II 

116TH CONGRESS 

1ST SESSION S. 787 

To make housing more affordable, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

MARCH 13, 2019 

Ms. WARREN (for herself, Mrs. GILLIBRAND, and Mr. MARKEY) 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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘American Housing and Economic Mobility Act of 2019’’. 

6 (b) TABLE OF CONTENTS.—The table of contents for 

7 this Act is as follows: 

Sec. 1. Short title; table of contents. 

TITLE I—MAKING HOUSING MORE AFFORDABLE 

Sec. 101. Local housing innovation grants. 

Sec. 102. Investing in affordable housing infrastructure. 

Sec. 103. Conditions for the sale of real estate-owned properties and non-performing loans. 


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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 communities formerly segregated by law. 

Sec. 202. Formula grant program for communities that have not recovered 

from the financial crisis. 

Sec. 203. Strengthening the Community Reinvestment Act of 1977. 

Sec. 204. Amendments relating to credit union service to underserved areas. 

TITLE III—REMOVING BARRIERS THAT ISOLATE COMMUNITIES 

Sec. 301. Expanding rights under the Fair Housing Act. 

Sec. 302. Improving outcomes in housing assistance programs. 

TITLE IV—ESTATE TAX REFORM 

Sec. 401. Amendment to Internal Revenue Code of 1986. 

Sec. 402. Rate adjustment. 

Sec. 403. Required minimum 10-year term, etc., for grantor retained annuity 

trusts. 

Sec. 404. Certain transfer tax rules applicable to grantor trusts. 

Sec. 405. Elimination of generation-skipping transfer tax exemption for certain 

trusts. 

Sec. 406. Simplifying gift tax exclusion for annual gifts. 

1 TITLE I—MAKING HOUSING 

2 MORE AFFORDABLE 

3 SEC. 101. LOCAL HOUSING INNOVATION GRANTS. 

4 (a) DEFINITIONS.—In this section: 

5 (1) ELEMENTARY SCHOOL; SECONDARY

6 SCHOOL.—The terms ‘‘elementary school’’ and ‘‘sec7 ondary school’’ have the meanings given those terms 

8 in section 8101 of the Elementary and Secondary 

9 Education Act of 1965 (20 U.S.C. 7801). 

10 (2) ELIGIBLE ENTITY.—The term ‘‘eligible enti11 ty’’ means— 

12 (A) a State; 

13 (B) a unit of general local government; or 

14 (C) a metropolitan area. 


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1 (3) INSTITUTION OF HIGHER EDUCATION.—The 

2 term ‘‘institution of higher education’’ has the 

3 meaning given the term in section 101 of the Higher 

4 Education Act of 1965 (20 U.S.C. 1001). 

5 (4) METROPOLITAN AREA; STATE; UNIT OF

6 GENERAL LOCAL GOVERNMENT.—The terms ‘‘metro7 politan area’’, ‘‘State’’, and ‘‘unit of general local 

8 government’’ have the meanings given those terms in 

9 section 102 of the Housing and Community Devel10 opment Act of 1974 (42 U.S.C. 5302). 

11 (5) SECRETARY.—The term ‘‘Secretary’’ means 

12 the Secretary of Housing and Urban Development. 

13 (b) ESTABLISHMENT.—Not later than 1 year after 

14 the date of enactment of this Act, the Secretary shall es15 tablish a program to make grants to eligible entities 

16 that— 

17 (1) reform local land use restrictions to bring 

18 down the costs of producing affordable housing; and 

19 (2) remove unnecessary barriers to building af20 fordable units in their communities. 

21 (c) ELIGIBLE ACTIVITIES.—An eligible entity receiv22 ing a grant under this section may use funds to— 

23 (1) carry out any of the activities described in 

24 section 105 of the Housing and Community Devel25 opment Act of 1974 (42 U.S.C. 5305); 


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1 (2) carry out any of the activities permitted 

2 under the program for national infrastructure in3 vestments (commonly known as the ‘‘Better Utilizing 

4 Investments to Leverage Development (BUILD) dis5 cretionary grant program’’) authorized under title I 

6 of division L of the Consolidated Appropriations Act, 

7 2018 (Public Law 115–141) or a subsequent appro8 priations Act; or 

9 (3) modernize, renovate, or repair facilities used 

10 by public elementary schools, public secondary 

11 schools, and public institutions of higher education, 

12 including modernization, renovation, and repairs 

13 that— 

14 (A) promote physical, sensory, and envi15 ronmental accessibility; and 

16 (B) are consistent with a recognized green 

17 building rating system. 

18 (d) APPLICATION.— 

19 (1) IN GENERAL.—An eligible entity desiring a 

20 grant under this section shall submit to the Sec21 retary an application that demonstrates that the eli22 gible entity has carried out, or is in the process of 

23 carrying out, initiatives that facilitate the expansion 

24 of the supply of well-located affordable housing. 


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1 (2) ACTIVITIES.—Initiatives that meet the cri2 teria described in paragraph (1)— 

3 (A) include— 

4 (i) establishing ‘‘by-right’’ develop5 ment, which allows jurisdictions to admin6 istratively approve new developments that 

7 are consistent with their zoning code; 

8 (ii) revising or eliminating off-street 

9 parking requirements to reduce the cost of 

10 housing production; 

11 (iii) instituting measures that 

12 incentivize owners of vacant land to rede13 velop the space into affordable housing or 

14 other productive uses; 

15 (iv) revising minimum lot size require16 ments and bans or limits on multifamily 

17 construction to allow for denser and more 

18 affordable development; 

19 (v) instituting incentives to promote 

20 dense development, such as density bo21 nuses; 

22 (vi) passing inclusionary zoning ordi23 nances that require a portion of newly de24 veloped units to be reserved for low- and 

25 moderate-income renters or homebuyers; 


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1 (vii) streamlining regulatory require2 ments and shortening processes, reforming 

3 zoning codes, or other initiatives that re4 duce barriers to housing supply elasticity 

5 and affordability; 

6 (viii) allowing accessory dwelling 

7 units; 

8 (ix) using local tax incentives to pro9 mote development of affordable housing; 

10 and 

11 (x) implementing measures that pro12 tect tenants from harassment and displace13 ment, including access to counsel for ten14 ants facing eviction, the prohibition of evic15 tion except for just cause, and measures 

16 intended to prevent or mitigate sudden in17 creases in rents, or repealing laws that 

18 prevent localities from implementing those 

19 measures; and 

20 (B) do not include activities that alter or21 dinances that govern wage and hour laws, fam22 ily and medical leave laws, or protections for 

23 workers’ health and safety, anti-discrimination, 

24 and right to organize. 

25 (e) LABOR LAWS.— 


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1 (1) IN GENERAL.—All laborers and mechanics 

2 employed by contractors or subcontractors in the 

3 performance of construction work financed in whole 

4 or in part with a grant received under this section 

5 shall be paid wages at rates not less than those pre6 vailing on similar construction in the locality, as de7 termined by the Secretary of Labor in accordance 

8 with subchapter IV of chapter 31 of title 40, United 

9 States Code (commonly known as the ‘‘Davis-Bacon 

10 Act’’). 

11 (2) EXCEPTION.—Paragraph (1) shall not 

12 apply with respect to— 

13 (A) the rehabilitation of residential prop14 erty if the property contains less than 8 units; 

15 or 

16 (B) construction carried out by employees 

17 of the eligible entity receiving the grant under 

18 this section. 

19 (f) AUTHORIZATION OF APPROPRIATIONS.—There is 

20 authorized to be appropriated to carry out this section 

21 $2,000,000,000 for each of fiscal years 2020 through 

22 2024. 


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1 SEC. 102. INVESTING IN AFFORDABLE HOUSING INFRA2 STRUCTURE. 

3 (a) HOUSING TRUST FUND.—Section 1338(a) of the 

4 Federal Housing Enterprises Financial Safety and Sound5 ness Act of 1992 (12 U.S.C. 4568(a)) is amended by add6 ing at the end the following: 

7 ‘‘(3) AUTHORIZATION OF APPROPRIATIONS.— 

8 There is authorized to be appropriated to the Hous9 ing Trust Fund $44,500,000,000 for each of fiscal 

10 years 2020 through 2029.’’. 

11 (b) CAPITAL MAGNET FUND.—Section 1339 of the 

12 Federal Housing Enterprises Financial Safety and Sound13 ness Act of 1992 (12 U.S.C. 4569) is amended by adding 

14 at the end the following: 

15 ‘‘(k) AUTHORIZATION OF APPROPRIATIONS.—There 

16 is authorized to be appropriated to the Capital Magnet 

17 Fund $2,500,000,000 for each of fiscal years 2020 

18 through 2029.’’. 

19 (c) PUBLIC HOUSING CAPITAL FUND.—Section 

20 9(c)(2)(B) of the United States Housing Act of 1937 (42 

21 U.S.C. 1437g(c)(2)(B)) is amended to read as follows: 

22 ‘‘(B) CAPITAL FUND.—For allocations of 

23 assistance from the Capital Fund, 

24 $3,592,000,000 for fiscal year 2020.’’. 

25 (d) INDIAN HOUSING BLOCK GRANT PROGRAM.— 

26 Section 108 of the Native American Housing Assistance 


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1 and Self-Determination Act of 1996 (25 U.S.C. 4117) is 

2 amended— 

3 (1) by striking ‘‘such sums as may be necessary 

4 for each of fiscal years 2009 through 2013’’ and in5 serting ‘‘$2,500,000,000 for fiscal year 2020 and 

6 such sums as may be necessary for each of fiscal 

7 years 2021 through 2029’’; and 

8 (2) by striking the second sentence. 

9 (e) NATIVE HAWAIIAN HOUSING BLOCK GRANT PRO10 GRAM.—Section 824 of the Native American Housing As11 sistance and Self-Determination Act of 1996 (25 U.S.C. 

12 4243) is amended by striking ‘‘such sums as may be nec13 essary for each of fiscal years 2001, 2002, 2003, 2004, 

14 and 2005’’ and inserting ‘‘$8,000,000 for fiscal year 

15 2020’’. 

16 (f) RURAL HOUSING PROGRAMS.—Out of funds in 

17 the Treasury not otherwise appropriated, there is appro18 priated for fiscal year 2020— 

19 (1) to provide direct loans under section 502 of 

20 the Housing Act of 1949 (42 U.S.C. 1472), 

21 $140,000,000; 

22 (2) to provide assistance under section 514 of 

23 such Act (42 U.S.C. 1484), $28,000,000; 

24 (3) to provide assistance under section 515 of 

25 such Act (42 U.S.C. 1485), $180,000,000; 


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1 (4) to provide assistance under section 516 of 

2 such Act (42 U.S.C. 1486), $100,000,000; and 

3 (5) to provide grants under section 523 of such 

4 Act (42 U.S.C. 1490c), $75,000,000. 

5 (g) MIDDLE CLASS HOUSING EMERGENCY FUND.— 

6 (1) DEFINITION.—In this subsection, the term 

7 ‘‘affordable rental housing unit’’ means a unit for 

8 which monthly rent is 30 percent or less than the 

9 monthly area median income. 

10 (2) ESTABLISHMENT.—The Secretary of Hous11 ing and Urban Development shall establish and 

12 manage a fund, to be known as the ‘‘Middle Class 

13 Housing Emergency Fund’’, which shall be funded 

14 with any amounts as may be appropriated, trans15 ferred, or credited to the Fund under any provision 

16 law. 

17 (3) GRANTS.—From amounts available in the 

18 fund established under paragraph (2), the Secretary 

19 of Housing and Urban Development shall award 

20 grants on a competitive basis to State housing fi21 nance agencies located in a State in which— 

22 (A) there is a shortage of affordable rental 

23 housing units available to individuals with an 

24 income that is at or below the area median in25 come and median rents have risen on average 


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1 over the preceding 3 years substantially faster 

2 than the area median income; or 

3 (B) there is a shortage of housing units 

4 available for sale that are affordable to individ5 uals with an income that is at or below the area 

6 median income and median home prices have 

7 risen on average over the preceding 3 years 

8 substantially faster than the area median in9 come. 

10 (4) USE OF FUNDS.—Grants received under 

11 this subsection shall be used to fund— 

12 (A) the construction of rental housing 

13 units or units for purchase that are affordable 

14 to residents making less than 120 percent of 

15 the area median income; and 

16 (B) measures to prevent tenant displace17 ment and harassment, including the provision 

18 of legal advice and representation for tenants 

19 facing eviction, enforcement of anti-harassment 

20 laws, emergency rental assistance, and other 

21 measures as specified by the Secretary of Hous22 ing and Urban Development. 

23 (5) LABOR LAWS.— 

24 (A) IN GENERAL.—All laborers and me25 chanics employed by contractors or subcontracVerDate Sep 11 2014 23:59 Mar 26, 2019 Jkt 089200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\S787.IS S787

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1 tors in the performance of construction work fi2 nanced in whole or in part with a grant received 

3 under this subsection shall be paid wages at 

4 rates not less than those prevailing on similar 

5 construction in the locality as determined by 

6 the Secretary of Labor in accordance with sub7 chapter IV of chapter 31 of title 40, United 

8 States Code (commonly known as the ‘‘Davis9 Bacon Act’’). 

10 (B) EXCEPTION.—Subparagraph (A) shall 

11 not apply with respect to— 

12 (i) the rehabilitation of residential 

13 property if the property contains less than 

14 8 units; or 

15 (ii) construction carried out by em16 ployees of the eligible entity receiving the 

17 grant under this section. 

18 (6) REGULATIONS.—The Secretary of Housing 

19 and Urban Development shall promulgate regula20 tions to carry out this subsection, including with re21 spect to the metrics that the Secretary shall use to 

22 determine eligibility for a grant under this sub23 section. 

24 (7) APPROPRIATIONS.—Out of funds in the 

25 Treasury not otherwise appropriated, there is approVerDate Sep 11 2014 23:59 Mar 26, 2019 Jkt 089200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\S787.IS S787

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1 priated to the fund established under this subsection 

2 $4,000,000,000 for fiscal year 2020. 

3 SEC. 103. CONDITIONS FOR THE SALE OF REAL ESTATE4 OWNED PROPERTIES AND NON-PERFORMING 

5 LOANS. 

6 (a) FINDINGS.—Congress finds that— 

7 (1) the Federal Housing Administration, the 

8 Federal National Mortgage Association, and the 

9 Federal Home Loan Mortgage Corporation provide 

10 critical homeownership opportunities that greatly 

11 benefit individuals, families and communities; and 

12 (2) it is the purpose of this section to— 

13 (A) preserve owner-occupied homes with 

14 mortgages insured by the Federal Housing Ad15 ministration or purchased by the Federal Na16 tional Mortgage Association or the Federal 

17 Home Loan Mortgage Corporation for contin18 ued use as owner-occupied homes; and 

19 (B) direct that, upon the sale of those 

20 properties or transfer of those mortgages, cer21 tain percentages of those properties are sold to 

22 low- and moderate-income homeowners. 

23 (b) LOANS INSURED BY THE FEDERAL HOUSING AD24 MINISTRATION.—Title II of the National Housing Act (12 


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1 U.S.C. 1707 et seq.) is amended by adding at the end 

2 the following: 

3 ‘‘SEC. 259. SALE OF REAL ESTATE-OWNED PROPERTIES. 

4 ‘‘(a) IN GENERAL.—Not later than 1 year after the 

5 date of enactment of this section, the Secretary shall de6 velop programs within the Federal Housing Administra7 tion to ensure that not less than 75 percent of the single8 family residential properties that were acquired by the 

9 Federal Housing Administration through foreclosure or 

10 other transfer-related mortgages insured under this title 

11 on the properties are sold— 

12 ‘‘(1) directly to an owner-occupant; or 

13 ‘‘(2) to community partners that will— 

14 ‘‘(A) rehabilitate or develop the property; 

15 and 

16 ‘‘(B) sell the property to an owner-occu17 pant. 

18 ‘‘(b) ANTI-PREDATORY FEATURE.—Unless the Sec19 retary provides prior approval, the Secretary shall prohibit 

20 any purchaser of a real estate-owned property of the Fed21 eral Housing Administration from re-selling the property 

22 within 15 years of purchase using a land installment con23 tract or through any other mechanism that does not trans24 fer title to the buyer at the time of sale. 


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1 ‘‘SEC. 260. SALE OF NON-PERFORMING LOANS. 

2 ‘‘(a) IN GENERAL.—Except as provided in this sec3 tion, the Secretary may not sell or transfer any mortgage 

4 insured under this title that is secured by a single-family 

5 residential property (in this section referred to as a ‘cov6 ered mortgage’). 

7 ‘‘(b) CONDITIONS FOR SALE OR TRANSFER.— 

8 ‘‘(1) IN GENERAL.—The Secretary— 

9 ‘‘(A) may sell or transfer a covered mort10 gage only if— 

11 ‘‘(i) the capital level of the Fund is 

12 substantially below the capital ratio re13 quired under section 205(f)(4); 

14 ‘‘(ii) the Secretary certifies that other 

15 reasonable measures are not available to 

16 restore the Fund to that capital ratio; and 

17 ‘‘(iii) the Secretary complies with 

18 paragraph (2)(C), if applicable; and 

19 ‘‘(B) shall sell or transfer only such cov20 ered mortgages as are necessary to assist in 

21 restoration of that capital ratio. 

22 ‘‘(2) REQUIREMENTS FOR THE SECRETARY.— 

23 ‘‘(A) IN GENERAL.—If the Secretary in24 tends to sell or transfer a covered mortgage, the 

25 Secretary shall provide the current borrower 

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1 ing the covered mortgage, or require that the 

2 current borrower and owners of record be pro3 vided, a separate written notice of the intent to 

4 sell the covered mortgage that— 

5 ‘‘(i) is mailed via certified and first 

6 class mail not less than 90 days before the 

7 date on which the loan is included in any 

8 proposed sale; and 

9 ‘‘(ii) includes— 

10 ‘‘(I) a description of the loss 

11 mitigation options of the Administra12 tion that are available to borrowers in 

13 financial distress and the obligation of 

14 servicers to consider borrowers in de15 fault for those options; 

16 ‘‘(II) a description of the actions 

17 that the servicer of the loan has taken 

18 to review and implement those options 

19 for the borrower; and 

20 ‘‘(III) a description of the proce21 dures the borrower may use to contest 

22 with the Secretary the compliance by 

23 the servicer with that obligation. 

24 ‘‘(B) JUDICIAL REVIEW.—The determina25 tion of the Secretary to authorize the sale of a 


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1 mortgage insured under this title shall be re2 viewable under chapter 7 of title 5, United 

3 States Code, for abuse of discretion and arbi4 trary and capricious agency action. 

5 ‘‘(C) AUCTIONS.—The Secretary may not 

6 sell any covered mortgage through any type of 

7 non-performing loan sale auction program until 

8 the Secretary issues rules, through the notice 

9 and comment rule making procedures under 

10 section 553 of title 5, United States Code, that 

11 address essential aspects of any non-performing 

12 loan sale program, including— 

13 ‘‘(i) the method of selection of loans 

14 for sale; 

15 ‘‘(ii) notice to borrowers prior to in16 clusion of the loan in a sale; and 

17 ‘‘(iii) review of loss mitigation status 

18 prior to the sale, selection of eligible bid19 ders, loss mitigation guidelines applicable 

20 to loan purchasers, and reporting require21 ments for purchasers. 

22 ‘‘(3) CERTIFICATION REQUIREMENT FOR LEND23 ERS AND SERVICERS.— 

24 ‘‘(A) CERTIFICATION.—As a condition to 

25 payment of an insurance claim under this title 


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1 in connection with any non-performing loan 

2 sale, the lender or servicer of the loan shall pro3 vide the Secretary and the borrower with writ4 ten certification of the loss mitigation review 

5 contained in the FHA Single Family Housing 

6 Policy Handbook 4000.1, or any successor 

7 handbook. 

8 ‘‘(B) FALSE STATEMENTS.— 

9 ‘‘(i) IN GENERAL.—Any false state10 ment provided in a certification described 

11 in subparagraph (A) shall be a basis for— 

12 ‘‘(I) recovery by the Secretary of 

13 any amounts paid under the insurance 

14 claim and any other penalties and 

15 sanctions authorized under Federal 

16 law; and 

17 ‘‘(II) a private right of action by 

18 the borrower against the lender and 

19 servicer, with remedies to include 

20 compensatory and punitive damages 

21 and an assessment of costs and attor22 ney’s fees. 

23 ‘‘(ii) TRANSFERS.—Unless a bona fide 

24 purchaser has acquired title to the prop25 erty as a primary residence— 


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1 ‘‘(I) a certification described in 

2 subparagraph (A) that contains a 

3 false statement shall be a basis for re4 voking the transfer of the property; 

5 and 

6 ‘‘(II) the pre-sale lender and 

7 servicer of the property shall— 

8 ‘‘(aa) resume servicing the 

9 loan as a loan insured under this 

10 title; and 

11 ‘‘(bb) reimburse the Sec12 retary for any insurance claim 

13 paid and all costs related to the 

14 sale of the property. 

15 ‘‘(4) REQUIREMENTS FOR PURCHASERS.— 

16 ‘‘(A) IN GENERAL.—Each purchaser of a 

17 covered mortgage shall offer the borrower on 

18 the covered mortgage— 

19 ‘‘(i) appropriate loss mitigation op20 tions, including affordable and sustainable 

21 loan modifications; and 

22 ‘‘(ii) the opportunity for a short sale 

23 or a deed in lieu of foreclosure. 

24 ‘‘(B) LOSS MITIGATION OPTIONS.—The 

25 specific formula, calculations, waterfall steps, 


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1 and other terms for appropriate loss mitigation 

2 options described in subparagraph (A) shall be 

3 published by the Secretary, made available to 

4 the public, and included in a written notice 

5 given to borrowers before any acceleration or 

6 foreclosure is initiated after a loan sale. 

7 ‘‘(5) REQUIREMENTS FOR TRANSFEREES.— 

8 With respect to a transferee, including any subse9 quent transferee, of a covered mortgage that is sold 

10 under this title— 

11 ‘‘(A) the transferee shall certify in writing 

12 to the Secretary that the transferee will comply 

13 with the provisions of this section in the mar14 keting and transfer of any property received in 

15 the disposition of any transferred loan; 

16 ‘‘(B) the transferee shall provide to the 

17 Secretary records documenting that the trans18 fers of those properties are in compliance with 

19 this section; and 

20 ‘‘(C) the failure of the Secretary or the 

21 transferee to comply with the requirements 

22 under this section for a loan in default shall be 

23 a defense to foreclosure, and a transferee shall 

24 not execute a foreclosure judgment or order of 

25 sale, or conduct a foreclosure sale, until the 


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1 transferee has complied with all requirements 

2 under this section. 

3 ‘‘(c) LIMITATIONS.—With respect to covered mort4 gages that are sold under this title and foreclosed upon 

5 by the buyer, not less than 90 percent of the properties 

6 that are the subject of the covered mortgages in an auc7 tion shall be— 

8 ‘‘(1) sold to owner-occupants; 

9 ‘‘(2) operated or transferred to an entity that 

10 will operate the property as affordable rental hous11 ing for households below 80 percent of the area me12 dian income for a period of not less than 15 years; 

13 or 

14 ‘‘(3) transferred or donated to a nonprofit 

15 agency that is certified by the Secretary and will re16 develop the property for owner occupancy or afford17 able rental housing. 

18 ‘‘(d) PRIORITIZATION OF SALES.—The Secretary 

19 shall implement policies, procedures, and controls to— 

20 ‘‘(1) identify and recruit community partners; 

21 ‘‘(2) engage in consultations with community 

22 partners before the sale of a pool of covered mort23 gages under this title to determine whether that sale 

24 can be designed to meet the specific needs of the 

25 communities served by the community partners; and 


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1 ‘‘(3) prioritize the sale of pools of single-family 

2 mortgages to community partners by— 

3 ‘‘(A) designing pools of covered mortgages 

4 for direct sale to a community partner, the 

5 price of which shall be set by the Secretary 

6 based on a pricing model that considers— 

7 ‘‘(i) the current fair market value of 

8 the properties; and 

9 ‘‘(ii) the potential impact of fore10 closures on those properties to the value of 

11 other homes that secure mortgages insured 

12 under this title in the same census tract; 

13 or 

14 ‘‘(B) in the case of an auction, if the win15 ning bid is not from a community partner, per16 mitting any community partner that bid during 

17 that same auction to have a final opportunity to 

18 enter a higher bid on the pool.’’. 

19 (c) FANNIE MAE.—Section 302 of the Federal Na20 tional Mortgage Association Charter Act (12 U.S.C. 1717) 

21 is amended by adding at the end the following: 

22 ‘‘(d)(1) The corporation may not sell or transfer any 

23 mortgage that is secured by a single-family residential 

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1 gage’) under this section unless the requirements of this 

2 subsection are met. 

3 ‘‘(2)(A) If the corporation intends to sell or transfer 

4 a covered mortgage, the corporation shall provide the cur5 rent borrower and all owners of record of the property se6 curing the covered mortgage, or require that the current 

7 borrower and owners of record be provided, a separate 

8 written notice of the intent to sell the covered mortgage 

9 that— 

10 ‘‘(i) is mailed via certified and first class mail 

11 not less than 90 days before the date on which the 

12 loan is included in any proposed sale; and 

13 ‘‘(ii) includes— 

14 ‘‘(I) a description of the loss mitigation op15 tions of the corporation that are available to 

16 borrowers in financial distress and the obliga17 tion of servicers to consider borrowers in de18 fault for those options; 

19 ‘‘(II) a description of the actions that the 

20 servicer of the loan has taken to review and im21 plement those options for the borrower; and 

22 ‘‘(III) a description of the procedures the 

23 borrower may use to contest with the corpora24 tion the compliance by the servicer with that 

25 obligation. 


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1 ‘‘(B) The determination of the corporation to author2 ize the sale of a mortgage under this section shall be re3 viewable under chapter 7 of title 5, United States Code, 

4 for abuse of discretion and arbitrary and capricious agen5 cy action. 

6 ‘‘(C) The corporation may not sell any covered mort7 gage through any type of non-performing loan sale auction 

8 program until the corporation issues rules, through the no9 tice and comment rule making procedures under section 

10 553 of title 5, United States Code, that address essential 

11 aspects of any non-performing loan sale program, includ12 ing— 

13 ‘‘(i) the method of selection of loans for sale; 

14 ‘‘(ii) notice to borrowers prior to inclusion of 

15 the loan in a sale; and 

16 ‘‘(iii) review of loss mitigation status prior to 

17 the sale, selection of eligible bidders, loss mitigation 

18 guidelines applicable to loan purchasers, and report19 ing requirements for purchasers. 

20 ‘‘(3)(A) Each purchaser of a covered mortgage shall 

21 offer the borrower on the covered mortgage— 

22 ‘‘(i) appropriate loss mitigation options, includ23 ing affordable and sustainable loan modifications; 

24 and 


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1 ‘‘(ii) the opportunity for a short sale or a deed 

2 in lieu of foreclosure. 

3 ‘‘(B) The specific formula, calculations, waterfall 

4 steps, and other terms for appropriate loss mitigation op5 tions described in subparagraph (A) shall be published by 

6 the corporation, made available to the public, and included 

7 in a written notice given to borrowers before any accelera8 tion or foreclosure is initiated after a loan sale. 

9 ‘‘(4) With respect to a transferee, including any sub10 sequent transferee, of a covered mortgage that is sold by 

11 the corporation under this section— 

12 ‘‘(A) the transferee shall certify in writing to 

13 the corporation that the transferee will comply with 

14 the provisions of this subsection in the marketing 

15 and transfer of any property received in the disposi16 tion of any transferred loan; 

17 ‘‘(B) the transferee shall provide to the corpora18 tion records documenting that the transfers of those 

19 properties are in compliance with this subsection; 

20 and 

21 ‘‘(C) the failure of the corporation or the trans22 feree to comply with the requirements under this 

23 subsection for a loan in default shall be a defense to 

24 foreclosure, and a transferee shall not execute a 

25 foreclosure judgment or order of sale, or conduct a 


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1 foreclosure sale, until the transferee has complied 

2 with all requirements under this subsection. 

3 ‘‘(5) With respect to covered mortgages that are sold 

4 by the corporation under this section and foreclosed upon 

5 by the buyer, not less than 90 percent of the properties 

6 that are the subject of the covered mortgages in an auc7 tion shall be— 

8 ‘‘(A) sold to owner-occupants; 

9 ‘‘(B) operated or transferred to an entity that 

10 will operate the property as affordable rental hous11 ing for households below 80 percent of the area me12 dian income for a period of not less than 15 years; 

13 or 

14 ‘‘(C) transferred or donated to a nonprofit 

15 agency that is certified by the corporation and will 

16 redevelop the property for owner occupancy or af17 fordable rental housing. 

18 ‘‘(6) The corporation shall implement policies, proce19 dures, and controls to— 

20 ‘‘(A) identify and recruit community partners; 

21 ‘‘(B) engage in consultations with community 

22 partners before the sale of a pool of covered mort23 gages under this section to determine whether that 

24 sale can be designed to meet the specific needs of 


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1 the communities served by the community partners; 

2 and 

3 ‘‘(C) prioritize the sale of pools of single-family 

4 mortgages to community partners by— 

5 ‘‘(i) designing pools of covered mortgages 

6 for direct sale to a community partner, the 

7 price of which shall be set by the corporation 

8 based on a pricing model that considers— 

9 ‘‘(I) the current fair market value of 

10 the properties; and 

11 ‘‘(II) the potential impact of fore12 closures on those properties to the value of 

13 other homes in the same census tract; or 

14 ‘‘(III) in the case of an auction, if the 

15 winning bid is not from a community part16 ner, permitting any community partner 

17 that bid during that same auction to have 

18 a final opportunity to enter a higher bid on 

19 the pool.’’. 

20 (d) FREDDIE MAC.—Section 305 of the Federal 

21 Home Loan Mortgage Corporation Act (12 U.S.C. 1454) 

22 is amended by adding at the end the following: 

23 ‘‘(e)(1) The Corporation may not sell or transfer any 

24 mortgage that is secured by a single-family residential 

25 property (in this section referred to as a ‘covered mortVerDate Sep 11 2014 23:59 Mar 26, 2019 Jkt 089200 PO 00000 Frm 00027 Fmt 6652 Sfmt 6201 E:\BILLS\S787.IS S787

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1 gage’) under this section unless the requirements of this 

2 subsection are met. 

3 ‘‘(2)(A) If the Corporation intends to sell or transfer 

4 a covered mortgage, the Corporation shall provide the cur5 rent borrower and all owners of record of the property se6 curing the covered mortgage, or require that the current 

7 borrower and owners of record be provided, a separate 

8 written notice of the intent to sell the covered mortgage 

9 that— 

10 ‘‘(i) is mailed via certified and first class mail 

11 not less than 90 days before the date on which the 

12 loan is included in any proposed sale; and 

13 ‘‘(ii) includes— 

14 ‘‘(I) a description of the loss mitigation op15 tions of the Corporation that are available to 

16 borrowers in financial distress and the obliga17 tion of servicers to consider borrowers in de18 fault for those options; 

19 ‘‘(II) a description of the actions that the 

20 servicer of the loan has taken to review and im21 plement those options for the borrower; and 

22 ‘‘(III) a description of the procedures the 

23 borrower may use to contest with the Corpora24 tion the compliance by the servicer with that 

25 obligation. 


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1 ‘‘(B) The determination of the Corporation to author2 ize the sale of a mortgage under this section shall be re3 viewable under chapter 7 of title 5, United States Code, 

4 for abuse of discretion and arbitrary and capricious agen5 cy action. 

6 ‘‘(C) The Corporation may not sell any covered mort7 gage through any type of non-performing loan sale auction 

8 program until the Corporation issues rules, through the 

9 notice and comment rule making procedures under section 

10 553 of title 5, United States Code, that address essential 

11 aspects of any non-performing loan sale program, includ12 ing— 

13 ‘‘(i) the method of selection of loans for sale; 

14 ‘‘(ii) notice to borrowers prior to inclusion of 

15 the loan in a sale; and 

16 ‘‘(iii) review of loss mitigation status prior to 

17 the sale, selection of eligible bidders, loss mitigation 

18 guidelines applicable to loan purchasers, and report19 ing requirements for purchasers. 

20 ‘‘(3)(A) Each purchaser of a covered mortgage shall 

21 offer the borrower on the covered mortgage— 

22 ‘‘(i) appropriate loss mitigation options, includ23 ing affordable and sustainable loan modifications; 

24 and 


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1 ‘‘(ii) the opportunity for a short sale or a deed 

2 in lieu of foreclosure. 

3 ‘‘(B) The specific formula, calculations, waterfall 

4 steps, and other terms for appropriate loss mitigation op5 tions described in subparagraph (A) shall be published by 

6 the Corporation, made available to the public, and in7 cluded in a written notice given to borrowers before any 

8 acceleration or foreclosure is initiated after a loan sale. 

9 ‘‘(4) With respect to a transferee, including any sub10 sequent transferee, of a covered mortgage that is sold by 

11 the Corporation under this section— 

12 ‘‘(A) the transferee shall certify in writing to 

13 the Corporation that the transferee will comply with 

14 the provisions of this section in the marketing and 

15 transfer of any property received in the disposition 

16 of any transferred loan; 

17 ‘‘(B) the transferee shall provide to the Cor18 poration records documenting that the transfers of 

19 those properties are in compliance with this sub20 section; and 

21 ‘‘(C) the failure of the Corporation or the trans22 feree to comply with the requirements under this 

23 subsection for a loan in default shall be a defense to 

24 foreclosure, and a transferee shall not execute a 

25 foreclosure judgment or order of sale, or conduct a 


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1 foreclosure sale, until the transferee has complied 

2 with all requirements under this subsection. 

3 ‘‘(5) With respect to covered mortgages that are sold 

4 by the Corporation under this section and foreclosed upon 

5 by the buyer, not less than 90 percent of the properties 

6 that are the subject of the covered mortgages in an auc7 tion shall be— 

8 ‘‘(A) sold to owner-occupants; 

9 ‘‘(B) operated or transferred to an entity that 

10 will operate the property as affordable rental hous11 ing for households below 80 percent of the area me12 dian income for a period of not less than 15 years; 

13 or 

14 ‘‘(C) transferred or donated to a nonprofit 

15 agency that is certified by the Corporation and will 

16 redevelop the property for owner occupancy or af17 fordable rental housing. 

18 ‘‘(6) The Corporation shall implement policies, proce19 dures, and controls to— 

20 ‘‘(A) identify and recruit community partners; 

21 ‘‘(B) engage in consultations with community 

22 partners before the sale of a pool of covered mort23 gages under this section to determine whether that 

24 sale can be designed to meet the specific needs of 


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1 the communities served by the community partners; 

2 and 

3 ‘‘(C) prioritize the sale of pools of single-family 

4 mortgages to community partners by— 

5 ‘‘(i) designing pools of covered mortgages 

6 for direct sale to a community partner, the 

7 price of which shall be set by the Corporation 

8 based on a pricing model that considers— 

9 ‘‘(I) the current fair market value of 

10 the properties; and 

11 ‘‘(II) the potential impact of fore12 closures on those properties to the value of 

13 other homes in the same census tract; or 

14 ‘‘(III) in the case of an auction, if the 

15 winning bid is not from a community part16 ner, permitting any community partner 

17 that bid during that same auction to have 

18 a final opportunity to enter a higher bid on 

19 the pool.’’. 


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1 TITLE II—TAKING THE FIRST 

2 STEPS TO REVERSE THE LEG3 ACY OF HOUSING DISCRIMI4 NATION AND GOVERNMENT 

5 NEGLIGENCE 

6 SEC. 201. DOWN PAYMENT ASSISTANCE PROGRAM FOR 

7 COMMUNITIES FORMERLY SEGREGATED BY 

8 LAW. 

9 (a) FINDINGS.—Congress finds the following: 

10 (1) For generations, buying a home has been 

11 the primary way working families build wealth. 

12 (2) A home is not only a place to live, but also 

13 an asset that may appreciate, help fund a new busi14 ness, finance an education, or cover retirement ex15 penses. A home provides stability and financial pre16 dictability, which are important foundations for 

17 prosperity and access to opportunity for a family. 

18 (3) For decades, the Federal Government sub19 sidized homeownership—for White families. Until 

20 the 1960s, the Federal Government systematically 

21 denied African Americans and other marginalized 

22 groups the ability to obtain mortgage credit, buy 

23 homes, and build wealth for their families while sub24 sidizing the American dream for White families. 


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1 (4) The Federal Government, through the 

2 Home Owners’ Loan Corporation and the Federal 

3 Housing Administration, standardized and institu4 tionalized discriminatory policies on the basis of 

5 race, national origin, and religion that reflected 

6 practices in the private sector and became a model 

7 for their widespread adoption across the housing in8 dustry. 

9 (5) Racist restrictive covenants and zoning ordi10 nances also robbed families of color of the oppor11 tunity to live and build opportunity for their families 

12 in the community of their choice. 

13 (6) In the years before the 2008 financial crisis, 

14 lenders targeted borrowers of color with abusive 

15 loans while government regulators sat on their 

16 hands, further extracting wealth from these same 

17 communities. 

18 (7) The legacy of housing discrimination and 

19 regulatory negligence is a contributor to a large and 

20 growing gap in wealth and outcomes between Black 

21 and White families. The median income White fam22 ily in the United States has almost 10 times the 

23 wealth of the median income Black family in the 

24 United States. The gap between the White home25 ownership rate and the Black homeownership rate is 


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1 bigger today than it was when housing discrimina2 tion was legal. Seventy-five percent of formerly red3 lined communities are still low-income and 66 per4 cent are still minority communities. 

5 (8) The purpose of this section is for the Fed6 eral Government to take the first step toward ad7 dressing the racial wealth gap that it contributed to 

8 creating by helping individuals or descendants of in9 dividuals who were harmed by housing discrimina10 tion or negligence by the Federal Government. 

11 (b) DEFINITIONS.—In this section: 

12 (1) ELIGIBLE RESIDENT.—The term ‘‘eligible 

13 resident’’ means a resident of a geographic area, as 

14 defined by the Secretary by regulation under sub15 section (g), who— 

16 (A) is a first-time homebuyer; 

17 (B) has an income that is less than 120 

18 percent of the area median income; and 

19 (C)(i) resided in that geographic area dur20 ing the 4-year period preceding the date of en21 actment of this Act; 

22 (ii) resided in that geographic area for a 

23 period of 4 years before moving out of the geo24 graphic area subsequent to a foreclosure, short 


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1 sale, or deed in lieu of foreclosure on a home 

2 that— 

3 (I) was the primary residence of the 

4 resident; and 

5 (II) was purchased or refinanced dur6 ing the period beginning on January 1, 

7 2001, and ending on December 30, 2008; 

8 or 

9 (iii) resided in that geographic area for a 

10 period of 4 years before moving out of the geo11 graphic area due to a major disaster declared 

12 by the President or a State, territorial, or Trib13 al government. 

14 (2) FIRST-TIME HOMEBUYER.—The term ‘‘first15 time homebuyer’’ means an individual (and if mar16 ried, the spouse of the individual) who— 

17 (A) has had no ownership in a principal 

18 residence during the 3-year period ending on 

19 the date of purchase of the property; or 

20 (B) who surrendered an ownership interest 

21 in a principal residence during the 3-year pe22 riod ending on the date of purchase of the prop23 erty as part of a divorce proceeding. 

24 (3) SECRETARY.—The term ‘‘Secretary’’ means 

25 the Secretary of Housing and Urban Development. 


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1 (c) ESTABLISHMENT.—There is established in the 

2 Office of Housing of the Department of Housing and 

3 Urban Development a fund, to be administered by the Sec4 retary, that shall be used— 

5 (1) to provide grants to eligible residents to 

6 purchase homes; 

7 (2) for outreach to financial institutions in tar8 geted areas and eligible residents, including for the 

9 administration of that outreach; 

10 (3) for counseling or financial education admin11 istered by counseling agencies approved by the Sec12 retary in order to ensure sustainable homeowner13 ship; 

14 (4) to create and maintain the database de15 scribed in subsection (g)(3); and 

16 (5) to maintain any records required to imple17 ment this section. 

18 (d) GRANT AMOUNT.—Eligible residents may receive 

19 a grant from the fund established under subsection (c) in 

20 an amount equal to— 

21 (1) not more than 3.5 percent of the appraised 

22 value of the property to be purchased; or 

23 (2) if the appraised value is more than the prin24 cipal obligation amount limitation for mortgages in25 sured under title II of the National Housing Act (12 


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•S 787 IS

1 U.S.C. 1707 et seq.), 3.5 percent of the maximum 

2 principal obligation limitation for the property to be 

3 purchased. 

4 (e) FHA LOAN.—An eligible resident is not required 

5 to obtain a mortgage that is insured under title II of the 

6 National Housing Act (12 U.S.C. 1707 et seq.) as a condi7 tion of receiving a grant under this section. 

8 (f) GEOGRAPHIC AREA.—An eligible resident is not 

9 required to purchase a home within the geographic area 

10 described in subsection (b)(1)(C) as a condition of receiv11 ing a grant under this section. 

12 (g) REGULATIONS AND DATABASE.—Not later than 

13 1 year after the date of enactment of this Act, the Sec14 retary shall— 

15 (1) in consultation with interested parties, in16 cluding housing counseling agencies approved by the 

17 Secretary and individuals or groups with expertise in 

18 fair housing, finalize regulations relating to the use 

19 of the fund established under subsection (c), includ20 ing defining the geographic areas in which residents 

21 are eligible to receive grants through the fund, which 

22 shall include— 

23 (A) census tracts graded as ‘‘hazardous’’ 

24 or ‘‘definitely declining’’in maps drawn by the 

25 Home Owners’ Loan Corporation that are, as of 


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1 the date of enactment of this Act, low-income 

2 communities; 

3 (B) census tracts that were designated for 

4 non-White citizens in jurisdictions that histori5 cally had racially segregated zoning codes and 

6 are, as of the date of enactment of this Act, 

7 low-income communities; and 

8 (C) census tracts that are racially or eth9 nically concentrated areas of poverty, which 

10 shall mean a census tract— 

11 (i) with a non-White population of 50 

12 percent or more; and 

13 (ii)(I) in which not less than 40 per14 cent of families living in the census tract 

15 have incomes that are at or below the pov16 erty line; or 

17 (II) in which the average tract poverty 

18 rate is 3 or more times the average tract 

19 poverty tract for the metropolitan or 

20 micropolitan area; 

21 (2) finalize regulations relating to the disburse22 ment of funds under this section to ensure that eligi23 ble residents are able to receive funds before the 

24 closing date for their home, which may include cre25 ating a program that allows a lender to be reimVerDate Sep 11 2014 23:59 Mar 26, 2019 Jkt 089200 PO 00000 Frm 00039 Fmt 6652 Sfmt 6201 E:\BILLS\S787.IS S787

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1 bursed by the fund established under subsection (c) 

2 if the lender— 

3 (A) provides the eligible resident with 

4 funds for the closing; or 

5 (B) allows eligible residents to be 

6 preapproved to receive assistance under this 

7 section when arranging financing for their 

8 home; 

9 (3) create a publicly accessible database that al10 lows individuals, real estate professionals, and lend11 ers to determine whether a borrower is eligible for 

12 assistance under this section; and 

13 (4) establish methods to verify that an indi14 vidual is an eligible resident. 

15 (h) APPROPRIATIONS.—Out of funds in the Treasury 

16 not otherwise appropriated, there is appropriated to the 

17 fund established under subsection (c) such sums as may 

18 be necessary for each of fiscal years 2020 through 2029 

19 to provide grants under this section and to carry out con20 sumer education efforts related to this section. 

21 (i) INCLUSION OF PROGRAM IN HOME BUYING IN22 FORMATION BOOKLETS.—Section 5(b) of the Real Estate 

23 Settlement Procedures Act of 1974 (12 U.S.C. 2604(b)) 

24 is amended by inserting after paragraph (14) the fol25 lowing: 


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1 ‘‘(15) Information relating to the down pay2 ment assistance program established under section 

3 201 of the American Housing and Economic Mobil4 ity Act of 2019.’’. 

5 (j) INCLUSION OF PROGRAM AS MORTGAGE PROD6 UCT.—Section 203(f)(1) of the National Housing Act (12 

7 U.S.C. 1709(f)(1)) is amended by inserting ‘‘, including 

8 the down payment assistance program established under 

9 section 201 of the American Housing and Economic Mo10 bility Act of 2019,’’ after ‘‘mortgage products’’. 

11 SEC. 202. FORMULA GRANT PROGRAM FOR COMMUNITIES 

12 THAT HAVE NOT RECOVERED FROM THE FI13 NANCIAL CRISIS. 

14 (a) ESTABLISHMENT.—The Secretary of Housing 

15 and Urban Development shall establish a formula grant 

16 program to provide funding to States to assist borrowers 

17 with negative equity in their primary residence through— 

18 (1) measures that provide funds to borrowers 

19 to— 

20 (A) pay down arrears on an otherwise af21 fordable loan; 

22 (B) pay down arrears or principal on a 

23 loan in order to qualify for a loan modification 

24 that will allow the borrower to keep their home; 


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1 (C) pay off the entire or pay down part of 

2 a second mortgage or home equity line of cred3 it; 

4 (D) pay off a small-dollar mortgage; 

5 (E) pay delinquent taxes and tax liens; 

6 (F) pay off delinquent water or sewer bills 

7 and liens; and 

8 (G) pay for home repairs or maintenance 

9 or for modifications to bring the home into 

10 compliance with any applicable codes; and 

11 (2) programs to purchase or rehabilitate vacant 

12 land and foreclosed homes to enhance neighborhood 

13 property values. 

14 (b) FORMULA.—The Secretary of Housing and 

15 Urban Development shall distribute amounts under this 

16 section based on the number of borrowers in the State 

17 with a primary residence with negative equity. 

18 (c) AUTHORIZATION OF APPROPRIATIONS.—There is 

19 authorized to be appropriated to carry out this section 

20 $2,000,000,000 for fiscal year 2020. 

21 SEC. 203. STRENGTHENING THE COMMUNITY REINVEST22 MENT ACT OF 1977. 

23 (a) SHORT TITLE.—This section may be cited as the 

24 ‘‘Community Reinvestment Reform Act of 2019’’. 


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1 (b) AMENDMENTS TO THE COMMUNITY REINVEST2 MENT ACT OF 1977.—The Community Reinvestment Act 

3 of 1977 (12 U.S.C. 2901 et seq.) is amended— 

4 (1) by amending sections 802 and 803 (12 

5 U.S.C. 2901, 2902) to read as follows: 

6 ‘‘SEC. 802. FINDINGS AND PURPOSE. 

7 ‘‘(a) FINDINGS.—Congress finds that— 

8 ‘‘(1) regulated financial institutions are re9 quired by law to demonstrate that they serve the 

10 convenience and needs of the communities in which 

11 they are chartered or do business, in particular low12 and moderate-income communities; 

13 ‘‘(2) the convenience and needs of communities 

14 include the need for credit services, deposit services, 

15 transaction services, other financial services, and 

16 community development loans and investments; and 

17 ‘‘(3) regulated financial institutions have a con18 tinuing and affirmative obligation to meet the credit 

19 or other financial needs of the local communities in 

20 which they are chartered or do business. 

21 ‘‘(b) PURPOSE.—It is the purpose of this title to re22 quire each appropriate Federal financial supervisory agen23 cy to use its authority when examining regulated financial 

24 institutions to ensure that those institutions meet the 

25 credit or other financial needs of the local communities 


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1 in which they are chartered or do business consistent with 

2 the safe and sound operation of those institutions. 

3 ‘‘SEC. 803. DEFINITIONS. 

4 ‘‘In this title: 

5 ‘‘(1) APPLICATION FOR A DEPOSIT FACILITY.— 

6 The term ‘application for a deposit facility’ means 

7 an application to the appropriate Federal financial 

8 supervisory agency otherwise required under Federal 

9 law or regulations thereunder for— 

10 ‘‘(A) a charter for a national bank or Fed11 eral savings and loan association; 

12 ‘‘(B) deposit insurance in connection with 

13 a newly chartered State bank, savings bank, 

14 savings and loan association, or similar institu15 tion; 

16 ‘‘(C) the establishment of a domestic 

17 branch or other facility with the ability to ac18 cept deposits of a regulated financial institu19 tion; 

20 ‘‘(D) the relocation of the home office or a 

21 branch office of a regulated financial institu22 tion; 

23 ‘‘(E) the merger or consolidation with, the 

24 acquisition of the assets of, or the assumption 

25 of the liabilities of a regulated financial instituVerDate Sep 11 2014 23:59 Mar 26, 2019 Jkt 089200 PO 00000 Frm 00044 Fmt 6652 Sfmt 6201 E:\BILLS\S787.IS S787

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1 tion requiring approval under section 18(c) of 

2 the Federal Deposit Insurance Act (12 U.S.C. 

3 1828(c)); or 

4 ‘‘(F) the acquisition of shares in, or the as5 sets of, a regulated financial institution requir6 ing approval under section 3 of the Bank Hold7 ing Company Act of 1956 (12 U.S.C. 1842). 

8 ‘‘(2) APPROPRIATE FEDERAL BANKING AGEN9 CY.—The term ‘appropriate Federal banking agency’ 

10 has the meaning given the term in section 3 of the 

11 Federal Deposit Insurance Act (12 U.S.C. 1813). 

12 ‘‘(3) APPROPRIATE FEDERAL FINANCIAL SU13 PERVISORY AGENCY.—The term ‘appropriate Fed14 eral financial supervisory agency’ means— 

15 ‘‘(A) the appropriate Federal banking 

16 agency with respect to depository institutions 

17 and depository institution holding companies; 

18 and 

19 ‘‘(B) the Bureau of Consumer Financial 

20 Protection with respect to any covered person 

21 supervised by the Bureau pursuant to section 

22 1024 of the Dodd-Frank Wall Street Reform 

23 and Consumer Protection Act (12 U.S.C. 

24 5514). 


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1 ‘‘(4) ASSESSMENT AREA.—The term ‘assess2 ment area’ means, with respect to a regulated finan3 cial institution, each community, including a State, 

4 metropolitan area, and urban or rural county, in 

5 which the institution— 

6 ‘‘(A) maintains deposit-taking branches, 

7 automated teller machines, or retail offices; 

8 ‘‘(B) is represented by an agent; 

9 ‘‘(C) issues a significant number of loans 

10 or other products relative to the total number 

11 of loans or other products made by the institu12 tion; 

13 ‘‘(D) has issued not less than 75 percent 

14 of the loans of the institution; or 

15 ‘‘(E) has conducted not less than 75 per16 cent of the business of the institution. 

17 ‘‘(5) COMMUNITY BENEFITS PLAN.—The term 

18 ‘community benefits plan’ means a plan that pro19 vides measurable goals for future amounts of safe 

20 and sound loans, investments, services, and other fi21 nancial products for low- and moderate-income com22 munities and other distressed or underserved com23 munities. 

24 ‘‘(6) COMMUNITY DEVELOPMENT.—The term 

25 ‘community development’ means— 


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1 ‘‘(A) affordable housing for low- or mod2 erate-income individuals and avoidance of pat3 terns of lending resulting in the loss of afford4 able housing units; 

5 ‘‘(B) community development services, in6 cluding counseling and successful mortgage or 

7 loan modifications of delinquent loans; 

8 ‘‘(C) activities that promote integration; 

9 ‘‘(D) activities that promote economic de10 velopment by financing small businesses or 

11 farms that meet the size eligibility requirements 

12 of the development company or small business 

13 investment company programs under section 

14 121.301 of title 13, Code of Federal Regula15 tions, or any successor regulation, with an em16 phasis on small businesses that have gross an17 nual revenues of not more than $1,000,000; 

18 ‘‘(E) activities that revitalize or stabilize— 

19 ‘‘(i) low- or moderate-income geog20 raphies; 

21 ‘‘(ii) designated disaster areas; 

22 ‘‘(iii) distressed or underserved non23 metropolitan middle-income geographies 

24 designated by the Federal Financial Insti25 tutions Examination Council, based on— 


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1 ‘‘(I) rates of poverty, unemploy2 ment, and population loss; or 

3 ‘‘(II) population size, density, 

4 and dispersion, if those activities help 

5 to meet essential community needs, 

6 including the needs of low- and mod7 erate-income individuals; or 

8 ‘‘(iv) other distressed or underserved 

9 communities; or 

10 ‘‘(F) activities that promote physical, envi11 ronmental, and sensory accessibility in housing 

12 stock that is integrated into the community. 

13 ‘‘(7) DEPOSITORY INSTITUTION; DEPOSITORY

14 INSTITUTION HOLDING COMPANY.—The terms ‘de15 pository institution’ and ‘depository institution hold16 ing company’ have the meanings given those terms 

17 in section 3 of the Federal Deposit Insurance Act 

18 (12 U.S.C. 1813). 

19 ‘‘(8) ENTIRE COMMUNITY.—The term ‘entire 

20 community’ means all of the assessment areas of a 

21 regulated financial institution. 

22 ‘‘(9) ENUMERATED CONSUMER LAWS.—The 

23 term ‘enumerated consumer laws’ has the meaning 

24 given the term in section 1002 of the Consumer Fi25 nancial Protection Act of 2010 (12 U.S.C. 5481). 


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1 ‘‘(10) GEOGRAPHY.—The term ‘geography’ 

2 means a census tract delineated by the Bureau of 

3 the Census in the most recent decennial census. 

4 ‘‘(11) INSURED DEPOSITORY INSTITUTION.— 

5 The term ‘insured depository institution’ has the 

6 meaning given the term in section 3 of the Federal 

7 Deposit Insurance Act (12 U.S.C. 1813). 

8 ‘‘(12) OTHER DISTRESSED OR UNDERSERVED

9 COMMUNITY.—The term ‘other distressed or under10 served community’ means an area that, according to 

11 a periodic review and data analysis by the appro12 priate Federal financial supervisory agencies on an 

13 interagency basis through the Federal Financial In14 stitutions Examination Council, is experiencing eco15 nomic hardship or is underserved by financial insti16 tutions. 

17 ‘‘(13) REGULATED FINANCIAL INSTITUTION.— 

18 The term ‘regulated financial institution’ means— 

19 ‘‘(A) an insured depository institution; 

20 ‘‘(B) a depository institution holding com21 pany; and 

22 ‘‘(C) a U.S. nonbank mortgage originator. 

23 ‘‘(14) U.S. NONBANK MORTGAGE ORIGI24 NATOR.—The term ‘U.S. nonbank mortgage origi25 nator’ means a covered person subject to section 


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1 1024 of the Dodd-Frank Wall Street Reform and 

2 Consumer Protection Act (12 U.S.C. 5514) that of3 fers or provides— 

4 ‘‘(A) origination of loans secured by real 

5 estate for use by consumers primarily for per6 sonal, family, or household purposes; or 

7 ‘‘(B) loan modification or foreclosure relief 

8 services in connection with a loan described in 

9 subparagraph (A).’’; 

10 (2) in section 804 (12 U.S.C. 2903)— 

11 (A) by redesignating subsections (c) and 

12 (d) as subsections (f) and (g), respectively; 

13 (B) by striking subsections (a) and (b) and 

14 inserting the following: 

15 ‘‘(a) DEPOSITORY INSTITUTIONS AND BANK HOLD16 ING COMPANIES.—In connection with its examination of 

17 a regulated financial institution other than a U.S. 

18 nonbank mortgage originator, the appropriate Federal fi19 nancial supervisory agency shall perform the following: 

20 ‘‘(1) Assess the record of the institution in 

21 meeting the credit or other financial needs of its en22 tire community, in particular low- and moderate-in23 come people and communities, and other distressed 

24 or underserved communities, consistent with the safe 

25 and sound operation of the institution. 


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1 ‘‘(2) Assess the effectiveness of the following 

2 activities in meeting the credit or other financial 

3 needs of the assessment areas of the institution, con4 sistent with the safe and sound operation of the in5 stitution: 

6 ‘‘(A) Retail lending, including home, small 

7 business, consumer, and other lending and fi8 nancial products, that responds to credit needs 

9 or other financial needs. 

10 ‘‘(B) Community development lending and 

11 investments, which may include a consideration 

12 of— 

13 ‘‘(i) the origination of loans and other 

14 efforts by the institution to assist existing 

15 low- and moderate-income residents to re16 main in affordable housing in their com17 munity; and 

18 ‘‘(ii) the origination of loans by the 

19 institution that result in the construction, 

20 rehabilitation, or preservation of affordable 

21 housing units. 

22 ‘‘(C) Retail financial services and commu23 nity development services. 

24 ‘‘(3) With respect to its evaluation of an appli25 cation for a deposit facility by the institution— 


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1 ‘‘(A) consider the record described in para2 graph (1), the overall rating of the institution 

3 under this section, and any improvement plans 

4 submitted pursuant to this section; 

5 ‘‘(B) provide an opportunity for public 

6 comment for a period of not less than 60 days; 

7 ‘‘(C) consider changes in the community 

8 reinvestment performance of the institution 

9 since the most recent rating under this section 

10 by the appropriate Federal financial supervisory 

11 agency; and 

12 ‘‘(D) require— 

13 ‘‘(i) a demonstration of public benefit, 

14 including a community benefits plan with 

15 measurable goals regarding increasing re16 sponsible lending and other financial prod17 ucts; 

18 ‘‘(ii) that the institution consult with 

19 community-based organizations and other 

20 community stakeholders in developing the 

21 community benefits plan; and 

22 ‘‘(iii) a public hearing for any institu23 tion that has a received a ‘need-to-improve’ 

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1 sessment area during the most recent ex2 amination. 

3 ‘‘(b) U.S. NONBANK MORTGAGE ORIGINATOR.—In 

4 connection with its examination of a U.S. nonbank mort5 gage originator, the appropriate Federal financial super6 visory agency shall perform the following: 

7 ‘‘(1) Assess the record of the U.S. nonbank 

8 mortgage originator in meeting the credit or other 

9 financial needs of its entire community, in particular 

10 low-income and moderate-income people and commu11 nities and other distressed or underserved commu12 nities, consistent with the safe and sound operation 

13 of the U.S. nonbank mortgage originator. 

14 ‘‘(2) Assess, as appropriate, the following activi15 ties in the assessment areas of the U.S. nonbank 

16 mortgage originator: 

17 ‘‘(A) Retail lending, including home loans. 

18 ‘‘(B) Community development services. 

19 ‘‘(C) Community development lending and 

20 investments, which may include a consideration 

21 of— 

22 ‘‘(i) the origination of loans and other 

23 efforts by the institution to assist existing 

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1 main in affordable housing in their com2 munity; 

3 ‘‘(ii) the origination of loans by the 

4 institution that result in the construction, 

5 rehabilitation or preservation of affordable 

6 housing units; and 

7 ‘‘(iii) investments in or loans to com8 munity development financial institutions 

9 (as defined in section 103 of the Commu10 nity Development Banking and Financial 

11 Institutions Act of 1994 (12 U.S.C. 

12 4702)), community development corpora13 tions (as defined in section 613 of the 

14 Community Economic Development Act of 

15 1981 (42 U.S.C. 9802)), and other non16 profit organizations serving the housing 

17 and development needs of the community. 

18 ‘‘(3) With respect to its evaluation of an appli19 cation for a deposit facility by the U.S. nonbank 

20 mortgage originator— 

21 ‘‘(A) consider the record described in para22 graph (1), the overall rating of the U.S. 

23 nonbank mortgage originator under this sec24 tion, and any improvement plans submitted 

25 pursuant to this section; 


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1 ‘‘(B) provide an opportunity for public 

2 comment for a period of not less than 60 days; 

3 ‘‘(C) consider changes in the community 

4 reinvestment performance of the U.S. nonbank 

5 mortgage originator since the most recent rat6 ing under this section by the appropriate Fed7 eral financial supervisory agency; and 

8 ‘‘(D) require— 

9 ‘‘(i) a demonstration that granting the 

10 application for a deposit facility is in the 

11 public interest, which shall include a sub12 mission of a community benefits plan by 

13 the U.S. nonbank mortgage originator to 

14 the appropriate Federal financial super15 visory agency; 

16 ‘‘(ii) that the U.S. nonbank mortgage 

17 originator consult with community-based 

18 organizations and other community stake19 holders in developing the community bene20 fits plan; and 

21 ‘‘(iii) a public hearing for any U.S. 

22 nonbank mortgage originator that has a 

23 received a ‘need-to-improve’ or ‘sufficient’ 

24 grade in any individual assessment area 

25 during the most recent examination. 


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1 ‘‘(c) REQUIREMENTS.— 

2 ‘‘(1) IN GENERAL.—In connection with its ex3 amination of a regulated financial institution under 

4 subsection (a) or (b), the appropriate Federal finan5 cial supervisory agency shall— 

6 ‘‘(A) consider public comments received by 

7 the appropriate Federal financial supervisory 

8 agency regarding the record of the institution in 

9 meeting the credit or other financial needs of 

10 its entire community, including low- and mod11 erate-income communities; and 

12 ‘‘(B) require an improvement plan for an 

13 institution that receives a rating of ‘sufficient’ 

14 or lower on the written evaluation of the insti15 tution, or such a rating in any individual as16 sessment area, and require the improvement 

17 plan to result in the reasonable likelihood that 

18 the institution will obtain a rating of at least 

19 ‘satisfactory record of meeting community cred20 it or other financial needs’ in the relevant meas21 ure on the next examination. 

22 ‘‘(2) IMPROVEMENT PLAN.— 

23 ‘‘(A) IN GENERAL.—A regulated financial 

24 institution that is required to submit an im25 provement plan required under paragraph 


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1 (1)(B) shall submit the plan in writing to the 

2 appropriate Federal financial supervisory agen3 cy not later than 90 days after receiving notice 

4 that the regulated financial institution is re5 quired to submit the plan. 

6 ‘‘(B) PUBLIC COMMENT.—Upon receipt of 

7 an improvement plan of a regulated financial 

8 institution required under paragraph (1)(B), 

9 the appropriate Federal financial supervisory 

10 agency shall— 

11 ‘‘(i) make the plan available to the 

12 public for review and comment for a period 

13 of not less than 60 days; and 

14 ‘‘(ii) require the regulated financial 

15 institution to revise, as appropriate, the 

16 improvement plan in response to the public 

17 comments received under the public review 

18 and comment period described in clause (i) 

19 and submit the plan to the appropriate 

20 Federal financial supervisory agency not 

21 later than 60 days after the end of that pe22 riod. 

23 ‘‘(3) EXAMINATION OF CERTAIN REGULATED

24 FINANCIAL INSTITUTIONS.—In the case of a regu25 lated financial institution whose lending or other 


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•S 787 IS

1 business is not clustered in geographical areas and 

2 is thinly dispersed across the country, the institution 

3 shall— 

4 ‘‘(A) be evaluated under subsection (a) or 

5 (b), as applicable— 

6 ‘‘(i) by considering the effectiveness of 

7 the institution in serving customers or bor8 rowers, with a special emphasis on low9 and moderate-income individuals across the 

10 country regardless of where the individuals 

11 reside; and 

12 ‘‘(ii) based on objective thresholds de13 veloped by the appropriate Federal finan14 cial supervisory agencies to clarify when 

15 lending or other business is dispersed 

16 across the country and not clustered in 

17 distinct geographical areas, which may in18 clude low levels of lending or other finan19 cial products across States or other areas; 

20 and 

21 ‘‘(B) meet the needs of other distressed or 

22 underserved communities. 

23 ‘‘(d) CONSIDERATION.—Remediation of consumers 

24 pursuant to an order by an court or administrative body 

25 or a settlement with a government agency or a private 


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•S 787 IS

1 party shall not be considered in an assessment conducted 

2 under subsection (a)(2) or (b)(2). 

3 ‘‘(e) RULE OF CONSTRUCTION.—An evaluation of a 

4 bank holding company under this section shall incorporate 

5 evaluations of subsidiary regulated financial institutions 

6 made by the appropriate Federal financial supervisory 

7 agency of each subsidiary, if applicable.’’; 

8 (C) in subsection (f), as so redesignated— 

9 (i) by striking paragraph (2); 

10 (ii) by redesignating paragraph (3) as 

11 paragraph (2); and 

12 (iii) in paragraph (2), as so redesig13 nated, by striking subparagraph (C); and 

14 (D) in subsection (g), as so redesignated, 

15 by striking ‘‘subsection (a)’’ and inserting ‘‘sub16 sections (a) and (b)’’; 

17 (3) in section 807 (12 U.S.C. 2906)— 

18 (A) in subsection (a)— 

19 (i) by striking ‘‘an insured depository 

20 institution’’ and inserting ‘‘a regulated fi21 nancial institution’’; and 

22 (ii) by inserting ‘‘or financial’’ after 

23 ‘‘credit’’; 

24 (B) in subsection (b)— 

25 (i) in paragraph (1)— 


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1 (I) in subparagraph (A)— 

2 (aa) in clause (ii), by strik3 ing ‘‘and’’ at the end; 

4 (bb) by redesignating clause 

5 (iii) as clause (iv); and 

6 (cc) by inserting after clause 

7 (ii) the following: 

8 ‘‘(iii) disclose whether the institution en9 gaged in acts or practices that the Bureau of 

10 Consumer Financial Protection has determined, 

11 and has publicly disclosed, violate the enumer12 ated consumer laws; and’’; and 

13 (II) by striking subparagraph (B) 

14 and inserting the following: 

15 ‘‘(B) METROPOLITAN AREA DISTINCTIONS.— 

16 The information required under clauses (i) and (ii) 

17 of subparagraph (A) shall be presented separately 

18 for each assessment area. 

19 ‘‘(C) TREATMENT WITH RESPECT TO VIOLA20 TIONS OF ENUMERATED CONSUMER LAWS.—If a 

21 regulated financial institution has engaged in acts or 

22 practices that the appropriate Federal financial su23 pervisory agency has determined to be unfair, decep24 tive, or abusive or acts or practices that violate enu25 merated consumer laws intended to ensure the fair, 


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1 equitable, and nondiscriminatory access to credit for 

2 individuals and communities that are enforced by 

3 the Bureau of Consumer Financial Protection or 

4 other Federal or State agencies, the written evalua5 tion shall be negatively influenced in a manner com6 mensurate with the extent of the harm suffered by 

7 those individuals and communities.’’; 

8 (ii) in paragraph (2)— 

9 (I) by striking subparagraphs 

10 (A), (B), (C), and (D) and inserting 

11 the following: 

12 ‘‘(A) ‘Outstanding record of meeting com13 munity credit or other financial needs’. 

14 ‘‘(B) ‘Satisfactory record of meeting com15 munity credit or other financial needs’. 

16 ‘‘(C) ‘Sufficient record of meeting commu17 nity credit or other financial needs’. 

18 ‘‘(D) ‘Needs to improve record of meeting 

19 community credit or other financial needs’. 

20 ‘‘(E) ‘Substantial noncompliance in meet21 ing community credit or other financial 

22 needs’.’’; and 

23 (iii) by inserting after the flush text 

24 following paragraph (2) the following: 


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1 ‘‘(3) ADDITIONAL AUTHORITY.—The appro2 priate Federal financial supervisory agencies may— 

3 ‘‘(A) alter the ratings under this sub4 section to change or include additional ratings; 

5 and 

6 ‘‘(B) develop an accompanying point sys7 tem that includes ranges for each rating cat8 egory under paragraph (2).’’; 

9 (C) by redesignating subsection (e) as sub10 section (f); and 

11 (D) by inserting after subsection (d) the 

12 following: 

13 ‘‘(e) APPEALS OF RATING.—If a regulated financial 

14 institution appeals the assigned rating under this section, 

15 the appropriate Federal financial supervisory agency shall 

16 post a public notice of the appeal on the website of the 

17 appropriate Federal financial supervisory agency.’’; and 

18 (4) by adding at the end the following: 

19 ‘‘SEC. 810. DATA COLLECTION AND REPORTING REQUIRE20 MENTS. 

21 ‘‘(a) DATA COLLECTION.— 

22 ‘‘(1) SMALL BUSINESS AND SMALL FARM

23 LOANS.—Each regulated financial institution shall 

24 collect and maintain in machine readable form, as 

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1 pervisory agency, until the completion of the next ex2 amination under this title, the following data for 

3 each small business or small farm loan originated or 

4 purchased by the regulated financial institution: 

5 ‘‘(A) A unique number or alpha-numeric 

6 symbol that can be used to identify the relevant 

7 loan. 

8 ‘‘(B) The loan amount at origination. 

9 ‘‘(C) The loan location. 

10 ‘‘(D) An indicator whether the loan was to 

11 a business or farm with gross annual revenues 

12 of $1,000,000 or less. 

13 ‘‘(2) CONSUMER LOANS.—Each regulated finan14 cial institution shall collect and maintain in machine 

15 readable form, as prescribed by the appropriate Fed16 eral financial supervisory agency, data for consumer 

17 loans originated or purchased by the regulated fi18 nancial institution, including motor vehicle loans, 

19 credit cards, home equity loans, and other secured 

20 or unsecured loans. The regulated financial institu21 tion shall maintain data separately for each category 

22 of consumer loan, including the following for each 

23 loan: 


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1 ‘‘(A) A unique number or alpha-numeric 

2 symbol that can be used to identify the relevant 

3 loan. 

4 ‘‘(B) The loan amount at origination or 

5 purchase. 

6 ‘‘(C) The loan location. 

7 ‘‘(D) The gross annual income of the bor8 rower that the regulated financial institution 

9 considered in making its credit decision. 

10 ‘‘(3) COMMUNITY DEVELOPMENT LOANS AND

11 INVESTMENTS.—Each regulated financial institution 

12 shall collect and maintain in machine readable form, 

13 as prescribed by the appropriate Federal financial 

14 supervisory agency, data on the categories of com15 munity development lending and investments, includ16 ing data regarding financing affordable housing, 

17 small business development, and economic develop18 ment. 

19 ‘‘(4) ASSESSMENT AREA DATA.—Each regu20 lated financial institution shall collect and report to 

21 the appropriate Federal financial supervisory agency 

22 by March 1 of each year a list for each assessment 

23 area showing the geographies within the area. 

24 ‘‘(5) DEPOSITS.—The appropriate Federal Su25 pervisory agency shall collect data from regulated fiVerDate Sep 11 2014 23:59 Mar 26, 2019 Jkt 089200 PO 00000 Frm 00064 Fmt 6652 Sfmt 6201 E:\BILLS\S787.IS S787

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1 nancial institutions that reflects how many of the 

2 customers of those institutions are low- and mod3 erate-income customers and the services that are 

4 used by those customers. 

5 ‘‘(b) CRA SMALL BUSINESS DISCLOSURE STATE6 MENT.—The appropriate Federal financial supervisory 

7 agency shall prepare annually for each regulated financial 

8 institution that reports data pursuant to this section a 

9 statement to be known as the ‘CRA Small Business Dis10 closure Statement’ that contains, on a State-by-State 

11 basis, the following: 

12 ‘‘(1) For each county (and for each assessment 

13 area smaller than a county) with a population of 

14 500,000 persons or fewer in which the regulated fi15 nancial institution reported a small business or small 

16 farm loan: 

17 ‘‘(A) The number and amount of small 

18 business and small farm loans reported as origi19 nated or purchased located in low-, moderate-, 

20 middle-, and upper-income geographies. 

21 ‘‘(B) A list grouping each geography ac22 cording to whether the geography is low-, mod23 erate-, middle-, or upper-income. 


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1 ‘‘(C) A list showing each geography in 

2 which the regulated financial institution re3 ported a small business or small farm loan. 

4 ‘‘(D) The number and amount of small 

5 business and small farm loans to businesses 

6 and farms with gross annual revenues of 

7 $1,000,000 or less. 

8 ‘‘(2) For each county (and for each assessment 

9 area smaller than a county) with a population in ex10 cess of 500,000 in which the regulated financial in11 stitution reported a small business or small farm 

12 loan: 

13 ‘‘(A) The number and amount of small 

14 business and small farm loans reported as origi15 nated or purchased located in geographies with 

16 median income relative to the area median in17 come of less than 10 percent, 10 or more but 

18 less than 20 percent, 20 or more but less than 

19 30 percent, 30 or more but less than 40 per20 cent, 40 or more but less than 50 percent, 50 

21 or more but less than 60 percent, 60 or more 

22 but less than 70 percent, 70 or more but less 

23 than 80 percent, 80 or more but less than 90 

24 percent, 90 or more but less than 100 percent, 

25 100 or more but less than 110 percent, 110 or 


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1 more but less than 120 percent, and 120 per2 cent or more. 

3 ‘‘(B) A list grouping each geography in the 

4 county or assessment area according to whether 

5 the median income in the geography relative to 

6 the area median income is less than 10 percent, 

7 10 or more but less than 20 percent, 20 or 

8 more but less than 30 percent, 30 or more but 

9 less than 40 percent, 40 or more but less than 

10 50 percent, 50 or more but less than 60 per11 cent, 60 or more but less than 70 percent, 70 

12 or more but less than 80 percent, 80 or more 

13 but less than 90 percent, 90 or more but less 

14 than 100 percent, 100 or more but less than 

15 110 percent, 110 or more but less than 120 

16 percent, and 120 percent or more. 

17 ‘‘(C) A list showing each geography in 

18 which the regulated financial institution re19 ported a small business or small farm loan. 

20 ‘‘(D) The number and amount of small 

21 business and small farm loans to businesses 

22 and farms with gross annual revenues of 

23 $1,000,000 or less. 

24 ‘‘(3) The number and amount of small business 

25 and small farm loans located inside each assessment 


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1 area reported by the regulated financial institution 

2 and the number and amount of small business and 

3 small farm loans located outside the assessment 

4 areas reported by the regulated financial institution. 

5 ‘‘(4) The number and amount of community de6 velopment loans reported as originated or purchased. 

7 ‘‘(c) AGGREGATE DISCLOSURE STATEMENTS.— 

8 ‘‘(1) IN GENERAL.—Each appropriate Federal 

9 financial supervisory agency shall prepare annually, 

10 for each county and for each assessment area small11 er than a county, an aggregate disclosure statement 

12 of small business, small farm, and consumer lending 

13 by all regulated financial institutions subject to re14 porting under this section, which shall indicate, for 

15 each geography, the number and amount of all small 

16 business, small farm, and consumer loans originated 

17 or purchased by reporting regulated financial insti18 tutions. 

19 ‘‘(2) ADJUSTED FORM.—An appropriate Fed20 eral financial supervisory agency may adjust the 

21 form of the disclosure statement prepared under 

22 paragraph (1) if necessary, because of special cir23 cumstances, to protect the privacy of a borrower or 

24 the competitive position of a regulated financial in25 stitution. 


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1 ‘‘(d) CENTRAL DATA DEPOSITORIES.—The Federal 

2 Financial Institutions Examination Council, in consulta3 tion with the appropriate Federal financial supervisory 

4 agencies, shall implement a system— 

5 ‘‘(1) to allow the public to access online and in 

6 a searchable format the data maintained under 

7 paragraphs (1) through (4) of subsection (a); and 

8 ‘‘(2) that ensures that personally identifiable fi9 nancial information is not disclosed to public. 

10 ‘‘(e) LIMITATION.—An appropriate Federal financial 

11 supervisory agency may not use the authorities of the ap12 propriate Federal financial supervisory agency under this 

13 section to obtain a record from a regulated financial insti14 tution for the purpose of gathering or analyzing the per15 sonally identifiable financial information of a consumer.’’. 

16 (c) AMENDMENT TO THE BANK HOLDING COMPANY

17 ACT OF 1956.—Section 4(k)(6) of the Bank Holding 

18 Company Act of 1956 (12 U.S.C. 1843(k)(6)) is amended 

19 to read as follows: 

20 ‘‘(6) NOTICE AND OPPORTUNITY FOR COMMENT

21 REQUIRED.— 

22 ‘‘(A) IN GENERAL.—No financial holding 

23 company shall directly or indirectly acquire, and 

24 no company that becomes a financial holding 

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1 trol of, any company in the United States, in2 cluding through merger, consolidation, or other 

3 type of business combination, that is engaged in 

4 activities permitted under this subsection or 

5 subsection (n) or (o), unless— 

6 ‘‘(i) the holding company has provided 

7 notice to the Board, not later than 60 days 

8 prior to the proposed acquisition or prior 

9 to becoming a financial holding company, 

10 and during that time period, or such 

11 longer time period not exceeding an addi12 tional 60 days, as established by the 

13 Board; 

14 ‘‘(ii) the Board has provided public 

15 notice and opportunity for comment for 

16 not less than 60 days; and 

17 ‘‘(iii) the Board has not issued a no18 tice disapproving the proposed acquisition 

19 or retention. 

20 ‘‘(B) FACTORS FOR CONSIDERATION.—In 

21 reviewing any prior notice filed under this para22 graph, the Board shall— 

23 ‘‘(i) consider the overall rating of the 

24 financial holding company under the Com25 munity Reinvestment Act of 1977 (12 


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1 U.S.C. 2901 et seq.) and any improvement 

2 plans submitted pursuant to that Act; 

3 ‘‘(ii) provide opportunity for public 

4 comment for a period of not less than 60 

5 days; 

6 ‘‘(iii) consider changes in the commu7 nity reinvestment performance of the fi8 nancial holding company since the last rat9 ing under the Community Reinvestment 

10 Act of 1977 (12 U.S.C. 2901 et seq.) by 

11 the appropriate Federal financial super12 visory agency; and 

13 ‘‘(iv) require— 

14 ‘‘(I) a demonstration that grant15 ing the application for a deposit facil16 ity is in the public interest, which 

17 shall include submission to the appro18 priate Federal financial supervisory 

19 agency of a community benefits plan; 

20 ‘‘(II) that the institution consult 

21 with community-based organizations 

22 and other community stakeholders in 

23 developing the community benefits 

24 plan; and 


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1 ‘‘(III) a public hearing for any 

2 bank that has received a ‘need-to-im3 prove’ or ‘sufficient’ grade in any as4 sessment area during the last exam5 ination under the Community Rein6 vestment Act of 1977 (12 U.S.C. 

7 2901 et seq.).’’. 

8 (d) TECHNICAL AND CONFORMING AMENDMENT.— 

9 Section 10(c)(2)(H)(i) of the Home Owners’ Loan Act (12 

10 U.S.C. 1467a(c)(2)(H)(i)) is amended by striking ‘‘section 

11 804(c) of the Community Reinvestment Act of 1977 (12 

12 U.S.C. 2903(c))’’ and inserting ‘‘section 804(f) of the 

13 Community Reinvestment Act of 1977 (12 U.S.C. 

14 2903(f))’’. 

15 SEC. 204. AMENDMENTS RELATING TO CREDIT UNION 

16 SERVICE TO UNDERSERVED AREAS. 

17 (a) IN GENERAL.—The Federal Credit Union Act (12 

18 U.S.C. 1751 et seq.) is amended— 

19 (1) in section 101 (12 U.S.C. 1752)— 

20 (A) in paragraph (8), by striking ‘‘and’’ at 

21 the end; 

22 (B) in paragraph (9), by striking the pe23 riod at the end and inserting ‘‘; and’’; and 

24 (C) by adding at the end the following: 

25 ‘‘(10) the term ‘underserved area’— 


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1 ‘‘(A) means a local community, neighbor2 hood, or rural district that— 

3 ‘‘(i) is an investment area, as defined 

4 in section 103 of the Community Develop5 ment Banking and Financial Institutions 

6 Act of 1994 (12 U.S.C. 4702), that meets 

7 such additional requirements that the 

8 Board may impose; and 

9 ‘‘(ii) is underserved, based on data of 

10 the Board and the Federal banking agen11 cies (as defined in section 3 of the Federal 

12 Deposit Insurance Act (12 U.S.C. 1813)), 

13 by other depository institutions (as defined 

14 in section 19(b)(1)(A) of the Federal Re15 serve Act (12 U.S.C. 461(b)(1)(A)); and 

16 ‘‘(B) notwithstanding subparagraph (A), 

17 includes, with respect to any Federal credit 

18 union, any geographic area within which the 

19 credit union— 

20 ‘‘(i) has received approval to provide 

21 service before the date of enactment of this 

22 paragraph from the Administration; and 

23 ‘‘(ii) has established a service facility 

24 before that date of enactment.’’; 


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1 (2) in section 106 (12 U.S.C. 1756), by adding 

2 at the end the following: ‘‘The Board shall monitor 

3 adherence by a Federal credit union to a significant 

4 unmet needs plan submitted under section 109(h) by 

5 that Federal credit union that describes how the 

6 Federal credit union will serve the deposit and other 

7 financial needs of the community.’’; and 

8 (3) in section 109 (12 U.S.C. 1759)— 

9 (A) in subsection (c), by amending para10 graph (2) to read as follows: 

11 ‘‘(2) EXCEPTION FOR UNDERSERVED AREAS.— 

12 ‘‘(A) IN GENERAL.—Notwithstanding sub13 section (b), the Board may approve an applica14 tion by a Federal credit union to allow the 

15 membership of the credit union to include any 

16 person or organization whose principal resi17 dence or place of business is located within a 

18 local community, neighborhood, or rural district 

19 if— 

20 ‘‘(i) the Board determines— 

21 ‘‘(I) at any time after August 7, 

22 1998, that the local community, 

23 neighborhood, or rural district taken 

24 into account for purposes of this para25 graph is an underserved area; and 


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1 ‘‘(II) at the time of the approval, 

2 that the credit union is well capital3 ized or adequately capitalized (as de4 fined in section 216(c)(1)); and 

5 ‘‘(ii) before the end of the 24-month 

6 period beginning on the date of the ap7 proval, the credit union has established 

8 and maintains an ongoing method to pro9 vide services in the local community, neigh10 borhood, or rural district. 

11 ‘‘(B) TERMINATION OF APPROVAL.— 

12 ‘‘(i) IN GENERAL.—Any failure of a 

13 Federal credit union to meet the require14 ment of clause (ii) of subparagraph (A) by 

15 the end of the 24-month period referred to 

16 in that clause shall constitute a termi17 nation, as a matter of law, of any approval 

18 of an application under this paragraph by 

19 the Board with respect to the membership 

20 of the credit union. 

21 ‘‘(ii) SIGNIFICANT UNMET NEEDS

22 PLAN.—The Board may terminate the 

23 membership of a Federal credit union upon 

24 a finding that the credit union is not meet25 ing the terms of the significant unmet 


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1 needs plan of the credit union submitted 

2 under subsection (h)(1). 

3 ‘‘(C) CREDIT UNION REPORTING REQUIRE4 MENT.—Any Federal credit union that has an 

5 application approved under this paragraph 

6 shall, as part of the ordinary course of the ex7 amination cycle and supervision process, submit 

8 a report to the Administration that includes— 

9 ‘‘(i) the number of members of the 

10 credit union who are members by reason of 

11 the application; 

12 ‘‘(ii) the number of offices or facilities 

13 maintained by the credit union in the local 

14 community, neighborhood, or rural district 

15 taken into account by the Board in approv16 ing the application; and 

17 ‘‘(iii) evidence, as specified by the 

18 Board by regulation, demonstrating com19 pliance by the credit union with the signifi20 cant unmet needs plan submitted by the 

21 credit union under subsection (h)(1), as 

22 specified by the Administration. 

23 ‘‘(D) PUBLICATION BY ADMINISTRA24 TION.—The Administration shall publish an an25 nual report containing— 


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1 ‘‘(i) a list of all the applications ap2 proved under this paragraph before the 

3 date on which the report is published; 

4 ‘‘(ii) the number and locations of the 

5 underserved areas taken into account in 

6 approving those applications; 

7 ‘‘(iii) the total number of members of 

8 credit unions who are members by reason 

9 of the approval of those applications; and 

10 ‘‘(iv) evidence demonstrating compli11 ance by credit unions with significant 

12 unmet needs plans submitted by the credit 

13 unions under subsection (h)(1), as speci14 fied by the Administration.’’; 

15 (B) in subsection (e)(2), by inserting ‘‘sub16 section (c)(2) and’’ after ‘‘provided in’’; and 

17 (C) by adding at the end the following: 

18 ‘‘(h) ADDITIONAL REQUIREMENTS FOR COMMUNITY

19 CREDIT UNIONS.— 

20 ‘‘(1) IN GENERAL.—A Federal credit union de21 siring membership as a credit union described in 

22 subsection (b)(3) shall submit to the Board a busi23 ness plan, which shall include, among other issues, 

24 a marketing plan that identifies— 


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1 ‘‘(A) the unique needs of the various demo2 graphic groups in the proposed community; and 

3 ‘‘(B) how the credit union will market to 

4 each group, particularly underserved groups, to 

5 address those needs. 

6 ‘‘(2) PUBLIC COMMENT AND HEARING.—With 

7 respect to a Federal credit union desiring member8 ship as a credit union described in subsection (b)(3) 

9 for an area with multiple political jurisdictions with 

10 a population of not less than 2,500,000, the Admin11 istration shall— 

12 ‘‘(A) publish a notice in the Federal Reg13 ister seeking comment from interested parties 

14 about the proposed community; and 

15 ‘‘(B) conduct a public hearing regarding 

16 the application of the Federal credit union.’’. 

17 (b) REGULATIONS.—Not later than 1 year after the 

18 date of enactment of this Act, the National Credit Union 

19 Administration Board shall issue final regulations to im20 plement the amendments made by subsection (a). 


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1 TITLE III—REMOVING BARRIERS 

2 THAT ISOLATE COMMUNITIES 

3 SEC. 301. EXPANDING RIGHTS UNDER THE FAIR HOUSING 

4 ACT. 

5 (a) PURPOSES.—The purposes of the amendments 

6 made under this section are— 

7 (1) to expand, as well as clarify, confirm, and 

8 create greater consistency in, the protections against 

9 discrimination on the basis of all covered character10 istics; and 

11 (2) to provide guidance and notice to individ12 uals, organizations, corporations, and agencies re13 garding their obligations under Federal law. 

14 (b) AMENDMENTS TO THE FAIR HOUSING ACT.— 

15 The Fair Housing Act (42 U.S.C. 3601 et seq.) is amend16 ed— 

17 (1) in section 802 (42 U.S.C. 3602), by adding 

18 at the end the following: 

19 ‘‘(p) ‘Gender identity’ means the gender-related iden20 tity, appearance, or mannerisms or other gender-related 

21 characteristics of an individual, with or without regard to 

22 the individual’s designated sex at birth. 

23 ‘‘(q) ‘Marital status’ has the meaning given the term 

24 in section 202.2 of title 12, Code of Federal Regulations, 

25 or any successor regulation. 


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1 ‘‘(r) ‘Sexual orientation’ means homosexuality, het2 erosexuality, or bisexuality. 

3 ‘‘(s) ‘Source of income’ includes income for which 

4 there is a reasonable expectation that the income will con5 tinue from— 

6 ‘‘(1) a profession, occupation or job; 

7 ‘‘(2) any government or private assistance, 

8 grant, loan or rental assistance program, including 

9 low-income housing assistance certificates and 

10 vouchers issued under the United States Housing 

11 Act of 1937 (42 U.S.C. 1437 et seq.); 

12 ‘‘(3) a gift, an inheritance, a pension, an annu13 ity, alimony, child support, or other consideration or 

14 benefit; or 

15 ‘‘(4) the sale or pledge of property or an inter16 est in property. 

17 ‘‘(t) ‘Veteran status’ means— 

18 ‘‘(1) a member of the uniformed services, as de19 fined in section 101 of title 10, United States Code; 

20 or 

21 ‘‘(2) a veteran, as defined in section 101 of title 

22 38, United States Code.’’; 

23 (2) in section 804 (42 U.S.C. 3604)— 

24 (A) by inserting ‘‘actual or perceived’’ be25 fore ‘‘race, color’’ each place that term appears; 


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1 (B) by inserting ‘‘sexual orientation, gen2 der identity, marital status, source of income, 

3 veteran status,’’ after ‘‘sex,’’ each place that 

4 term appears; and 

5 (C) in subsection (c)— 

6 (i) by inserting ‘‘(1)’’ before ‘‘To 

7 make’’; and 

8 (ii) by adding at the end the fol9 lowing: 

10 ‘‘(2) Nothing in this title shall be construed to— 

11 ‘‘(A) prohibit a lender from implementing a 

12 loan program for veterans or based upon veteran 

13 status; or 

14 ‘‘(B) prohibit an entity from providing housing 

15 assistance under section 8(o)(19) of the United 

16 States Housing Act of 1937 (42 U.S.C. 

17 1437f(o)(19)), the Homeless Providers Grant and 

18 Per Diem program of the Department of Veterans 

19 Affairs, or any other Federal housing assistance pro20 gram for veterans or based upon veterans status.’’; 

21 (3) in section 805 (42 U.S.C. 3605)— 

22 (A) by inserting ‘‘actual or perceived’’ be23 fore ‘‘race, color’’ each place that term appears; 

24 and 


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1 (B) by inserting ‘‘sexual orientation, gen2 der identity, marital status, source of income, 

3 veteran status,’’ after ‘‘sex,’’ each place that 

4 term appears; 

5 (4) in section 806 (42 U.S.C. 3606)— 

6 (A) by inserting ‘‘actual or perceived’’ be7 fore ‘‘race, color’’; and 

8 (B) by inserting ‘‘sexual orientation, gen9 der identity, marital status, source of income, 

10 veteran status,’’ after ‘‘sex,’’; and 

11 (5) in section 807 (42 U.S.C. 3607), by adding 

12 at the end the following: 

13 ‘‘(c) Nothing in this title limits the ability of the 

14 owner of a dwelling owner to determine, in a commercially 

15 reasonable and non-discriminatory manner, the ability of 

16 a person to afford to purchase or rent the dwelling.’’. 

17 (c) PREVENTION OF INTIMIDATION.—Section 901 of 

18 the Civil Rights Act of 1968 (42 U.S.C. 3631) is amend19 ed— 

20 (1) by inserting ‘‘actual or perceived’’ before 

21 ‘‘race, color’’ each place that term appears; and 

22 (2) by inserting ‘‘sexual orientation (as defined 

23 in section 802), gender identity (as defined in sec24 tion 802), marital status (as defined in section 802), 

25 source of income (as defined in section 802), veteran 


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1 status (as defined in section 802),’’ after ‘‘sex,’’ each 

2 place that term appears. 

3 (d) RULE OF CONSTRUCTION.—Nothing in the 

4 amendments made by this section shall be construed to 

5 mean that a particular class of individuals was not pro6 tected against discrimination under existing Federal law. 

7 SEC. 302. IMPROVING OUTCOMES IN HOUSING ASSISTANCE 

8 PROGRAMS. 

9 (a) INDIAN HOUSING ASSISTANCE.—Section 502 of 

10 the Native American Housing Assistance and Self-Deter11 mination Act of 1996 (25 U.S.C. 4181) is amended by 

12 adding at the end the following: 

13 ‘‘(c) APPLICABILITY.—Subsections (a) and (b) shall 

14 not apply with respect to tenant-based assistance provided 

15 under section 8(o) of the United States Housing Act of 

16 1937 (42 U.S.C. 1437f(o)).’’. 

17 (b) SUPPLEMENTAL ADMINISTRATIVE FEE.—Section 

18 8(q)(2)(B) of the United States Housing Act of 1937 (42 

19 U.S.C. 1437f(q)(2)(B)) is amended by inserting ‘‘, includ20 ing the cost of assisting families with children or families 

21 with a member with a disability that move to lower pov22 erty, higher opportunity neighborhoods (as determined by 

23 the Secretary based on objective, evidence-based criteria)’’ 

24 after ‘‘programs’’. 


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1 (c) REGIONAL PLANNING TO INCREASE ACCESS TO

2 HIGHER OPPORTUNITY AREAS.—Section 8(o) of the 

3 United States Housing Act of 1937 (42 U.S.C. 1437f(o)) 

4 is amended by adding at the end the following: 

5 ‘‘(21) INCREASE ACCESS TO HIGHER OPPOR6 TUNITY AREAS.— 

7 ‘‘(A) LOCATION ANALYSIS.— 

8 ‘‘(i) IN GENERAL.—A public housing 

9 agency that administers the program 

10 under this subsection in a metropolitan 

11 area shall— 

12 ‘‘(I) analyze the locations where 

13 the participants of the program of the 

14 public housing agency live; and 

15 ‘‘(II) based on the analysis de16 scribed in subclause (I), establish poli17 cies and practices to reduce disparities 

18 and barriers to access to locations 

19 throughout the metropolitan area that 

20 evidence indicates are more likely to 

21 improve outcomes for children or 

22 adults. 

23 ‘‘(ii) CONSIDERATIONS.—The location 

24 analysis required under this subparagraph 

25 shall— 


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1 ‘‘(I) consider separately the loca2 tions of families with children, house3 holds that include a person with dis4 abilities, and other groups protected 

5 under the Fair Housing Act (42 

6 U.S.C. 3601 et seq.); and 

7 ‘‘(II) include an analysis of the 

8 locations in relation to dwelling units 

9 with rents that are potentially afford10 able to voucher holders and the likely 

11 impact of key neighborhood attributes 

12 on their well-being and long-term suc13 cess, based on Federal and available 

14 local data. 

15 ‘‘(iii) MAPPING TOOLS.—The Sec16 retary shall— 

17 ‘‘(I) provide mapping tools and 

18 other information necessary for a pub19 lic housing agency to perform the lo20 cation analysis under this subpara21 graph using the demographic data on 

22 participating families submitted to the 

23 Secretary under part 908 of title 24, 

24 Code of Federal Regulations, or any 

25 successor regulation; 


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1 ‘‘(II) publish a notice in the Fed2 eral Register, subject to public com3 ment, that specifies the data sources 

4 and definitions that will be incor5 porated in each mapping tool required 

6 under subclause (I); and 

7 ‘‘(III) update the notice required 

8 under subclause (II) as needed based 

9 on changes in the availability of rel10 evant data or evidence of neighbor11 hood attributes likely to impact the 

12 well-being and long-term success of 

13 participants in the program under this 

14 subsection. 

15 ‘‘(iv) FREQUENCY AND AVAIL16 ABILITY.—The location analysis required 

17 under this subparagraph shall— 

18 ‘‘(I) be performed by each public 

19 housing agency described in clause (i) 

20 not less frequently than once every 5 

21 years; 

22 ‘‘(II) be performed by all public 

23 housing agencies in a metropolitan 

24 area in the same year, as determined 

25 by the Secretary; and 


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1 ‘‘(III) be made available to the 

2 public in a manner that protects the 

3 privacy of program participants. 

4 ‘‘(B) REGIONAL POLICIES TO INCREASE

5 ACCESS TO HIGHER OPPORTUNITY NEIGHBOR6 HOODS.—Each public housing agency described 

7 in subparagraph (A)(i) shall— 

8 ‘‘(i) consult with other such public 

9 housing agencies in the same metropolitan 

10 area, or smaller regional area approved by 

11 the Secretary, about the possible barriers 

12 and other reasons for the disparities iden13 tified in the location analysis required 

14 under subparagraph (A); 

15 ‘‘(ii) identify policies or practices that 

16 those public housing agencies could adopt 

17 individually or in collaboration, or other 

18 strategies that recipients of grants or other 

19 funding from the Secretary could adopt, to 

20 reduce the barriers and disparities and in21 crease the share of families with children 

22 and other demographic groups using 

23 vouchers in higher-opportunity neighbor24 hoods in the metropolitan area or region; 

25 and 


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1 ‘‘(iii) include in the administrative 

2 plan required under section 982.54 of title 

3 24, Code of Federal Regulations, or any 

4 successor regulation, the policies that the 

5 public housing agency has adopted under 

6 this paragraph. 

7 ‘‘(C) ASSESSMENT.—The Secretary shall 

8 include public housing agency performance in 

9 achieving the goal described in subparagraph 

10 (A)(i)(II) in the periodic assessment of agency 

11 performance in managing the program under 

12 this subsection required under part 985 of title 

13 24, Code of Federal Regulations, or any suc14 cessor regulation.’’. 

15 (d) REQUIRED REGULATORY CHANGES TO PUBLIC

16 HOUSING AGENCY CONSORTIA.— 

17 (1) DEFINITIONS.—In this subsection: 

18 (A) MOVING TO WORK DEMONSTRATION

19 PROGRAM.—The term ‘‘Moving to Work dem20 onstration program’’ means the program estab21 lished under section 204 of the Departments of 

22 Veterans Affairs and Housing and Urban De23 velopment, and Independent Agencies Appro24 priations Act, 1996 (Public Law 104–134; 110 

25 Stat. 1321–281). 


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1 (B) PUBLIC HOUSING AGENCY.—The term 

2 ‘‘public housing agency’’ has the meaning given 

3 the term in section 3(b)(6) of the United States 

4 Housing Act of 1937 (42 U.S.C. 1437a(b)(6)). 

5 (2) REQUIREMENT.—Not later than 1 year 

6 after the date of enactment of this Act, the Sec7 retary of Housing and Urban Development shall es8 tablish policies and procedures that— 

9 (A) enable public housing agencies that 

10 elect to operate in consortia under section 13(a) 

11 of the United States Housing Act of 1937 (42 

12 U.S.C. 1437k(a)), excluding public housing 

13 agencies participating in the Moving to Work 

14 demonstration program— 

15 (i) to consolidate their funding con16 tracts for assistance provided under section 

17 8(o) of such Act (42 U.S.C. 1437f(o)) into 

18 a single contract; 

19 (ii) to consolidate their funding con20 tracts for assistance provided under sub21 sections (d) and (e) of section 9 of such 

22 Act (42 U.S.C. 1437g); or 

23 (iii) to exercise the consolidation op24 tions under each of clauses (i) and (ii); and 


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1 (B) enable public housing agencies to form 

2 partial consortia under such section 13(a) (42 

3 U.S.C. 1437k(a)) that consolidate the adminis4 tration of certain aspects of their housing pro5 grams to increase access to higher-opportunity 

6 areas or for other purposes, subject to such re7 quirements as the Secretary may establish. 

8 (3) MOVING TO WORK AGENCIES.—Any flexi9 bility or waiver applicable to the Moving to Work 

10 demonstration program shall not apply to any activi11 ties or funds administered through a partial con12 sortia formed under paragraph (2)(B) by 1 or more 

13 public housing agencies participating in the Moving 

14 to Work demonstration program. 

15 TITLE IV—ESTATE TAX REFORM 

16 SEC. 401. AMENDMENT TO INTERNAL REVENUE CODE OF 

17 1986. 

18 Except as otherwise expressly provided, whenever in 

19 this title an amendment or repeal is expressed in terms 

20 of an amendment to, or repeal of, a section or other provi21 sion, the reference shall be considered to be made to a 

22 section or other provision of the Internal Revenue Code 

23 of 1986. 


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1 SEC. 402. RATE ADJUSTMENT. 

2 (a) INCREASE IN ESTATE TAX RATES.—The table 

3 contained in section 2001(c) is amended to read as follows: 

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. 

4 (b) REDUCTION OF BASIC EXCLUSION AMOUNT.— 

5 Paragraph (3) of section 2010(c) is amended to read as 

6 follows: 

7 ‘‘(3) BASIC EXCLUSION AMOUNT.—For pur8 poses of this subsection, the basic exclusion amount 

9 is $3,500,000.’’. 

10 (c) SURTAX ON BILLION DOLLAR ESTATES.—Section 

11 2001 is amended— 

12 (1) in subsection (b), by striking ‘‘The tax’’ and 

13 inserting ‘‘Subject to subsection (h), the tax’’, and 

14 (2) by adding at the end the following new sub15 section: 

16 ‘‘(h) SURTAX ON BILLION DOLLAR ESTATES.— 

17 ‘‘(1) IN GENERAL.—In the case of a taxable es18 tate for which the applicable amount is in excess of 

19 $1,000,000,000, the tax determined under subVerDate Sep 11 2014 23:59 Mar 26, 2019 Jkt 089200 PO 00000 Frm 00091 Fmt 6652 Sfmt 6201 E:\BILLS\S787.IS S787

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1 section (b) shall be increased by an amount equal to 

2 10 percent of such applicable amount. 

3 ‘‘(2) APPLICABLE AMOUNT.—For purposes of 

4 this subsection, the applicable amount shall be equal 

5 to the sum of the amounts under subparagraphs (A) 

6 and (B) of paragraph (1) of subsection (b) for the 

7 taxable estate.’’. 

8 SEC. 403. REQUIRED MINIMUM 10-YEAR TERM, ETC., FOR 

9 GRANTOR RETAINED ANNUITY TRUSTS. 

10 (a) IN GENERAL.—Subsection (b) of section 2702 is 

11 amended— 

12 (1) by redesignating paragraphs (1), (2), and 

13 (3) as subparagraphs (A), (B), and (C), respectively, 

14 and by moving such subparagraphs (as so redesig15 nated) 2 ems to the right; 

16 (2) by striking ‘‘For purposes of’’ and inserting 

17 the following: 

18 ‘‘(1) IN GENERAL.—For purposes of’’; 

19 (3) by striking ‘‘paragraph (1) or (2)’’ in para20 graph (1)(C) (as so redesignated) and inserting 

21 ‘‘subparagraph (A) or (B)’’; and 

22 (4) by adding at the end the following new 

23 paragraph: 

24 ‘‘(2) ADDITIONAL REQUIREMENTS WITH RE25 SPECT TO GRANTOR RETAINED ANNUITIES.—For 


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1 purposes of subsection (a), in the case of an interest 

2 described in paragraph (1)(A) (determined without 

3 regard to this paragraph) which is retained by the 

4 transferor, such interest shall be treated as de5 scribed in such paragraph only if— 

6 ‘‘(A) the right to receive the fixed amounts 

7 referred to in such paragraph is for a term of 

8 not less than 10 years, 

9 ‘‘(B) such fixed amounts, when determined 

10 on an annual basis, do not decrease relative to 

11 any prior year during the first 10 years of the 

12 term referred to in subparagraph (A), and 

13 ‘‘(C) the remainder interest has a value 

14 equal to or greater than 10 percent of the value 

15 of the assets transferred to the trust, deter16 mined as of the time of the transfer.’’. 

17 (b) EFFECTIVE DATE.—The amendments made by 

18 this section shall apply to transfers made after the date 

19 of the enactment of this Act. 

20 SEC. 404. CERTAIN TRANSFER TAX RULES APPLICABLE TO 

21 GRANTOR TRUSTS. 

22 (a) IN GENERAL.—Subtitle B is amended by adding 

23 at the end the following new chapter: 


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1 ‘‘CHAPTER 16—SPECIAL RULES FOR 

2 GRANTOR TRUSTS 

‘‘Sec. 2901. Application of transfer taxes. 

3 ‘‘SEC. 2901. APPLICATION OF TRANSFER TAXES. 

4 ‘‘(a) IN GENERAL.—In the case of any portion of a 

5 trust to which this section applies— 

6 ‘‘(1) the value of the gross estate of the de7 ceased deemed owner of such portion shall include 

8 all assets attributable to that portion at the time of 

9 the death of such owner, 

10 ‘‘(2) any distribution from such portion to one 

11 or more beneficiaries during the life of the deemed 

12 owner of such portion shall be treated as a transfer 

13 by gift for purposes of chapter 12, and 

14 ‘‘(3) if at any time during the life of the 

15 deemed owner of such portion, such owner ceases to 

16 be treated as the owner of such portion under sub17 part E of part 1 of subchapter J of chapter 1, all 

18 assets attributable to such portion at such time shall 

19 be treated for purposes of chapter 12 as a transfer 

20 by gift made by the deemed owner. 

21 ‘‘(b) PORTION OF TRUST TO WHICH SECTION AP22 PLIES.—This section shall apply to— 

23 ‘‘(1) the portion of a trust with respect to 

24 which the grantor is the deemed owner, and 


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1 ‘‘(2) the portion of the trust to which a person 

2 who is not the grantor is a deemed owner by reason 

3 of the rules of subpart E of part 1 of subchapter J 

4 of chapter 1, and such deemed owner engages in a 

5 sale, exchange, or comparable transaction with the 

6 trust that is disregarded for purposes of subtitle A. 

7 For purposes of paragraph (2), the portion of the trust 

8 described with respect to a transaction is the portion of 

9 the trust attributable to the property received by the trust 

10 in such transaction, including all retained income there11 from, appreciation thereon, and reinvestments thereof, net 

12 of the amount of consideration received by the deemed 

13 owner in such transaction. 

14 ‘‘(c) EXCEPTIONS.—This section shall not apply to— 

15 ‘‘(1) any trust that is includible in the gross es16 tate of the deemed owner (without regard to sub17 section (a)(1)), and 

18 ‘‘(2) any other type of trust that the Secretary 

19 determines by regulations or other guidance does not 

20 have as a significant purpose the avoidance of trans21 fer taxes. 

22 ‘‘(d) DEEMED OWNER DEFINED.—For purposes of 

23 this section, the term ‘deemed owner’ means any person 

24 who is treated as the owner of a portion of a trust under 

25 subpart E of part 1 of subchapter J of chapter 1. 


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1 ‘‘(e) REDUCTION FOR TAXABLE GIFTS TO TRUST

2 MADE BY OWNER.—The amount to which subsection (a) 

3 applies shall be reduced by the value of any transfer by 

4 gift by the deemed owner to the trust previously taken 

5 into account by the deemed owner under chapter 12. 

6 ‘‘(f) LIABILITY FOR PAYMENT OF TAX.—Any tax im7 posed pursuant to subsection (a) shall be a liability of the 

8 trust.’’. 

9 (b) CLERICAL AMENDMENT.—The table of chapters 

10 for subtitle B is amended by adding at the end the fol11 lowing new item: 

‘‘CHAPTER 16. SPECIAL RULES FOR GRANTOR TRUSTS’’. 

12 (c) EFFECTIVE DATE.—The amendments made by 

13 this section shall apply— 

14 (1) to trusts created on or after the date of the 

15 enactment of this Act; 

16 (2) to any portion of a trust established before 

17 the date of the enactment of this Act which is attrib18 utable to a contribution made on or after such date; 

19 and 

20 (3) to any portion of a trust established before 

21 the date of the enactment of this Act to which sec22 tion 2901(a) of the Internal Revenue Code of 1986 

23 (as added by subsection (a)) applies by reason of a 

24 transaction described in section 2901(b)(2) of such 

25 Code on or after such date. 


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1 SEC. 405. ELIMINATION OF GENERATION-SKIPPING TRANS2 FER TAX EXEMPTION FOR CERTAIN TRUSTS. 

3 (a) IN GENERAL.—Section 2642 is amended by add4 ing at the end the following new subsection: 

5 ‘‘(h) ELIMINATION OF GST EXEMPTION FOR CER6 TAIN TRUSTS.— 

7 ‘‘(1) IN GENERAL.— 

8 ‘‘(A) TRANSFERS FROM NON-QUALIFYING

9 TRUSTS.—In the case of any generation-skip10 ping transfer made from a trust that is not a 

11 qualifying trust, the inclusion ratio with respect 

12 to any property transferred in such transfer 

13 shall be 1. 

14 ‘‘(B) QUALIFYING TRUST.—For purposes 

15 of this subsection, the term ‘qualifying trust’ 

16 means a trust for which the date of termination 

17 of such trust is not greater than 50 years after 

18 the date on which such trust is created. 

19 ‘‘(2) TRUSTS CREATED BEFORE DATE OF EN20 ACTMENT.—In the case of any trust created before 

21 the date of the enactment of this subsection, such 

22 trust shall be deemed to be a qualifying trust for a 

23 period of 50 years after the date of the enactment 

24 of this subsection. 

25 ‘‘(3) DATE OF CREATION OF CERTAIN DEEMED

26 SEPARATE TRUSTS.—In the case of any portion of a 


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1 trust which is treated as a separate trust under sec2 tion 2654(b)(1), such separate trust shall be treated 

3 as created on the date of the first transfer described 

4 in such section with respect to such separate trust. 

5 ‘‘(4) DATE OF CREATION OF POUR-OVER

6 TRUSTS.—In the case of any generation-skipping 

7 transfer of property which involves the transfer of 

8 property from 1 trust to another trust, the date of 

9 the creation of the transferee trust shall be treated 

10 as being the earlier of— 

11 ‘‘(A) the date of the creation of such trans12 feree trust, or 

13 ‘‘(B) the date of the creation of the trans14 feror trust. 

15 In the case of multiple transfers to which the pre16 ceding sentence applies, the date of the creation of 

17 the transferor trust shall be determined under the 

18 preceding sentence before the application of the pre19 ceding sentence to determine the date of the creation 

20 of the transferee trust. 

21 ‘‘(5) REGULATIONS.—The Secretary may pre22 scribe such regulations or other guidance as may be 

23 necessary or appropriate to carry out this sub24 section.’’. 


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1 (b) EFFECTIVE DATE.—The amendments made by 

2 this section shall take effect on the date of the enactment 

3 of this Act. 

4 SEC. 406. SIMPLIFYING GIFT TAX EXCLUSION FOR ANNUAL 

5 GIFTS. 

6 (a) IN GENERAL.—Paragraph (1) of section 2503(b) 

7 is amended to read as follows: 

8 ‘‘(1) IN GENERAL.— 

9 ‘‘(A) LIMIT PER DONEE.—In the case of 

10 gifts made to any person by the donor during 

11 the calendar year, the first $10,000 of such 

12 gifts to such person shall not, for purposes of 

13 subsection (a), be included in the total amount 

14 of gifts made during such year. 

15 ‘‘(B) CUMULATIVE LIMIT PER DONOR.— 

16 ‘‘(i) IN GENERAL.—The aggregate 

17 amount excluded under subparagraph (A) 

18 with respect to all transfers described in 

19 clause (ii) made by the donor during the 

20 calendar year shall not exceed twice the 

21 dollar amount in effect under such sub22 paragraph for such calendar year. 

23 ‘‘(ii) TRANSFERS SUBJECT TO LIMITA24 TION.—The transfers described in this 

25 clause are— 


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1 ‘‘(I) a transfer in trust, 

2 ‘‘(II) a transfer of an interest in 

3 a passthrough entity, 

4 ‘‘(III) a transfer of an interest 

5 subject to a prohibition on sale, and 

6 ‘‘(IV) any other transfer of prop7 erty that, without regard to with8 drawal, put, or other such rights in 

9 the donee, cannot immediately be liq10 uidated by the donee.’’. 

11 (b) CONFORMING AMENDMENT.—Section 2503 is 

12 amended by striking subsection (c). 

13 (c) REGULATIONS.—The Secretary of the Treasury, 

14 or the Secretary of the Treasury’s delegate, may prescribe 

15 such regulations or other guidance as may be necessary 

16 or appropriate to carry out the amendments made by this 

17 section. 

18 (d) EFFECTIVE DATE.—The amendments made by 

19 this section shall apply to any calendar year beginning 

20 after the date of the enactment of this Act. 

Æ 


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