the assessment areas of the U.S. 24
nonbank mortgage originator: 25
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‘‘(i) Retail lending, including home 1
loans. 2
‘‘(ii) Community development services. 3
‘‘(iii) Community development lending 4
and investments, which may include a con-5
sideration of— 6
‘‘(I) the origination of loans and 7
other efforts by the institution to as-8
sist existing low- and moderate-income 9
residents to remain in affordable 10
housing in their community; 11
‘‘(II) the origination of loans by 12
the institution that result in the con-13
struction, rehabilitation or preserva-14
tion of affordable housing units; and 15
‘‘(III) investments in, grants to, 16
or loans to community development fi-17
nancial institutions (as defined in sec-18
tion 103 of the Community Develop-19
ment Banking and Financial Institu-20
tions Act of 1994 (12 U.S.C. 4702)), 21
community development corporations 22
(as defined in section 613 of the Com-23
munity Economic Development Act of 24
1981 (42 U.S.C. 9802)), and other 25
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nonprofit organizations serving the 1
housing and development needs of the 2
community. 3
‘‘(iv) Retail lending assessment areas 4
shall be established if not more than 90 5
percent of the retail loans of the U.S. 6
nonbank originator are in containing of-7
fices or agents. The evaluations shall also 8
examine lending outside of retail lending 9
assessment areas and assessment areas 10
containing offices or agents. Evaluations of 11
these loans shall be considered when as-12
signing an institution level rating to the 13
U.S. nonbank mortgage originator. 14
‘‘(C) With respect to its evaluation of an 15
application for a deposit facility by the U.S. 16
nonbank mortgage originator— 17
‘‘(i) consider the record described in 18
subparagraph (A), the activities described 19
in subparagraph (B), the overall rating of 20
the U.S. nonbank mortgage originator 21
under this section, and any improvement 22
plans submitted pursuant to this section; 23
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‘‘(ii) provide an opportunity for public 1
comment for a period of not less than 60 2
days; 3
‘‘(iii) consider changes in the commu-4
nity reinvestment performance of the U.S. 5
nonbank mortgage originator since the 6
most recent rating under this section by 7
the appropriate Federal financial super-8
visory agency; and 9
‘‘(iv) require— 10
‘‘(I) a demonstration that grant-11
ing the application for a deposit facil-12
ity is in the public interest, which 13
shall include a submission of a com-14
munity benefits plan, which shall be 15
commensurate with the ability of the 16
institution to accomplish the plan, by 17
the U.S. nonbank mortgage originator 18
to the appropriate Federal financial 19
supervisory agency; 20
‘‘(II) that the U.S. nonbank 21
mortgage originator consult with com-22
munity-based organizations and other 23
community stakeholders in developing 24
the community benefits plan; and 25
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‘‘(III) a public hearing for any 1
U.S. nonbank mortgage originator 2
that has a received a ‘need-to-im-3
prove’ or ‘low satisfactory’ grade in 4
any individual assessment area during 5
the most recent examination. 6
‘‘(2) P
ENALTIES AND FEES .—The appropriate 7
Federal financial supervisory agency shall have the 8
same authority to assess penalties and fees under 9
subsection (a)(4) for the U.S. nonbank mortgage 10
originator as is the case for regulated financial insti-11
tutions described in subsection (a). 12
‘‘(3) A
UTHORITY TO ADJUST EXAMINATION AND 13
SUPERVISORY FEES.—The appropriate Federal fi-14
nancial supervisory agencies shall have the authority 15
to adjust the dollar amount of examination and su-16
pervisory fees, based in part on the rating of institu-17
tions under this section. 18
‘‘(c) R
EQUIREMENTS.— 19
‘‘(1) I
N GENERAL.—In connection with its ex-20
amination of a regulated financial institution under 21
subsection (a) or (b), the appropriate Federal finan-22
cial supervisory agency shall— 23
‘‘(A) consider public comments received by 24
the appropriate Federal financial supervisory 25
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agency regarding the record of the institution in 1
meeting the credit or other financial needs of 2
its entire community, including low- and mod-3
erate-income communities, and hold not less 4
than 1 public hearing to receive comments for 5
large banks with assets of not less than 6
$50,000,000,000; and 7
‘‘(B) require— 8
‘‘(i) an improvement plan for an insti-9
tution that receives a rating of ‘low satis-10
factory’ or lower on the written evaluation 11
of the institution, or such a rating in any 12
individual assessment area; and 13
‘‘(ii) the improvement plan described 14
in clause (i) to result in the reasonable 15
likelihood that the institution will obtain a 16
rating of at least ‘high satisfactory’ in 17
meeting community credit or other finan-18
cial needs in the relevant measure on the 19
next examination. 20
‘‘(2) I
MPROVEMENT PLAN .— 21
‘‘(A) I
N GENERAL.—A regulated financial 22
institution that is required to submit an im-23
provement plan required under paragraph 24
(1)(B) shall submit the plan in writing to the 25
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appropriate Federal financial supervisory agen-1
cy not later than 90 days after receiving notice 2
that the regulated financial institution is re-3
quired to submit the plan. 4
‘‘(B) P
UBLIC COMMENT.—Upon receipt of 5
an improvement plan of a regulated financial 6
institution required under paragraph (1)(B), 7
the appropriate Federal financial supervisory 8
agency shall— 9
‘‘(i) make the plan available to the 10
public for review and comment for a period 11
of not less than 60 days; and 12
‘‘(ii) require the regulated financial 13
institution to revise, as appropriate, the 14
improvement plan in response to the public 15
comments received under the public review 16
and comment period described in clause (i) 17
and submit the plan to the appropriate 18
Federal financial supervisory agency not 19
later than 60 days after the end of that pe-20
riod. 21
‘‘(3) E
XAMINATION OF CERTAIN REGULATED 22
FINANCIAL INSTITUTIONS.—In the case of a regu-23
lated financial institution whose lending or other 24
business is not clustered in geographical areas and 25
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is thinly dispersed across the country, the institution 1
shall— 2
‘‘(A) be evaluated under subsection (a) or 3
(b), as applicable— 4
‘‘(i) by considering the effectiveness of 5
the institution in serving customers or bor-6
rowers, with a special emphasis on low- 7
and moderate-income individuals and other 8
underserved populations across the country 9
regardless of where the individuals reside; 10
and 11
‘‘(ii) based on objective thresholds de-12
veloped by the appropriate Federal finan-13
cial supervisory agencies to clarify when 14
lending or other business is dispersed 15
across the country and not clustered in 16
distinct geographical areas, which may in-17
clude low levels of lending or other finan-18
cial products across States or other areas; 19
and 20
‘‘(B) meet the needs of other distressed or 21
underserved communities. 22
‘‘(d) C
ONSIDERATION.—Remediation of consumers 23
pursuant to an order by a court or administrative body 24
or a settlement with a government agency or a private 25
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party may not be considered in an assessment conducted 1
under subsection (a) or (b). 2
‘‘(e) R
ULE OFCONSTRUCTION.—An evaluation of a 3
bank holding company under this section shall incorporate 4
evaluations of subsidiary regulated financial institutions 5
made by the appropriate Federal financial supervisory 6
agency of each subsidiary, if applicable.’’; 7
(C) in subsection (f), as so redesignated— 8
(i) by striking paragraph (2); 9
(ii) by redesignating paragraph (3) as 10
paragraph (2); and 11
(iii) in paragraph (2), as so redesig-12
nated, by striking subparagraph (C); and 13
(D) in subsection (g), as so redesignated, 14
by striking ‘‘subsection (a)’’ and inserting ‘‘sub-15
sections (a) and (b)’’; 16
(3) in section 807 (12 U.S.C. 2906)— 17
(A) in subsection (a)— 18
(i) by striking ‘‘an insured depository 19
institution’’ and inserting ‘‘a regulated fi-20
nancial institution’’; and 21
(ii) by inserting ‘‘or financial’’ after 22
‘‘credit’’; 23
(B) in subsection (b)— 24
(i) in paragraph (1)— 25
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(I) in subparagraph (A)— 1
(aa) in clause (ii), by strik-2
ing ‘‘and’’ at the end; 3
(bb) by redesignating clause 4
(iii) as clause (iv); and 5
(cc) by inserting after clause 6
(ii) the following: 7
‘‘(iii) disclose whether the institution en-8
gaged in acts or practices that the Bureau of 9
Consumer Financial Protection has determined, 10
and has publicly disclosed, violate the enumer-11
ated consumer laws; and’’; and 12
(II) by striking subparagraph (B) 13
and inserting the following: 14
‘‘(B) E
VALUATION ON AN ASSESSMENT AREA 15
BASIS.—The information required under subsections 16
(a) and (b) of section 804 shall be presented sepa-17
rately for each assessment area. 18
‘‘(C) T
REATMENT WITH RESPECT TO VIOLA -19
TIONS OF ENUMERATED CONSUMER LAWS .—If a 20
regulated financial institution has engaged in acts or 21
practices that the appropriate Federal financial su-22
pervisory agency has determined to be unfair, decep-23
tive, or abusive or acts or practices that violate enu-24
merated consumer laws intended to ensure the fair, 25
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equitable, and nondiscriminatory access to credit for 1
individuals and communities that are enforced by 2
the Bureau of Consumer Financial Protection or 3
other Federal or State agencies, the written evalua-4
tion shall be negatively influenced in a manner com-5
mensurate with the extent of the harm suffered by 6
those individuals and communities.’’; 7
(ii) in paragraph (2)— 8
(I) by striking subparagraphs 9
(A), (B), (C), and (D) and inserting 10
the following: 11
‘‘(A) ‘Outstanding record of meeting com-12
munity credit or other financial needs’. 13
‘‘(B) ‘High Satisfactory record of meeting 14
community credit or other financial needs’. 15
‘‘(C) ‘Low Satisfactory record of meeting 16
community credit or other financial needs’. 17
‘‘(D) ‘Needs to improve record of meeting 18
community credit or other financial needs’. 19
‘‘(E) ‘Substantial noncompliance in meet-20
ing community credit or other financial 21
needs’.’’; and 22
(iii) by inserting after the flush text 23
following paragraph (2) the following: 24
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‘‘(3) ADDITIONAL AUTHORITY .—The appro-1
priate Federal financial supervisory agencies may— 2
‘‘(A) alter the ratings under this sub-3
section to change or include additional ratings 4
for the overall ratings and subtest ratings; and 5
‘‘(B) develop an accompanying point sys-6
tem that includes ranges for each rating cat-7
egory under paragraph (2).’’; 8
(C) by redesignating subsection (e) as sub-9
section (f); and 10
(D) by inserting after subsection (d) the 11
following: 12
‘‘(e) A
PPEALS OFRATING.—If a regulated financial 13
institution appeals the assigned rating under this section, 14
the appropriate Federal financial supervisory agency 15
shall— 16
‘‘(1) post a public notice of the appeal on the 17
part of the website of the appropriate Federal finan-18
cial supervisory agency that contains information on 19
this title; and 20
‘‘(2) provide an opportunity for public comment 21
on the appeal.’’; 22
(4) in section 806 (12 U.S.C. 2905)— 23
(A) by striking ‘‘Regulations’’ and insert-24
ing the following: 25
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‘‘(a) INGENERAL.—Regulations’’; 1
(B) in subsection (a), as so designated, by 2
striking ‘‘companies,,’’ and inserting ‘‘compa-3
nies,’’; and 4
(C) by adding at the end the following: 5
‘‘(b) P
ERIODICREVIEW.—Not later than 5 years 6
after the date of enactment of this subsection and every 7
5 years thereafter, the appropriate Federal financial su-8
pervisory agencies shall— 9
‘‘(1) review the regulations promulgated to 10
carry out this title; and 11
‘‘(2) report to Congress any recommendations 12
for updates to the regulations and this title, which 13
may include consideration of— 14
‘‘(A) data collection under this title; 15
‘‘(B) the rigor of evaluations under this 16
title; 17
‘‘(C) the assessment area coverage of loans 18
and deposits; and 19
‘‘(D) the extent to which the provisions of 20
this title are reducing disparities in access to 21
credit and capital by income and race.’’; and 22
(5) by adding at the end the following: 23
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‘‘SEC. 810. DATA COLLECTION AND REPORTING REQUIRE-1
MENTS. 2
‘‘(a) D
ATACOLLECTION.— 3
‘‘(1) C
ONSUMER LOANS.— 4
‘‘(A) I
N GENERAL.—Each regulated finan-5
cial institution shall collect and maintain in ma-6
chine readable form, as prescribed by the ap-7
propriate Federal financial supervisory agency, 8
data for consumer loans originated or pur-9
chased by the regulated financial institution, in-10
cluding motor vehicle loans, credit cards, lines 11
of credit, and other secured or unsecured loans. 12
The regulated financial institution shall main-13
tain data separately for each category of con-14
sumer loan, including the following for each 15
loan: 16
‘‘(i) A unique number or alpha-nu-17
meric symbol that can be used to identify 18
the relevant loan. 19
‘‘(ii) The loan amount at origination 20
or purchase. 21
‘‘(iii) The loan location. 22
‘‘(iv) The gross annual income of the 23
borrower that the regulated financial insti-24
tution considered in making its credit deci-25
sion. 26
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‘‘(B) EXEMPTIONS.—The appropriate Fed-1
eral financial supervisory agencies may exempt 2
classes of regulated financial institutions from 3
the requirements under subparagraph (A) due 4
to low levels of consumer lending or other fac-5
tors. 6
‘‘(2) C
OMMUNITY DEVELOPMENT LOANS AND 7
INVESTMENTS.— 8
‘‘(A) C
OLLECTION AND MAINTENANCE OF 9
DATA.—Each regulated financial institution 10
shall collect and maintain in machine readable 11
form, as prescribed by the appropriate Federal 12
financial supervisory agency, data on the cat-13
egories of community development lending and 14
investments, including data regarding financing 15
affordable housing, small business development, 16
and economic development. 17
‘‘(B) P
UBLIC DISSEMINATION.—Each reg-18
ulated financial institution and the appropriate 19
Federal financial supervisory agencies shall— 20
‘‘(i) publicly disseminate the data de-21
scribed in subparagraph (A) on a county 22
level and for categories of census tracts in-23
cluding low- and moderate-income census 24
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tracts or other distressed and underserved 1
census tracts; and 2
‘‘(ii) consider disseminating the data 3
described in subparagraph (A) by indi-4
vidual census tracts in addition to the cat-5
egories described in clause (i). 6
‘‘(3) A
SSESSMENT AREA DATA .— 7
‘‘(A) I
N GENERAL.—Each regulated finan-8
cial institution shall collect and report to the 9
appropriate Federal financial supervisory agen-10
cy by March 1 of each year a list for each as-11
sessment area showing the geographies within 12
the area. 13
‘‘(B) P
UBLICATION.—The appropriate 14
Federal financial supervisory agencies shall 15
make the list of assessment areas reported by 16
each regulated financial institution under sub-17
paragraph (A) publicly available on the part of 18
the website of the appropriate Federal financial 19
supervisory agency that contains information on 20
this title. 21
‘‘(4) D
EPOSITS.—The appropriate Federal fi-22
nancial supervisory agencies shall— 23
‘‘(A) collect data from regulated financial 24
institutions that reflects— 25
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‘‘(i) the number of customers of those 1
institutions that reside in categories of 2
census tracts including low- and moderate- 3
income census tracts or other distressed 4
and underserved census tracts and the dol-5
lar amount of deposits of those customers; 6
and 7
‘‘(ii) the number of small businesses 8
that are located in the census tract cat-9
egories described in clause (i); and 10
‘‘(B) consider the dissemination of the de-11
posit data collected under subparagraph (A) by 12
individual census tracts in addition to the cat-13
egories described in that subparagraph. 14
‘‘(b) A
GGREGATEDISCLOSURESTATEMENTS.— 15
‘‘(1) I
N GENERAL.—Each appropriate Federal 16
financial supervisory agency shall prepare annually, 17
for each assessment area, a disclosure statement of 18
home, small business, small farm, and consumer 19
lending for each regulated financial institution sub-20
ject to reporting under this section and an aggre-21
gated statement for all reporting institutions com-22
bined, which shall indicate, for each assessment 23
area, the number and amount of all small business, 24
small farm, and consumer loans originated or pur-25
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chased sorted by income level of borrowers, race and 1
ethnicity of borrowers, revenue size of small busi-2
nesses and farms, and categories of census tracts. 3
‘‘(2) D
EPOSITS AND COMMUNITY DEVELOP -4
MENT LOANS AND INVESTMENTS .—An appropriate 5
Federal financial supervisory agency shall include 6
data on deposits and community development loans 7
and investments in the disclosure statements pre-8
pared under paragraph (1). 9
‘‘(3) A
DJUSTED FORM.—An appropriate Fed-10
eral financial supervisory agency may adjust the 11
form of the disclosure statement prepared under 12
paragraph (1) if necessary, because of special cir-13
cumstances, to protect the privacy of a borrower or 14
the competitive position of a regulated financial in-15
stitution. 16
‘‘(c) C
ENTRALDATADEPOSITORIES.—The Federal 17
Financial Institutions Examination Council, in consulta-18
tion with the appropriate Federal financial supervisory 19
agencies, shall implement a system— 20
‘‘(1) to allow the public to access online and in 21
a searchable format the data maintained under 22
paragraphs (1) through (4) of subsection (a); and 23
‘‘(2) that ensures that personally identifiable fi-24
nancial information is not disclosed to public. 25
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‘‘(d) LIMITATION.—An appropriate Federal financial 1
supervisory agency may not use the authorities of the ap-2
propriate Federal financial supervisory agency under this 3
section to obtain a record from a regulated financial insti-4
tution for the purpose of gathering or analyzing the per-5
sonally identifiable financial information of a consumer. 6
‘‘SEC. 811. COMMUNITY ADVISORY COMMITTEES. 7
‘‘(a) D
EPOSITORYINSTITUTIONS.—Each regulated 8
financial institution that is not a U.S. nonbank mortgage 9
originator shall form a separate Community Advisory 10
Committee (which shall be composed of a diverse set of 11
consumer, housing, community development, and other 12
stakeholder groups) in each of the following: 13
‘‘(1) With respect to a depository institution 14
with consolidated assets equal to or greater than 15
$2,000,000,000 the branches of which are located in 16
1 census region, each metropolitan statistical area 17
where the financial institution or any subsidiaries of 18
the financial institution have a branch or other facil-19
ity (including an automated teller machine) and each 20
metropolitan statistical area where the financial in-21
stitution has a substantial number of customers who 22
maintain deposit accounts with the financial institu-23
tion. 24
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‘‘(2) With respect to a depository institution 1
with consolidated assets equal to or greater than 2
$2,000,000,000 the branches of which are located in 3
more than 1 census region, each census division 4
within each of the regions. 5
‘‘(3) With respect to a depository institution 6
with consolidated assets of less than 7
$2,000,000,000, each State where the financial in-8
stitution or any subsidiaries of the financial institu-9
tion are located. 10
‘‘(b) U.S. N
ONBANKMORTGAGEORIGINATORS.— 11
Each U.S. nonbank mortgage originator shall form a sepa-12
rate Community Advisory Committee (which shall be com-13
posed of a diverse set of consumer, housing, community 14
development, and other stakeholder groups) in each of the 15
following: 16
‘‘(1) With respect to a U.S. nonbank mortgage 17
originator that is required to make a number of dis-18
closures under the Home Mortgage Disclosure Act of 19
1975 (12 U.S.C. 2801 et seq.) that is less than the 20
national median, each State in which the U.S. 21
nonbank mortgage originator offers loans. 22
‘‘(2) With respect to a U.S. nonbank mortgage 23
originator that is required to make a number of dis-24
closures under the Home Mortgage Disclosure Act of 25
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1975 (12 U.S.C. 2801 et seq.) that is more than the 1
national median, each census division within the cen-2
sus regions in which the U.S. nonbank mortgage 3
originator offers loans. 4
‘‘(c) B
IANNUALCONSULTATION.—The executives of 5
each regulated financial institution shall meet not less fre-6
quently than twice per year with the Community Advisory 7
Committees of the regulated financial institution formed 8
under subsection (a) or (b), as applicable— 9
‘‘(1) to discuss the financial institution’s cur-10
rent work to meet the credit and deposit needs of 11
low- and moderate-income individuals and under-12
served communities, persons with disabilities, 13
LGBTQ+ communities, and Chinese, Asian Indian, 14
Filipino, Japanese, Korean, Vietnamese, Pakistani, 15
Cambodian, Hmong, Laotian, Thai, Taiwanese, Bur-16
mese, Bangladeshi, Nepalese, Indonesian, Malaysian, 17
Hispanic or Latino, Black or African American, 18
American Indian and Alaska Native, Native Hawai-19
ian, Samoan, Chamorro, Tongan, iTaukei, 20
Marshallese, and Other Pacific Islander commu-21
nities, as applicable to the geographic areas of the 22
financial institution; 23
‘‘(2) with respect to an institution described in 24
subsection (a)(2) or a U.S. nonbank mortgage origi-25
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nator described in subsection (b)(2), to assist the ex-1
ecutives in developing and updating a plan for how 2
the institution will work to meet the credit needs of 3
the institution’s entire community, including low- 4
and moderate-income neighborhoods; and 5
‘‘(3) to discuss the institution’s data (which 6
shall be disaggregated by Chinese, Asian Indian, Fil-7
ipino, Japanese, Korean, Vietnamese, Pakistani, 8
Cambodian, Hmong, Laotian, Thai, Taiwanese, Bur-9
mese, Bangladeshi, Nepalese, Indonesian, Malaysian, 10
Hispanic or Latino, Black or African American, 11
American Indian and Alaska Native, and Native Ha-12
waiian, Samoan, Chamorro, Tongan, iTaukei, 13
Marshallese and Other Pacific Islander communities, 14
as applicable to the institution’s geographic areas) 15
on— 16
‘‘(A) mortgage lending and lending to 17
small businesses and small farms, as defined in 18
section 804(a)(2)(C); 19
‘‘(B) retail products and services; 20
‘‘(C) community development services; and 21
‘‘(D) community development financing. 22
‘‘(d) S
PECIFICCONSULTATIONS.—In addition to the 23
consultations required under paragraph (2), the executives 24
of a depository institution described in subsection (a)(2) 25
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shall meet with the Community Advisory Committee of the 1
institution before— 2
‘‘(1) the institution applies for a merger or ac-3
quisition; 4
‘‘(2) the institution, or any subsidiary of the in-5
stitution, applies for deposit insurance; 6
‘‘(3) the institution applies to open a new 7
branch or to relocate an existing branch; or 8
‘‘(4) the institution provides notice that it 9
would close a branch or other facility. 10
‘‘SEC. 812. STUDY ON DISCRIMINATION AND DISPARITIES IN 11
ACCESS TO CREDIT. 12
‘‘(a) S
TUDY.—Not later than the end of the 2-year 13
period beginning on the date of enactment of this section, 14
and every 2 years thereafter, the appropriate Federal fi-15
nancial supervisory agencies shall, jointly, and in consulta-16
tion with such other Federal or State agencies as the ap-17
propriate Federal financial supervisory agencies determine 18
appropriate, complete an interagency statistical study to 19
identify— 20
‘‘(1) metropolitan areas and rural counties that 21
either experience ongoing discrimination or exhibit 22
significant racial disparities in access to credit for 23
any racial or ethnic group; and 24
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‘‘(2) significant disparities in access to branches 1
by racial or ethnic composition of census tract and 2
disparities in access to community development fi-3
nancing by racial or ethnic composition of census 4
tract. 5
‘‘(b) U
SE OFDATA.—In carrying out each study re-6
quired under subsection (a), the appropriate Federal fi-7
nancial supervisory agencies shall make use of data includ-8
ing— 9
‘‘(1) data obtained under the Home Mortgage 10
Disclosure Act of 1975 (12 U.S.C. 2801 et seq.); 11
‘‘(2) data obtained under section 704B of the 12
Equal Credit Opportunity Act (15 U.S.C. 1691c–2); 13
‘‘(3) data obtained under this Act; 14
‘‘(4) available State data; and 15
‘‘(5) information contained in public litigation 16
against regulated financial institutions for redlining 17
or lending discrimination (including litigation initi-18
ated by the Bureau of Consumer Financial Protec-19
tion, the Department of Housing and Urban Affairs, 20
the Department of Justice, or by private parties). 21
‘‘(c) R
EPORT.—Upon the completion of each study 22
required under subsection (a), the appropriate Federal fi-23
nancial supervisory agencies shall jointly submit to the 24
Committee on Banking, Housing, and Urban Affairs of 25
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the Senate and the Committee on Financial Services of 1
the House of Representatives a report that includes— 2
‘‘(1) all findings and determinations made in 3
carrying out the study; and 4
‘‘(2) policy recommendations to remedy the dis-5
crimination and disparities identified in the study. 6
‘‘SEC. 813. PUBLIC REGISTRIES. 7
‘‘The appropriate Federal supervisory financial agen-8
cies, acting through the Federal Financial Institutions Ex-9
amination Council, shall— 10
‘‘(1) maintain a list of community-based organi-11
zations and other stakeholders who wish to be listed 12
and who have commented on examinations con-13
ducted under section 804 and applications regarding 14
community needs and bank performance; and 15
‘‘(2) conduct outreach to community groups 16
and strive for geographical diversity, gender and ra-17
cial diversity, and diversity in terms of various types 18
of needs, including affordable housing and economic 19
development to community facilities.’’. 20
(c) A
MENDMENT TO THE BANKHOLDINGCOMPANY 21
A
CT OF1956.—Section 4(k)(6) of the Bank Holding 22
Company Act of 1956 (12 U.S.C. 1843(k)(6)) is amended 23
to read as follows: 24
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‘‘(6) NOTICE AND OPPORTUNITY FOR COMMENT 1
REQUIRED.— 2
‘‘(A) I
N GENERAL.—No financial holding 3
company shall directly or indirectly acquire, and 4
no company that becomes a financial holding 5
company shall directly or indirectly acquire con-6
trol of, any company in the United States, in-7
cluding through merger, consolidation, or other 8
type of business combination, that is engaged in 9
activities permitted under this subsection or 10
subsection (n) or (o), unless— 11
‘‘(i) the holding company has provided 12
notice to the Board, not later than 60 days 13
prior to the proposed acquisition or prior 14
to becoming a financial holding company, 15
and during that time period, or such 16
longer time period not exceeding an addi-17
tional 60 days, as established by the 18
Board; 19
‘‘(ii) the Board has provided public 20
notice and opportunity for comment for 21
not less than 60 days; and 22
‘‘(iii) the Board has not issued a no-23
tice disapproving the proposed acquisition 24
or retention. 25
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‘‘(B) FACTORS FOR CONSIDERATION .—In 1
reviewing any prior notice filed under this para-2
graph, the Board shall— 3
‘‘(i) consider the overall rating of the 4
financial holding company under the Com-5
munity Reinvestment Act of 1977 (12 6
U.S.C. 2901 et seq.) and any improvement 7
plans submitted pursuant to that Act; 8
‘‘(ii) provide opportunity for public 9
comment for a period of not less than 60 10
days; 11
‘‘(iii) consider changes in the commu-12
nity reinvestment performance of the fi-13
nancial holding company since the last rat-14
ing under the Community Reinvestment 15
Act of 1977 (12 U.S.C. 2901 et seq.) by 16
the appropriate Federal financial super-17
visory agency; and 18
‘‘(iv) require— 19
‘‘(I) a demonstration that grant-20
ing the application for a deposit facil-21
ity is in the public interest, which 22
shall include submission to the appro-23
priate Federal financial supervisory 24
agency of a community benefits plan 25
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commensurate with the ability of the 1
institution to carry out that plan; 2
‘‘(II) that the institution consult 3
with community-based organizations 4
and other community stakeholders in 5
developing the community benefits 6
plan; and 7
‘‘(III) a public hearing for any 8
bank that has received a ‘need-to-im-9
prove’ or ‘low satisfactory’ grade in 10
any assessment area during the last 11
examination under the Community 12
Reinvestment Act of 1977 (12 U.S.C. 13
2901 et seq.).’’. 14
(d) T
ECHNICAL AND CONFORMINGAMENDMENT.— 15
Section 10(c)(2)(H)(i) of the Home Owners’ Loan Act (12 16
U.S.C. 1467a(c)(2)(H)(i)) is amended by striking ‘‘section 17
804(c) of the Community Reinvestment Act of 1977 (12 18
U.S.C. 2903(c))’’ and inserting ‘‘section 804(f) of the 19
Community Reinvestment Act of 1977 (12 U.S.C. 20
2903(f))’’. 21
SEC. 204. AMENDMENTS RELATING TO CREDIT UNION 22
SERVICE TO UNDERSERVED AREAS. 23
(a) I
NGENERAL.—The Federal Credit Union Act (12 24
U.S.C. 1751 et seq.) is amended— 25
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(1) in section 101 (12 U.S.C. 1752)— 1
(A) in paragraph (8), by striking ‘‘and’’ at 2
the end; 3
(B) in paragraph (9), by striking the pe-4
riod at the end and inserting ‘‘; and’’; and 5
(C) by adding at the end the following: 6
‘‘(10) the term ‘underserved area’— 7
‘‘(A) means a local community, neighbor-8
hood, or rural district that— 9
‘‘(i) is an investment area, as defined 10
in section 103 of the Community Develop-11
ment Banking and Financial Institutions 12
Act of 1994 (12 U.S.C. 4702), that meets 13
such additional requirements that the 14
Board may impose; and 15
‘‘(ii) is underserved, based on data of 16
the Board and the Federal banking agen-17
cies (as defined in section 3 of the Federal 18
Deposit Insurance Act (12 U.S.C. 1813)), 19
by other depository institutions (as defined 20
in section 19(b)(1)(A) of the Federal Re-21
serve Act (12 U.S.C. 461(b)(1)(A)); and 22
‘‘(B) notwithstanding subparagraph (A), 23
includes, with respect to any Federal credit 24
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union, any geographic area within which the 1
credit union— 2
‘‘(i) has received approval to provide 3
service as an underserved area before the 4
date of enactment of this paragraph from 5
the Administration; and 6
‘‘(ii) has established a service facility 7
before that date of enactment.’’; 8
(2) in section 106 (12 U.S.C. 1756)— 9
(A) in the first sentence, by striking ‘‘Fed-10
eral’’ and inserting ‘‘(a) Federal’’; and 11
(B) by adding at the end the following: 12
‘‘(b) The Board shall monitor adherence by a Federal 13
credit union to a significant unmet needs plan submitted 14
under section 109(h) by that Federal credit union that 15
describes how the Federal credit union will serve the de-16
posit and other financial needs of the community.’’; and 17
(3) in section 109 (12 U.S.C. 1759)— 18
(A) in subsection (c), by amending para-19
graph (2) to read as follows: 20
‘‘(2) E
XCEPTION FOR UNDERSERVED AREAS .— 21
‘‘(A) I
N GENERAL.—Notwithstanding sub-22
section (b), the Board may approve an applica-23
tion by a Federal credit union to allow the 24
membership of the credit union to include any 25
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person or organization whose principal resi-1
dence or place of business is located within a 2
local community, neighborhood, or rural district 3
if— 4
‘‘(i) the Board determines— 5
‘‘(I) at any time after August 7, 6
1998, that the local community, 7
neighborhood, or rural district taken 8
into account for purposes of this para-9
graph is an underserved area; and 10
‘‘(II) at the time of the approval, 11
that the credit union is well capital-12
ized or adequately capitalized (as de-13
fined in section 216(c)(1)); and 14
‘‘(ii) before the end of the 24-month 15
period beginning on the date of the ap-16
proval, the credit union has established 17
and maintains an ongoing method to pro-18
vide services in the local community, neigh-19
borhood, or rural district. 20
‘‘(B) T
ERMINATION OF APPROVAL .— 21
‘‘(i) I
N GENERAL.—Any failure of a 22
Federal credit union to meet the require-23
ment of clause (ii) of subparagraph (A) by 24
the end of the 24-month period referred to 25
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in that clause shall constitute a termi-1
nation, as a matter of law, of any approval 2
of an application under this paragraph by 3
the Board with respect to the membership 4
of the credit union. 5
‘‘(ii) S
IGNIFICANT UNMET NEEDS 6
PLAN.—The Board may terminate the ap-7
proval of an application under this para-8
graph with respect to the membership of a 9
Federal credit union upon a finding that 10
the credit union is not meeting the terms 11
of the significant unmet needs plan of the 12
credit union submitted under subsection 13
(h)(1). 14
‘‘(C) C
REDIT UNION REPORTING REQUIRE -15
MENT.—Any Federal credit union that has an 16
application approved under this paragraph 17
shall, as part of the ordinary course of the ex-18
amination cycle and supervision process, submit 19
a report to the Administration that includes— 20
‘‘(i) the number of members of the 21
credit union who are members by reason of 22
the application; 23
‘‘(ii) the number of offices or facilities 24
maintained by the credit union in the local 25
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community, neighborhood, or rural district 1
taken into account by the Board in approv-2
ing the application; and 3
‘‘(iii) evidence, as specified by the 4
Board by regulation, demonstrating com-5
pliance by the credit union with the signifi-6
cant unmet needs plan submitted by the 7
credit union under subsection (h)(1), as 8
specified by the Administration. 9
‘‘(D) P
UBLICATION BY ADMINISTRA -10
TION.—The Administration shall publish an an-11
nual report containing— 12
‘‘(i) a list of all the applications ap-13
proved under this paragraph before the 14
date on which the report is published; 15
‘‘(ii) the number and locations of the 16
underserved areas taken into account in 17
approving those applications; 18
‘‘(iii) the total number of members of 19
credit unions who are members by reason 20
of the approval of those applications; and 21
‘‘(iv) evidence demonstrating compli-22
ance by credit unions with significant 23
unmet needs plans submitted by the credit 24
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unions under subsection (h)(1), as speci-1
fied by the Administration.’’; 2
(B) in subsection (e)(2), by inserting ‘‘sub-3
section (c)(2) and’’ after ‘‘provided in’’; and 4
(C) by adding at the end the following: 5
‘‘(h) A
DDITIONALREQUIREMENTS FOR COMMUNITY 6
C
REDITUNIONS.— 7
‘‘(1) I
N GENERAL.—A Federal credit union de-8
siring a field of membership as a credit union de-9
scribed in subsection (b)(3) shall submit to the 10
Board a business plan, which shall include, among 11
other issues, a marketing plan that identifies— 12
‘‘(A) the unique needs of the various demo-13
graphic groups in the proposed community; and 14
‘‘(B) how the credit union will market to 15
each group, particularly underserved groups, to 16
address those needs. 17
‘‘(2) P
UBLIC COMMENT AND HEARING .—With 18
respect to a Federal credit union desiring a field of 19
membership as a credit union described in sub-20
section (b)(3) for an area with multiple political ju-21
risdictions with a population of not less than 22
2,500,000, the Administration shall— 23
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‘‘(A) publish a notice in the Federal Reg-1
ister seeking comment from interested parties 2
about the proposed community; and 3
‘‘(B) conduct a public hearing regarding 4
the application of the Federal credit union.’’. 5
(b) R
EGULATIONS.—Not later than 1 year after the 6
date of enactment of this Act, the National Credit Union 7
Administration Board shall issue final regulations to im-8
plement the amendments made by subsection (a). 9
SEC. 205. RAISING PUBLIC WELFARE CAPS. 10
(a) N
ATIONALBANKS.—The paragraph designated 11
as the ‘‘Eleventh.’’ of section 5136 of the Revised Statutes 12
of the United States (12 U.S.C. 24) is amended to read 13
as follows: ‘‘Eleventh. To make investments directly or in-14
directly, each of which promotes the public welfare by ben-15
efitting primarily low- and moderate-income communities 16
or families (such as by providing housing, services, or 17
jobs). An association shall not make any such investment 18
if the investment would expose the association to unlimited 19
liability. The Comptroller of the Currency shall limit an 20
association’s investments in any 1 project and an associa-21
tion’s aggregate investments under this paragraph. Aggre-22
gate investments for associations that do not meet the cri-23
teria of being well capitalized, as defined in section 24.2(e) 24
of title 12, Code of Federal Regulations, or any successor 25
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regulation, under this paragraph shall not exceed an 1
amount equal to the sum of 5 percent of the association’s 2
capital stock actually paid in and unimpaired and 5 per-3
cent of the association’s unimpaired surplus fund, unless 4
the Comptroller determines by order that the higher 5
amount will pose no significant risk to the affected deposit 6
insurance fund, and the association is adequately capital-7
ized. In no case shall aggregate investments of an associa-8
tion that do not meet the criteria for being well capitalized 9
under this paragraph exceed an amount equal to the sum 10
of 15 percent of the association’s capital stock actually 11
paid in and unimpaired and 15 percent of the association’s 12
unimpaired surplus fund. Aggregate investments of well 13
capitalized associations, as defined in section 24.2(e) of 14
title 12, Code of Federal Regulations, or any successor 15
regulation, under this paragraph shall not exceed an 16
amount equal to the sum of 15 percent of the association’s 17
capital stock actually paid in and unimpaired and 15 per-18
cent of the association’s unimpaired surplus fund, unless 19
the Comptroller determines by order that the higher 20
amount will pose no significant risk to the affected deposit 21
insurance fund. With respect to any association that meets 22
the criteria for being well capitalized, as defined in section 23
24.2(e) of title 12, Code of Federal Regulations, or any 24
successor regulation, aggregate investments under this 25
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paragraph shall not exceed an amount equal to the sum 1
of 25 percent of the association’s capital stock actually 2
paid in and unimpaired and 25 percent of the association’s 3
unimpaired surplus fund. The foregoing standards and 4
limitations apply to investments under this paragraph 5
made by a national bank directly and by its subsidiaries.’’. 6
(b) C
ONFORMINGAMENDMENTS FOR STATEMEM-7
BERBANKS.—The 23rd undesignated paragraph of sec-8
tion 9 of the Federal Reserve Act (12 U.S.C. 338a) is 9
amended to read as follows: 10
‘‘A State member bank may make investments di-11
rectly or indirectly, each of which promotes the pub-12
lic welfare by benefitting primarily low- and mod-13
erate-income communities or families (such as by 14
providing housing, services, or jobs), to the extent 15
permissible under State law. A State member bank 16
shall not make any such investment if the invest-17
ment would expose the State member bank to unlim-18
ited liability. Aggregate investments for State mem-19
ber banks that do not meet the criteria of being well 20
capitalized, as defined in section 208.43(b) of title 21
12, Code of Federal Regulations, or any successor 22
regulation, under this paragraph shall not exceed an 23
amount equal to the sum of 5 percent of the associa-24
tion’s capital stock actually paid in and unimpaired 25
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and 5 percent of the association’s unimpaired sur-1
plus fund, unless the Board determines by order 2
that the higher amount will pose no significant risk 3
to the affected deposit insurance fund, and the asso-4
ciation is adequately capitalized. In no case shall ag-5
gregate investments of a State member bank that 6
does not meet the criteria for being well capitalized 7
under this paragraph exceed an amount equal to the 8
sum of 15 percent of the association’s capital stock 9
actually paid in and unimpaired and 15 percent of 10
the association’s unimpaired surplus fund. Aggre-11
gate investments of well capitalized State member 12
banks, as defined in section 208.43(b) of title 12, 13
Code of Federal Regulations, or any successor regu-14
lation, with an examination rating under section 804 15
of the Community Reinvestment Act of 1977 (12 16
U.S.C. 2903) of ‘outstanding’ or ‘satisfactory’, 17
under this paragraph shall not exceed an amount 18
equal to the sum of 15 percent of the State member 19
bank’s capital stock actually paid in and unimpaired 20
and 15 percent of the state member Bank’s 21
unimpaired surplus fund, unless the Board deter-22
mines by order that the higher amount will pose no 23
significant risk to the affected deposit insurance 24
fund. With respect to any State member bank that 25
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meets meet the criteria for being well capitalized as 1
defined in section 208.43(b) of title 12, Code of 2
Federal Regulations, or any successor regulation, 3
with an examination rating under section 804 of the 4
Community Reinvestment Act of 1977 (12 U.S.C. 5
2903) of ‘outstanding’ or ‘satisfactory’, aggregate 6
investments under this paragraph shall not exceed 7
an amount equal to the sum of 25 percent of the 8
State member bank’s capital stock actually paid in 9
and unimpaired and 25 percent of the State member 10
bank’s unimpaired surplus fund. The foregoing 11
standards and limitations apply to investments 12
under this paragraph made by a State member bank 13
directly and by its subsidiaries.’’. 14
SEC. 206. TEMPORARY ELIGIBILITY OF CERTAIN DIRECT 15
DESCENDANTS OF CERTAIN VETERANS FOR 16
HOUSING LOANS GUARANTEED BY THE SEC-17
RETARY OF VETERANS AFFAIRS. 18
(a) I
NGENERAL.—During the period described in 19
subsection (b)— 20
(1) section 3701(b) of title 38, United States 21
Code, shall be applied and administered by adding at 22
the end the following new paragraph: 23
‘‘(8)(A) The term ‘veteran’ also includes, for 24
purposes of home loans, any direct descendant of a 25
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veteran described in subparagraph (B) if the de-1
scendant— 2
‘‘(i) is living on the date of the enactment 3
of the American Housing and Economic Mobil-4
ity Act of 2025; 5
‘‘(ii) is a first-time homebuyer; and 6
‘‘(iii) is a first-generation homebuyer. 7
‘‘(B) A veteran described in this clause is a vet-8
eran who— 9
‘‘(i) served on active duty at any time dur-10
ing the period between June 22, 1944, and 11
April 11, 1968; 12
‘‘(ii) is deceased; and 13
‘‘(iii) did not receive a housing loan benefit 14
under this chapter during his or her lifetime. 15
‘‘(C) In this paragraph: 16
‘‘(i) The term ‘direct descendant’ includes 17
a legally adopted descendant. 18
‘‘(ii) The terms ‘first-generation home-19
buyer’ and ‘first-time homebuyer’ have the 20
meanings given those terms in section 201(a) of 21
the American Housing and Economic Mobility 22
Act of 2025.’’; and 23
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(2) section 3702(a)(2) of such title shall be ap-1
plied and administered by adding at the end the fol-2
lowing new subparagraph: 3
‘‘(H) Each direct descendant described in sec-4
tion 3701(b)(8) of this title.’’. 5
(b) P
ERIODDESCRIBED.—The period described in 6
this subsection is the period beginning one year after the 7
date of the enactment of this Act and ending ten years 8
after the date on which the Secretary of Veterans Affairs 9
prescribes the regulations required by subsection (c). 10
(c) R
EGULATIONS.— 11
(1) I
N GENERAL.—Not later than 180 days 12
after the date of the enactment of this Act, the Sec-13
retary of Veterans Affairs shall prescribe regulations 14
to carry out this section. 15
(2) E
LEMENTS.—The regulations required by 16
paragraph (1) shall provide rules and procedures for 17
determining— 18
(A) the eligibility of a direct descendant 19
for housing loan benefits under this section 20
when the records of the Veterans Benefits Ad-21
ministration are incomplete or otherwise inad-22
equate to verify eligibility; and 23
(B) appropriate implementation of this sec-24
tion if more than one direct descendant of a 25
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veteran seeks housing loan benefits under this 1
section. 2
TITLE III—REMOVING BARRIERS 3
THAT ISOLATE COMMUNITIES 4
SEC. 301. EXPANDING RIGHTS UNDER THE FAIR HOUSING 5
ACT. 6
(a) P
URPOSES.—The purposes of the amendments 7
made by this section are— 8
(1) to expand, as well as clarify, confirm, and 9
create greater consistency in, the protections against 10
discrimination on the basis of all covered character-11
istics; and 12
(2) to provide guidance and notice to individ-13
uals, organizations, corporations, and agencies re-14
garding their obligations under Federal law. 15
(b) A
MENDMENTS TO THE FAIRHOUSINGACT.— 16
The Fair Housing Act (42 U.S.C. 3601 et seq.) is amend-17
ed— 18
(1) in section 802 (42 U.S.C. 3602), by adding 19
at the end the following: 20
‘‘(p) ‘Gender identity’ means the gender-related iden-21
tity, appearance, or mannerisms or other gender-related 22
characteristics of an individual, regardless of the individ-23
ual’s designated sex at birth. 24
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‘‘(q) ‘Marital status’ has the meaning given the term 1
in section 202.2 of title 12, Code of Federal Regulations, 2
or any successor regulation. 3
‘‘(r) ‘Sexual orientation’ means homosexuality, het-4
erosexuality, or bisexuality. 5
‘‘(s) ‘Source of income’ includes income for which 6
there is a reasonable expectation that the income will con-7
tinue from— 8
‘‘(1) a profession, occupation, or job; 9
‘‘(2) any government or private assistance, 10
grant, loan, or rental assistance program, including 11
vouchers issued under the United States Housing 12
Act of 1937 (42 U.S.C. 1437 et seq.); 13
‘‘(3) a gift, an inheritance, a pension, an annu-14
ity, alimony, child support, or other consideration or 15
benefit; or 16
‘‘(4) the sale or pledge of property or an inter-17
est in property. 18
‘‘(t) ‘Veteran status’ means— 19
‘‘(1) a member of the uniformed services, as de-20
fined in section 101 of title 10, United States Code; 21
or 22
‘‘(2) a veteran, as defined in section 101 of title 23
38, United States Code.’’; 24
(2) in section 804 (42 U.S.C. 3604)— 25
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(A) by inserting ‘‘actual or perceived’’ be-1
fore ‘‘race, color’’ each place that term appears; 2
(B) by striking ‘‘sex,’’ each place that term 3
appears and inserting ‘‘sex (including sexual 4
orientation and gender identity), marital status, 5
source of income, veteran status,’’; and 6
(C) in subsection (c)— 7
(i) by inserting ‘‘(1)’’ before ‘‘To 8
make’’; and 9
(ii) by adding at the end the fol-10
lowing: 11
‘‘(2) Nothing in this title shall be construed to— 12
‘‘(A) prohibit a lender from implementing a 13
loan program for veterans or based upon veteran 14
status; or 15
‘‘(B) prohibit an entity from providing housing 16
assistance under— 17
‘‘(i) section 8(o)(19) of the United States 18
Housing Act of 1937 (42 U.S.C. 1437f(o)(19)); 19
‘‘(ii) the Homeless Providers Grant and 20
Per Diem program of the Department of Vet-21
erans Affairs; or 22
‘‘(iii) any other Federal housing assistance 23
program for veterans or based on veteran sta-24
tus.’’; 25
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(3) in section 805 (42 U.S.C. 3605)— 1
(A) by inserting ‘‘actual or perceived’’ be-2
fore ‘‘race, color’’ each place that term appears; 3
and 4
(B) by striking ‘‘sex,’’ each place that term 5
appears and inserting ‘‘sex (including sexual 6
orientation and gender identity), marital status, 7
source of income, veteran status,’’; 8
(4) in section 806 (42 U.S.C. 3606)— 9
(A) by inserting ‘‘actual or perceived’’ be-10
fore ‘‘race, color’’; and 11
(B) by striking ‘‘sex,’’ each place that term 12
appears and inserting ‘‘sex (including sexual 13
orientation and gender identity), marital status, 14
source of income, veteran status,’’; and 15
(5) in section 808(e)(6) (42 U.S.C. 3608(e)(6)), 16
by striking ‘‘sex,’’ and inserting ‘‘sex (including sex-17
ual orientation and gender identity), marital status, 18
source of income, veteran status,’’. 19
(c) P
REVENTION OFINTIMIDATION.—Section 901 of 20
the Civil Rights Act of 1968 (42 U.S.C. 3631) is amend-21
ed— 22
(1) by inserting ‘‘actual or perceived’’ before 23
‘‘race, color’’ each place that term appears; and 24
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(2) by striking ‘‘sex,’’ each place that term ap-1
pears and inserting ‘‘sex (including sexual orienta-2
tion (as such term is defined in section 802 of this 3
Act) and gender identity (as defined in section 802 4
of this Act)), marital status (as defined in section 5
802), source of income (as defined in section 802), 6
veteran status (as defined in section 802),’’. 7
(d) R
ULE OF CONSTRUCTION.—Nothing in the 8
amendments made by this section shall be construed to 9
mean that a particular class of individuals was not pro-10
tected against discrimination under Federal law as in ef-11
fect on the day before the date of enactment of this Act. 12
SEC. 302. IMPROVING OUTCOMES IN HOUSING ASSISTANCE 13
PROGRAMS. 14
(a) I
NDIANHOUSINGASSISTANCE.—Section 502 of 15
the Native American Housing Assistance and Self-Deter-16
mination Act of 1996 (25 U.S.C. 4181) is amended by 17
adding at the end the following: 18
‘‘(c) A
PPLICABILITY.—Subsections (a) and (b) shall 19
not apply with respect to tenant-based assistance provided 20
under section 8(o) of the United States Housing Act of 21
1937 (42 U.S.C. 1437f(o)).’’. 22
(b) S
UPPLEMENTAL ADMINISTRATIVEFEE.—Section 23
8(q)(2)(B) of the United States Housing Act of 1937 (42 24
U.S.C. 1437f(q)(2)(B)) is amended by inserting ‘‘, includ-25
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ing the cost of assisting families with children or families 1
with a member with a disability that move to lower pov-2
erty, higher opportunity neighborhoods (as determined by 3
the Secretary based on objective, evidence-based criteria)’’ 4
after ‘‘programs’’. 5
(c) R
EGIONALPLANNINGTOINCREASEACCESS TO 6
H
IGHEROPPORTUNITY AREAS.—Section 8(o) of the 7
United States Housing Act of 1937 (42 U.S.C. 1437f(o)) 8
is amended by adding at the end the following: 9
‘‘(23) I
NCREASING ACCESS TO HIGHER OPPOR -10
TUNITY AREAS.— 11
‘‘(A) L
OCATION ANALYSIS.— 12
‘‘(i) I
N GENERAL.—A public housing 13
agency that administers the program 14
under this subsection in a metropolitan 15
area shall— 16
‘‘(I) analyze the locations where 17
the participants in the program of the 18
public housing agency live; and 19
‘‘(II) based on the analysis de-20
scribed in subclause (I), establish poli-21
cies and practices to reduce disparities 22
and barriers to access to locations 23
throughout the metropolitan area that 24
evidence indicates are more likely to 25
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improve outcomes for children or 1
adults. 2
‘‘(ii) C
ONSIDERATIONS.—The location 3
analysis required under this subparagraph 4
shall— 5
‘‘(I) consider separately the loca-6
tions of families with children, house-7
holds that include a person with dis-8
abilities, and other groups protected 9
under the Fair Housing Act (42 10
U.S.C. 3601 et seq.); and 11
‘‘(II) include an analysis of the 12
locations in relation to dwelling units 13
with rents that are potentially afford-14
able to voucher holders and the likely 15
impact of key neighborhood attributes 16
on their well-being and long-term suc-17
cess, based on Federal and available 18
local data. 19
‘‘(iii) M
APPING TOOLS.—The Sec-20
retary shall— 21
‘‘(I) provide mapping tools and 22
other information necessary for a pub-23
lic housing agency to perform the lo-24
cation analysis under this subpara-25
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graph using the demographic data on 1
participating families submitted to the 2
Secretary under part 908 of title 24, 3
Code of Federal Regulations, or any 4
successor regulation; 5
‘‘(II) publish a notice in the Fed-6
eral Register, subject to public com-7
ment, that specifies the data sources 8
and definitions that will be incor-9
porated in each mapping tool required 10
under subclause (I); and 11
‘‘(III) update the notice required 12
under subclause (II) as needed based 13
on changes in the availability of rel-14
evant data or evidence of neighbor-15
hood attributes likely to impact the 16
well-being and long-term success of 17
participants in the program under this 18
subsection. 19
‘‘(iv) F
REQUENCY AND AVAIL -20
ABILITY.—The location analysis required 21
under this subparagraph shall— 22
‘‘(I) be performed by each public 23
housing agency described in clause (i) 24
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not less frequently than once every 5 1
years; 2
‘‘(II) be performed by all public 3
housing agencies in a metropolitan 4
area in the same year, as determined 5
by the Secretary; and 6
‘‘(III) be made available to the 7
public in a manner that protects the 8
privacy of program participants. 9
‘‘(B) R
EGIONAL POLICIES TO INCREASE 10
ACCESS TO HIGHER OPPORTUNITY NEIGHBOR -11
HOODS.—Each public housing agency described 12
in subparagraph (A)(i) shall— 13
‘‘(i) consult with other such public 14
housing agencies in the same metropolitan 15
area, or smaller regional area approved by 16
the Secretary, about the possible barriers 17
and other reasons for the disparities iden-18
tified in the location analysis required 19
under subparagraph (A); 20
‘‘(ii) identify policies or practices that 21
those public housing agencies could adopt 22
individually or in collaboration, or other 23
strategies that recipients of grants or other 24
funding from the Secretary could adopt, to 25
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reduce the barriers and disparities and in-1
crease the share of families with children 2
and other demographic groups using 3
vouchers in higher-opportunity neighbor-4
hoods in the metropolitan area or region; 5
and 6
‘‘(iii) include in the administrative 7
plan required under section 982.54 of title 8
24, Code of Federal Regulations, or any 9
successor regulation, the policies that the 10
public housing agency has adopted under 11
this paragraph. 12
‘‘(C) A
SSESSMENT.—The Secretary shall 13
include public housing agency performance in 14
achieving the goal described in subparagraph 15
(A)(i)(II) in the periodic assessment of agency 16
performance in managing the program under 17
this subsection required under part 985 of title 18
24, Code of Federal Regulations, or any suc-19
cessor regulation.’’. 20
(d) R
EQUIREDREGULATORYCHANGES TOPUBLIC 21
H
OUSINGAGENCYCONSORTIA.— 22
(1) D
EFINITIONS.—In this subsection: 23
(A) M
OVING TO WORK DEMONSTRATION 24
PROGRAM.—The term ‘‘Moving to Work dem-25
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onstration program’’ means the program estab-1
lished under section 204 of the Departments of 2
Veterans Affairs and Housing and Urban De-3
velopment, and Independent Agencies Appro-4
priations Act, 1996 (Public Law 104–134; 110 5
Stat. 1321–281). 6
(B) P
UBLIC HOUSING AGENCY .—The term 7
‘‘public housing agency’’ has the meaning given 8
the term in section 3(b)(6) of the United States 9
Housing Act of 1937 (42 U.S.C. 1437a(b)(6)). 10
(2) R
EQUIREMENT.—Not later than 1 year 11
after the date of enactment of this Act, the Sec-12
retary of Housing and Urban Development shall es-13
tablish policies and procedures that— 14
(A) enable public housing agencies that 15
elect to operate in consortia under section 13(a) 16
of the United States Housing Act of 1937 (42 17
U.S.C. 1437k(a)), excluding public housing 18
agencies participating in the Moving to Work 19
demonstration program— 20
(i) to consolidate their funding con-21
tracts for assistance provided under section 22
8(o) of such Act (42 U.S.C. 1437f(o)) into 23
a single contract; 24
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(ii) to consolidate their funding con-1
tracts for assistance provided under sub-2
sections (d) and (e) of section 9 of such 3
Act (42 U.S.C. 1437g); or 4
(iii) to exercise the consolidation op-5
tions under each of clauses (i) and (ii); and 6
(B) enable public housing agencies to form 7
partial consortia under such section 13(a) (42 8
U.S.C. 1437k(a)) that consolidate the adminis-9
tration of certain aspects of their housing pro-10
grams to increase access to higher-opportunity 11
areas or for other purposes, subject to such re-12
quirements as the Secretary may establish. 13
(3) M
OVING TO WORK AGENCIES .—Any flexi-14
bility or waiver applicable to the Moving to Work 15
demonstration program shall not apply to any activi-16
ties or funds administered through a partial consor-17
tium formed under paragraph (2)(B) by 1 or more 18
public housing agencies participating in the Moving 19
to Work demonstration program. 20
TITLE IV—ESTATE TAX REFORM 21
SEC. 401. AMENDMENT TO INTERNAL REVENUE CODE OF 22
1986. 23
Except as otherwise expressly provided, whenever in 24
this title an amendment or repeal is expressed in terms 25
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of an amendment to, or repeal of, a section or other provi-1
sion, the reference shall be considered to be made to a 2
section or other provision of the Internal Revenue Code 3
of 1986. 4
SEC. 402. RATE ADJUSTMENT. 5
(a) I
NCREASE INESTATETAXRATES.—The table 6
contained in section 2001(c) is amended to read as follows: 7
If the amount with respect to 
which the tentative tax to 
be computed is: 
The tentative tax is: 
Not over $13,000,000 ................... 55 percent of such amount. 
Over $13,000,000 but not over 
$93,000,000.
$7,150,000, plus 60 percent of the 
excess of such amount over 
$13,000,000. 
Over $93,000,000 .......................... $55,150,000, plus 65 percent of the 
excess of such amount over 
$93,000,000. 
(b) REDUCTION OFBASICEXCLUSIONAMOUNT.— 8
Paragraph (3) of section 2010(c) is amended to read as 9
follows: 10
‘‘(3) B
ASIC EXCLUSION AMOUNT .—For pur-11
poses of this subsection, the basic exclusion amount 12
is $3,500,000.’’. 13
(c) S
URTAX ONBILLIONDOLLARESTATES.—Section 14
2001 is amended— 15
(1) in subsection (b), by striking ‘‘The tax’’ and 16
inserting ‘‘Subject to subsection (h), the tax’’, and 17
(2) by adding at the end the following new sub-18
section: 19
‘‘(h) S
URTAX ONBILLIONDOLLARESTATES.— 20
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‘‘(1) IN GENERAL.—In the case of a taxable es-1
tate for which the applicable amount is in excess of 2
$1,000,000,000, the tax determined under sub-3
section (b) shall be increased by an amount equal to 4
10 percent of such applicable amount. 5
‘‘(2) A
PPLICABLE AMOUNT .—For purposes of 6
this subsection, the applicable amount shall be equal 7
to the sum of the amounts under subparagraphs (A) 8
and (B) of paragraph (1) of subsection (b) for the 9
taxable estate.’’. 10
(d) E
FFECTIVEDATE.—The amendments made by 11
this section shall apply to estates of decedents dying, and 12
generation-skipping transfers and gifts made, after the 13
date of the enactment of this Act. 14
SEC. 403. REQUIRED MINIMUM 10-YEAR TERM, ETC., FOR 15
GRANTOR RETAINED ANNUITY TRUSTS. 16
(a) I
NGENERAL.—Subsection (b) of section 2702 is 17
amended— 18
(1) by redesignating paragraphs (1), (2), and 19
(3) as subparagraphs (A), (B), and (C), respectively, 20
and by moving such subparagraphs (as so redesig-21
nated) 2 ems to the right, 22
(2) by striking ‘‘For purposes of’’ and inserting 23
the following: 24
‘‘(1) I
N GENERAL.—For purposes of’’, 25
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(3) by striking ‘‘paragraph (1) or (2)’’ in para-1
graph (1)(C) (as so redesignated) and inserting 2
‘‘subparagraph (A) or (B)’’, and 3
(4) by adding at the end the following new 4
paragraph: 5
‘‘(2) A
DDITIONAL REQUIREMENTS WITH RE -6
SPECT TO GRANTOR RETAINED ANNUITIES .—For 7
purposes of subsection (a), in the case of an interest 8
described in paragraph (1)(A) (determined without 9
regard to this paragraph) which is retained by the 10
transferor, such interest shall be treated as de-11
scribed in such paragraph only if— 12
‘‘(A) the right to receive the fixed amounts 13
referred to in such paragraph is for a term of 14
not less than 10 years, 15
‘‘(B) such fixed amounts, when determined 16
on an annual basis, do not decrease relative to 17
any prior year during the first 10 years of the 18
term referred to in subparagraph (A), and 19
‘‘(C) the remainder interest has a value 20
equal to or greater than 10 percent of the value 21
of the assets transferred to the trust, deter-22
mined as of the time of the transfer.’’. 23
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(b) EFFECTIVEDATE.—The amendments made by 1
this section shall apply to transfers made after the date 2
of the enactment of this Act. 3
SEC. 404. CERTAIN TRANSFER TAX RULES APPLICABLE TO 4
GRANTOR TRUSTS. 5
(a) I
NGENERAL.—Subtitle B is amended by adding 6
at the end the following new chapter: 7
‘‘CHAPTER 16—SPECIAL RULES FOR 8
GRANTOR TRUSTS 9
‘‘Sec. 2901. Application of transfer taxes. 
‘‘SEC. 2901. APPLICATION OF TRANSFER TAXES. 
10
‘‘(a) I
NGENERAL.—In the case of any portion of a 11
trust to which this section applies— 12
‘‘(1) the value of the gross estate of the de-13
ceased deemed owner of such portion shall include 14
all assets attributable to that portion at the time of 15
the death of such owner, 16
‘‘(2) any distribution from such portion to one 17
or more beneficiaries during the life of the deemed 18
owner of such portion shall be treated as a transfer 19
by gift for purposes of chapter 12, and 20
‘‘(3) if at any time during the life of the 21
deemed owner of such portion, such owner ceases to 22
be treated as the owner of such portion under sub-23
part E of part 1 of subchapter J of chapter 1, all 24
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assets attributable to such portion at such time shall 1
be treated for purposes of chapter 12 as a transfer 2
by gift made by the deemed owner. 3
‘‘(b) P
ORTION OFTRUST TOWHICHSECTIONAP-4
PLIES.—This section shall apply to— 5
‘‘(1) the portion of a trust with respect to 6
which the grantor is the deemed owner, and 7
‘‘(2) the portion of the trust to which a person 8
who is not the grantor is a deemed owner by reason 9
of the rules of subpart E of part 1 of subchapter J 10
of chapter 1, and such deemed owner engages in a 11
sale, exchange, or comparable transaction with the 12
trust that is disregarded for purposes of subtitle A. 13
For purposes of paragraph (2), the portion of the trust 14
described with respect to a transaction is the portion of 15
the trust attributable to the property received by the trust 16
in such transaction, including all retained income there-17
from, appreciation thereon, and reinvestments thereof, net 18
of the amount of consideration received by the deemed 19
owner in such transaction. 20
‘‘(c) E
XCEPTIONS.—This section shall not apply to— 21
‘‘(1) any trust that is includible in the gross es-22
tate of the deemed owner (without regard to sub-23
section (a)(1)), and 24
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‘‘(2) any other type of trust that the Secretary 1
determines by regulations or other guidance does not 2
have as a significant purpose the avoidance of trans-3
fer taxes. 4
‘‘(d) D
EEMEDOWNERDEFINED.—For purposes of 5
this section, the term ‘deemed owner’ means any person 6
who is treated as the owner of a portion of a trust under 7
subpart E of part 1 of subchapter J of chapter 1. 8
‘‘(e) R
EDUCTION FOR TAXABLEGIFTS TO THE 9
T
RUSTMADE BYOWNER.—The amount to which sub-10
section (a) applies shall be reduced by the value of any 11
transfer by gift by the deemed owner to the trust pre-12
viously taken into account by the deemed owner under 13
chapter 12. 14
‘‘(f) L
IABILITY FORPAYMENT OFTAX.—Any tax im-15
posed pursuant to subsection (a) shall be a liability of the 16
trust.’’. 17
(b) C
LERICALAMENDMENT.—The table of chapters 18
for subtitle B is amended by adding at the end the fol-19
lowing new item: 20
‘‘CHAPTER16. SPECIALRULES FORGRANTORTRUSTS’’. 
(c) EFFECTIVEDATE.—The amendments made by 21
this section shall apply— 22
(1) to trusts created on or after the date of the 23
enactment of this Act, 24
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(2) to any portion of a trust established before 1
the date of the enactment of this Act which is attrib-2
utable to a contribution made on or after such date, 3
and 4
(3) to any portion of a trust established before 5
the date of the enactment of this Act to which sec-6
tion 2901(a) of the Internal Revenue Code of 1986 7
(as added by subsection (a)) applies by reason of a 8
transaction described in section 2901(b)(2) of such 9
Code on or after such date. 10
SEC. 405. ELIMINATION OF GENERATION-SKIPPING TRANS-11
FER TAX EXEMPTION FOR TRANSFERS TO 12
CERTAIN PERSONS. 13
(a) I
NGENERAL.—Section 2642 is amended by add-14
ing at the end the following new subsection: 15
‘‘(h) E
LIMINATION OFGST EXEMPTION FORTRANS-16
FERS TOCERTAINPERSONS.— 17
‘‘(1) I
N GENERAL.— 18
‘‘(A) T
RANSFER TO NON -EXEMPT PER-19
SON.—In the case of any direct skip or taxable 20
distribution made to any person who is not an 21
exempt person, the inclusion ratio shall be 1. 22
‘‘(B) T
AXABLE TERMINATION .—In the 23
case of any taxable termination which occurs at 24
any time immediately after no exempt person is 25
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a beneficiary of the trust, the inclusion ratio 1
shall be 1. 2
‘‘(C) E
XEMPT PERSON.— 3
‘‘(i) I
N GENERAL.—For purposes of 4
this subsection, the term ‘exempt person’ 5
means— 6
‘‘(I) a natural person— 7
‘‘(aa) who is assigned to a 8
generation which is 2 or fewer 9
generations below the generation 10
assignment of the transferor, or 11
‘‘(bb) whose date of birth 12
precedes the date on which the 13
trust was created, or 14
‘‘(II) a trust in which all inter-15
ests are held by persons described in 16
subclause (I). 17
‘‘(ii) E
XCEPTION.—For purposes of 18
clause (i)(II), any interest which is used 19
primarily to postpone or avoid the applica-20
tion of this subsection shall be disregarded. 21
‘‘(2) D
ATE OF CREATION.— 22
‘‘(A) I
N GENERAL.—For purposes of deter-23
mining the date on which a trust was created 24
under paragraph (1)(C)(i)(I)(bb), if the trust 25
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was created before January 1, 2026, such trust 1
shall be deemed to have been created on Janu-2
ary 1, 2026. 3
‘‘(B) D
ATE OF CREATION OF POUR -OVER 4
TRUSTS.— 5
‘‘(i) I
N GENERAL.—In the case of any 6
generation-skipping transfer of property 7
which involves the transfer of property 8
from one trust to another trust, the date 9
of the creation of the transferee trust shall 10
be treated as being the earlier of— 11
‘‘(I) the date of the creation of 12
such transferee trust, or 13
‘‘(II) the date of the creation of 14
the transferor trust. 15
‘‘(ii) M
ULTIPLE TRANSFERS .—In the 16
case of multiple transfers to which clause 17
(i) applies— 18
‘‘(I) the date of the creation of 19
the transferor trust shall be deter-20
mined under such clause, and 21
‘‘(II) subsequent to the deter-22
mination described in subclause (I), 23
the date of the creation of the trans-24
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feree trust shall be determined under 1
such clause. 2
‘‘(3) G
ENERATION ASSIGNMENT .—For purposes 3
of this subsection, the provisions of section 2653(a) 4
shall not apply. 5
‘‘(4) R
EGULATIONS.—The Secretary may pre-6
scribe such regulations or other guidance as may be 7
necessary or appropriate to carry out this sub-8
section.’’. 9
(b) R
EPEAL.—Section 1433(b)(2) of the Tax Reform 10
Act of 1986 (Public Law 99–514) is repealed. 11
(c) E
FFECTIVEDATES.— 12
(1) I
N GENERAL.—The amendment made by 13
subsection (a) shall take effect on the date of the en-14
actment of this Act. 15
(2) R
EPEAL.—The amendment made by sub-16
section (b) shall apply to generation-skipping trans-17
fers (within the meaning of section 2611 of the In-18
ternal Revenue Code of 1986) made after the date 19
of enactment of this Act. 20
SEC. 406. SIMPLIFYING GIFT TAX EXCLUSION FOR ANNUAL 21
GIFTS. 22
(a) I
NGENERAL.—Paragraph (1) of section 2503(b) 23
is amended to read as follows: 24
‘‘(1) I
N GENERAL.— 25
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‘‘(A) LIMIT PER DONEE.—In the case of 1
gifts made to any person by the donor during 2
the calendar year, the first $10,000 of such 3
gifts to such person shall not, for purposes of 4
subsection (a), be included in the total amount 5
of gifts made during such year. 6
‘‘(B) C
UMULATIVE LIMIT PER DONOR .— 7
‘‘(i) I
N GENERAL.—The aggregate 8
amount excluded under subparagraph (A) 9
with respect to all transfers described in 10
clause (ii) made by the donor during the 11
calendar year shall not exceed twice the 12
dollar amount in effect under such sub-13
paragraph for such calendar year. 14
‘‘(ii) T
RANSFERS SUBJECT TO LIMITA -15
TION.—The transfers described in this 16
clause are— 17
‘‘(I) a transfer in trust, 18
‘‘(II) a transfer of an interest in 19
a passthrough entity, 20
‘‘(III) a transfer of an interest 21
subject to a prohibition on sale, and 22
‘‘(IV) any other transfer of prop-23
erty that, without regard to with-24
drawal, put, or other such rights in 25
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the donee, cannot immediately be liq-1
uidated by the donee.’’. 2
(b) C
ONFORMING AMENDMENT.—Section 2503 is 3
amended by striking subsection (c). 4
(c) R
EGULATIONS.—The Secretary of the Treasury, 5
or the Secretary of the Treasury’s delegate, may prescribe 6
such regulations or other guidance as may be necessary 7
or appropriate to carry out the amendments made by this 8
section. 9
(d) E
FFECTIVEDATE.—The amendments made by 10
this section shall apply to any calendar year beginning 11
after the date of the enactment of this Act. 12
SEC. 407. CLARIFICATION REGARDING DISALLOWANCE OF 13
STEP-UP IN BASIS FOR PROPERTY HELD IN 14
CERTAIN GRANTOR TRUSTS. 15
(a) I
NGENERAL.—Section 1014 is amended— 16
(1) by redesignating subsection (f) as sub-17
section (g), and 18
(2) by inserting after subsection (e) the fol-19
lowing: 20
‘‘(f) P
ROPERTYHELD IN CERTAINGRANTOR 21
T
RUSTS.—This section shall not apply to property— 22
‘‘(1) held in a trust of which the transferor is 23
considered the owner under subpart E of part I of 24
subchapter J, and 25
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‘‘(2) if, after the transfer of such property to 1
the trust, such property is not includible in the gross 2
estate of the transferor for purposes of chapter 11.’’. 3
(b) C
ONFORMINGAMENDMENT.—Section 6662(k) is 4
amended by striking ‘‘1014(f)’’ and inserting ‘‘1014(g)’’. 5
(c) E
FFECTIVEDATE.—The amendments made by 6
this section shall apply to transfers after the date of the 7
enactment of this Act. 8
(d) N
OINFERENCE.—No inference may be drawn 9
from the amendments made by this section with respect 10
to the application of section 1014 of the Internal Revenue 11
Code of 1986 to property described in subsection (f) of 12
such section (as added by subsection (a)) which was trans-13
ferred on or before the date of enactment of this Act. 14
SEC. 408. LIMITATION ON DISCOUNTS; VALUATION RULES 15
FOR CERTAIN TRANSFERS OF NONBUSINESS 16
ASSETS. 17
(a) I
NGENERAL.—Chapter 14 of subtitle B is 18
amended by adding at the end the following new section: 19
‘‘SEC. 2705. LIMITATION ON DISCOUNTS; VALUATION RULES 20
FOR CERTAIN TRANSFERS OF NONBUSINESS 21
ASSETS. 22
‘‘(a) L
IMITATION ONDISCOUNT BYREASON OFFAM-23
ILYCONTROL.— 24
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‘‘(1) IN GENERAL.—For purposes of this sub-1
title, in the case of the transfer of any interest in 2
an entity other than an interest which is actively 3
traded (within the meaning of section 1092), if the 4
transferor, the transferee, and members of the fam-5
ily of the transferor and transferee have control of 6
such entity immediately before such transfer, no dis-7
count shall be allowed— 8
‘‘(A) by reason of the fact that the trans-9
feror or transferee does not have control of 10
such entity, 11
‘‘(B) by reason of the lack of marketability 12
of the interest, or 13
‘‘(C) for any other reason. 14
‘‘(2) D
EFINITIONS.—In this subsection, the 15
terms ‘control’ and ‘member of the family’ have the 16
same meanings given such terms in section 2704(c). 17
‘‘(3) A
TTRIBUTION.—For purposes of this sec-18
tion, the rule of section 2701(e)(3) shall apply for 19
purposes of determining the interests held by any in-20
dividual. 21
‘‘(b) V
ALUATIONRULES FORCERTAINTRANSFERS 22
OFNONBUSINESSASSETS.— 23
‘‘(1) I
N GENERAL.—For purposes of this sub-24
title, in the case of the transfer of any interest in 25
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•S 934 IS
an entity other than an interest which is actively 1
traded (within the meaning of section 1092)— 2
‘‘(A) the value of any nonbusiness assets 3
held by the entity with respect to such interest 4
shall be determined as if the transferor had 5
transferred such assets directly to the trans-6
feree (and no valuation discount shall be al-7
lowed with respect to such nonbusiness assets), 8
and 9
‘‘(B) such nonbusiness assets shall not be 10
taken into account in determining the value of 11
the interest in the entity. 12
‘‘(2) N
ONBUSINESS ASSETS.—For purposes of 13
this subsection— 14
‘‘(A) I
N GENERAL.—The term ‘nonbusi-15
ness asset’ means any asset other than an asset 16
which is used in the active conduct of a trade 17
or business. 18
‘‘(B) P
ASSIVE ASSETS TREATED AS NON -19
BUSINESS ASSETS.— 20
‘‘(i) I
N GENERAL.—For purposes of 21
subparagraph (A), a passive asset shall be 22
treated as a nonbusiness asset unless— 23
‘‘(I) the asset is property de-24
scribed in paragraph (1) or (4) of sec-25
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•S 934 IS
tion 1221(a) or is a hedge with re-1
spect to such property, or 2
‘‘(II) the asset is real property 3
used in the active conduct of 1 or 4
more real property trades or busi-5
nesses (within the meaning of section 6
469(c)(7)(C)) in which the transferor 7
materially participates and with re-8
spect to which the transferor meets 9
the requirements of section 10
469(c)(7)(B)(ii). 11
‘‘(ii) M
ATERIAL PARTICIPATION.—For 12
purposes of clause (i)(II), material partici-13
pation shall be determined under the rules 14
of section 469(h), except that section 15
469(h)(3) shall be applied without regard 16
to the limitation to farming activity. 17
‘‘(C) W
ORKING CAPITAL TREATED AS 18
USED IN TRADE OR BUSINESS .—Any asset (in-19
cluding a passive asset) which is held as a part 20
of the reasonably required working capital 21
needs of a trade or business shall be treated as 22
used in the active conduct of a trade or busi-23
ness. 24
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‘‘(3) PASSIVE ASSET.—For purposes of this 1
subsection, the term ‘passive asset’ means any— 2
‘‘(A) cash or cash equivalents, 3
‘‘(B) stock in a corporation or any other 4
equity, profits, or capital interest in any entity, 5
‘‘(C) evidence of indebtedness, option, for-6
ward or futures contract, notional principal con-7
tract, or derivative, 8
‘‘(D) asset described in clause (iii), (iv), or 9
(v) of section 351(e)(1)(B), 10
‘‘(E) annuity, 11
‘‘(F) real property used in 1 or more real 12
property trades or businesses (as defined in sec-13
tion 469(c)(7)(C)), 14
‘‘(G) asset (other than a patent, trade-15
mark, or copyright) which produces royalty in-16
come, 17
‘‘(H) commodity, 18
‘‘(I) collectible (within the meaning of sec-19
tion 408(m)), or 20
‘‘(J) any other asset specified in regula-21
tions prescribed by the Secretary. 22
‘‘(4) L
OOK-THRU RULE.— 23
‘‘(A) I
N GENERAL.—If a nonbusiness asset 24
of an entity described in paragraph (1) consists 25
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of a 10-percent interest in any other entity, this 1
subsection shall be applied by disregarding the 2
10-percent interest and by treating the entity 3
as holding directly its ratable share of the as-4
sets of the other entity. 5
‘‘(B) 10-
PERCENT INTEREST .—The term 6
‘10-percent interest’ means— 7
‘‘(i) in the case of an interest in a cor-8
poration, direct ownership of at least 10 9
percent (by vote or value) of the stock in 10
such corporation, 11
‘‘(ii) in the case of an interest in a 12
partnership, direct ownership of at least 10 13
percent of the capital or profits interest in 14
the partnership, and 15
‘‘(iii) in any other case, direct owner-16
ship of at least 10 percent of the beneficial 17
interests in the entity.’’. 18
(b) C
ONFORMINGAMENDMENTS.— 19
(1) Section 2031(b) of the Internal Revenue 20
Code of 1986 is amended by inserting ‘‘(after appli-21
cation of section 2705(b))’’ after ‘‘shall be deter-22
mined’’. 23
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(2) The table of sections of chapter 14 of sub-1
title B of such Code is amended by adding at the 2
end the following: 3
‘‘Sec. 2705. Limitation on discounts; valuation rules for certain transfers of 
nonbusiness assets.’’. 
(c) EFFECTIVEDATE.—The amendments made by 4
this section shall apply to transfers after the date of the 5
enactment of this Act. 6
SEC. 409. SURCHARGE ON HIGH INCOME ESTATES AND 7
TRUSTS. 8
(a) I
NGENERAL.—Subchapter A of chapter 1 is 9
amended by adding at the end the following new part: 10
‘‘PART VIII—SURCHARGE ON HIGH INCOME 11
ESTATES AND TRUSTS 12
‘‘Sec. 59B. Surcharge on high income estates and trusts. 
‘‘SEC. 59B. SURCHARGE ON HIGH INCOME ESTATES AND 
13
TRUSTS. 14
‘‘(a) G
ENERALRULE.—In the case of an estate or 15
trust, there is hereby imposed (in addition to any other 16
tax imposed by this subtitle) a tax equal to the sum of— 17
‘‘(1) 5 percent of so much of the modified ad-18
justed gross income of the taxpayer as exceeds 19
$200,000, plus 20
‘‘(2) 3 percent of so much of the modified ad-21
justed gross income of the taxpayer as exceeds 22
$500,000. 23
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‘‘(b) MODIFIEDADJUSTEDGROSSINCOME.—For 1
purposes of this section— 2
‘‘(1) I
N GENERAL.—The term ‘modified ad-3
justed gross income’ means adjusted gross income 4
reduced by any deduction (not taken into account in 5
determining adjusted gross income) allowed for in-6
vestment interest (as defined in section 163(d)) or 7
business interest (as defined in section 163(j)). 8
‘‘(2) A
DJUSTED GROSS INCOME .—Adjusted 9
gross income shall be determined as provided in sec-10
tion 67(e) and reduced by the amount allowed as a 11
deduction under section 642(c). 12
‘‘(c) S
PECIALRULES.— 13
‘‘(1) C
HARITABLE TRUSTS .—Subsection (a) 14
shall not apply to a trust all the unexpired interests 15
in which are devoted to one or more of the purposes 16
described in section 170(c)(2)(B). 17
‘‘(2) N
OT TREATED AS TAX IMPOSED BY THIS 18
CHAPTER FOR CERTAIN PURPOSES .—The tax im-19
posed under this section shall not be treated as tax 20
imposed by this chapter for purposes of determining 21
the amount of any credit under this chapter (other 22
than sections 27 and 901) or for purposes of section 23
55. 24
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‘‘(3) ELECTING SMALL BUSINESS TRUSTS .—For 1
purposes of the determination of adjusted gross in-2
come, section 641(c)(1)(A) shall not apply and all 3
portions of any electing small business trust shall be 4
treated as a single trust. 5
‘‘(d) R
EGULATIONS.—The Secretary shall issue such 6
regulations or other guidance as may be necessary or ap-7
propriate to carry out the purposes of this section, includ-8
ing regulations or other guidance to prevent the avoidance 9
of the purposes of this section.’’. 10
(b) C
OORDINATIONWITHCERTAINPROVISIONS.— 11
(1) I
NTEREST ON CERTAIN DEFERRED TAX LI -12
ABILITY.—Section 453A(c) is amended by redesig-13
nating paragraph (6) as paragraph (7) and by in-14
serting after paragraph (5) the following new para-15
graph: 16
‘‘(6) S
URCHARGE ON HIGH INCOME ESTATES 17
AND TRUSTS TAKEN INTO ACCOUNT IN DETER -18
MINING MAXIMUM RATE OF TAX .—For purposes of 19
paragraph (3)(B), in the case of an estate or trust, 20
the maximum rate of tax in effect under section 1 21
shall be treated as being equal to the sum of such 22
rate and the rates in effect under paragraphs (1) 23
and (2) of section 59B(a).’’. 24
(2) L
IMITATION ON FOREIGN TAX CREDIT .— 25
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(A) Section 904(b)(3)(E)(i)(I) is amended 1
by inserting ‘‘increased, in the case of an estate 2
or trust, by the sum of the rates set forth in 3
paragraphs (1) and (2) of section 1A(a)’’ after 4
‘‘(whichever applies)’’. 5
(B) Section 904(d)(2)(F) is amended by 6
adding at the end the following: ‘‘For purposes 7
of the first sentence of this subparagraph, in 8
the case of an estate or trust, the highest rate 9
of tax specified in section 1 shall be treated as 10
being equal to the sum of such rate and the 11
rates in effect under paragraphs (1) and (2) of 12
section 59B(a).’’. 13
(3) E
LECTION BY INDIVIDUALS TO BE SUBJECT 14
TO TAX AT CORPORATE RATES .—Section 962(a)(1) 15
is amended by striking ‘‘and 55’’ and inserting 55‘‘, 16
and 59B’’. 17
(4) I
NTEREST ON CERTAIN TAX DEFERRAL .— 18
Section 1291(c)(2) is amended by adding at the end 19
the following: ‘‘For purposes of the preceding sen-20
tence, in the case of an estate or trust, the highest 21
rate of tax in effect under section 1 shall be treated 22
as being equal to the sum of such rate and the rates 23
in effect under paragraphs (1) and (2) of section 24
59B(a).’’. 25
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(5) WITHHOLDING OF TAX ON FOREIGN PART -1
NERS’ SHARE OF EFFECTIVELY CONNECTED IN -2
COME.—Section 1446(b)(2) is amended by adding at 3
the end the following flush sentence: 4
‘‘For purposes of subparagraph (A), in the case of 5
a partner which is an estate or trust, the highest 6
rate of tax in effect under section 1 shall be treated 7
as being equal to the sum of such rate and the rates 8
in effect under paragraphs (1) and (2) of section 9
59B(a).’’. 10
(6) P
ARTNERSHIP ADJUSTMENTS .— 11
(A) Section 6225(b)(1) is amended by add-12
ing at the end the following flush sentence: 13
‘‘For purposes of subparagraph (B), in the case of 14
an estate or trust, the highest rate of tax in effect 15
under section 1 shall be treated as being equal to 16
the sum of such rate and the rates in effect under 17
paragraphs (1) and (2) of section 59B(a).’’. 18
(B) Section 6225(c)(4)(A) is amended— 19
(i) by striking ‘‘subsection (b)(1)(A)’’ 20
and inserting ‘‘subsection (b)(1)(B)’’, and 21
(ii) by striking ‘‘or’’ at the end of 22
clause (i), by adding ‘‘or’’ at the end of 23
clause (ii), and by inserting after clause 24
(ii) the following new clause: 25
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‘‘(iii) is not an estate or trust subject 1
to one or both of the rates of tax in effect 2
under paragraphs (1) and (2) of section 3
59B(a),’’. 4
(7) R
EQUIRED PAYMENTS FOR ENTITIES 5
ELECTING NOT TO HAVE REQUIRED TAXABLE 6
YEAR.—The second sentence of section 7519(b) is 7
amended by inserting ‘‘and, in the case of an estate 8
or trust, increased by the sum of the rates in effect 9
under paragraphs (1) and (2) of section 59B(a)’’ be-10
fore the period at the end. 11
(c) C
LERICALAMENDMENT.—The table of parts for 12
subchapter A of chapter 1 is amended by adding at the 13
end the following new item: 14
‘‘PART VIII—SURCHARGE ON HIGHINCOMEESTATES ANDTRUSTS’’. 
(d) EFFECTIVEDATE.—The amendments made by 15
this section shall apply to taxable years beginning after 16
the date of the enactment of this Act. 17
SEC. 410. MODIFICATION OF RULES FOR VALUE OF CER-18
TAIN FARM, ETC., REAL PROPERTY. 19
(a) I
NGENERAL.—Paragraph (2) of section 20
2032A(a) of the Internal Revenue Code of 1986 is amend-21
ed by striking ‘‘$750,000’’ and inserting ‘‘$3,000,000’’. 22
(b) I
NFLATIONADJUSTMENT.—Paragraph (3) of sec-23
tion 2032A(a) of such Code is amended— 24
(1) by striking ‘‘1998’’ and inserting ‘‘2026’’, 25
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(2) by striking ‘‘$750,000’’ each place it ap-1
pears and inserting ‘‘$3,000,000’’, and 2
(3) by striking ‘‘calendar year 1997’’ and in-3
serting ‘‘calendar year 2025’’ in subparagraph (B). 4
(c) E
FFECTIVEDATE.—The amendments made by 5
this section shall apply to estates of decedents dying, and 6
gifts made, after December 31, 2025. 7
SEC. 411. MODIFICATION OF ESTATE TAX RULES WITH RE-8
SPECT TO LAND SUBJECT TO CONSERVATION 9
EASEMENTS. 10
(a) M
ODIFICATION OF EXCLUSIONLIMITATION.— 11
Subparagraph (B) of section 2031(c)(1) of the Internal 12
Revenue Code of 1986 is amended by striking ‘‘$500,000’’ 13
and inserting ‘‘$2,000,000’’. 14
(b) M
ODIFICATION OFAPPLICABLEPERCENTAGE.— 15
Paragraph (2) of section 2031(c) of the Internal Revenue 16
Code of 1986 is amended by striking ‘‘40 percent’’ and 17
inserting ‘‘60 percent’’. 18
(c) E
FFECTIVEDATE.—The amendments made by 19
this section shall apply to estates of decedents dying, and 20
gifts made, after December 31, 2025. 21
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TITLE V—ACCESSIBILITY 1
REQUIREMENTS 2
SEC. 501. ACCESSIBILITY REQUIREMENTS. 3
In the case of housing that is constructed, altered, 4
or otherwise assisted using amounts made available to the 5
Secretary of Housing and Urban Development under this 6
Act or an amendment made by this Act, sections 8.22 and 7
8.23 of title 24, Code of Federal Regulations (or any suc-8
cessor regulations) shall be applied such that the number 9
of dwelling units required to be accessible under those sec-10
tions is twice the number that would otherwise be required 11
to be accessible under those sections. 12
Æ 
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