II 

118TH CONGRESS 

2D SESSION S. 4824 

To make housing more affordable, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JULY 29, 2024 

Ms. WARREN (for herself, Mr. WARNOCK, Mr. BLUMENTHAL, Ms. HIRONO, 

Mr. MARKEY, Mr. MERKLEY, Mr. SANDERS, and Mr. WELCH) 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 2024’’. 

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 first-time homebuyers. 

Sec. 202. Formula grant program for communities with an appraisal gap. 

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

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

Sec. 205. Raising public welfare caps. 

Sec. 206. Temporary eligibility of certain direct descendants of certain veterans 

for housing loans guaranteed by the Secretary of Veterans Affairs. 

TITLE III—REMOVING BARRIERS THAT ISOLATE COMMUNITIES 

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

Sec. 302. Improving outcomes in housing assistance programs. 

TITLE IV—ESTATE TAX REFORM 

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

Sec. 402. Rate adjustment. 

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

trusts. 

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

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

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

Sec. 407. Clarification regarding disallowance of step-up in basis for property 

held in certain grantor trusts. 

Sec. 408. Limitation on discounts; valuation rules for certain transfers of nonbusiness assets. 

Sec. 409. Surcharge on high income estates and trusts. 

Sec. 410. Modification of rules for value of certain farm, etc., real property. 

Sec. 411. Modification of estate tax rules with respect to land subject to conservation easements. 

TITLE V—ACCESSIBILITY REQUIREMENTS 

Sec. 501. Accessibility requirements. 

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 


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1 in section 8101 of the Elementary and Secondary 

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

3 (2) ELIGIBLE ENTITY.—The term ‘‘eligible enti4 ty’’ means— 

5 (A) a State; 

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

7 (C) an Indian tribe. 

8 (3) INDIAN TRIBE.—The term ‘‘Indian tribe’’ 

9 has the meaning given the term in section 4 of the 

10 Native American Housing Assistance and Self-De11 termination Act of 1996 (25 U.S.C. 4103). 

12 (4) INSTITUTION OF HIGHER EDUCATION.—The 

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

14 meaning given the term in section 101 of the Higher 

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

16 (5) METROPOLITAN AREA; STATE; UNIT OF

17 GENERAL LOCAL GOVERNMENT.—The terms ‘‘metro18 politan area’’, ‘‘State’’, and ‘‘unit of general local 

19 government’’ have the meanings given those terms in 

20 section 102 of the Housing and Community Devel21 opment Act of 1974 (42 U.S.C. 5302). 

22 (6) SECRETARY.—The term ‘‘Secretary’’ means 

23 the Secretary of Housing and Urban Development. 

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

25 the date of enactment of this Act, the Secretary shall esVerDate Sep 11 2014 04:30 Aug 28, 2024 Jkt 049200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S4824.IS S4824

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1 tablish a program to award grants on a competitive basis 

2 to eligible entities to— 

3 (1) reform local land use restrictions to bring 

4 down the costs of producing affordable housing; and 

5 (2) remove unnecessary barriers to building af6 fordable units in their communities. 

7 (c) ELIGIBLE ACTIVITIES.—An eligible entity receiv8 ing a grant under this section may use funds to— 

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

10 section 105 of the Housing and Community Devel11 opment Act of 1974 (42 U.S.C. 5305); 

12 (2) carry out any of the activities permitted 

13 under the Local and Regional Project Assistance 

14 Program under section 6702 of title 49, United 

15 States Code; or 

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

17 by public elementary schools, public secondary 

18 schools, and public institutions of higher education, 

19 including modernization, renovation, and repairs 

20 that— 

21 (A) promote physical, sensory, and envi22 ronmental accessibility; and 

23 (B) are consistent with a recognized green 

24 building rating system. 

25 (d) APPLICATION.— 


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

2 grant under this section shall submit to the Sec3 retary an application that demonstrates that the eli4 gible entity has carried out, or is in the process of 

5 carrying out, initiatives that facilitate the expansion 

6 of the supply of well-located affordable housing. 

7 (2) ACTIVITIES.—Initiatives that meet the cri8 teria described in paragraph (1)— 

9 (A) include— 

10 (i) establishing ‘‘by-right’’ develop11 ment, which allows jurisdictions to admin12 istratively approve new developments that 

13 are consistent with their zoning code; 

14 (ii) revising or eliminating off-street 

15 parking requirements to reduce the cost of 

16 housing production; 

17 (iii) instituting measures that 

18 incentivize owners of vacant land to rede19 velop the space into affordable housing or 

20 other productive uses; 

21 (iv) revising minimum lot size require22 ments and bans or limits on multifamily 

23 construction to allow for denser and more 

24 affordable development; 


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1 (v) instituting incentives to promote 

2 dense development, such as density bo3 nuses; 

4 (vi) passing inclusionary zoning ordi5 nances that require a portion of newly de6 veloped units to be reserved for low- and 

7 moderate-income renters or homebuyers; 

8 (vii) streamlining regulatory require9 ments and shortening processes, reforming 

10 zoning codes, or other initiatives that re11 duce barriers to housing supply elasticity 

12 and affordability; 

13 (viii) allowing accessory dwelling 

14 units; 

15 (ix) using local tax incentives to pro16 mote development of affordable housing; 

17 and 

18 (x) implementing measures that pro19 tect tenants from harassment and displace20 ment, including— 

21 (I) providing access to counsel 

22 for tenants facing eviction; 

23 (II) the prohibition of eviction ex24 cept for just cause; 


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1 (III) measures intended to pre2 vent or mitigate sudden increases in 

3 rents; 

4 (IV) the repeal of laws that pre5 vent localities from implementing a 

6 measure described in subclause (I), 

7 (II), or (III); 

8 (V) protections against construc9 tive eviction; 

10 (VI) tenant right-to-organize 

11 laws; 

12 (VII) a cause of action for ten13 ants to sue landlords who threaten or 

14 begin an illegal eviction; and 

15 (VIII) landlord-tenant mediation 

16 or other non-eviction diversion pro17 grams; and 

18 (B) do not include activities that alter or19 dinances that govern wage and hour laws, fam20 ily and medical leave laws, health and safety re21 quirements, prevailing wage laws, or protections 

22 for workers’ health and safety, anti-discrimina23 tion, and right to organize. 

24 (3) RELATION TO CONSOLIDATED PLAN.—An 

25 eligible entity shall include in an application subVerDate Sep 11 2014 04:30 Aug 28, 2024 Jkt 049200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S4824.IS S4824

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1 mitted under paragraph (1) a description of how the 

2 planning and development of eligible activities de3 scribed in subsection (c) may advance an objective, 

4 or an aspect of an objective, included in the com5 prehensive housing affordability strategy and com6 munity development plan of the eligible entity under 

7 part 91 of title 24, Code of Federal Regulations, or 

8 any successor regulation (commonly referred to as a 

9 ‘‘consolidated plan’’). 

10 (e) LABOR LAWS.— 

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

12 employed by contractors or subcontractors in the 

13 performance of construction work financed in whole 

14 or in part with a grant received under this section 

15 shall be paid wages at rates not less than those pre16 vailing on similar construction in the locality, as de17 termined by the Secretary of Labor in accordance 

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

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

20 Act’’). 

21 (2) AUTHORITY AND FUNCTIONS.—With re22 spect to the labor standards specified in paragraph 

23 (1), the Secretary of Labor shall have the authority 

24 and functions set forth in Reorganization Plan 

25 Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C. 


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1 App.) and section 3145 of title 40, United States 

2 Code. 

3 (f) AUTHORIZATION OF APPROPRIATIONS.—There is 

4 authorized to be appropriated to carry out this section 

5 $2,000,000,000 for each of fiscal years 2025 through 

6 2029. 

7 SEC. 102. INVESTING IN AFFORDABLE HOUSING INFRA8 STRUCTURE. 

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

10 Federal Housing Enterprises Financial Safety and Sound11 ness Act of 1992 (12 U.S.C. 4568(a)) is amended by add12 ing at the end the following: 

13 ‘‘(3) AUTHORIZATION OF APPROPRIATIONS.— 

14 There is authorized to be appropriated to the Hous15 ing Trust Fund $44,500,000,000 for each of fiscal 

16 years 2025 through 2034.’’. 

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

18 Federal Housing Enterprises Financial Safety and Sound19 ness Act of 1992 (12 U.S.C. 4569) is amended by adding 

20 at the end the following: 

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

22 is authorized to be appropriated to the Capital Magnet 

23 Fund $2,500,000,000 for each of fiscal years 2025 

24 through 2034.’’. 


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1 (c) PUBLIC HOUSING CAPITAL FUND.—Section 

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

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

4 ‘‘(A) CAPITAL FUND.—For allocations of 

5 assistance from the Capital Fund, 

6 $70,000,000,000 for fiscal year 2025.’’. 

7 (d) INDIAN HOUSING BLOCK GRANT PROGRAM.— 

8 Section 108 of the Native American Housing Assistance 

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

10 amended— 

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

12 for each of fiscal years 2009 through 2013’’ and in13 serting ‘‘$2,500,000,000 for fiscal year 2025 and 

14 such sums as may be necessary for each of fiscal 

15 years 2026 through 2034’’; and 

16 (2) by striking the second sentence. 

17 (e) NATIVE HAWAIIAN HOUSING BLOCK GRANT PRO18 GRAM.—Section 824 of the Native American Housing As19 sistance and Self-Determination Act of 1996 (25 U.S.C. 

20 4243) is amended by striking ‘‘such sums as may be nec21 essary for each of fiscal years 2001, 2002, 2003, 2004, 

22 and 2005’’ and inserting ‘‘$50,000,000 for fiscal year 

23 2025 and such sums as may be necessary for each of fiscal 

24 years 2026 through 2034’’. 


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

2 the Treasury not otherwise appropriated, there is appro3 priated for fiscal year 2025— 

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

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

6 $420,000,000; 

7 (2) to provide assistance under section 514 of 

8 such Act (42 U.S.C. 1484), $54,000,000; 

9 (3) to provide assistance under section 515 of 

10 such Act (42 U.S.C. 1485), $420,000,000; 

11 (4) to provide assistance under section 516 of 

12 such Act (42 U.S.C. 1486), $75,000,000; 

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

14 Act (42 U.S.C. 1490c), $75,000,000; and 

15 (6) to provide funding to carry out the Multi16 family Preservation and Revitalization Demonstra17 tion Program of the Rural Housing Service (as au18 thorized under sections 514, 515, and 516 of such 

19 Act (42 U.S.C. 1484, 1485, 1486)), $240,000,000. 

20 (g) MIDDLE CLASS HOUSING EMERGENCY FUND.— 

21 (1) DEFINITIONS.—In this subsection— 

22 (A) the term ‘‘affordable rental housing 

23 unit’’ means a unit for which monthly rent is 

24 30 percent or less than the monthly area me25 dian income; and 


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1 (B) the term ‘‘State’’ has the meaning 

2 given the term in section 3(b)(7) of the United 

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

4 1437a(b)(7)). 

5 (2) ESTABLISHMENT.—The Secretary of Hous6 ing and Urban Development shall establish and 

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

8 Housing Emergency Fund’’, which shall be funded 

9 with any amounts as may be appropriated, trans10 ferred, or credited to the Fund under any provision 

11 law. 

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

13 fund established under paragraph (2), the Secretary 

14 of Housing and Urban Development shall award 

15 grants on a competitive basis to State housing fi16 nance agencies located in a State in which— 

17 (A) there is a shortage of affordable rental 

18 housing units available to individuals with an 

19 income that is at or below the area median in20 come and median rents have risen on average 

21 over the preceding 5 years substantially faster 

22 than the area median income; or 

23 (B) there is a shortage of housing units 

24 available for sale that are affordable to individ25 uals with an income that is at or below the area 


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1 median income and median home prices have 

2 risen on average over the preceding 5 years 

3 substantially faster than the area median in4 come. 

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

6 this subsection shall be used to fund— 

7 (A) the construction or acquisition, by non8 profit organizations, State or local agencies, 

9 special-purpose units of local government, resi10 dent councils organized to acquire housing, and 

11 other qualified purchasers (as defined by the 

12 Secretary), of rental housing units or units for 

13 purchase that are affordable to residents mak14 ing less than 120 percent of the area median 

15 income; and 

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

18 (i) the provision of legal advice and 

19 representation for tenants facing eviction; 

20 (ii) enforcement of anti-harassment 

21 laws; 

22 (iii) emergency rental assistance; and 

23 (iv) other measures as specified by the 

24 Secretary of Housing and Urban Develop25 ment. 


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1 (5) LABOR LAWS.— 

2 (A) IN GENERAL.—All laborers and me3 chanics employed by contractors or subcontrac4 tors in the performance of construction work fi5 nanced in whole or in part with a grant received 

6 under this subsection shall be paid wages at 

7 rates not less than those prevailing on similar 

8 construction in the locality as determined by 

9 the Secretary of Labor in accordance with sub10 chapter IV of chapter 31 of title 40, United 

11 States Code (commonly known as the ‘‘Davis12 Bacon Act’’). 

13 (B) AUTHORITY AND FUNCTIONS.—With 

14 respect to the labor standards specified in sub15 paragraph (A), the Secretary of Labor shall 

16 have the authority and functions set forth in 

17 Reorganization Plan Numbered 14 of 1950 (64 

18 Stat. 1267; 5 U.S.C. App.) and section 3145 of 

19 title 40, United States Code. 

20 (6) REGULATIONS.—The Secretary of Housing 

21 and Urban Development shall promulgate regula22 tions to carry out this subsection that include— 

23 (A) the metrics that the Secretary will use 

24 to determine eligibility for a grant under this 

25 subsection; 


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1 (B) a requirement that grantees and sub2 grantees consult with impacted communities in 

3 policymaking and planning for the construction 

4 or acquisition of housing units as described in 

5 paragraph 4(A); and 

6 (C) a requirement that all housing units 

7 constructed or acquired using grants awarded 

8 under the subsection are affordable to residents 

9 making less than 120 percent of the area me10 dian income in perpetuity. 

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

12 Treasury not otherwise appropriated, there is appro13 priated to the fund established under this subsection 

14 $4,000,000,000 for fiscal year 2025. 

15 SEC. 103. CONDITIONS FOR THE SALE OF REAL ESTATE16 OWNED PROPERTIES AND NON-PERFORMING 

17 LOANS. 

18 (a) FINDINGS.—Congress finds that— 

19 (1) the Federal Housing Administration, the 

20 Federal National Mortgage Association, and the 

21 Federal Home Loan Mortgage Corporation provide 

22 critical homeownership opportunities that greatly 

23 benefit individuals, families, and communities; and 

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


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1 (A) preserve owner-occupied homes with 

2 mortgages insured by the Federal Housing Ad3 ministration or purchased by the Federal Na4 tional Mortgage Association or the Federal 

5 Home Loan Mortgage Corporation for contin6 ued use as owner-occupied homes; and 

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

8 properties or transfer of those mortgages, cer9 tain percentages of those properties are sold to 

10 low- and moderate-income homeowners. 

11 (b) LOANS INSURED BY THE FEDERAL HOUSING AD12 MINISTRATION.—Title II of the National Housing Act (12 

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

14 the following: 

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

16 ‘‘(a) DEFINITIONS.—In this section— 

17 ‘‘(1) the term ‘Claim Without Conveyance of 

18 Title program’ means the program of the Federal 

19 Housing Administration carried out under section 

20 203.368 of title 24, Code of Federal Regulations, or 

21 any successor regulation; and 

22 ‘‘(2) the term ‘community partner’ has the 

23 meaning given the term ‘nonprofit organization’ in 

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1 tion and Resident Homeownership Act of 1990 (12 

2 U.S.C. 4119). 

3 ‘‘(b) REQUIREMENT.—Not later than 1 year after the 

4 date of enactment of this section, the Secretary shall de5 velop programs within the Federal Housing Administra6 tion to ensure that not less than 75 percent of the single7 family residential properties conveyed to the Federal 

8 Housing Administration after foreclosure or conveyed to 

9 third parties under the Claim Without Conveyance of Title 

10 program are sold— 

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

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

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

14 and 

15 ‘‘(B) sell the property to an owner-occu16 pant. 

17 ‘‘(c) GUIDELINES.—Not later than 1 year after the 

18 date of enactment of this section, the Secretary shall de19 velop guidelines for the Claim Without Conveyance of Title 

20 program that provide an exclusive listing period during 

21 which only eligible Governmental Entities, HUD-approved 

22 Nonprofit Organizations, and Owner-Occupant Buyers 

23 may submit bids. 

24 ‘‘(d) ANTI-PREDATORY FEATURE.—Unless the Sec25 retary provides prior approval, the Secretary shall prohibit 


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1 any purchaser of a real estate-owned property of the Fed2 eral Housing Administration from reselling the property 

3 within 15 years of purchase using a land installment con4 tract or through any other mechanism that does not trans5 fer title to the buyer at the time of sale. 

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

7 ‘‘(a) DEFINITIONS.—In this section— 

8 ‘‘(1) the term ‘community partner’ has the 

9 meaning given the term in section 259; and 

10 ‘‘(2) the term ‘covered mortgage’— 

11 ‘‘(A) means any mortgage insured under 

12 this title that is secured by a single-family resi13 dential property; and 

14 ‘‘(B) includes the promissory note secured 

15 by the mortgage described in subparagraph (A). 

16 ‘‘(b) RESTRICTION ON SALE OR TRANSFER.—Except 

17 as provided in this section, the Secretary may not sell or 

18 transfer any covered mortgage. 

19 ‘‘(c) CONDITIONS FOR SALE OR TRANSFER.— 

20 ‘‘(1) IN GENERAL.—The Secretary— 

21 ‘‘(A) may sell or transfer a covered mort22 gage only if— 

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

24 substantially below the capital ratio re25 quired under section 205(f)(2); 


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1 ‘‘(ii) the Secretary certifies that other 

2 reasonable measures are not available to 

3 restore the Fund to that capital ratio; and 

4 ‘‘(iii) the Secretary complies with 

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

6 ‘‘(B) may sell or transfer only such covered 

7 mortgages as are necessary to assist in restora8 tion of that capital ratio. 

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

10 ‘‘(A) IN GENERAL.—If the Secretary in11 tends to sell or transfer a covered mortgage, the 

12 Secretary shall provide the current borrower 

13 and all owners of record of the property secur14 ing the covered mortgage, or require that the 

15 current borrower and owners of record be pro16 vided, a separate written notice of the intent to 

17 sell the covered mortgage that— 

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

19 class mail not less than 90 days before the 

20 date on which the loan is included in any 

21 proposed sale; and 

22 ‘‘(ii) includes— 

23 ‘‘(I) a description of the loss 

24 mitigation options of the Federal 

25 Housing Administration that are 


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1 available to borrowers in financial dis2 tress and the obligation of servicers to 

3 consider borrowers in default for those 

4 options; 

5 ‘‘(II) a description of the actions 

6 that the servicer of the loan has taken 

7 to review and implement those options 

8 for the borrower; and 

9 ‘‘(III) a description of the proce10 dures the borrower may use to contest 

11 with the Secretary the compliance by 

12 the servicer with that obligation. 

13 ‘‘(B) JUDICIAL REVIEW.—The determina14 tion of the Secretary to authorize the sale of a 

15 mortgage insured under this title shall be re16 viewable under chapter 7 of title 5, United 

17 States Code, for abuse of discretion and arbi18 trary and capricious agency action. 

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

20 sell any covered mortgage through any type of 

21 non-performing loan sale auction program until 

22 the Secretary issues rules, through the notice 

23 and comment rule making procedures under 

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


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1 address essential aspects of any non-performing 

2 loan sale program, including— 

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

4 for sale; 

5 ‘‘(ii) notice to borrowers prior to in6 clusion of the loan in a sale; and 

7 ‘‘(iii) review of loss mitigation status 

8 prior to the sale, selection of eligible bid9 ders, loss mitigation guidelines applicable 

10 to loan purchasers, and reporting require11 ments for purchasers. 

12 ‘‘(3) CERTIFICATION REQUIREMENT FOR LEND13 ERS AND SERVICERS.— 

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

15 payment of an insurance claim under this title 

16 in connection with any non-performing loan 

17 sale, the lender or servicer of the loan shall pro18 vide the Secretary and the borrower with writ19 ten certification of the loss mitigation review 

20 contained in the FHA Single Family Housing 

21 Policy Handbook 4000.1, or any successor 

22 handbook, which certification shall include a de23 scription of the actions the lender or servicer 

24 has taken, prior to transfer of the loan to the 

25 Secretary, to— 


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1 ‘‘(i) review the borrower for all avail2 able loss mitigation options of the Federal 

3 Housing Administration; and 

4 ‘‘(ii) implement the options described 

5 in clause (i) that are appropriate to the 

6 borrower. 

7 ‘‘(B) FALSE STATEMENTS.— 

8 ‘‘(i) IN GENERAL.—Any false state9 ment provided in a certification described 

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

11 ‘‘(I) recovery by the Secretary of 

12 any amounts paid under the insurance 

13 claim and any other penalties and 

14 sanctions authorized under Federal 

15 law; and 

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

17 the borrower against the lender and 

18 servicer, with remedies to include 

19 compensatory and punitive damages 

20 and an assessment of costs and attor21 ney’s fees. 

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

23 purchaser has acquired title to the prop24 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 loss mitigation options 

19 that allow for payment reduction at least as 

20 great as would be available to the borrower if 

21 the loan had not been sold. 

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

23 specific formula, calculations, waterfall steps, 

24 and other terms for appropriate loss mitigation 

25 options described in subparagraph (A) shall be 


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1 published by the Secretary, made available to 

2 the public, and included in a written notice 

3 given to borrowers before any acceleration or 

4 foreclosure is initiated after a loan sale. 

5 ‘‘(5) REQUIREMENTS FOR TRANSFEREES.— 

6 With respect to a transferee, including any subse7 quent transferee, of a covered mortgage that is sold 

8 under this title— 

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

10 to the Secretary that the transferee will comply 

11 with the provisions of this section in the mar12 keting and transfer of any property received in 

13 the disposition of any transferred loan; 

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

15 Secretary records documenting that the trans16 fers of those properties are in compliance with 

17 this section; and 

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

19 transferee to comply with the requirements 

20 under this section for a loan in default shall be 

21 a defense to foreclosure, and a transferee may 

22 not execute a foreclosure judgment or order of 

23 sale, or conduct a foreclosure sale, until the 

24 transferee has complied with all requirements 

25 under this section. 


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•S 4824 IS

1 ‘‘(d) LIMITATIONS.—With respect to covered mort2 gages that are sold under this title and acquired by the 

3 buyer through foreclosure sale, not less than 90 percent 

4 of the properties that are the subject of the covered mort5 gages shall be— 

6 ‘‘(1) sold to owner-occupants; 

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

8 will operate the property as affordable rental hous9 ing for households below 80 percent of the area me10 dian income for a period of not less than 15 years; 

11 or 

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

13 agency that is certified by the Secretary and will re14 develop the property for owner occupancy or afford15 able rental housing. 

16 ‘‘(e) PRIORITIZATION OF SALES.—The Secretary 

17 shall implement policies, procedures, and controls to— 

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

19 ‘‘(2) engage in consultations with community 

20 partners before the sale of a pool of covered mort21 gages under this title to determine whether that sale 

22 can be designed to meet the specific needs of the 

23 communities served by the community partners; and 

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

25 mortgages to community partners by— 


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26 

•S 4824 IS

1 ‘‘(A) designing pools of covered mortgages 

2 for direct sale to a community partner, the 

3 price of which shall be set by the Secretary 

4 based on a pricing model that considers— 

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

6 the properties; and 

7 ‘‘(ii) the potential impact of fore8 closures on those properties to the value of 

9 other homes that secure mortgages insured 

10 under this title in the same census tract; 

11 or 

12 ‘‘(B) in the case of an auction, if the win13 ning bid is not from a community partner, per14 mitting any community partner that bid during 

15 that same auction to have a final opportunity to 

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

17 (c) FANNIE MAE.—Section 302 of the Federal Na18 tional Mortgage Association Charter Act (12 U.S.C. 1717) 

19 is amended by adding at the end the following: 

20 ‘‘(d)(1) In this subsection, the term ‘covered mort21 gage’— 

22 ‘‘(A) means any mortgage that is secured by a 

23 single-family residential property; and 

24 ‘‘(B) includes the promissory note secured by 

25 the mortgage described in subparagraph (A). 


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27 

•S 4824 IS

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

2 covered mortgage under this section unless the require3 ments of this subsection are met. 

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

5 a covered mortgage, the corporation shall provide the cur6 rent borrower and all owners of record of the property se7 curing the covered mortgage, or require that the current 

8 borrower and owners of record be provided, a separate 

9 written notice of the intent to sell the covered mortgage 

10 that— 

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

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

13 loan is included in any proposed sale; and 

14 ‘‘(ii) includes— 

15 ‘‘(I) a description of the loss mitigation op16 tions of the corporation that are available to 

17 borrowers in financial distress and the obliga18 tion of servicers to consider borrowers in de19 fault for those options; 

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

21 servicer of the loan has taken to review and im22 plement those options for the borrower; and 

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

24 borrower may use to contest with the corporaVerDate Sep 11 2014 04:30 Aug 28, 2024 Jkt 049200 PO 00000 Frm 00027 Fmt 6652 Sfmt 6201 E:\BILLS\S4824.IS S4824

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28 

•S 4824 IS

1 tion the compliance by the servicer with that 

2 obligation. 

3 ‘‘(B) The Federal Housing Finance Agency, as re4 ceiver for the corporation, may not authorize the corpora5 tion to sell any covered mortgage through any type of non6 performing loan sale auction program until the Director 

7 of the Federal Housing Finance Agency issues rules, 

8 through the notice and comment rule making procedures 

9 under section 553 of title 5, United States Code, that ad10 dress essential aspects of any non-performing loan sale 

11 program, including— 

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

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

14 the loan in a sale; and 

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

16 the sale, selection of eligible bidders, loss mitigation 

17 guidelines applicable to loan purchasers, and report18 ing requirements for purchasers. 

19 ‘‘(4)(A) Each purchaser of a covered mortgage shall 

20 offer the borrower on the covered mortgage loss mitigation 

21 options that allow for payment reduction at least as great 

22 as would be available to the borrower if the loan had not 

23 been sold. 

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

25 steps, and other terms for loss mitigation options deVerDate Sep 11 2014 04:30 Aug 28, 2024 Jkt 049200 PO 00000 Frm 00028 Fmt 6652 Sfmt 6201 E:\BILLS\S4824.IS S4824

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29 

•S 4824 IS

1 scribed in subparagraph (A) shall be published by the cor2 poration, made available to the public, and included in a 

3 written notice given to borrowers before any acceleration 

4 or foreclosure is initiated after a loan sale. 

5 ‘‘(5) With respect to a transferee, including any sub6 sequent transferee, of a covered mortgage that is sold by 

7 the corporation under this section— 

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

9 the corporation that the transferee will comply with 

10 the provisions of this subsection in the marketing 

11 and transfer of any property received in the disposi12 tion of any transferred loan; 

13 ‘‘(B) the transferee shall provide to the corpora14 tion records documenting that the transfers of those 

15 properties are in compliance with this subsection; 

16 and 

17 ‘‘(C) the failure of the corporation or the trans18 feree to comply with the requirements under this 

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

20 foreclosure, and a transferee may not execute a fore21 closure judgment or order of sale, or conduct a fore22 closure sale, until the transferee has complied with 

23 all requirements under this subsection. 

24 ‘‘(6) With respect to covered mortgages that are sold 

25 by the corporation under this section and foreclosed upon 


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30 

•S 4824 IS

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

2 that are the subject of the covered mortgages in an auc3 tion shall be— 

4 ‘‘(A) sold to owner-occupants; 

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

6 will operate the property as affordable rental hous7 ing for households below 80 percent of the area me8 dian income for a period of not less than 15 years; 

9 or 

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

11 agency that is certified by the corporation and will 

12 redevelop the property for owner occupancy or af13 fordable rental housing. 

14 ‘‘(7) The corporation shall implement policies, proce15 dures, and controls to— 

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

17 ‘‘(B) engage in consultations with community 

18 partners before the sale of a pool of covered mort19 gages under this section to determine whether that 

20 sale can be designed to meet the specific needs of 

21 the communities served by the community partners; 

22 and 

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

24 mortgages to community partners by— 


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31 

•S 4824 IS

1 ‘‘(i) designing pools of covered mortgages 

2 for direct sale to a community partner, the 

3 price of which shall be set by the corporation 

4 based on a pricing model that considers— 

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

6 the properties; and 

7 ‘‘(II) the potential impact of fore8 closures on those properties to the value of 

9 other homes in the same census tract; or 

10 ‘‘(ii) in the case of an auction, if the win11 ning bid is not from a community partner, per12 mitting any community partner that bid during 

13 that same auction to have a final opportunity to 

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

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

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

17 is amended by adding at the end the following: 

18 ‘‘(e)(1) In this subsection, the term ‘covered mort19 gage’— 

20 ‘‘(A) means any mortgage that is secured by a 

21 single-family residential property; and 

22 ‘‘(B) includes the promissory note secured by 

23 the mortgage described in subparagraph (A). 


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32 

•S 4824 IS

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

2 covered mortgage under this section unless the require3 ments of this subsection are met. 

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

5 a covered mortgage, the Corporation shall provide the cur6 rent borrower and all owners of record of the property se7 curing the covered mortgage, or require that the current 

8 borrower and owners of record be provided, a separate 

9 written notice of the intent to sell the covered mortgage 

10 that— 

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

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

13 loan is included in any proposed sale; and 

14 ‘‘(ii) includes— 

15 ‘‘(I) a description of the loss mitigation op16 tions of the Corporation that are available to 

17 borrowers in financial distress and the obliga18 tion of servicers to consider borrowers in de19 fault for those options; 

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

21 servicer of the loan has taken to review and im22 plement those options for the borrower; and 

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

24 borrower may use to contest with the CorporaVerDate Sep 11 2014 04:30 Aug 28, 2024 Jkt 049200 PO 00000 Frm 00032 Fmt 6652 Sfmt 6201 E:\BILLS\S4824.IS S4824

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33 

•S 4824 IS

1 tion the compliance by the servicer with that 

2 obligation. 

3 ‘‘(B) The Federal Housing Finance Agency, as re4 ceiver for the Corporation, may not sell any covered mort5 gage through any type of non-performing loan sale auction 

6 program until the Director of the Federal Housing Fi7 nance Agency issues rules, through the notice and com8 ment rule making procedures under section 553 of title 

9 5, United States Code, that address essential aspects of 

10 any non-performing loan sale program, including— 

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

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

13 the loan in a sale; and 

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

15 the sale, selection of eligible bidders, loss mitigation 

16 guidelines applicable to loan purchasers, and report17 ing requirements for purchasers. 

18 ‘‘(4)(A) Each purchaser of a covered mortgage shall 

19 offer the borrower on the covered mortgage loss mitigation 

20 options that allow for payment reduction at least as great 

21 as would be available to the borrower if the loan had not 

22 been sold. 

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

24 steps, and other terms for loss mitigation options de25 scribed in subparagraph (A) shall be published by the CorVerDate Sep 11 2014 04:30 Aug 28, 2024 Jkt 049200 PO 00000 Frm 00033 Fmt 6652 Sfmt 6201 E:\BILLS\S4824.IS S4824

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34 

•S 4824 IS

1 poration, made available to the public, and included in a 

2 written notice given to borrowers before any acceleration 

3 or foreclosure is initiated after a loan sale. 

4 ‘‘(5) With respect to a transferee, including any sub5 sequent transferee, of a covered mortgage that is sold by 

6 the Corporation under this section— 

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

8 the Corporation that the transferee will comply with 

9 the provisions of this subsection in the marketing 

10 and transfer of any property received in the disposi11 tion of any transferred loan; 

12 ‘‘(B) the transferee shall provide to the Cor13 poration records documenting that the transfers of 

14 those properties are in compliance with this sub15 section; and 

16 ‘‘(C) the failure of the Corporation or the trans17 feree to comply with the requirements under this 

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

19 foreclosure, and a transferee may not execute a fore20 closure judgment or order of sale, or conduct a fore21 closure sale, until the transferee has complied with 

22 all requirements under this subsection. 

23 ‘‘(6) With respect to covered mortgages that are sold 

24 by the Corporation under this section and foreclosed upon 

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


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35 

•S 4824 IS

1 that are the subject of the covered mortgages in an auc2 tion shall be— 

3 ‘‘(A) sold to owner-occupants; 

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

5 will operate the property as affordable rental hous6 ing for households below 80 percent of the area me7 dian income for a period of not less than 15 years; 

8 or 

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

10 agency that is certified by the Corporation and will 

11 redevelop the property for owner occupancy or af12 fordable rental housing. 

13 ‘‘(7) The Corporation shall implement policies, proce14 dures, and controls to— 

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

16 ‘‘(B) engage in consultations with community 

17 partners before the sale of a pool of covered mort18 gages under this section to determine whether that 

19 sale can be designed to meet the specific needs of 

20 the communities served by the community partners; 

21 and 

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

23 mortgages to community partners by— 

24 ‘‘(i) designing pools of covered mortgages 

25 for direct sale to a community partner, the 


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36 

•S 4824 IS

1 price of which shall be set by the Corporation 

2 based on a pricing model that considers— 

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

4 the properties; and 

5 ‘‘(II) the potential impact of fore6 closures on those properties to the value of 

7 other homes in the same census tract; or 

8 ‘‘(ii) in the case of an auction, if the win9 ning bid is not from a community partner, per10 mitting any community partner that bid during 

11 that same auction to have a final opportunity to 

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

13 (e) SALE OF RE-PERFORMING LOANS.—The Federal 

14 Housing Enterprises Financial Safety and Soundness Act 

15 of 1992 (12 U.S.C. 4501 et seq.) is amended by inserting 

16 after section 1328 (12 U.S.C. 4548) the following: 

17 ‘‘SEC. 1329. SALE OF RE-PERFORMING LOANS. 

18 ‘‘(a) BULK AUCTION OR GROUP SALES.—An enter19 prise may not conduct bulk auctions or other group sales 

20 of single family re-performing residential loans unless the 

21 following requirements are met: 

22 ‘‘(1) The enterprise establishes a system that 

23 provides priority to Federal, State, local, or Tribal 

24 governments or nonprofit organizations that have 

25 the capacity and experience required for buying, 


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37 

•S 4824 IS

1 servicing, and resolving single family mortgage loans 

2 in a manner that promotes affordable housing, fair 

3 housing, affordable homeownership, provision of 

4 housing counseling, or neighborhood stabilization. 

5 ‘‘(2) Clear, written notice is sent by the enter6 prise or servicer through certified and first-class 

7 mail to the borrower and all owners of record, with 

8 a copy sent to the enterprise if sent by the servicer, 

9 not less than 90 days before the inclusion of the 

10 loan in any proposed sale— 

11 ‘‘(A) stating that the loan will be included 

12 in a bulk auction or group sale of re-performing 

13 loans; and 

14 ‘‘(B) describing the bulk auction or group 

15 sale process, including— 

16 ‘‘(i) the loss mitigation or other pro17 tections available to the borrower and 

18 other owners of record both before and 

19 after the auction or sale; and 

20 ‘‘(ii) the obligations of the servicer of 

21 the loan before and after the auction or 

22 sale, including loss mitigation require23 ments. 


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•S 4824 IS

1 ‘‘(3) The enterprise requires in the terms of the 

2 bulk auction or group sale that purchasers take 

3 loans subject to the following requirements: 

4 ‘‘(A) The purchaser is required to offer 

5 targeted payment relief options to borrowers 

6 that become more than 60 days delinquent on 

7 their mortgage after their loan is sold that in8 cludes deferral of principal and term extension 

9 options that reduce payments to an affordable 

10 level. 

11 ‘‘(B) The purchaser is required to offer a 

12 deferral program to borrowers that become 

13 more than 60 days delinquent on their mort14 gage after their loan is sold that offers terms 

15 and protections at least as favorable as those 

16 available under loss mitigation guidelines of the 

17 enterprise, including the absence of fees, to bor18 rowers who can afford their pre-hardship mort19 gage payment. 

20 ‘‘(C) Failure by the purchaser to follow the 

21 established loss mitigation guidelines shall serve 

22 as a defense to a judicial foreclosure and a 

23 basis to enjoin or otherwise stay a non-judicial 

24 foreclosure. 


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•S 4824 IS

1 ‘‘(D) Data reporting as provided under 

2 subsection (b)(1). 

3 ‘‘(E) If a property becomes vacant, the 

4 purchaser shall not release the lien until the 

5 property is sold or donated. 

6 ‘‘(F) Use of contract for deed, lease to 

7 own, or a land installment contract to sell or 

8 otherwise transfer any property that is secured 

9 by a purchased loan shall be prohibited unless 

10 the tenant or purchaser is a nonprofit organiza11 tion. 

12 ‘‘(b) DATA AND REPORTING.— 

13 ‘‘(1) PURCHASER REPORTING.—During the 4- 

14 year period following any auction or sale of single 

15 family re-performing residential mortgage loans 

16 under subsection (a), the Director shall require the 

17 enterprise to collect from each purchaser of such 

18 loans, including any subsequent purchaser of a loan, 

19 quarterly loan-level data regarding the treatment 

20 and outcome of the loan, including— 

21 ‘‘(A) loan characteristics, including loan 

22 type, remaining loan term, loan to value ratio, 

23 number of months in arrears, and loan status; 

24 ‘‘(B) loss mitigation data, including wheth25 er loss mitigation was provided by the purVerDate Sep 11 2014 04:30 Aug 28, 2024 Jkt 049200 PO 00000 Frm 00039 Fmt 6652 Sfmt 6201 E:\BILLS\S4824.IS S4824

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•S 4824 IS

1 chaser, debt-to-income ratio and percent pay2 ment reduction for any modified loans, and per3 formance of modified loans; 

4 ‘‘(C) demographic data for each borrower 

5 and any co-borrower, including race, national 

6 origin, sex, ZIP Code, and census tract, and, if 

7 available, disability status and veteran status; 

8 and 

9 ‘‘(D) other purchaser actions, including 

10 charge offs and resales of loans and dates for 

11 such actions. 

12 ‘‘(2) SEMIANNUAL REPORTS TO CONGRESS.— 

13 The Director shall submit to Congress, and make 

14 publicly available at no cost to the public in a readily 

15 accessible format on the website of the Agency, 

16 semi-annual reports on— 

17 ‘‘(A) loans sold in an auction or sale under 

18 subsection (a) by each enterprise, disaggregated 

19 by pool, including— 

20 ‘‘(i) the number of loans and types of 

21 loans; 

22 ‘‘(ii) mean and median delinquency 

23 and loan to value ratios at the time of the 

24 sale; 


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41 

•S 4824 IS

1 ‘‘(iii) the number and percentage of 

2 loans modified prior to auction or sale; and 

3 ‘‘(iv) demographic and geographic 

4 data, including property locations by cen5 sus tract or larger geographic location if 

6 necessary to protect personally identifiable 

7 information; 

8 ‘‘(B) the performance of loans after an 

9 auction or sale under subsection (a), 

10 disaggregated by loan pool, including the initial 

11 purchaser, current owner, current servicer, data 

12 summarizing any alternatives to foreclosure of13 fered and enacted, and data summarizing the 

14 data collected under subparagraph (A); and 

15 ‘‘(C) the results of a fair lending analysis 

16 conducted based on the data in subparagraphs 

17 (A) and (B) to identify any discriminatory im18 pacts or outcomes associated with the auctions 

19 or sales. 

20 ‘‘(c) PENALTIES FOR NONCOMPLIANCE.—The enter21 prises may forcibly retain loans or properties, without pro22 viding compensation, from purchasers that do not meet 

23 the requirements under subsection (a)(3). 


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•S 4824 IS

1 ‘‘(d) REGULATIONS.—The Director shall issue regu2 lations defining the terms of permissible auctions or sales 

3 in accordance with the requirements in this section.’’. 

4 TITLE II—TAKING THE FIRST 

5 STEPS TO REVERSE THE LEG6 ACY OF HOUSING DISCRIMI7 NATION AND GOVERNMENT 

8 NEGLIGENCE 

9 SEC. 201. DOWN PAYMENT ASSISTANCE PROGRAM FOR 

10 FIRST-TIME HOMEBUYERS. 

11 (a) DEFINITIONS.—In this section: 

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

13 resident’’ means an individual who— 

14 (A) is a first-time homebuyer; 

15 (B) is a first-generation homebuyer; and 

16 (C) has an income that is less than— 

17 (i) 120 percent of the area median in18 come; or 

19 (ii) in the case of a homebuyer acquir20 ing a property for use as a principal resi21 dence that is located in a high-cost area, 

22 as determined by the Secretary, 140 per23 cent of the area median income. 

24 (2) FIRST-GENERATION HOMEBUYER.—The 

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•S 4824 IS

1 buyer who is, as self-attested by the homebuyer, an 

2 individual— 

3 (A) whose parents do not, or did not at the 

4 time of their death, to the best of the individ5 ual’s knowledge, have any present ownership in6 terest in a principal residence in any State, ex7 cluding ownership of heir property; and 

8 (B) whose spouse or domestic partner has 

9 not, during the 3-year period ending on the 

10 date of purchase of a property using a grant 

11 under subsection (b), had any present owner12 ship interest in a principal residence in any 

13 State, excluding ownership of heir property, 

14 without regard to whether the spouse or domes15 tic partner is a co-borrower on a mortgage for 

16 the property being purchased. 

17 (3) FIRST-TIME HOMEBUYER.—The term ‘‘first18 time homebuyer’’ means a homebuyer who is, as 

19 self-attested by the homebuyer, an individual (and if 

20 married or in a domestic partnership, the spouse or 

21 domestic partner of the individual) who, during the 

22 3-year period ending on the date of purchase of a 

23 property using a grant under subsection (b)— 


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•S 4824 IS

1 (A) has had no present ownership in a 

2 principal residence in any State, excluding own3 ership of heir property; or 

4 (B) surrendered any present ownership in5 terest in a principal residence in any State, ex6 cluding ownership of heir property, as part of 

7 a divorce proceeding. 

8 (4) HEIR PROPERTY.—The term ‘‘heir prop9 erty’’ means residential property for which title— 

10 (A) passed by operation of law through in11 testacy; and 

12 (B) is held by 2 or more heirs as tenants 

13 in common. 

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

15 the Secretary of Housing and Urban Development. 

16 (6) STATE.—The term ‘‘State’’ includes the 

17 District of Columbia and any territory or possession 

18 of the United States. 

19 (b) ESTABLISHMENT.—There is established in the 

20 Treasury of the United States a fund that— 

21 (1) shall be administered by the Secretary, act22 ing through the Office of Housing of the Depart23 ment of Housing and Urban Development; and 

24 (2) shall be used— 


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•S 4824 IS

1 (A) to provide grants to eligible residents 

2 to purchase a property for use as a principal 

3 residence; 

4 (B) for outreach to financial institutions in 

5 targeted areas and eligible residents, including 

6 for the administration of that outreach; 

7 (C) for counseling or financial education 

8 administered by counseling agencies approved 

9 by the Secretary in order to ensure sustainable 

10 homeownership; and 

11 (D) to maintain any records required to 

12 implement this section. 

13 (c) GRANT AMOUNT.—An eligible resident may re14 ceive a grant under subsection (b) in an amount equal 

15 to— 

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

17 value of the property to be purchased; or 

18 (2) if the appraised value of the property to be 

19 purchased exceeds the principal obligation amount 

20 limitation for mortgages insured under title II of the 

21 National Housing Act (12 U.S.C. 1707 et seq.), 3.5 

22 percent of the maximum principal obligation limita23 tion for the property to be purchased. 

24 (d) RELATION TO FHA LOAN.—An eligible resident 

25 shall not be required to obtain a mortgage that is insured 


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•S 4824 IS

1 under title II of the National Housing Act (12 U.S.C. 

2 1707 et seq.) as a condition of receiving a grant under 

3 subsection (b). 

4 (e) LAYERING OF ASSISTANCE.—Receipt by an eligi5 ble recipient of assistance for a down payment from a 

6 source other than the fund established under subsection 

7 (b), including assistance from the Federal Government, a 

8 State or local government, or any other public, private, 

9 or nonprofit source, shall not affect the eligibility of the 

10 eligible recipient for assistance under subsection (b). 

11 (f) REGULATIONS AND DATABASE.—Not later than 

12 1 year after the date of enactment of this Act, the Sec13 retary shall— 

14 (1) in consultation with interested parties, in15 cluding housing counseling agencies approved by the 

16 Secretary and individuals or groups with expertise in 

17 fair housing, promulgate regulations relating to the 

18 use of the fund established under subsection (b); 

19 (2) promulgate regulations relating to the dis20 bursement of funds under this section to ensure that 

21 an eligible resident is able to receive funds before 

22 the closing date for the home of the eligible resident, 

23 which may include creating a program that allows a 

24 lender to be reimbursed by the fund established 

25 under subsection (b) if the lender— 


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•S 4824 IS

1 (A) provides an eligible resident with funds 

2 for the closing; or 

3 (B) allows an eligible resident to be 

4 preapproved to receive assistance under this 

5 section when arranging financing for the home 

6 of the eligible resident; and 

7 (3) establish methods to verify that an indi8 vidual is an eligible resident. 

9 (g) APPROPRIATION.—Out of funds in the Treasury 

10 not otherwise appropriated, there is appropriated to the 

11 fund established under subsection (b) such sums as may 

12 be necessary for each of fiscal years 2025 through 2034 

13 to carry out the activities under subsection (b)(2). 

14 (h) INCLUSION OF PROGRAM IN HOME BUYING IN15 FORMATION BOOKLETS.—Section 5(b) of the Real Estate 

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

17 is amended by inserting after paragraph (14) the fol18 lowing: 

19 ‘‘(15) Information relating to the down pay20 ment assistance program established under section 

21 201 of the American Housing and Economic Mobil22 ity Act of 2024.’’. 

23 (i) INCLUSION OF PROGRAM AS MORTGAGE PROD24 UCT.—Section 203(f)(1) of the National Housing Act (12 

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


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•S 4824 IS

1 the down payment assistance program established under 

2 section 201 of the American Housing and Economic Mo3 bility Act of 2024,’’ after ‘‘mortgage products’’. 

4 (j) RELIANCE ON BORROWER ATTESTATIONS.—No 

5 additional documentation beyond the borrower’s attesta6 tion shall be required to demonstrate eligibility under 

7 paragraphs (2) and (3) of subsection (a), and no creditor 

8 shall be subject to liability, including monetary penalties 

9 or requirements to indemnify a Federal agency or repur10 chase a loan that has been sold or securitized, for the pro11 vision of down payment assistance under this section to 

12 a borrower who does not meet the eligibility requirements 

13 under those paragraphs if the creditor does so in good 

14 faith reliance on borrower attestations of eligibility re15 quired by those paragraphs or any regulation promulgated 

16 to carry out those paragraphs. 

17 (k) REPAYMENT OF ASSISTANCE.— 

18 (1) REQUIREMENT.—An eligible resident who 

19 receives a grant under subsection (b) to purchase a 

20 property for use as a principal residence and does 

21 not occupy the property as a principal residence for 

22 5 years or more shall repay to the Secretary a pro23 portional amount of the grant based on the number 

24 of years, if any, for which the eligible resident has 

25 occupied the property as a principal residence. 


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1 (2) LIMITATION.—Notwithstanding paragraph 

2 (1), an eligible resident who receives a grant under 

3 subsection (b) to purchase a property for use as a 

4 principal residence and does not occupy the property 

5 as a principal residence for 5 years or more shall not 

6 be liable to the Secretary for repayment under para7 graph (1) of this subsection if— 

8 (A) the failure to occupy the property as a 

9 principal residence is due at least in part to a 

10 hardship; or 

11 (B) the eligible resident sells the property 

12 before the expiration of the 5-year period begin13 ning on the date of acquisition and the capital 

14 gains from the sale to a bona fide purchaser in 

15 an arm’s length transaction are less than the 

16 amount the eligible resident would be required 

17 to repay under paragraph (1). 

18 SEC. 202. FORMULA GRANT PROGRAM FOR COMMUNITIES 

19 WITH AN APPRAISAL GAP. 

20 (a) DEFINITIONS.—In this section— 

21 (1) the term ‘‘neighborhood with an appraisal 

22 gap’’ means a census tract in which the median sales 

23 price of a dwelling unit is lower than the median 

24 cost to acquire and rehabilitate, or build, a new 

25 dwelling unit; 


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1 (2) the term ‘‘Secretary’’ means the Secretary 

2 of Housing and Urban Development; and 

3 (3) the term ‘‘State’’ has the meaning given the 

4 term in section 3(b)(7) of the United States Hous5 ing Act of 1937 (42 U.S.C. 1437a(b)(7)). 

6 (b) ESTABLISHMENT.—The Secretary shall establish 

7 a formula grant program to provide funding to States to 

8 support neighborhoods with an appraisal gap, including 

9 borrowers with negative equity in their primary residence 

10 in those neighborhoods, through— 

11 (1) measures that provide funds to borrowers 

12 to— 

13 (A) pay down arrears on an otherwise af14 fordable loan; 

15 (B) pay down arrears or principal on a 

16 loan in order to qualify for a loan modification 

17 that will allow the borrower to keep the home; 

18 (C) pay off, or pay down part of, a second 

19 mortgage or home equity line of credit; 

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

21 (E) pay delinquent taxes and tax liens; 

22 (F) pay off delinquent water or sewer bills 

23 and liens; and 


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1 (G) pay for home repairs or maintenance 

2 or for modifications to bring the home into 

3 compliance with any applicable codes; and 

4 (2) programs to purchase or rehabilitate vacant 

5 or distressed properties to enhance neighborhood 

6 property values. 

7 (c) FORMULA.—The Secretary shall distribute 

8 amounts under this section to States based on— 

9 (1) the number of borrowers with a primary 

10 residence with negative equity in each State; and 

11 (2) the share of neighborhoods with an ap12 praisal gap in each State. 

13 (d) AUTHORIZATION OF APPROPRIATIONS.—There is 

14 authorized to be appropriated to carry out this section 

15 $5,000,000,000 for fiscal year 2025. 

16 SEC. 203. STRENGTHENING THE COMMUNITY REINVEST17 MENT ACT OF 1977. 

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

19 ‘‘Community Reinvestment Reform Act of 2024’’. 

20 (b) AMENDMENTS TO THE COMMUNITY REINVEST21 MENT ACT OF 1977.—The Community Reinvestment Act 

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

23 (1) by striking sections 802 and 803 (12 U.S.C. 

24 2901, 2902) and inserting the following: 


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1 ‘‘SEC. 802. FINDINGS AND PURPOSE. 

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

3 ‘‘(1) regulated financial institutions are re4 quired by law to demonstrate that they serve the 

5 convenience and needs of the communities in which 

6 they are chartered or do business, in particular low7 and moderate-income communities; 

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

9 include the need for credit services, deposit services, 

10 transaction services, other financial services, and 

11 community development loans and investments; and 

12 ‘‘(3) regulated financial institutions have a con13 tinuing and affirmative obligation to meet the credit 

14 or other financial needs of all the local communities 

15 in which they are chartered or do business, including 

16 communities in which— 

17 ‘‘(A) the institutions make loans and do 

18 not accept deposits; or 

19 ‘‘(B) the institutions accept deposits but 

20 do not make loans. 

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 and 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 04:30 Aug 28, 2024 Jkt 049200 PO 00000 Frm 00053 Fmt 6652 Sfmt 6201 E:\BILLS\S4824.IS S4824

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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, or 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; or 

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 or relative to the total number of loans or 

13 other products offered by the private sector 

14 market. 

15 ‘‘(5) CLIMATE RESILIENCY AND DISASTER MITI16 GATION.—The term ‘climate resiliency and disaster 

17 mitigation’ means activities that— 

18 ‘‘(A) assist individuals and communities to 

19 prepare for, adapt to, and withstand climate-re20 lated risks, natural disasters, or weather-related 

21 disasters; 

22 ‘‘(B) benefit or serve residents of low- to 

23 moderate-income census tracts or climate vul24 nerable communities and do not directly result 


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1 in forced or involuntary relocation of those resi2 dents; and 

3 ‘‘(C) are done in conjunction with— 

4 ‘‘(i) a plan, program or initiative of a 

5 Federal, State, local or Tribal government; 

6 or 

7 ‘‘(ii) a mission-driven nonprofit orga8 nization that is focused on benefiting or 

9 serving targeted census tracts or climate 

10 vulnerable communities. 

11 ‘‘(6) CLIMATE VULNERABLE COMMUNITIES.— 

12 The term ‘climate vulnerable communities’ means 

13 communities experiencing heightened risk and in14 creased sensitivity to climate change with less capac15 ity and fewer resources to cope with, adapt to, or re16 cover from climate impacts, as determined by the 

17 appropriate Federal financial supervisory agencies 

18 using tools developed by Federal agencies that iden19 tify census tracts as disadvantaged based in part on 

20 environmental factors, including the climate and eco21 nomic justice screening tool developed by the Council 

22 on Environmental Quality. 

23 ‘‘(7) COMMUNITY BENEFITS PLAN.—The term 

24 ‘community benefits plan’ means a plan that pro25 vides measurable goals for future amounts of safe 


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•S 4824 IS

1 and sound loans, investments, services, and other fi2 nancial products for low- and moderate-income com3 munities and other distressed or underserved com4 munities. 

5 ‘‘(8) COMMUNITY DEVELOPMENT.—The term 

6 ‘community development’ includes— 

7 ‘‘(A) affordable housing for low- or mod8 erate-income individuals and avoidance of pat9 terns of lending resulting in the loss of afford10 able housing units and housing for low- and 

11 moderate-income individuals in high-opportunity 

12 areas; 

13 ‘‘(B) community development services, in14 cluding counseling and successful mortgage or 

15 loan modifications of delinquent loans; 

16 ‘‘(C) activities that promote integration; 

17 ‘‘(D) activities that promote economic de18 velopment by financing small businesses or 

19 farms that meet the size eligibility requirements 

20 of the development company or small business 

21 investment company programs under section 

22 121.301 of title 13, Code of Federal Regula23 tions, or any successor regulation, with an em24 phasis on small businesses that have gross an25 nual revenues of not more than $1,000,000; 


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

2 ‘‘(i) low- or moderate-income geog3 raphies; 

4 ‘‘(ii) designated disaster areas; 

5 ‘‘(iii) distressed or underserved non6 metropolitan middle-income geographies 

7 designated by the Federal Financial Insti8 tutions Examination Council, based on— 

9 ‘‘(I) rates of poverty, unemploy10 ment, and population loss; or 

11 ‘‘(II) population size, density, 

12 and dispersion, if those activities help 

13 to meet essential community needs, 

14 including the needs of low- and mod15 erate-income individuals; or 

16 ‘‘(iv) other distressed or underserved 

17 communities; 

18 ‘‘(F) activities that promote physical, envi19 ronmental, and sensory accessibility in housing 

20 stock that is integrated into the community; 

21 and 

22 ‘‘(G) other activities that promote the ob23 jectives of this title, as determined by the ap24 propriate Federal financial supervisory agen25 cies. 


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1 ‘‘(9) DEPOSITORY INSTITUTION; DEPOSITORY

2 INSTITUTION HOLDING COMPANY; INSURED DEPOSI3 TORY INSTITUTION.—The terms ‘depository institu4 tion’, ‘depository institution holding company’, and 

5 ‘insured depository institution’ have the meanings 

6 given those terms in section 3 of the Federal De7 posit Insurance Act (12 U.S.C. 1813). 

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

9 community’ means— 

10 ‘‘(A) all of the assessment areas of a regu11 lated financial institution; and 

12 ‘‘(B) areas outside of assessment areas de13 scribed in subparagraph (A) in which a regu14 lated financial institution has made loans or re15 ceived deposits. 

16 ‘‘(11) ENUMERATED CONSUMER LAWS.—The 

17 term ‘enumerated consumer laws’ has the meaning 

18 given the term in section 1002 of the Consumer Fi19 nancial Protection Act of 2010 (12 U.S.C. 5481). 

20 ‘‘(12) FOSSIL FUEL.—The term ‘fossil fuel’ 

21 means coal, petroleum, methane gas (often referred 

22 to as ‘natural gas’), or any derivative of coal, petro23 leum, or methane gas that is used for fuel directly 

24 or indirectly, such as for generating electricity. 


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1 ‘‘(13) FOSSIL FUEL COMPANY.—The term ‘fos2 sil fuel company’ means any company that— 

3 ‘‘(A) is among the 200 companies with the 

4 largest fossil fuel reserves in the world; 

5 ‘‘(B) is among the 30 largest public com6 pany owners in the world of coal-fired power 

7 plants; 

8 ‘‘(C) has as its core business— 

9 ‘‘(i) the construction or operation of 

10 fossil fuel infrastructure; or 

11 ‘‘(ii) the exploration, extraction, refin12 ing, processing or distribution of fossil 

13 fuels; or 

14 ‘‘(D) receives more than 50 percent of its 

15 gross revenue from companies that meet the 

16 definition under subparagraph (A), (B), or (C). 

17 ‘‘(14) FOSSIL FUEL EXPANSION.—The term 

18 ‘fossil fuel expansion’ means financing for new fossil 

19 fuel infrastructure projects, including financing of 

20 exploration activities, that would— 

21 ‘‘(A) increase greenhouse gas emissions; 

22 and 

23 ‘‘(B) increase the difficulty of achieving 

24 Federal, State, or local carbon emission reduc25 tion goals. 


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1 ‘‘(15) FOSSIL FUEL INFRASTRUCTURE.—The 

2 term ‘fossil fuel infrastructure’ means oil or gas 

3 wells, oil or gas pipelines and refineries, oil, coal or 

4 gas-fired power plants, oil and gas storage tanks, 

5 fossil fuel export terminals, and any other infra6 structure used exclusively for fossil fuels, including 

7 facilities with carbon capture, utilization, and stor8 age. 

9 ‘‘(16) GEOGRAPHY.—The term ‘geography’ 

10 means a census tract delineated by the Bureau of 

11 the Census in the most recent decennial census. 

12 ‘‘(17) INTERMEDIATE BANK.—The term ‘inter13 mediate bank’ is a depository institution with assets 

14 between $391,000,000 and $1,564,000,000, as ad15 justed annually for purposes of an examination 

16 under section 804. 

17 ‘‘(18) LARGE BANK.—The term ‘large bank’ is 

18 a depository institution with assets of not less than 

19 $1,564,000,000, as adjusted annually for purposes 

20 of an examination under section 804. 

21 ‘‘(19) OTHER DISTRESSED OR UNDERSERVED

22 COMMUNITY.—The term ‘other distressed or under23 served community’ means an area or census tract 

24 that, according to a periodic review and data anal25 ysis by the appropriate Federal financial supervisory 


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•S 4824 IS

1 agencies on an interagency basis through the Fed2 eral Financial Institutions Examination Council of 

3 certain metrics, such as loans per households or 

4 small business, is experiencing economic hardship or 

5 is underserved by financial institutions. 

6 ‘‘(20) OTHER UNDERSERVED POPULATION.— 

7 The term ‘other underserved population’ means a 

8 population that is experiencing ongoing effects of 

9 discrimination or is relatively underserved by finan10 cial institutions, as measured by loans per house11 holds or other similar metrics. 

12 ‘‘(21) REGULATED FINANCIAL INSTITUTION.— 

13 The term ‘regulated financial institution’ means— 

14 ‘‘(A) an insured depository institution; 

15 ‘‘(B) a depository institution holding com16 pany; and 

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

18 ‘‘(22) SMALL BANK.—The term ‘small bank’ is 

19 a depository institution with assets of less than 

20 $391,000,000, as adjusted annually to take into ac21 count inflation for purposes of determining which in22 stitutions are subject to an examination under sec23 tion 804. 

24 ‘‘(23) U.S. NONBANK MORTGAGE ORIGI25 NATOR.—The term ‘U.S. nonbank mortgage origiVerDate Sep 11 2014 04:30 Aug 28, 2024 Jkt 049200 PO 00000 Frm 00062 Fmt 6652 Sfmt 6201 E:\BILLS\S4824.IS S4824

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1 nator’ means a covered person subject to section 

2 1024 of the Dodd-Frank Wall Street Reform and 

3 Consumer Protection Act (12 U.S.C. 5514) that of4 fers or provides— 

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

6 estate for use by consumers primarily for per7 sonal, family, or household purposes; or 

8 ‘‘(B) loan modification or foreclosure relief 

9 services in connection with a loan described in 

10 subparagraph (A).’’; 

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

12 (A) by redesignating subsections (c) and 

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

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

15 inserting the following: 

16 ‘‘(a) DEPOSITORY INSTITUTIONS AND BANK HOLD17 ING COMPANIES.— 

18 ‘‘(1) IN GENERAL.—In connection with its ex19 amination of a regulated financial institution other 

20 than a U.S. nonbank mortgage originator, the ap21 propriate Federal financial supervisory agency shall 

22 perform the following: 

23 ‘‘(A) Assess the record of the institution in 

24 meeting the credit and other financial needs of 

25 its entire community, in particular low- and 


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•S 4824 IS

1 moderate-income people and communities, and 

2 other distressed or underserved communities, 

3 and other underserved populations consistent 

4 with the safe and sound operation of the insti5 tution. 

6 ‘‘(B) Assess the effectiveness of the fol7 lowing activities in meeting the credit and other 

8 financial needs of the assessment areas of the 

9 institution, consistent with the safe and sound 

10 operation of the institution: 

11 ‘‘(i) Retail lending, including home, 

12 small business, consumer, automobile, and 

13 other lending and financial products, that 

14 responds to credit needs or other financial 

15 needs. 

16 ‘‘(ii) Community development lending 

17 and investments, which may include a con18 sideration of— 

19 ‘‘(I) the origination of loans and 

20 other efforts by the institution to as21 sist existing low- and moderate-income 

22 residents to remain in affordable 

23 housing in their community; and 

24 ‘‘(II) the origination of loans by 

25 the institution that result in the conVerDate Sep 11 2014 04:30 Aug 28, 2024 Jkt 049200 PO 00000 Frm 00064 Fmt 6652 Sfmt 6201 E:\BILLS\S4824.IS S4824

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1 struction, rehabilitation, or preserva2 tion of affordable housing units. 

3 ‘‘(iii) Community development finance 

4 tests or similar tests developed by the Fed5 eral bank agencies shall include separate 

6 quantitative measures for community de7 velopment investments. The evaluation of 

8 investments shall positively or negatively 

9 affect test scores depending on bank per10 formance, in community development fi11 nance tests or similar tests. 

12 ‘‘(iv) Retail financial services and 

13 community development services. 

14 ‘‘(v) Evaluation of the responsiveness, 

15 affordability, and sustainability of retail fi16 nancial services including credit and de17 posit products shall positively or negatively 

18 affect tests scores, depending on bank per19 formance, in the retail products and serv20 ice test or similar tests. 

21 ‘‘(vi) Retail lending assessment areas, 

22 as defined by the regulations in part 25 of 

23 title 12, Code of Federal Regulations, or 

24 any successor regulations, shall be estab25 lished for large banks and intermediate 


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•S 4824 IS

1 banks if not more than 90 percent of the 

2 retail loans of the bank are in facility3 based assessment areas containing their 

4 branches and deposit-taking automated 

5 teller machines. Large banks and inter6 mediate bank evaluations shall also exam7 ine lending outside of retail lending assess8 ment areas and facility-based assessment 

9 areas. Evaluations of these loans shall be 

10 considered when assigning an institution 

11 level rating to the bank. 

12 ‘‘(C) With respect to its evaluation of an 

13 application for a deposit facility by the institu14 tion— 

15 ‘‘(i) consider the record described in 

16 subparagraph (A), the effectiveness of the 

17 activities described in subparagraph (B), 

18 the overall rating of the institution under 

19 this section, and any improvement plans 

20 submitted pursuant to this section; 

21 ‘‘(ii) provide an opportunity for public 

22 comment for a period of not less than 60 

23 days; 

24 ‘‘(iii) consider changes in the commu25 nity reinvestment performance of the instiVerDate Sep 11 2014 04:30 Aug 28, 2024 Jkt 049200 PO 00000 Frm 00066 Fmt 6652 Sfmt 6201 E:\BILLS\S4824.IS S4824

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1 tution since the most recent rating under 

2 this section by the appropriate Federal fi3 nancial supervisory agency; and 

4 ‘‘(iv) require— 

5 ‘‘(I) a demonstration of public 

6 benefit, including a community bene7 fits plan with measurable goals re8 garding increasing responsible lending 

9 and other financial products that is 

10 commensurate with the ability of the 

11 institution to accomplish those goals; 

12 ‘‘(II) that the institution consult 

13 with community-based organizations 

14 and other community stakeholders in 

15 developing the community benefits 

16 plan; and 

17 ‘‘(III) a public hearing for any 

18 institution that has a received a ‘need19 to-improve’ or ‘low satisfactory’ grade 

20 in any individual assessment area dur21 ing the most recent examination. 

22 ‘‘(2) CONSIDERATION OF LENDING IN PART23 NERSHIP WITH NON-DEPOSITORY LENDERS.— 

24 ‘‘(A) IN GENERAL.—As part of assessing a 

25 financial institution under paragraph (1), the 


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•S 4824 IS

1 appropriate Federal financial supervisory agen2 cy shall evaluate the performance of the finan3 cial institution in originating loans for small 

4 farms, consumer loans (including residential 

5 mortgages, unsecured installment loans, ad6 vances, and lines of credit), and loans for small 

7 businesses (including unsecured installment 

8 loans, advances, and lines of credit) in partner9 ship with 1 or more non-depository lenders. 

10 ‘‘(B) AFFORDABILITY AND SUSTAIN11 ABILITY.—In making the evaluation described 

12 in subparagraph (A), the appropriate Federal 

13 financial supervisory agency shall consider the 

14 affordability and sustainability of the loan origi15 nations made in partnership with 1 or more 

16 non-depository lenders. 

17 ‘‘(C) DEFINITIONS.—In this paragraph: 

18 ‘‘(i) NON-DEPOSITORY LENDER.—The 

19 term ‘non-depository lender’ means a lend20 er that is not an insured depository institu21 tion. 

22 ‘‘(ii) SMALL BUSINESS; SMALL

23 FARM.—The terms ‘small business’ and 

24 ‘small farm’ have the meanings given those 

25 terms under the regulations promulgated 


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•S 4824 IS

1 by the Bureau implementing the amend2 ments made by section 1071 of the Dodd 

3 Frank Wall Street Reform and Consumer 

4 Protection Act of 2010 (Public Law 111– 

5 203; 124 Stat. 2056) under part 1002 of 

6 title 12, Code of Federal Regulations, or 

7 any successor regulation. 

8 ‘‘(3) DEDUCTIONS FOR FOSSIL EXPANSION.— 

9 ‘‘(A) IN GENERAL.—As part of assessing a 

10 financial institution under paragraph (1), the 

11 appropriate Federal financial supervisory agen12 cy shall— 

13 ‘‘(i) determine the total dollar amount 

14 of loans and investments to fossil fuel com15 panies for the purposes of fossil fuel ex16 pansion that were originated or held by the 

17 financial institution during the period cov18 ered by an examination under section 804; 

19 and 

20 ‘‘(ii) deduct not more than that total 

21 dollar amount from the reported commu22 nity development loans and investments of 

23 the financial institution, both in the aggre24 gate and at the local market, or assess25 ment area, level. 


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1 ‘‘(B) ACTIVITIES.—The deduction de2 scribed in subparagraph (A)(ii) may only be off3 set by financing by the institution of climate re4 siliency and disaster mitigation activities spe5 cifically targeted to underserved communities, 

6 such as— 

7 ‘‘(i) the development of climate resil8 ient affordable housing, schools, and small 

9 businesses (as defined in paragraph 

10 (2)(C)); 

11 ‘‘(ii) clean electricity projects and 

12 microgrids; 

13 ‘‘(iii) nature-based protective infra14 structure; 

15 ‘‘(iv) building decarbonization, which 

16 includes holistic home weatherization and 

17 health interventions; 

18 ‘‘(v) lending to green small businesses 

19 and companies with legitimate public 

20 decarbonization transition plans, strate21 gies, and targets; 

22 ‘‘(vi) electric public transit and elec23 tric vehicle charging infrastructure; 

24 ‘‘(vii) investments in weatherization 

25 and climate resilience for local businesses; 


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1 ‘‘(viii) operational and technical sup2 port and capacity building for environ3 mental and climate justice organizations, 

4 including support for community groups 

5 active in environmental testing and train6 ing of community members to identify cli7 mate or environmental risks and opportu8 nities in their communities; and 

9 ‘‘(ix) workforce development related to 

10 the transition away from fossil fuels, in11 cluding activities to train workers on skills 

12 needed to participate in carbon-pollution13 free energy sectors. 

14 ‘‘(4) PENALTIES FOR SUSTAINED FAILING PER15 FORMANCE.—A regulated financial institution other 

16 than a U.S. nonbank mortgage originator that re17 ceives overall performance ratings under this section 

18 of ‘needs to improve’ or ‘substantial noncompliance’ 

19 for 2 consecutive examinations shall be subject to 

20 the following penalties, as deemed applicable by the 

21 appropriate Federal financial supervisory agency: 

22 ‘‘(A) Restrictions on the institution’s 

23 growth (overall or in discrete areas), business 

24 activities, or payment of dividends, including re25 strictions on ability to sell loans originated by 


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1 the institution to enterprises, as defined in sec2 tion 1303 of the Federal Housing Enterprises 

3 Financial Safety and Soundness Act of 1992 

4 (12 U.S.C. 4502). 

5 ‘‘(B) Recommendations to appropriate 

6 State agencies that State mortgage licenses be 

7 suspended or revoked with a statement of facts 

8 covering the justification for the recommended 

9 suspension or revocation. 

10 ‘‘(C) Requiring the institution to simplify 

11 or reduce its operations, including that the in12 stitution reduce its asset size, divest subsidi13 aries or business lines, or exit from 1 or more 

14 markets of operation. 

15 ‘‘(D) Recovery, or claw back, of portions of 

16 executive compensation received during consecu17 tive evaluation periods under this section of 

18 which the institution received an overall per19 formance rating of ‘needs to improve’ or ‘sub20 stantial noncompliance’. 

21 ‘‘(b) U.S. NONBANK MORTGAGE ORIGINATOR.— 

22 ‘‘(1) IN GENERAL.—In connection with its ex23 amination of a U.S. nonbank mortgage originator, 

24 the appropriate Federal financial supervisory agency 

25 shall perform the following: 


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1 ‘‘(A) Assess the record of the U.S. 

2 nonbank mortgage originator in meeting the 

3 credit or other financial needs of its entire com4 munity, in particular low-income and moderate5 income people and communities and other dis6 tressed or underserved communities and other 

7 underserved populations, consistent with the 

8 safe and sound operation of the U.S. nonbank 

9 mortgage originator. 

10 ‘‘(B) Assess, as appropriate, the following 

11 activities in the assessment areas of the U.S. 

12 nonbank mortgage originator: 

13 ‘‘(i) Retail lending, including home 

14 loans. 

15 ‘‘(ii) Community development services. 

16 ‘‘(iii) Community development lending 

17 and investments, which may include a con18 sideration of— 

19 ‘‘(I) the origination of loans and 

20 other efforts by the institution to as21 sist existing low- and moderate-income 

22 residents to remain in affordable 

23 housing in their community; 

24 ‘‘(II) the origination of loans by 

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1 struction, rehabilitation or preserva2 tion of affordable housing units; and 

3 ‘‘(III) investments in, grants to, 

4 or loans to community development fi5 nancial institutions (as defined in sec6 tion 103 of the Community Develop7 ment Banking and Financial Institu8 tions Act of 1994 (12 U.S.C. 4702)), 

9 community development corporations 

10 (as defined in section 613 of the Com11 munity Economic Development Act of 

12 1981 (42 U.S.C. 9802)), and other 

13 nonprofit organizations serving the 

14 housing and development needs of the 

15 community. 

16 ‘‘(iv) Retail lending assessment areas, 

17 as defined by the regulations in part 25 of 

18 title 12, Code of Federal Regulations, or 

19 any successor regulation, shall be estab20 lished if not more than 90 percent of the 

21 retail loans of the U.S. nonbank originator 

22 are in facility-based assessment areas con23 taining offices or agents. The evaluations 

24 shall also examine lending outside of retail 

25 lending assessment areas and facility-based 


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•S 4824 IS

1 assessment areas. Evaluations of these 

2 loans shall be considered when assigning 

3 an institution level rating to the U.S. 

4 nonbank mortgage originator. 

5 ‘‘(C) With respect to its evaluation of an 

6 application for a deposit facility by the U.S. 

7 nonbank mortgage originator— 

8 ‘‘(i) consider the record described in 

9 subparagraph (A) the overall rating of the 

10 U.S. nonbank mortgage originator under 

11 this section, and any improvement plans 

12 submitted pursuant to this section; 

13 ‘‘(ii) provide an opportunity for public 

14 comment for a period of not less than 60 

15 days; 

16 ‘‘(iii) consider changes in the commu17 nity reinvestment performance of the U.S. 

18 nonbank mortgage originator since the 

19 most recent rating under this section by 

20 the appropriate Federal financial super21 visory agency; and 

22 ‘‘(iv) require— 

23 ‘‘(I) a demonstration that grant24 ing the application for a deposit facil25 ity is in the public interest, which 


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1 shall include a submission of a com2 munity benefits plan, which shall be 

3 commensurate with the ability of the 

4 institution to accomplish the plan, by 

5 the U.S. nonbank mortgage originator 

6 to the appropriate Federal financial 

7 supervisory agency; 

8 ‘‘(II) that the U.S. nonbank 

9 mortgage originator consult with com10 munity-based organizations and other 

11 community stakeholders in developing 

12 the community benefits plan; and 

13 ‘‘(III) a public hearing for any 

14 U.S. nonbank mortgage originator 

15 that has a received a ‘need-to-im16 prove’ or ‘low satisfactory’ grade in 

17 any individual assessment area during 

18 the most recent examination. 

19 ‘‘(2) PENALTIES AND FEES.—The appropriate 

20 Federal financial supervisory agency shall have the 

21 same authority to assess penalties and fees under 

22 subsection (a)(4) for U.S. nonbank mortgage origi23 nator as is the case for regulated financial institu24 tions described in subsection (a). 


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1 ‘‘(3) AUTHORITY TO ADJUST EXAMINATION AND

2 SUPERVISORY FEES.—The appropriate Federal fi3 nancial supervisory agencies shall have the authority 

4 to adjust the dollar amount of examination and su5 pervisory fees, based in part, on the rating of insti6 tutions under this section. 

7 ‘‘(c) REQUIREMENTS.— 

8 ‘‘(1) IN GENERAL.—In connection with its ex9 amination of a regulated financial institution under 

10 subsection (a) or (b), the appropriate Federal finan11 cial supervisory agency shall— 

12 ‘‘(A) consider public comments received by 

13 the appropriate Federal financial supervisory 

14 agency regarding the record of the institution in 

15 meeting the credit or other financial needs of 

16 its entire community, including low- and mod17 erate-income communities, and hold not less 

18 than 1 public hearing to receive comments for 

19 large banks with assets of not less than 

20 $50,000,000,000; and 

21 ‘‘(B) require— 

22 ‘‘(i) an improvement plan for an insti23 tution that receives a rating of ‘low satis24 factory’ or lower on the written evaluation 


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•S 4824 IS

1 of the institution, or such a rating in any 

2 individual assessment area; and 

3 ‘‘(ii) the improvement plan described 

4 in clause (i) to result in the reasonable 

5 likelihood that the institution will obtain a 

6 rating of at least ‘high satisfactory’ in 

7 meeting community credit or other finan8 cial needs in the relevant measure on the 

9 next examination. 

10 ‘‘(2) IMPROVEMENT PLAN.— 

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

12 institution that is required to submit an im13 provement plan required under paragraph 

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

15 appropriate Federal financial supervisory agen16 cy not later than 90 days after receiving notice 

17 that the regulated financial institution is re18 quired to submit the plan. 

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

20 an improvement plan of a regulated financial 

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

22 the appropriate Federal financial supervisory 

23 agency shall— 


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

2 public for review and comment for a period 

3 of not less than 60 days; and 

4 ‘‘(ii) require the regulated financial 

5 institution to revise, as appropriate, the 

6 improvement plan in response to the public 

7 comments received under the public review 

8 and comment period described in clause (i) 

9 and submit the plan to the appropriate 

10 Federal financial supervisory agency not 

11 later than 60 days after the end of that pe12 riod. 

13 ‘‘(3) EXAMINATION OF CERTAIN REGULATED

14 FINANCIAL INSTITUTIONS.—In the case of a regu15 lated financial institution whose lending or other 

16 business is not clustered in geographical areas and 

17 is thinly dispersed across the country, the institution 

18 shall— 

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

20 (b), as applicable— 

21 ‘‘(i) by considering the effectiveness of 

22 the institution in serving customers or bor23 rowers, with a special emphasis on low24 and moderate-income individuals and other 

25 underserved populations across the country 


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1 regardless of where the individuals reside; 

2 and 

3 ‘‘(ii) based on objective thresholds de4 veloped by the appropriate Federal finan5 cial supervisory agencies to clarify when 

6 lending or other business is dispersed 

7 across the country and not clustered in 

8 distinct geographical areas, which may in9 clude low levels of lending or other finan10 cial products across States or other areas; 

11 and 

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

13 underserved communities. 

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

15 pursuant to an order by a court or administrative body 

16 or a settlement with a government agency or a private 

17 party may not be considered in an assessment conducted 

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

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

20 bank holding company under this section shall incorporate 

21 evaluations of subsidiary regulated financial institutions 

22 made by the appropriate Federal financial supervisory 

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

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

25 (i) by striking paragraph (2); 


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1 (ii) by redesignating paragraph (3) as 

2 paragraph (2); and 

3 (iii) in paragraph (2), as so redesig4 nated, by striking subparagraph (C); and 

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

6 by striking ‘‘subsection (a)’’ and inserting ‘‘sub7 sections (a) and (b)’’; 

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

9 (A) in subsection (a)— 

10 (i) by striking ‘‘an insured depository 

11 institution’’ and inserting ‘‘a regulated fi12 nancial institution’’; and 

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

14 ‘‘credit’’; 

15 (B) in subsection (b)— 

16 (i) in paragraph (1)— 

17 (I) in subparagraph (A)— 

18 (aa) in clause (ii), by strik19 ing ‘‘and’’ at the end; 

20 (bb) by redesignating clause 

21 (iii) as clause (iv); and 

22 (cc) by inserting after clause 

23 (ii) the following: 

24 ‘‘(iii) disclose whether the institution en25 gaged in acts or practices that the Bureau of 


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1 Consumer Financial Protection has determined, 

2 and has publicly disclosed, violate the enumer3 ated consumer laws; and’’; and 

4 (II) by striking subparagraph (B) 

5 and inserting the following: 

6 ‘‘(B) EVALUATION ON AN ASSESSMENT AREA

7 BASIS.—The information required under subsections 

8 (a) and (b) of section 804 shall be presented sepa9 rately for each assessment area. 

10 ‘‘(C) TREATMENT WITH RESPECT TO VIOLA11 TIONS OF ENUMERATED CONSUMER LAWS.—If a 

12 regulated financial institution has engaged in acts or 

13 practices that the appropriate Federal financial su14 pervisory agency has determined to be unfair, decep15 tive, or abusive or acts or practices that violate enu16 merated consumer laws intended to ensure the fair, 

17 equitable, and nondiscriminatory access to credit for 

18 individuals and communities that are enforced by 

19 the Bureau of Consumer Financial Protection or 

20 other Federal or State agencies, the written evalua21 tion shall be negatively influenced in a manner com22 mensurate with the extent of the harm suffered by 

23 those individuals and communities.’’; 

24 (ii) in paragraph (2)— 


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1 (I) by striking subparagraphs 

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

3 the following: 

4 ‘‘(A) ‘Outstanding record of meeting com5 munity credit or other financial needs’. 

6 ‘‘(B) ‘High Satisfactory record of meeting 

7 community credit or other financial needs’. 

8 ‘‘(C) ‘Low Satisfactory record of meeting 

9 community credit or other financial needs’. 

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

11 community credit or other financial needs’. 

12 ‘‘(E) ‘Substantial noncompliance in meet13 ing community credit or other financial 

14 needs’.’’; and 

15 (iii) by inserting after the flush text 

16 following paragraph (2) the following: 

17 ‘‘(3) ADDITIONAL AUTHORITY.—The appro18 priate Federal financial supervisory agencies may— 

19 ‘‘(A) alter the ratings under this sub20 section to change or include additional ratings 

21 for the overall ratings and subtest ratings; and 

22 ‘‘(B) develop an accompanying point sys23 tem that includes ranges for each rating cat24 egory under paragraph (2).’’; 


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1 (C) by redesignating subsection (e) as sub2 section (f); and 

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

4 following: 

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

6 institution appeals the assigned rating under this section, 

7 the appropriate Federal financial supervisory agency 

8 shall— 

9 ‘‘(1) post a public notice of the appeal on the 

10 part of the website of the appropriate Federal finan11 cial supervisory agency that contains information on 

12 this title; and 

13 ‘‘(2) provide an opportunity for public comment 

14 on the appeal.’’; 

15 (4) in section 806 (12 U.S.C. 2905)— 

16 (A) by striking ‘‘Regulations’’ and insert17 ing the following: 

18 ‘‘(a) IN GENERAL.—Regulations’’; 

19 (B) in subsection (a), as so designated, by 

20 striking ‘‘companies,,’’ and inserting ‘‘compa21 nies,’’; and 

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

23 ‘‘(b) PERIODIC REVIEW.—Not later than 5 years 

24 after the date of enactment of this subsection and every 


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1 5 years thereafter, the appropriate Federal financial su2 pervisory agencies shall— 

3 ‘‘(1) review the regulations promulgated to 

4 carry out this title; and 

5 ‘‘(2) report to Congress any recommendations 

6 for updates to the regulations and this title, which 

7 may include consideration of— 

8 ‘‘(A) data collection under this title; 

9 ‘‘(B) the rigor of evaluations under this 

10 title; 

11 ‘‘(C) the assessment area coverage of loans 

12 and deposits; and 

13 ‘‘(D) the extent to which the provisions of 

14 this title are reducing disparities in access to 

15 credit and capital by income and race.’’; and 

16 (5) by adding at the end the following: 

17 ‘‘SEC. 810. DATA COLLECTION AND REPORTING REQUIRE18 MENTS. 

19 ‘‘(a) DATA COLLECTION.— 

20 ‘‘(1) CONSUMER LOANS.— 

21 ‘‘(A) IN GENERAL.—Each regulated finan22 cial institution shall collect and maintain in ma23 chine readable form, as prescribed by the ap24 propriate Federal financial supervisory agency, 

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1 chased by the regulated financial institution, in2 cluding motor vehicle loans, credit cards, lines 

3 of credit, and other secured or unsecured loans. 

4 The regulated financial institution shall main5 tain data separately for each category of con6 sumer loan, including the following for each 

7 loan: 

8 ‘‘(i) A unique number or alpha-nu9 meric symbol that can be used to identify 

10 the relevant loan. 

11 ‘‘(ii) The loan amount at origination 

12 or purchase. 

13 ‘‘(iii) The loan location. 

14 ‘‘(iv) The gross annual income of the 

15 borrower that the regulated financial insti16 tution considered in making its credit deci17 sion. 

18 ‘‘(B) EXEMPTIONS.—The appropriate Fed19 eral financial supervisory agencies may exempt 

20 classes of regulated financial institutions from 

21 the requirements under subparagraph (A) due 

22 to low levels of consumer lending or other fac23 tors. 

24 ‘‘(2) COMMUNITY DEVELOPMENT LOANS AND

25 INVESTMENTS.— 


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1 ‘‘(A) COLLECTION AND MAINTENANCE OF

2 DATA.—Each regulated financial institution 

3 shall collect and maintain in machine readable 

4 form, as prescribed by the appropriate Federal 

5 financial supervisory agency, data on the cat6 egories of community development lending and 

7 investments, including data regarding financing 

8 affordable housing, small business development, 

9 and economic development. 

10 ‘‘(B) PUBLIC DISSEMINATION.—Each reg11 ulated financial institution and the appropriate 

12 Federal financial supervisory agencies shall— 

13 ‘‘(i) publicly disseminate the data de14 scribed in subparagraph (A) on a county 

15 level and for categories of census tracts in16 cluding low- and moderate-income census 

17 tracts or other distressed and underserved 

18 census tracts; and 

19 ‘‘(ii) consider disseminating the data 

20 described in subparagraph (A) by indi21 vidual census tracts in addition to the cat22 egories described in clause (i). 

23 ‘‘(3) ASSESSMENT AREA DATA.— 

24 ‘‘(A) IN GENERAL.—Each regulated finan25 cial institution shall collect and report to the 


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1 appropriate Federal financial supervisory agen2 cy by March 1 of each year a list for each as3 sessment area showing the geographies within 

4 the area. 

5 ‘‘(B) PUBLICATION.—The appropriate 

6 Federal financial supervisory agencies shall 

7 make the list of assessment areas reported by 

8 each regulated financial institution under sub9 paragraph (A) publicly available on the part of 

10 the website of the appropriate Federal financial 

11 supervisory agency that contains information on 

12 this title. 

13 ‘‘(4) DEPOSITS.—The appropriate Federal fi14 nancial supervisory agencies shall— 

15 ‘‘(A) collect data from regulated financial 

16 institutions that reflects— 

17 ‘‘(i) the number of customers of those 

18 institutions that reside in categories of 

19 census tracts including low- and moderate20 income census tracts or other distressed 

21 and underserved census tracts and the dol22 lar amount of deposits of those customers; 

23 and 


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1 ‘‘(ii) the number of small businesses 

2 that are located in the census tract cat3 egories described in clause (i); and 

4 ‘‘(B) consider the dissemination of the de5 posit data collected under subparagraph (A) by 

6 individual census tracts in addition to the cat7 egories described in that subparagraph. 

8 ‘‘(b) AGGREGATE DISCLOSURE STATEMENTS.— 

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

10 financial supervisory agency shall prepare annually, 

11 for each assessment area, a disclosure statement of 

12 home, small business, small farm, and consumer 

13 lending for each regulated financial institution sub14 ject to reporting under this section and an aggre15 gated statement for all reporting institutions com16 bined, which shall indicate, for each assessment 

17 area, the number and amount of all small business, 

18 small farm, and consumer loans originated or pur19 chased sorted by income level of borrowers, race and 

20 ethnicity of borrowers, revenue size of small business 

21 and farms, and categories of census tracts. 

22 ‘‘(2) DEPOSITS AND COMMUNITY DEVELOP23 MENT LOANS AND INVESTMENTS.—An appropriate 

24 Federal financial supervisory agency shall include 

25 data on deposits and community development loans 


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1 and investments in the disclosure statements pre2 pared under paragraph (1). 

3 ‘‘(3) ADJUSTED FORM.—An appropriate Fed4 eral financial supervisory agency may adjust the 

5 form of the disclosure statement prepared under 

6 paragraph (1) if necessary, because of special cir7 cumstances, to protect the privacy of a borrower or 

8 the competitive position of a regulated financial in9 stitution. 

10 ‘‘(c) CENTRAL DATA DEPOSITORIES.—The Federal 

11 Financial Institutions Examination Council, in consulta12 tion with the appropriate Federal financial supervisory 

13 agencies, shall implement a system— 

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

15 a searchable format the data maintained under 

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

17 ‘‘(2) that ensures that personally identifiable fi18 nancial information is not disclosed to public. 

19 ‘‘(d) LIMITATION.—An appropriate Federal financial 

20 supervisory agency may not use the authorities of the ap21 propriate Federal financial supervisory agency under this 

22 section to obtain a record from a regulated financial insti23 tution for the purpose of gathering or analyzing the per24 sonally identifiable financial information of a consumer. 


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1 ‘‘SEC. 811. COMMUNITY ADVISORY COMMITTEES. 

2 ‘‘(a) DEPOSITORY INSTITUTIONS.—Each regulated 

3 financial institution that is not a U.S. nonbank mortgage 

4 originator shall form a separate Community Advisory 

5 Committee (which shall be composed of a diverse set of 

6 consumer, housing, community development, and other 

7 stakeholder groups) in each of the following: 

8 ‘‘(1) With respect to a depository institution 

9 with consolidated assets equal to or greater than 

10 $2,000,000,000 the branches of which are located in 

11 1 census region, each metropolitan statistical area 

12 where the financial institution or any subsidiaries of 

13 the financial institution have a branch or other facil14 ity (including an automated teller machine) and each 

15 metropolitan statistical area where the financial in16 stitution has a substantial number of customers who 

17 maintain deposit accounts with the financial institu18 tion. 

19 ‘‘(2) With respect to a depository institution 

20 with consolidated assets equal to or greater than 

21 $2,000,000,000 the branches of which are located in 

22 more than 1 census region, each census division 

23 within each of the regions. 

24 ‘‘(3) With respect to a depository institution 

25 with consolidated assets of less than 

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1 stitution or any subsidiaries of the financial institu2 tion are located. 

3 ‘‘(b) U.S. NONBANK MORTGAGE ORIGINATORS.— 

4 Each U.S. nonbank mortgage originator shall form a sepa5 rate Community Advisory Committee (which shall be com6 posed of a diverse set of consumer, housing, community 

7 development, and other stakeholder groups) in each of the 

8 following: 

9 ‘‘(1) With respect to a U.S. nonbank mortgage 

10 originator that is required to make a number of dis11 closures under the Home Mortgage Disclosure Act of 

12 1975 (12 U.S.C. 2801 et seq.) that is less than the 

13 national median, each State in which the U.S. 

14 nonbank mortgage originator offers loans. 

15 ‘‘(2) With respect to a U.S. nonbank mortgage 

16 originator that is required to make a number of dis17 closures under the Home Mortgage Disclosure Act of 

18 1975 (12 U.S.C. 2801 et seq.) that is more than the 

19 national median, each census division within the cen20 sus regions in which the U.S. nonbank mortgage 

21 originator offers loans. 

22 ‘‘(c) BIANNUAL CONSULTATION.—The executives of 

23 each regulated financial institution shall meet not less fre24 quently than twice per year with the Community Advisory 


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1 Committees of the regulated financial institution formed 

2 under subsection (a) or (b), as applicable— 

3 ‘‘(1) to discuss the financial institution’s cur4 rent work to meet the credit and deposit needs of 

5 low- and moderate-income individuals and under6 served communities, persons with disabilities, 

7 LGBTQ+ communities, and Chinese, Asian Indian, 

8 Filipino, Japanese, Korean, Vietnamese, Pakistani, 

9 Cambodian, Hmong, Laotian, Thai, Taiwanese, Bur10 mese, Bangladeshi, Nepalese, Indonesian, Malaysian, 

11 Hispanic or Latino, Black or African American, 

12 American Indian and Alaska Native, Native Hawai13 ian, Samoan, Chamorro, Tongan, iTaukei, 

14 Marshallese, and Other Pacific Islander commu15 nities, as applicable to the geographic areas of the 

16 financial institution; 

17 ‘‘(2) with respect to an institution described in 

18 subsection (a)(2) or a U.S. nonbank mortgage origi19 nator described in subsection (b)(2), to assist the ex20 ecutives in developing and updating a plan for how 

21 the institution will work to meet the credit needs of 

22 the institution’s entire community, including low23 and moderate-income neighborhoods; and 

24 ‘‘(3) to discuss the institution’s data (which 

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1 ipino, Japanese, Korean, Vietnamese, Pakistani, 

2 Cambodian, Hmong, Laotian, Thai, Taiwanese, Bur3 mese, Bangladeshi, Nepalese, Indonesian, Malaysian, 

4 Hispanic or Latino, Black or African American, 

5 American Indian and Alaska Native, and Native Ha6 waiian, Samoan, Chamorro, Tongan, iTaukei, 

7 Marshallese and Other Pacific Islander communities, 

8 as applicable to the institution’s geographic areas) 

9 on— 

10 ‘‘(A) mortgage lending and lending to 

11 small businesses and small farms, as defined in 

12 section 804(a)(2)(C); 

13 ‘‘(B) retail products and services; 

14 ‘‘(C) community development services; and 

15 ‘‘(D) community development financing. 

16 ‘‘(d) SPECIFIC CONSULTATIONS.—In addition to the 

17 consultations required under paragraph (2), the executives 

18 of a depository institution described in subsection (a)(2) 

19 shall meet with the Community Advisory Committee of the 

20 institution before— 

21 ‘‘(1) the institution applies for a merger or ac22 quisition; 

23 ‘‘(2) the institution, or any subsidiary of the in24 stitution, applies for deposit insurance; 


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•S 4824 IS

1 ‘‘(3) the institution applies to open a new 

2 branch or to relocate an existing branch; or 

3 ‘‘(4) the institution provides notice that it 

4 would close a branch or other facility. 

5 ‘‘SEC. 812. STUDY ON DISCRIMINATION AND DISPARITIES IN 

6 ACCESS TO CREDIT. 

7 ‘‘(a) STUDY.—Not later than the end of the 2-year 

8 period beginning on the date of enactment of this section, 

9 and every 2 years thereafter, the appropriate Federal fi10 nancial supervisory agencies shall, jointly, and in consulta11 tion with such other Federal or State agencies as the ap12 propriate Federal financial supervisory agencies determine 

13 appropriate, complete an interagency statistical study to 

14 identify— 

15 ‘‘(1) metropolitan areas and rural counties that 

16 either experience ongoing discrimination or exhibit 

17 significant racial disparities in access to credit for 

18 any racial or ethnic group; and 

19 ‘‘(2) significant disparities in access to branches 

20 by racial or ethnic composition of census tract and 

21 disparities in access to community development fi22 nancing by racial or ethnic composition of census 

23 tract. 

24 ‘‘(b) USE OF DATA.—In carrying out each study re25 quired under subsection (a), the appropriate Federal fiVerDate Sep 11 2014 04:30 Aug 28, 2024 Jkt 049200 PO 00000 Frm 00095 Fmt 6652 Sfmt 6201 E:\BILLS\S4824.IS S4824

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1 nancial supervisory agencies shall make use of data includ2 ing— 

3 ‘‘(1) data obtained under the Home Mortgage 

4 Disclosure Act of 1975 (12 U.S.C. 2801 et seq.); 

5 ‘‘(2) data obtained under section 704B of the 

6 Equal Credit Opportunity Act (15 U.S.C. 1691o–2); 

7 ‘‘(3) data obtained under this Act; 

8 ‘‘(4) available State data; and 

9 ‘‘(5) information contained in public litigation 

10 against regulated financial institutions for redlining 

11 or lending discrimination (including litigation initi12 ated by the Bureau of Consumer Financial Protec13 tion, the Department of Housing and Urban Affairs, 

14 the Department of Justice, or by private parties). 

15 ‘‘(c) REPORT.—Upon the completion of each study 

16 required under subsection (a), the appropriate Federal fi17 nancial supervisory agencies shall jointly submit to the 

18 Committee on Banking, Housing, and Urban Affairs of 

19 the Senate and the Committee on Financial Services of 

20 the House of Representatives a report that includes— 

21 ‘‘(1) all findings and determinations made in 

22 carrying out the study; and 

23 ‘‘(2) policy recommendations to remedy the dis24 crimination and disparities identified in the study. 


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1 ‘‘SEC. 813. PUBLIC REGISTRIES. 

2 ‘‘The appropriate Federal supervisory financial agen3 cies, acting through the Federal Financial Institutions Ex4 amination Council, shall— 

5 ‘‘(1) maintain a list of community-based organi6 zations and other stakeholders who wish to be listed 

7 and who have commented on examinations con8 ducted under section 804 and applications regarding 

9 community needs and bank performance; and 

10 ‘‘(2) conduct outreach to community groups 

11 and strive for geographical diversity, gender and ra12 cial diversity, and diversity in terms of various types 

13 of needs, including affordable housing and economic 

14 development to community facilities.’’. 

15 (c) AMENDMENT TO THE BANK HOLDING COMPANY

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

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

18 to read as follows: 

19 ‘‘(6) NOTICE AND OPPORTUNITY FOR COMMENT

20 REQUIRED.— 

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

22 company shall directly or indirectly acquire, and 

23 no company that becomes a financial holding 

24 company shall directly or indirectly acquire con25 trol of, any company in the United States, in26 cluding through merger, consolidation, or other 


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1 type of business combination, that is engaged in 

2 activities permitted under this subsection or 

3 subsection (n) or (o), unless— 

4 ‘‘(i) the holding company has provided 

5 notice to the Board, not later than 60 days 

6 prior to the proposed acquisition or prior 

7 to becoming a financial holding company, 

8 and during that time period, or such 

9 longer time period not exceeding an addi10 tional 60 days, as established by the 

11 Board; 

12 ‘‘(ii) the Board has provided public 

13 notice and opportunity for comment for 

14 not less than 60 days; and 

15 ‘‘(iii) the Board has not issued a no16 tice disapproving the proposed acquisition 

17 or retention. 

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

19 reviewing any prior notice filed under this para20 graph, the Board shall— 

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

22 financial holding company under the Com23 munity Reinvestment Act of 1977 (12 

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

25 plans submitted pursuant to that Act; 


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1 ‘‘(ii) provide opportunity for public 

2 comment for a period of not less than 60 

3 days; 

4 ‘‘(iii) consider changes in the commu5 nity reinvestment performance of the fi6 nancial holding company since the last rat7 ing under the Community Reinvestment 

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

9 the appropriate Federal financial super10 visory agency; and 

11 ‘‘(iv) require— 

12 ‘‘(I) a demonstration that grant13 ing the application for a deposit facil14 ity is in the public interest, which 

15 shall include submission to the appro16 priate Federal financial supervisory 

17 agency of a community benefits plan 

18 commensurate with the ability of the 

19 institution to carry out that 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 ‘low satisfactory’ grade in 

4 any assessment area during the last 

5 examination under the Community 

6 Reinvestment 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 as an underserved area before the 

22 date of enactment of this paragraph from 

23 the Administration; and 

24 ‘‘(ii) has established a service facility 

25 before that date of enactment.’’; 


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1 (2) in section 106 (12 U.S.C. 1756)— 

2 (A) in the first sentence, by striking ‘‘Fed3 eral’’ and inserting ‘‘(a) Federal’’; and 

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

5 ‘‘(b) The Board shall monitor adherence by a Federal 

6 credit union to a significant unmet needs plan submitted 

7 under section 109(h) by that Federal credit union that 

8 describes how the Federal credit union will serve the de9 posit and other financial needs of the community.’’; and 

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

11 (A) in subsection (c), by amending para12 graph (2) to read as follows: 

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

14 ‘‘(A) IN GENERAL.—Notwithstanding sub15 section (b), the Board may approve an applica16 tion by a Federal credit union to allow the 

17 membership of the credit union to include any 

18 person or organization whose principal resi19 dence or place of business is located within a 

20 local community, neighborhood, or rural district 

21 if— 

22 ‘‘(i) the Board determines— 

23 ‘‘(I) at any time after August 7, 

24 1998, that the local community, 

25 neighborhood, or rural district taken 


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1 into account for purposes of this para2 graph is an underserved area; and 

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

4 that the credit union is well capital5 ized or adequately capitalized (as de6 fined in section 216(c)(1)); and 

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

8 period beginning on the date of the ap9 proval, the credit union has established 

10 and maintains an ongoing method to pro11 vide services in the local community, neigh12 borhood, or rural district. 

13 ‘‘(B) TERMINATION OF APPROVAL.— 

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

15 Federal credit union to meet the require16 ment of clause (ii) of subparagraph (A) by 

17 the end of the 24-month period referred to 

18 in that clause shall constitute a termi19 nation, as a matter of law, of any approval 

20 of an application under this paragraph by 

21 the Board with respect to the membership 

22 of the credit union. 

23 ‘‘(ii) SIGNIFICANT UNMET NEEDS

24 PLAN.—The Board may terminate the ap25 proval of an application under this paraVerDate Sep 11 2014 04:30 Aug 28, 2024 Jkt 049200 PO 00000 Frm 00103 Fmt 6652 Sfmt 6201 E:\BILLS\S4824.IS S4824

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1 graph with respect to the membership of a 

2 Federal credit union upon a finding that 

3 the credit union is not meeting the terms 

4 of the significant unmet needs plan of the 

5 credit union submitted under subsection 

6 (h)(1). 

7 ‘‘(C) CREDIT UNION REPORTING REQUIRE8 MENT.—Any Federal credit union that has an 

9 application approved under this paragraph 

10 shall, as part of the ordinary course of the ex11 amination cycle and supervision process, submit 

12 a report to the Administration that includes— 

13 ‘‘(i) the number of members of the 

14 credit union who are members by reason of 

15 the application; 

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

17 maintained by the credit union in the local 

18 community, neighborhood, or rural district 

19 taken into account by the Board in approv20 ing the application; and 

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

22 Board by regulation, demonstrating com23 pliance by the credit union with the signifi24 cant unmet needs plan submitted by the 


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

2 specified by the Administration. 

3 ‘‘(D) PUBLICATION BY ADMINISTRA4 TION.—The Administration shall publish an an5 nual report containing— 

6 ‘‘(i) a list of all the applications ap7 proved under this paragraph before the 

8 date on which the report is published; 

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

10 underserved areas taken into account in 

11 approving those applications; 

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

13 credit unions who are members by reason 

14 of the approval of those applications; and 

15 ‘‘(iv) evidence demonstrating compli16 ance by credit unions with significant 

17 unmet needs plans submitted by the credit 

18 unions under subsection (h)(1), as speci19 fied by the Administration.’’; 

20 (B) in subsection (e)(2), by inserting ‘‘sub21 section (c)(2) and’’ after ‘‘provided in’’; and 

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

23 ‘‘(h) ADDITIONAL REQUIREMENTS FOR COMMUNITY

24 CREDIT UNIONS.— 


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1 ‘‘(1) IN GENERAL.—A Federal credit union de2 siring a field of membership as a credit union de3 scribed in subsection (b)(3) shall submit to the 

4 Board a business plan, which shall include, among 

5 other issues, a marketing plan that identifies— 

6 ‘‘(A) the unique needs of the various demo7 graphic groups in the proposed community; and 

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

9 each group, particularly underserved groups, to 

10 address those needs. 

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

12 respect to a Federal credit union desiring a field of 

13 membership as a credit union described in sub14 section (b)(3) for an area with multiple political ju15 risdictions with a population of not less than 

16 2,500,000, the Administration shall— 

17 ‘‘(A) publish a notice in the Federal Reg18 ister seeking comment from interested parties 

19 about the proposed community; and 

20 ‘‘(B) conduct a public hearing regarding 

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

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

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

24 Administration Board shall issue final regulations to im25 plement the amendments made by subsection (a). 


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1 SEC. 205. RAISING PUBLIC WELFARE CAPS. 

2 (a) NATIONAL BANKS.—The paragraph designated 

3 as the ‘‘Eleventh.’’ of section 5136 of the Revised Statutes 

4 of the United States (12 U.S.C. 24) is amended to read 

5 as follows: ‘‘Eleventh. To make investments directly or in6 directly, each of which promotes the public welfare by ben7 efitting primarily low- and moderate-income communities 

8 or families (such as by providing housing, services, or 

9 jobs). An association shall not make any such investment 

10 if the investment would expose the association to unlimited 

11 liability. The Comptroller of the Currency shall limit an 

12 association’s investments in any 1 project and an associa13 tion’s aggregate investments under this paragraph. Aggre14 gate investments for associations that do not meet the cri15 teria of being well capitalized, as defined in section 24.2(e) 

16 of title 12, Code of Federal Regulations, or any successor 

17 regulation, under this paragraph shall not exceed an 

18 amount equal to the sum of 5 percent of the association’s 

19 capital stock actually paid in and unimpaired and 5 per20 cent of the association’s unimpaired surplus fund, unless 

21 the Comptroller determines by order that the higher 

22 amount will pose no significant risk to the affected deposit 

23 insurance fund, and the association is adequately capital24 ized. In no case shall aggregate investments of an associa25 tion that do not meet the criteria for being well capitalized 

26 under this paragraph exceed an amount equal to the sum 


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1 of 15 percent of the association’s capital stock actually 

2 paid in and unimpaired and 15 percent of the association’s 

3 unimpaired surplus fund. Aggregate investments of well 

4 capitalized associations, as defined in section 24.2(e) of 

5 title 12, Code of Federal Regulations, or any successor 

6 regulation, under this paragraph shall not exceed an 

7 amount equal to the sum of 15 percent of the association’s 

8 capital stock actually paid in and unimpaired and 15 per9 cent of the association’s unimpaired surplus fund, unless 

10 the Comptroller determines by order that the higher 

11 amount will pose no significant risk to the affected deposit 

12 insurance fund. With respect to any association that meets 

13 the criteria for being well capitalized, as defined in section 

14 24.2(e) of title 12, Code of Federal Regulations, or any 

15 successor regulation, aggregate investments under this 

16 paragraph shall not exceed an amount equal to the sum 

17 of 25 percent of the association’s capital stock actually 

18 paid in and unimpaired and 25 percent of the association’s 

19 unimpaired surplus fund. The foregoing standards and 

20 limitations apply to investments under this paragraph 

21 made by a national bank directly and by its subsidiaries.’’. 

22 (b) CONFORMING AMENDMENTS FOR STATE MEM23 BER BANKS.—The 23rd undesignated paragraph of sec24 tion 9 of the Federal Reserve Act (12 U.S.C. 338a) is 

25 amended to read as follows: 


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1 ‘‘A State member bank may make investments di2 rectly or indirectly, each of which promotes the pub3 lic welfare by benefitting primarily low- and mod4 erate-income communities or families (such as by 

5 providing housing, services, or jobs), to the extent 

6 permissible under State law. A State member bank 

7 shall not make any such investment if the invest8 ment would expose the State member bank to unlim9 ited liability. Aggregate investments for State mem10 ber banks that do not meet the criteria of being well 

11 capitalized, as defined in section 208.43(b) of title 

12 12, Code of Federal Regulations, or any successor 

13 regulation, under this paragraph shall not exceed an 

14 amount equal to the sum of 5 percent of the associa15 tion’s capital stock actually paid in and unimpaired 

16 and 5 percent of the association’s unimpaired sur17 plus fund, unless the Board determines by order 

18 that the higher amount will pose no significant risk 

19 to the affected deposit insurance fund, and the asso20 ciation is adequately capitalized. In no case shall ag21 gregate investments of a State member bank that 

22 does not meet the criteria for being well capitalized 

23 under this paragraph exceed an amount equal to the 

24 sum of 15 percent of the association’s capital stock 

25 actually paid in and unimpaired and 15 percent of 


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1 the association’s unimpaired surplus fund. Aggre2 gate investments of well capitalized State member 

3 banks, as defined in section 208.43(b) of title 12, 

4 Code of Federal Regulations, or any successor regu5 lation, with an examination rating under section 804 

6 of the Community Reinvestment Act of 1977 (12 

7 U.S.C. 2903) of ‘outstanding’ or ‘satisfactory’, 

8 under this paragraph shall not exceed an amount 

9 equal to the sum of 15 percent of the State member 

10 bank’s capital stock actually paid in and unimpaired 

11 and 15 percent of the state member Bank’s 

12 unimpaired surplus fund, unless the Board deter13 mines by order that the higher amount will pose no 

14 significant risk to the affected deposit insurance 

15 fund. With respect to any State member bank that 

16 meets meet the criteria for being well capitalized as 

17 defined in section 208.43(b) of title 12, Code of 

18 Federal Regulations, or any successor regulation, 

19 with an examination rating under section 804 of the 

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

21 2903) of ‘outstanding’ or ‘satisfactory’, aggregate 

22 investments under this paragraph shall not exceed 

23 an amount equal to the sum of 25 percent of the 

24 State member bank’s capital stock actually paid in 

25 and unimpaired and 25 percent of the State member 


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1 bank’s unimpaired surplus fund. The foregoing 

2 standards and limitations apply to investments 

3 under this paragraph made by a State member bank 

4 directly and by its subsidiaries.’’. 

5 SEC. 206. TEMPORARY ELIGIBILITY OF CERTAIN DIRECT 

6 DESCENDANTS OF CERTAIN VETERANS FOR 

7 HOUSING LOANS GUARANTEED BY THE SEC8 RETARY OF VETERANS AFFAIRS. 

9 (a) IN GENERAL.—During the period described in 

10 subsection (b)— 

11 (1) section 3701(b) of title 38, United States 

12 Code, shall be applied and administered by adding at 

13 the end the following new paragraph: 

14 ‘‘(8)(A) The term ‘veteran’ also includes, for 

15 purposes of home loans, any direct descendant of a 

16 veteran described in subparagraph (B) if the de17 scendant— 

18 ‘‘(i) is living on the date of the enactment 

19 of the American Housing and Economic Mobil20 ity Act of 2024; 

21 ‘‘(ii) is a first-time homebuyer; and 

22 ‘‘(iii) is a first-generation homebuyer. 

23 ‘‘(B) A veteran described in this clause is a vet24 eran who— 


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1 ‘‘(i) served on active duty at any time dur2 ing the period between June 22, 1944, and 

3 April 11, 1968; 

4 ‘‘(ii) is deceased; and 

5 ‘‘(iii) did not receive a housing loan benefit 

6 under this chapter during his or her lifetime. 

7 ‘‘(C) In this paragraph: 

8 ‘‘(i) The term ‘direct descendant’ includes 

9 a legally adopted descendant. 

10 ‘‘(ii) The terms ‘first-generation home11 buyer’ and ‘first-time homebuyer’ have the 

12 meanings given those terms in section 201(a) of 

13 the American Housing and Economic Mobility 

14 Act of 2024.’’; and 

15 (2) section 3702(a)(2) of such title shall be ap16 plied and administered by adding at the end the fol17 lowing new subparagraph: 

18 ‘‘(H) Each direct descendant described in sec19 tion 3701(b)(8) of this title.’’. 

20 (b) PERIOD DESCRIBED.—The period described in 

21 this subsection is the period beginning one year after the 

22 date of the enactment of this Act and ending ten years 

23 after the date on which the Secretary of Veterans Affairs 

24 prescribes the regulations required by subsection (c). 

25 (c) REGULATIONS.— 


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1 (1) IN GENERAL.—Not later than 180 days 

2 after the date of the enactment of this Act, the Sec3 retary of Veterans Affairs shall prescribe regulations 

4 to carry out this section. 

5 (2) ELEMENTS.—The regulations required by 

6 paragraph (1) shall provide rules and procedures for 

7 determining— 

8 (A) the eligibility of a direct descendant 

9 for housing loan benefits under this section 

10 when the records of the Veterans Benefits Ad11 ministration are incomplete or otherwise inad12 equate to verify eligibility; and 

13 (B) appropriate implementation of this sec14 tion if more than one direct descendant of a 

15 veteran seeks housing loan benefits under this 

16 section. 

17 TITLE III—REMOVING BARRIERS 

18 THAT ISOLATE COMMUNITIES 

19 SEC. 301. EXPANDING RIGHTS UNDER THE FAIR HOUSING 

20 ACT. 

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

22 made by this section are— 

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

24 create greater consistency in, the protections against 


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1 discrimination on the basis of all covered character2 istics; and 

3 (2) to provide guidance and notice to individ4 uals, organizations, corporations, and agencies re5 garding their obligations under Federal law. 

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

7 The Fair Housing Act (42 U.S.C. 3601 et seq.) is amend8 ed— 

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

10 at the end the following: 

11 ‘‘(p) ‘Gender identity’ means the gender-related iden12 tity, appearance, or mannerisms or other gender-related 

13 characteristics of an individual, regardless of the individ14 ual’s designated sex at birth. 

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

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

17 or any successor regulation. 

18 ‘‘(r) ‘Sexual orientation’ means homosexuality, het19 erosexuality, or bisexuality. 

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

21 there is a reasonable expectation that the income will con22 tinue from— 

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

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

25 grant, loan, or rental assistance program, including 


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1 vouchers issued under the United States Housing 

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

3 ‘‘(3) a gift, an inheritance, a pension, an annu4 ity, alimony, child support, or other consideration or 

5 benefit; or 

6 ‘‘(4) the sale or pledge of property or an inter7 est in property. 

8 ‘‘(t) ‘Veteran status’ means— 

9 ‘‘(1) a member of the uniformed services, as de10 fined in section 101 of title 10, United States Code; 

11 or 

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

13 38, United States Code.’’; 

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

15 (A) by inserting ‘‘actual or perceived’’ be16 fore ‘‘race, color’’ each place that term appears; 

17 (B) by striking ‘‘sex,’’ each place that term 

18 appears and inserting ‘‘sex (including sexual 

19 orientation and gender identity), marital status, 

20 source of income, veteran status,’’; and 

21 (C) in subsection (c)— 

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

23 make’’; and 

24 (ii) by adding at the end the fol25 lowing: 


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

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

3 loan program for veterans or based upon veteran 

4 status; or 

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

6 assistance under— 

7 ‘‘(i) section 8(o)(19) of the United States 

8 Housing Act of 1937 (42 U.S.C. 1437f(o)(19)); 

9 ‘‘(ii) the Homeless Providers Grant and 

10 Per Diem program of the Department of Vet11 erans Affairs; or 

12 ‘‘(iii) any other Federal housing assistance 

13 program for veterans or based on veteran sta14 tus.’’; 

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

16 (A) by inserting ‘‘actual or perceived’’ be17 fore ‘‘race, color’’ each place that term appears; 

18 and 

19 (B) by striking ‘‘sex,’’ each place that term 

20 appears and inserting ‘‘sex (including sexual 

21 orientation and gender identity), marital status, 

22 source of income, veteran status,’’; 

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

24 (A) by inserting ‘‘actual or perceived’’ be25 fore ‘‘race, color’’; and 


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1 (B) by striking ‘‘sex,’’ each place that term 

2 appears and inserting ‘‘sex (including sexual 

3 orientation and gender identity), marital status, 

4 source of income, veteran status,’’; and 

5 (5) in section 808(e)(6) (42 U.S.C. 3608(e)(6)), 

6 by striking ‘‘sex,’’ and inserting ‘‘sex (including sex7 ual orientation and gender identity), marital status, 

8 source of income, veteran status,’’. 

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

10 the Civil Rights Act of 1968 (42 U.S.C. 3631) is amend11 ed— 

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

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

14 (2) by striking ‘‘sex,’’ each place that term ap15 pears and inserting ‘‘sex (including sexual orienta16 tion (as such term is defined in section 802 of this 

17 Act) and gender identity (as defined in section 802 

18 of this Act)), marital status (as defined in section 

19 802), source of income (as defined in section 802), 

20 veteran status (as defined in section 802),’’. 

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

22 amendments made by this section shall be construed to 

23 mean that a particular class of individuals was not pro24 tected against discrimination under Federal law as in ef25 fect on the day before the date of enactment of this Act. 


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1 SEC. 302. IMPROVING OUTCOMES IN HOUSING ASSISTANCE 

2 PROGRAMS. 

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

4 the Native American Housing Assistance and Self-Deter5 mination Act of 1996 (25 U.S.C. 4181) is amended by 

6 adding at the end the following: 

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

8 not apply with respect to tenant-based assistance provided 

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

10 1937 (42 U.S.C. 1437f(o)).’’. 

11 (b) SUPPLEMENTAL ADMINISTRATIVE FEE.—Section 

12 8(q)(2)(B) of the United States Housing Act of 1937 (42 

13 U.S.C. 1437f(q)(2)(B)) is amended by inserting ‘‘, includ14 ing the cost of assisting families with children or families 

15 with a member with a disability that move to lower pov16 erty, higher opportunity neighborhoods (as determined by 

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

18 after ‘‘programs’’. 

19 (c) REGIONAL PLANNING TO INCREASE ACCESS TO

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

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

22 is amended by adding at the end the following: 

23 ‘‘(22) INCREASING ACCESS TO HIGHER OPPOR24 TUNITY AREAS.— 

25 ‘‘(A) LOCATION ANALYSIS.— 


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1 ‘‘(i) IN GENERAL.—A public housing 

2 agency that administers the program 

3 under this subsection in a metropolitan 

4 area shall— 

5 ‘‘(I) analyze the locations where 

6 the participants in the program of the 

7 public housing agency live; and 

8 ‘‘(II) based on the analysis de9 scribed in subclause (I), establish poli10 cies and practices to reduce disparities 

11 and barriers to access to locations 

12 throughout the metropolitan area that 

13 evidence indicates are more likely to 

14 improve outcomes for children or 

15 adults. 

16 ‘‘(ii) CONSIDERATIONS.—The location 

17 analysis required under this subparagraph 

18 shall— 

19 ‘‘(I) consider separately the loca20 tions of families with children, house21 holds that include a person with dis22 abilities, and other groups protected 

23 under the Fair Housing Act (42 

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


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1 ‘‘(II) include an analysis of the 

2 locations in relation to dwelling units 

3 with rents that are potentially afford4 able to voucher holders and the likely 

5 impact of key neighborhood attributes 

6 on their well-being and long-term suc7 cess, based on Federal and available 

8 local data. 

9 ‘‘(iii) MAPPING TOOLS.—The Sec10 retary shall— 

11 ‘‘(I) provide mapping tools and 

12 other information necessary for a pub13 lic housing agency to perform the lo14 cation analysis under this subpara15 graph using the demographic data on 

16 participating families submitted to the 

17 Secretary under part 908 of title 24, 

18 Code of Federal Regulations, or any 

19 successor regulation; 

20 ‘‘(II) publish a notice in the Fed21 eral Register, subject to public com22 ment, that specifies the data sources 

23 and definitions that will be incor24 porated in each mapping tool required 

25 under subclause (I); and 


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1 ‘‘(III) update the notice required 

2 under subclause (II) as needed based 

3 on changes in the availability of rel4 evant data or evidence of neighbor5 hood attributes likely to impact the 

6 well-being and long-term success of 

7 participants in the program under this 

8 subsection. 

9 ‘‘(iv) FREQUENCY AND AVAIL10 ABILITY.—The location analysis required 

11 under this subparagraph shall— 

12 ‘‘(I) be performed by each public 

13 housing agency described in clause (i) 

14 not less frequently than once every 5 

15 years; 

16 ‘‘(II) be performed by all public 

17 housing agencies in a metropolitan 

18 area in the same year, as determined 

19 by the Secretary; and 

20 ‘‘(III) be made available to the 

21 public in a manner that protects the 

22 privacy of program participants. 

23 ‘‘(B) REGIONAL POLICIES TO INCREASE

24 ACCESS TO HIGHER OPPORTUNITY NEIGHBORVerDate Sep 11 2014 04:30 Aug 28, 2024 Jkt 049200 PO 00000 Frm 00121 Fmt 6652 Sfmt 6201 E:\BILLS\S4824.IS S4824

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1 HOODS.—Each public housing agency described 

2 in subparagraph (A)(i) shall— 

3 ‘‘(i) consult with other such public 

4 housing agencies in the same metropolitan 

5 area, or smaller regional area approved by 

6 the Secretary, about the possible barriers 

7 and other reasons for the disparities iden8 tified in the location analysis required 

9 under subparagraph (A); 

10 ‘‘(ii) identify policies or practices that 

11 those public housing agencies could adopt 

12 individually or in collaboration, or other 

13 strategies that recipients of grants or other 

14 funding from the Secretary could adopt, to 

15 reduce the barriers and disparities and in16 crease the share of families with children 

17 and other demographic groups using 

18 vouchers in higher-opportunity neighbor19 hoods in the metropolitan area or region; 

20 and 

21 ‘‘(iii) include in the administrative 

22 plan required under section 982.54 of title 

23 24, Code of Federal Regulations, or any 

24 successor regulation, the policies that the 


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1 public housing agency has adopted under 

2 this paragraph. 

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

4 include public housing agency performance in 

5 achieving the goal described in subparagraph 

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

7 performance in managing the program under 

8 this subsection required under part 985 of title 

9 24, Code of Federal Regulations, or any suc10 cessor regulation.’’. 

11 (d) REQUIRED REGULATORY CHANGES TO PUBLIC

12 HOUSING AGENCY CONSORTIA.— 

13 (1) DEFINITIONS.—In this subsection: 

14 (A) MOVING TO WORK DEMONSTRATION

15 PROGRAM.—The term ‘‘Moving to Work dem16 onstration program’’ means the program estab17 lished under section 204 of the Departments of 

18 Veterans Affairs and Housing and Urban De19 velopment, and Independent Agencies Appro20 priations Act, 1996 (Public Law 104–134; 110 

21 Stat. 1321–281). 

22 (B) PUBLIC HOUSING AGENCY.—The term 

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

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

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


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

2 after the date of enactment of this Act, the Sec3 retary of Housing and Urban Development shall es4 tablish policies and procedures that— 

5 (A) enable public housing agencies that 

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

7 of the United States Housing Act of 1937 (42 

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

9 agencies participating in the Moving to Work 

10 demonstration program— 

11 (i) to consolidate their funding con12 tracts for assistance provided under section 

13 8(o) of such Act (42 U.S.C. 1437f(o)) into 

14 a single contract; 

15 (ii) to consolidate their funding con16 tracts for assistance provided under sub17 sections (d) and (e) of section 9 of such 

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

19 (iii) to exercise the consolidation op20 tions under each of clauses (i) and (ii); and 

21 (B) enable public housing agencies to form 

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

23 U.S.C. 1437k(a)) that consolidate the adminis24 tration of certain aspects of their housing pro25 grams to increase access to higher-opportunity 


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1 areas or for other purposes, subject to such re2 quirements as the Secretary may establish. 

3 (3) MOVING TO WORK AGENCIES.—Any flexi4 bility or waiver applicable to the Moving to Work 

5 demonstration program shall not apply to any activi6 ties or funds administered through a partial consor7 tium formed under paragraph (2)(B) by 1 or more 

8 public housing agencies participating in the Moving 

9 to Work demonstration program. 

10 TITLE IV—ESTATE TAX REFORM 

11 SEC. 401. AMENDMENT TO INTERNAL REVENUE CODE OF 

12 1986. 

13 Except as otherwise expressly provided, whenever in 

14 this title an amendment or repeal is expressed in terms 

15 of an amendment to, or repeal of, a section or other provi16 sion, the reference shall be considered to be made to a 

17 section or other provision of the Internal Revenue Code 

18 of 1986. 

19 SEC. 402. RATE ADJUSTMENT. 

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

21 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. 


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If the amount with respect to 

which the tentative tax to 

be computed is: 

The tentative tax is: 

Over $93,000,000 .......................... $55,150,000, plus 65 percent of the 

excess of such amount over 

$93,000,000. 

1 (b) REDUCTION OF BASIC EXCLUSION AMOUNT.— 

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

3 follows: 

4 ‘‘(3) BASIC EXCLUSION AMOUNT.—For pur5 poses of this subsection, the basic exclusion amount 

6 is $3,500,000.’’. 

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

8 2001 is amended— 

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

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

11 (2) by adding at the end the following new sub12 section: 

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

14 ‘‘(1) IN GENERAL.—In the case of a taxable es15 tate for which the applicable amount is in excess of 

16 $1,000,000,000, the tax determined under sub17 section (b) shall be increased by an amount equal to 

18 10 percent of such applicable amount. 

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

20 this subsection, the applicable amount shall be equal 

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


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

2 taxable estate.’’. 

3 (d) EFFECTIVE DATE.—The amendments made by 

4 this section shall apply to estates of decedents dying, and 

5 generation-skipping transfers and gifts made, after the 

6 date of the enactment of this Act. 

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

8 GRANTOR RETAINED ANNUITY TRUSTS. 

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

10 amended— 

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

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

13 and by moving such subparagraphs (as so redesig14 nated) 2 ems to the right; 

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

16 the following: 

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

18 (3) by striking ‘‘paragraph (1) or (2)’’ in para19 graph (1)(C) (as so redesignated) and inserting 

20 ‘‘subparagraph (A) or (B)’’; and 

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

22 paragraph: 

23 ‘‘(2) ADDITIONAL REQUIREMENTS WITH RE24 SPECT TO GRANTOR RETAINED ANNUITIES.—For 

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


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1 described in paragraph (1)(A) (determined without 

2 regard to this paragraph) which is retained by the 

3 transferor, such interest shall be treated as de4 scribed in such paragraph only if— 

5 ‘‘(A) the right to receive the fixed amounts 

6 referred to in such paragraph is for a term of 

7 not less than 10 years, 

8 ‘‘(B) such fixed amounts, when determined 

9 on an annual basis, do not decrease relative to 

10 any prior year during the first 10 years of the 

11 term referred to in subparagraph (A), and 

12 ‘‘(C) the remainder interest has a value 

13 equal to or greater than 10 percent of the value 

14 of the assets transferred to the trust, deter15 mined as of the time of the transfer.’’. 

16 (b) EFFECTIVE DATE.—The amendments made by 

17 this section shall apply to transfers made after the date 

18 of the enactment of this Act. 

19 SEC. 404. CERTAIN TRANSFER TAX RULES APPLICABLE TO 

20 GRANTOR TRUSTS. 

21 (a) IN GENERAL.—Subtitle B is amended by adding 

22 at the end the following new chapter: 

23 ‘‘CHAPTER 16—SPECIAL RULES FOR 

24 GRANTOR TRUSTS 

‘‘Sec. 2901. Application of transfer taxes. 


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1 ‘‘SEC. 2901. APPLICATION OF TRANSFER TAXES. 

2 ‘‘(a) IN GENERAL.—In the case of any portion of a 

3 trust to which this section applies— 

4 ‘‘(1) the value of the gross estate of the de5 ceased deemed owner of such portion shall include 

6 all assets attributable to that portion at the time of 

7 the death of such owner, 

8 ‘‘(2) any distribution from such portion to one 

9 or more beneficiaries during the life of the deemed 

10 owner of such portion shall be treated as a transfer 

11 by gift for purposes of chapter 12, and 

12 ‘‘(3) if at any time during the life of the 

13 deemed owner of such portion, such owner ceases to 

14 be treated as the owner of such portion under sub15 part E of part 1 of subchapter J of chapter 1, all 

16 assets attributable to such portion at such time shall 

17 be treated for purposes of chapter 12 as a transfer 

18 by gift made by the deemed owner. 

19 ‘‘(b) PORTION OF TRUST TO WHICH SECTION AP20 PLIES.—This section shall apply to— 

21 ‘‘(1) the portion of a trust with respect to 

22 which the grantor is the deemed owner, and 

23 ‘‘(2) the portion of the trust to which a person 

24 who is not the grantor is a deemed owner by reason 

25 of the rules of subpart E of part 1 of subchapter J 

26 of chapter 1, and such deemed owner engages in a 


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1 sale, exchange, or comparable transaction with the 

2 trust that is disregarded for purposes of subtitle A. 

3 For purposes of paragraph (2), the portion of the trust 

4 described with respect to a transaction is the portion of 

5 the trust attributable to the property received by the trust 

6 in such transaction, including all retained income there7 from, appreciation thereon, and reinvestments thereof, net 

8 of the amount of consideration received by the deemed 

9 owner in such transaction. 

10 ‘‘(c) EXCEPTIONS.—This section shall not apply to— 

11 ‘‘(1) any trust that is includible in the gross es12 tate of the deemed owner (without regard to sub13 section (a)(1)), and 

14 ‘‘(2) any other type of trust that the Secretary 

15 determines by regulations or other guidance does not 

16 have as a significant purpose the avoidance of trans17 fer taxes. 

18 ‘‘(d) DEEMED OWNER DEFINED.—For purposes of 

19 this section, the term ‘deemed owner’ means any person 

20 who is treated as the owner of a portion of a trust under 

21 subpart E of part 1 of subchapter J of chapter 1. 

22 ‘‘(e) REDUCTION FOR TAXABLE GIFTS TO TRUST

23 MADE BY OWNER.—The amount to which subsection (a) 

24 applies shall be reduced by the value of any transfer by 


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1 gift by the deemed owner to the trust previously taken 

2 into account by the deemed owner under chapter 12. 

3 ‘‘(f) LIABILITY FOR PAYMENT OF TAX.—Any tax im4 posed pursuant to subsection (a) shall be a liability of the 

5 trust.’’. 

6 (b) CLERICAL AMENDMENT.—The table of chapters 

7 for subtitle B is amended by adding at the end the fol8 lowing new item: 

‘‘CHAPTER 16. SPECIAL RULES FOR GRANTOR TRUSTS’’. 

9 (c) EFFECTIVE DATE.—The amendments made by 

10 this section shall apply— 

11 (1) to trusts created on or after the date of the 

12 enactment of this Act; 

13 (2) to any portion of a trust established before 

14 the date of the enactment of this Act which is attrib15 utable to a contribution made on or after such date; 

16 and 

17 (3) to any portion of a trust established before 

18 the date of the enactment of this Act to which sec19 tion 2901(a) of the Internal Revenue Code of 1986 

20 (as added by subsection (a)) applies by reason of a 

21 transaction described in section 2901(b)(2) of such 

22 Code on or after such date. 


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1 SEC. 405. ELIMINATION OF GENERATION-SKIPPING TRANS2 FER TAX EXEMPTION FOR TRANSFERS TO 

3 CERTAIN PERSONS. 

4 (a) IN GENERAL.—Section 2642 is amended by add5 ing at the end the following new subsection: 

6 ‘‘(h) ELIMINATION OF GST EXEMPTION FOR TRANS7 FERS TO CERTAIN PERSONS.— 

8 ‘‘(1) IN GENERAL.— 

9 ‘‘(A) TRANSFER TO NON-EXEMPT PER10 SON.—In the case of any direct skip or taxable 

11 distribution made to any person who is not an 

12 exempt person, the inclusion ratio shall be 1. 

13 ‘‘(B) TAXABLE TERMINATION.—In the 

14 case of any taxable termination which occurs at 

15 any time immediately after no exempt person is 

16 a beneficiary of the trust, the inclusion ratio 

17 shall be 1. 

18 ‘‘(C) EXEMPT PERSON.— 

19 ‘‘(i) IN GENERAL.—For purposes of 

20 this subsection, the term ‘exempt person’ 

21 means— 

22 ‘‘(I) a natural person— 

23 ‘‘(aa) who is assigned to a 

24 generation which is 2 or fewer 

25 generations below the generation 

26 assignment of the transferor, or 


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1 ‘‘(bb) whose date of birth 

2 precedes the date on which the 

3 trust was created, or 

4 ‘‘(II) a trust in which all inter5 ests are held by persons described in 

6 subclause (I). 

7 ‘‘(ii) EXCEPTION.—For purposes of 

8 clause (i)(II), any interest which is used 

9 primarily to postpone or avoid the applica10 tion of this subsection shall be disregarded. 

11 ‘‘(2) DATE OF CREATION.— 

12 ‘‘(A) IN GENERAL.—For purposes of deter13 mining the date on which a trust was created 

14 under paragraph (1)(C)(i)(I)(bb), if the trust 

15 was created before January 1, 2024, such trust 

16 shall be deemed to have been created on Janu17 ary 1, 2024. 

18 ‘‘(B) DATE OF CREATION OF POUR-OVER

19 TRUSTS.— 

20 ‘‘(i) IN GENERAL.—In the case of any 

21 generation-skipping transfer of property 

22 which involves the transfer of property 

23 from one trust to another trust, the date 

24 of the creation of the transferee trust shall 

25 be treated as being the earlier of— 


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1 ‘‘(I) the date of the creation of 

2 such transferee trust, or 

3 ‘‘(II) the date of the creation of 

4 the transferor trust. 

5 ‘‘(ii) MULTIPLE TRANSFERS.—In the 

6 case of multiple transfers to which clause 

7 (i) applies— 

8 ‘‘(I) the date of the creation of 

9 the transferor trust shall be deter10 mined under such clause, and 

11 ‘‘(II) subsequent to the deter12 mination described in subclause (I), 

13 the date of the creation of the trans14 feree trust shall be determined under 

15 such clause. 

16 ‘‘(3) GENERATION ASSIGNMENT.—For purposes 

17 of this subsection, the provisions of section 2653(a) 

18 shall not apply. 

19 ‘‘(4) REGULATIONS.—The Secretary may pre20 scribe such regulations or other guidance as may be 

21 necessary or appropriate to carry out this sub22 section.’’. 

23 (b) REPEAL.—Section 1433(b)(2) of the Tax Reform 

24 Act of 1986 (Public Law 99–514) is repealed. 

25 (c) EFFECTIVE DATES.— 


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1 (1) IN GENERAL.—The amendment made by 

2 subsection (a) shall take effect on the date of the en3 actment of this Act. 

4 (2) REPEAL.—The amendment made by sub5 section (b) shall apply to generation-skipping trans6 fers (within the meaning of section 2611 of the In7 ternal Revenue Code of 1986) made after the date 

8 of enactment of this Act. 

9 SEC. 406. SIMPLIFYING GIFT TAX EXCLUSION FOR ANNUAL 

10 GIFTS. 

11 (a) IN GENERAL.—Paragraph (1) of section 2503(b) 

12 is amended to read as follows: 

13 ‘‘(1) IN GENERAL.— 

14 ‘‘(A) LIMIT PER DONEE.—In the case of 

15 gifts made to any person by the donor during 

16 the calendar year, the first $10,000 of such 

17 gifts to such person shall not, for purposes of 

18 subsection (a), be included in the total amount 

19 of gifts made during such year. 

20 ‘‘(B) CUMULATIVE LIMIT PER DONOR.— 

21 ‘‘(i) IN GENERAL.—The aggregate 

22 amount excluded under subparagraph (A) 

23 with respect to all transfers described in 

24 clause (ii) made by the donor during the 

25 calendar year shall not exceed twice the 


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•S 4824 IS

1 dollar amount in effect under such sub2 paragraph for such calendar year. 

3 ‘‘(ii) TRANSFERS SUBJECT TO LIMITA4 TION.—The transfers described in this 

5 clause are— 

6 ‘‘(I) a transfer in trust, 

7 ‘‘(II) a transfer of an interest in 

8 a passthrough entity, 

9 ‘‘(III) a transfer of an interest 

10 subject to a prohibition on sale, and 

11 ‘‘(IV) any other transfer of prop12 erty that, without regard to with13 drawal, put, or other such rights in 

14 the donee, cannot immediately be liq15 uidated by the donee.’’. 

16 (b) CONFORMING AMENDMENT.—Section 2503 is 

17 amended by striking subsection (c). 

18 (c) REGULATIONS.—The Secretary of the Treasury, 

19 or the Secretary of the Treasury’s delegate, may prescribe 

20 such regulations or other guidance as may be necessary 

21 or appropriate to carry out the amendments made by this 

22 section. 

23 (d) EFFECTIVE DATE.—The amendments made by 

24 this section shall apply to any calendar year beginning 

25 after the date of the enactment of this Act. 


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1 SEC. 407. CLARIFICATION REGARDING DISALLOWANCE OF 

2 STEP-UP IN BASIS FOR PROPERTY HELD IN 

3 CERTAIN GRANTOR TRUSTS. 

4 (a) IN GENERAL.—Section 1014 is amended— 

5 (1) by redesignating subsection (f) as sub6 section (g), and 

7 (2) by inserting after subsection (e) the fol8 lowing: 

9 ‘‘(f) PROPERTY HELD IN CERTAIN GRANTOR

10 TRUSTS.—This section shall not apply to property— 

11 ‘‘(1) held in a trust of which the transferor is 

12 considered the owner under subpart E of part I of 

13 subchapter J, and 

14 ‘‘(2) if, after the transfer of such property to 

15 the trust, such property is not includible in the gross 

16 estate of the transferor for purposes of chapter 11.’’. 

17 (b) CONFORMING AMENDMENT.—Section 6662(k) is 

18 amended by striking ‘‘1014(f)’’ and inserting ‘‘1014(g)’’. 

19 (c) EFFECTIVE DATE.—The amendments made by 

20 this section shall apply to transfers after the date of the 

21 enactment of this Act. 

22 (d) NO INFERENCE.—No inference may be drawn 

23 from the amendments made by this section with respect 

24 to the application of section 1014 of the Internal Revenue 

25 Code of 1986 to property described in subsection (f) of 


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1 such section (as added by subsection (a)) which was trans2 ferred on or before the date of enactment of this Act. 

3 SEC. 408. LIMITATION ON DISCOUNTS; VALUATION RULES 

4 FOR CERTAIN TRANSFERS OF NONBUSINESS 

5 ASSETS. 

6 (a) IN GENERAL.—Chapter 14 of subtitle B is 

7 amended by adding at the end the following new section: 

8 ‘‘SEC. 2705. LIMITATION ON DISCOUNTS; VALUATION RULES 

9 FOR CERTAIN TRANSFERS OF NONBUSINESS 

10 ASSETS. 

11 ‘‘(a) LIMITATION ON DISCOUNT BY REASON OF FAM12 ILY CONTROL.— 

13 ‘‘(1) IN GENERAL.—For purposes of this sub14 title, in the case of the transfer of any interest in 

15 an entity other than an interest which is actively 

16 traded (within the meaning of section 1092), if the 

17 transferor, the transferee, and members of the fam18 ily of the transferor and transferee have control of 

19 such entity immediately before such transfer, no dis20 count shall be allowed— 

21 ‘‘(A) by reason of the fact that the trans22 feror or transferee does not have control of 

23 such entity, 

24 ‘‘(B) by reason of the lack of marketability 

25 of the interest, or 


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•S 4824 IS

1 ‘‘(C) for any other reason. 

2 ‘‘(2) DEFINITIONS.—In this subsection, the 

3 terms ‘control’ and ‘member of the family’ have the 

4 same meanings given such terms in section 2704(c). 

5 ‘‘(3) ATTRIBUTION.—For purposes of this sec6 tion, the rule of section 2701(e)(3) shall apply for 

7 purposes of determining the interests held by any in8 dividual. 

9 ‘‘(b) VALUATION RULES FOR CERTAIN TRANSFERS

10 OF NONBUSINESS ASSETS.— 

11 ‘‘(1) IN GENERAL.—For purposes of this sub12 title, in the case of the transfer of any interest in 

13 an entity other than an interest which is actively 

14 traded (within the meaning of section 1092)— 

15 ‘‘(A) the value of any nonbusiness assets 

16 held by the entity with respect to such interest 

17 shall be determined as if the transferor had 

18 transferred such assets directly to the trans19 feree (and no valuation discount shall be al20 lowed with respect to such nonbusiness assets), 

21 and 

22 ‘‘(B) such nonbusiness assets shall not be 

23 taken into account in determining the value of 

24 the interest in the entity. 


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1 ‘‘(2) NONBUSINESS ASSETS.—For purposes of 

2 this subsection— 

3 ‘‘(A) IN GENERAL.—The term ‘nonbusi4 ness asset’ means any asset other than an asset 

5 which is used in the active conduct of a trade 

6 or business. 

7 ‘‘(B) PASSIVE ASSETS TREATED AS NON8 BUSINESS ASSETS.— 

9 ‘‘(i) IN GENERAL.—For purposes of 

10 subparagraph (A), a passive asset shall be 

11 treated as a nonbusiness asset unless— 

12 ‘‘(I) the asset is property de13 scribed in paragraph (1) or (4) of sec14 tion 1221(a) or is a hedge with re15 spect to such property, or 

16 ‘‘(II) the asset is real property 

17 used in the active conduct of 1 or 

18 more real property trades or busi19 nesses (within the meaning of section 

20 469(c)(7)(C)) in which the transferor 

21 materially participates and with re22 spect to which the transferor meets 

23 the requirements of section 

24 469(c)(7)(B)(ii). 


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1 ‘‘(ii) MATERIAL PARTICIPATION.—For 

2 purposes of clause (i)(II), material partici3 pation shall be determined under the rules 

4 of section 469(h), except that section 

5 469(h)(3) shall be applied without regard 

6 to the limitation to farming activity. 

7 ‘‘(C) WORKING CAPITAL TREATED AS

8 USED IN TRADE OR BUSINESS.—Any asset (in9 cluding a passive asset) which is held as a part 

10 of the reasonably required working capital 

11 needs of a trade or business shall be treated as 

12 used in the active conduct of a trade or busi13 ness. 

14 ‘‘(3) PASSIVE ASSET.—For purposes of this 

15 subsection, the term ‘passive asset’ means any— 

16 ‘‘(A) cash or cash equivalents, 

17 ‘‘(B) stock in a corporation or any other 

18 equity, profits, or capital interest in any entity, 

19 ‘‘(C) evidence of indebtedness, option, for20 ward or futures contract, notional principal con21 tract, or derivative, 

22 ‘‘(D) asset described in clause (iii), (iv), or 

23 (v) of section 351(e)(1)(B), 

24 ‘‘(E) annuity, 


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•S 4824 IS

1 ‘‘(F) real property used in 1 or more real 

2 property trades or businesses (as defined in sec3 tion 469(c)(7)(C)), 

4 ‘‘(G) asset (other than a patent, trade5 mark, or copyright) which produces royalty in6 come, 

7 ‘‘(H) commodity, 

8 ‘‘(I) collectible (within the meaning of sec9 tion 408(m)), or 

10 ‘‘(J) any other asset specified in regula11 tions prescribed by the Secretary. 

12 ‘‘(4) LOOK-THRU RULE.— 

13 ‘‘(A) IN GENERAL.—If a nonbusiness asset 

14 of an entity described in paragraph (1) consists 

15 of a 10-percent interest in any other entity, this 

16 subsection shall be applied by disregarding the 

17 10-percent interest and by treating the entity 

18 as holding directly its ratable share of the as19 sets of the other entity. 

20 ‘‘(B) 10-PERCENT INTEREST.—The term 

21 ‘10-percent interest’ means— 

22 ‘‘(i) in the case of an interest in a cor23 poration, direct ownership of at least 10 

24 percent (by vote or value) of the stock in 

25 such corporation, 


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•S 4824 IS

1 ‘‘(ii) in the case of an interest in a 

2 partnership, direct ownership of at least 10 

3 percent of the capital or profits interest in 

4 the partnership, and 

5 ‘‘(iii) in any other case, direct owner6 ship of at least 10 percent of the beneficial 

7 interests in the entity.’’. 

8 (b) CONFORMING AMENDMENTS.— 

9 (1) Section 2031(b) of the Internal Revenue 

10 Code of 1986 is amended by inserting ‘‘(after appli11 cation of section 2705(b))’’ after ‘‘shall be deter12 mined’’. 

13 (2) The table of sections of chapter 14 of sub14 title B of such Code is amended by adding at the 

15 end the following: 

‘‘Sec. 2705. Limitation on discounts; valuation rules for certain transfers of 

nonbusiness assets.’’. 

16 (c) EFFECTIVE DATE.—The amendments made by 

17 this section shall apply to transfers after the date of the 

18 enactment of this Act. 

19 SEC. 409. SURCHARGE ON HIGH INCOME ESTATES AND 

20 TRUSTS. 

21 (a) IN GENERAL.—Subchapter A of chapter 1 is 

22 amended by adding at the end the following new part: 


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1 ‘‘PART VIII—SURCHARGE ON HIGH INCOME 

2 ESTATES AND TRUSTS 

‘‘Sec. 59B. Surcharge on high income estates and trusts. 

3 ‘‘SEC. 59B. SURCHARGE ON HIGH INCOME ESTATES AND 

4 TRUSTS. 

5 ‘‘(a) GENERAL RULE.—In the case of an estate or 

6 trust, there is hereby imposed (in addition to any other 

7 tax imposed by this subtitle) a tax equal to the sum of— 

8 ‘‘(1) 5 percent of so much of the modified ad9 justed gross income of the taxpayer as exceeds 

10 $200,000, plus 

11 ‘‘(2) 3 percent of so much of the modified ad12 justed gross income of the taxpayer as exceeds 

13 $500,000. 

14 ‘‘(b) MODIFIED ADJUSTED GROSS INCOME.—For 

15 purposes of this section— 

16 ‘‘(1) IN GENERAL.—The term ‘modified ad17 justed gross income’ means adjusted gross income 

18 reduced by any deduction (not taken into account in 

19 determining adjusted gross income) allowed for in20 vestment interest (as defined in section 163(d)) or 

21 business interest (as defined in section 163(j)). 

22 ‘‘(2) ADJUSTED GROSS INCOME.—Adjusted 

23 gross income shall be determined as provided in sec24 tion 67(e) and reduced by the amount allowed as a 

25 deduction under section 642(c). 


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1 ‘‘(c) SPECIAL RULES.— 

2 ‘‘(1) CHARITABLE TRUSTS.—Subsection (a) 

3 shall not apply to a trust all the unexpired interests 

4 in which are devoted to one or more of the purposes 

5 described in section 170(c)(2)(B). 

6 ‘‘(2) NOT TREATED AS TAX IMPOSED BY THIS

7 CHAPTER FOR CERTAIN PURPOSES.—The tax im8 posed under this section shall not be treated as tax 

9 imposed by this chapter for purposes of determining 

10 the amount of any credit under this chapter (other 

11 than sections 27 and 901) or for purposes of section 

12 55. 

13 ‘‘(3) ELECTING SMALL BUSINESS TRUSTS.—For 

14 purposes of the determination of adjusted gross in15 come, section 641(c)(1)(A) shall not apply and all 

16 portions of any electing small business trust shall be 

17 treated as a single trust. 

18 ‘‘(d) REGULATIONS.—The Secretary shall issue such 

19 regulations or other guidance as may be necessary or ap20 propriate to carry out the purposes of this section, includ21 ing regulations or other guidance to prevent the avoidance 

22 of the purposes of this section.’’. 

23 (b) COORDINATION WITH CERTAIN PROVISIONS.— 

24 (1) INTEREST ON CERTAIN DEFERRED TAX LI25 ABILITY.—Section 453A(c) is amended by redesigVerDate Sep 11 2014 04:30 Aug 28, 2024 Jkt 049200 PO 00000 Frm 00145 Fmt 6652 Sfmt 6201 E:\BILLS\S4824.IS S4824

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1 nating paragraph (6) as paragraph (7) and by in2 serting after paragraph (5) the following new para3 graph: 

4 ‘‘(6) SURCHARGE ON HIGH INCOME ESTATES

5 AND TRUSTS TAKEN INTO ACCOUNT IN DETER6 MINING MAXIMUM RATE OF TAX.—For purposes of 

7 paragraph (3)(B), in the case of an estate or trust, 

8 the maximum rate of tax in effect under section 1 

9 shall be treated as being equal to the sum of such 

10 rate and the rates in effect under paragraphs (1) 

11 and (2) of section 59B(a).’’. 

12 (2) LIMITATION ON FOREIGN TAX CREDIT.— 

13 (A) Section 904(b)(3)(E)(i)(I) is amended 

14 by inserting ‘‘increased, in the case of an estate 

15 or trust, by the sum of the rates set forth in 

16 paragraphs (1) and (2) of section 1A(a)’’ after 

17 ‘‘(whichever applies)’’. 

18 (B) Section 904(d)(2)(F) is amended by 

19 adding at the end the following: ‘‘For purposes 

20 of the first sentence of this subparagraph, in 

21 the case of an estate or trust, the highest rate 

22 of tax specified in section 1 shall be treated as 

23 being equal to the sum of such rate and the 

24 rates in effect under paragraphs (1) and (2) of 

25 section 59B(a).’’. 


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1 (3) ELECTION BY INDIVIDUALS TO BE SUBJECT

2 TO TAX AT CORPORATE RATES.—Section 962(a)(1) 

3 is amended by striking ‘‘and 55’’ and inserting 55‘‘, 

4 and 59B’’. 

5 (4) INTEREST ON CERTAIN TAX DEFERRAL.— 

6 Section 1291(c)(2) is amended by adding at the end 

7 the following: ‘‘For purposes of the preceding sen8 tence, in the case of an estate or trust, the highest 

9 rate of tax in effect under section 1 shall be treated 

10 as being equal to the sum of such rate and the rates 

11 in effect under paragraphs (1) and (2) of section 

12 59B(a).’’. 

13 (5) WITHHOLDING OF TAX ON FOREIGN PART14 NERS’ SHARE OF EFFECTIVELY CONNECTED IN15 COME.—Section 1446(b)(2) is amended by adding at 

16 the end the following flush sentence: 

17 ‘‘For purposes of subparagraph (A), in the case of 

18 a partner which is an estate or trust, the highest 

19 rate of tax in effect under section 1 shall be treated 

20 as being equal to the sum of such rate and the rates 

21 in effect under paragraphs (1) and (2) of section 

22 59B(a).’’. 

23 (6) PARTNERSHIP ADJUSTMENTS.— 

24 (A) Section 6225(b)(1) is amended by add25 ing at the end the following flush sentence: 


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1 ‘‘For purposes of subparagraph (B), in the case of 

2 an estate or trust, the highest rate of tax in effect 

3 under section 1 shall be treated as being equal to 

4 the sum of such rate and the rates in effect under 

5 paragraphs (1) and (2) of section 59B(a).’’. 

6 (B) Section 6225(c)(4)(A) is amended— 

7 (i) by striking ‘‘subsection (b)(1)(A)’’ 

8 and inserting ‘‘subsection (b)(1)(B)’’, and 

9 (ii) by striking ‘‘or’’ at the end of 

10 clause (i), by adding ‘‘or’’ at the end of 

11 clause (ii), and by inserting after clause 

12 (ii) the following new clause: 

13 ‘‘(iii) is not an estate or trust subject 

14 to one or both of the rates of tax in effect 

15 under paragraphs (1) and (2) of section 

16 59B(a),’’. 

17 (7) REQUIRED PAYMENTS FOR ENTITIES

18 ELECTING NOT TO HAVE REQUIRED TAXABLE

19 YEAR.—The second sentence of section 7519(b) is 

20 amended by inserting ‘‘and, in the case of an estate 

21 or trust, increased by the sum of the rates in effect 

22 under paragraphs (1) and (2) of section 59B(a)’’ be23 fore the period at the end. 


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1 (c) CLERICAL AMENDMENT.—The table of parts for 

2 subchapter A of chapter 1 is amended by adding at the 

3 end the following new item: 

‘‘PART VIII—SURCHARGE ON HIGH INCOME ESTATES AND TRUSTS’’. 

4 (d) EFFECTIVE DATE.—The amendments made by 

5 this section shall apply to taxable years beginning after 

6 the date of the enactment of this Act. 

7 SEC. 410. MODIFICATION OF RULES FOR VALUE OF CER8 TAIN FARM, ETC., REAL PROPERTY. 

9 (a) IN GENERAL.—Paragraph (2) of section 

10 2032A(a) of the Internal Revenue Code of 1986 is amend11 ed by striking ‘‘$750,000’’ and inserting ‘‘$3,000,000’’. 

12 (b) INFLATION ADJUSTMENT.—Paragraph (3) of sec13 tion 2032A(a) of such Code is amended— 

14 (1) by striking ‘‘1998’’ and inserting ‘‘2025’’, 

15 (2) by striking ‘‘$750,000’’ each place it ap16 pears and inserting ‘‘$3,000,000’’, and 

17 (3) by striking ‘‘calendar year 1997’’ and in18 serting ‘‘calendar year 2024’’ in subparagraph (B). 

19 (c) EFFECTIVE DATE.—The amendments made by 

20 this section shall apply to estates of decedents dying, and 

21 gifts made, after December 31, 2024. 


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1 SEC. 411. MODIFICATION OF ESTATE TAX RULES WITH RE2 SPECT TO LAND SUBJECT TO CONSERVATION 

3 EASEMENTS. 

4 (a) MODIFICATION OF EXCLUSION LIMITATION.— 

5 Subparagraph (B) of section 2031(c)(1) of the Internal 

6 Revenue Code of 1986 is amended by striking ‘‘$500,000’’ 

7 and inserting ‘‘$2,000,000’’. 

8 (b) MODIFICATION OF APPLICABLE PERCENTAGE.— 

9 Paragraph (2) of section 2031(c) of the Internal Revenue 

10 Code of 1986 is amended by striking ‘‘40 percent’’ and 

11 inserting ‘‘60 percent’’. 

12 (c) EFFECTIVE DATE.—The amendments made by 

13 this section shall apply to estates of decedents dying, and 

14 gifts made, after December 31, 2024. 

15 TITLE V—ACCESSIBILITY 

16 REQUIREMENTS 

17 SEC. 501. ACCESSIBILITY REQUIREMENTS. 

18 In the case of housing that is constructed, altered, 

19 or otherwise assisted using amounts made available to the 

20 Secretary of Housing and Urban Development under this 

21 Act or an amendment made by this Act, sections 8.22 and 

22 8.23 of title 24, Code of Federal Regulations (or any suc23 cessor regulations) shall be applied such that the number 

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1 tions is twice the number that would otherwise be required 

2 to be accessible under those sections. 

Æ 


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