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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 4824 Introduced in Senate (IS)]

<DOC>

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.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``American Housing 
and Economic Mobility Act of 2024''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
                TITLE I--MAKING HOUSING MORE AFFORDABLE

Sec. 101. Local housing innovation grants.
Sec. 102. Investing in affordable housing infrastructure.
Sec. 103. Conditions for the sale of real estate-owned properties and 
                            non-performing loans.
   TITLE II--TAKING THE FIRST STEPS TO REVERSE THE LEGACY OF HOUSING 
                DISCRIMINATION AND GOVERNMENT NEGLIGENCE

Sec. 201. Down payment assistance program for 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.

                TITLE I--MAKING HOUSING MORE AFFORDABLE

SEC. 101. LOCAL HOUSING INNOVATION GRANTS.

    (a) Definitions.--In this section:
            (1) Elementary school; secondary school.--The terms 
        ``elementary school'' and ``secondary school'' have the 
        meanings given those terms in section 8101 of the Elementary 
        and Secondary Education Act of 1965 (20 U.S.C. 7801).
            (2) Eligible entity.--The term ``eligible entity'' means--
                    (A) a State;
                    (B) a unit of general local government; or
                    (C) an Indian tribe.
            (3) Indian tribe.--The term ``Indian tribe'' has the 
        meaning given the term in section 4 of the Native American 
        Housing Assistance and Self-Determination Act of 1996 (25 
        U.S.C. 4103).
            (4) Institution of higher education.--The term 
        ``institution of higher education'' has the meaning given the 
        term in section 101 of the Higher Education Act of 1965 (20 
        U.S.C. 1001).
            (5) Metropolitan area; state; unit of general local 
        government.--The terms ``metropolitan area'', ``State'', and 
        ``unit of general local government'' have the meanings given 
        those terms in section 102 of the Housing and Community 
        Development Act of 1974 (42 U.S.C. 5302).
            (6) Secretary.--The term ``Secretary'' means the Secretary 
        of Housing and Urban Development.
    (b) Establishment.--Not later than 1 year after the date of 
enactment of this Act, the Secretary shall establish a program to award 
grants on a competitive basis to eligible entities to--
            (1) reform local land use restrictions to bring down the 
        costs of producing affordable housing; and
            (2) remove unnecessary barriers to building affordable 
        units in their communities.
    (c) Eligible Activities.--An eligible entity receiving a grant 
under this section may use funds to--
            (1) carry out any of the activities described in section 
        105 of the Housing and Community Development Act of 1974 (42 
        U.S.C. 5305);
            (2) carry out any of the activities permitted under the 
        Local and Regional Project Assistance Program under section 
        6702 of title 49, United States Code; or
            (3) modernize, renovate, or repair facilities used by 
        public elementary schools, public secondary schools, and public 
        institutions of higher education, including modernization, 
        renovation, and repairs that--
                    (A) promote physical, sensory, and environmental 
                accessibility; and
                    (B) are consistent with a recognized green building 
                rating system.
    (d) Application.--
            (1) In general.--An eligible entity desiring a grant under 
        this section shall submit to the Secretary an application that 
        demonstrates that the eligible entity has carried out, or is in 
        the process of carrying out, initiatives that facilitate the 
        expansion of the supply of well-located affordable housing.
            (2) Activities.--Initiatives that meet the criteria 
        described in paragraph (1)--
                    (A) include--
                            (i) establishing ``by-right'' development, 
                        which allows jurisdictions to administratively 
                        approve new developments that are consistent 
                        with their zoning code;
                            (ii) revising or eliminating off-street 
                        parking requirements to reduce the cost of 
                        housing production;
                            (iii) instituting measures that incentivize 
                        owners of vacant land to redevelop the space 
                        into affordable housing or other productive 
                        uses;
                            (iv) revising minimum lot size requirements 
                        and bans or limits on multifamily construction 
                        to allow for denser and more affordable 
                        development;
                            (v) instituting incentives to promote dense 
                        development, such as density bonuses;
                            (vi) passing inclusionary zoning ordinances 
                        that require a portion of newly developed units 
                        to be reserved for low- and moderate-income 
                        renters or homebuyers;
                            (vii) streamlining regulatory requirements 
                        and shortening processes, reforming zoning 
                        codes, or other initiatives that reduce 
                        barriers to housing supply elasticity and 
                        affordability;
                            (viii) allowing accessory dwelling units;
                            (ix) using local tax incentives to promote 
                        development of affordable housing; and
                            (x) implementing measures that protect 
                        tenants from harassment and displacement, 
                        including--
                                    (I) providing access to counsel for 
                                tenants facing eviction;
                                    (II) the prohibition of eviction 
                                except for just cause;
                                    (III) measures intended to prevent 
                                or mitigate sudden increases in rents;
                                    (IV) the repeal of laws that 
                                prevent localities from implementing a 
                                measure described in subclause (I), 
                                (II), or (III);
                                    (V) protections against 
                                constructive eviction;
                                    (VI) tenant right-to-organize laws;
                                    (VII) a cause of action for tenants 
                                to sue landlords who threaten or begin 
                                an illegal eviction; and
                                    (VIII) landlord-tenant mediation or 
                                other non-eviction diversion programs; 
                                and
                    (B) do not include activities that alter ordinances 
                that govern wage and hour laws, family and medical 
                leave laws, health and safety requirements, prevailing 
                wage laws, or protections for workers' health and 
                safety, anti-discrimination, and right to organize.
            (3) Relation to consolidated plan.--An eligible entity 
        shall include in an application submitted under paragraph (1) a 
        description of how the planning and development of eligible 
        activities described in subsection (c) may advance an 
        objective, or an aspect of an objective, included in the 
        comprehensive housing affordability strategy and community 
        development plan of the eligible entity under part 91 of title 
        24, Code of Federal Regulations, or any successor regulation 
        (commonly referred to as a ``consolidated plan'').
    (e) Labor Laws.--
            (1) In general.--All laborers and mechanics employed by 
        contractors or subcontractors in the performance of 
        construction work financed in whole or in part with a grant 
        received under this section shall be paid wages at rates not 
        less than those prevailing on similar construction in the 
        locality, as determined by the Secretary of Labor in accordance 
        with subchapter IV of chapter 31 of title 40, United States 
        Code (commonly known as the ``Davis-Bacon Act'').
            (2) Authority and functions.--With respect to the labor 
        standards specified in paragraph (1), the Secretary of Labor 
        shall have the authority and functions set forth in 
        Reorganization Plan Numbered 14 of 1950 (64 Stat. 1267; 5 
        U.S.C. App.) and section 3145 of title 40, United States Code.
    (f) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $2,000,000,000 for each of 
fiscal years 2025 through 2029.

SEC. 102. INVESTING IN AFFORDABLE HOUSING INFRASTRUCTURE.

    (a) Housing Trust Fund.--Section 1338(a) of the Federal Housing 
Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 
4568(a)) is amended by adding at the end the following:
            ``(3) Authorization of appropriations.--There is authorized 
        to be appropriated to the Housing Trust Fund $44,500,000,000 
        for each of fiscal years 2025 through 2034.''.
    (b) Capital Magnet Fund.--Section 1339 of the Federal Housing 
Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4569) 
is amended by adding at the end the following:
    ``(k) Authorization of Appropriations.--There is authorized to be 
appropriated to the Capital Magnet Fund $2,500,000,000 for each of 
fiscal years 2025 through 2034.''.
    (c) Public Housing Capital Fund.--Section 9(c)(2)(A) of the United 
States Housing Act of 1937 (42 U.S.C. 1437g(c)(2)(A)) is amended to 
read as follows:
                    ``(A) Capital fund.--For allocations of assistance 
                from the Capital Fund, $70,000,000,000 for fiscal year 
                2025.''.
    (d) Indian Housing Block Grant Program.--Section 108 of the Native 
American Housing Assistance and Self-Determination Act of 1996 (25 
U.S.C. 4117) is amended--
            (1) by striking ``such sums as may be necessary for each of 
        fiscal years 2009 through 2013'' and inserting ``$2,500,000,000 
        for fiscal year 2025 and such sums as may be necessary for each 
        of fiscal years 2026 through 2034''; and
            (2) by striking the second sentence.
    (e) Native Hawaiian Housing Block Grant Program.--Section 824 of 
the Native American Housing Assistance and Self-Determination Act of 
1996 (25 U.S.C. 4243) is amended by striking ``such sums as may be 
necessary for each of fiscal years 2001, 2002, 2003, 2004, and 2005'' 
and inserting ``$50,000,000 for fiscal year 2025 and such sums as may 
be necessary for each of fiscal years 2026 through 2034''.
    (f) Rural Housing Programs.--Out of funds in the Treasury not 
otherwise appropriated, there is appropriated for fiscal year 2025--
            (1) to provide direct loans under section 502 of the 
        Housing Act of 1949 (42 U.S.C. 1472), $420,000,000;
            (2) to provide assistance under section 514 of such Act (42 
        U.S.C. 1484), $54,000,000;
            (3) to provide assistance under section 515 of such Act (42 
        U.S.C. 1485), $420,000,000;
            (4) to provide assistance under section 516 of such Act (42 
        U.S.C. 1486), $75,000,000;
            (5) to provide grants under section 523 of such Act (42 
        U.S.C. 1490c), $75,000,000; and
            (6) to provide funding to carry out the Multifamily 
        Preservation and Revitalization Demonstration Program of the 
        Rural Housing Service (as authorized under sections 514, 515, 
        and 516 of such Act (42 U.S.C. 1484, 1485, 1486)), 
        $240,000,000.
    (g) Middle Class Housing Emergency Fund.--
            (1) Definitions.--In this subsection--
                    (A) the term ``affordable rental housing unit'' 
                means a unit for which monthly rent is 30 percent or 
                less than the monthly area median income; and
                    (B) the term ``State'' has the meaning given the 
                term in section 3(b)(7) of the United States Housing 
                Act of 1937 (42 U.S.C. 1437a(b)(7)).
            (2) Establishment.--The Secretary of Housing and Urban 
        Development shall establish and manage a fund, to be known as 
        the ``Middle Class Housing Emergency Fund'', which shall be 
        funded with any amounts as may be appropriated, transferred, or 
        credited to the Fund under any provision law.
            (3) Grants.--From amounts available in the fund established 
        under paragraph (2), the Secretary of Housing and Urban 
        Development shall award grants on a competitive basis to State 
        housing finance agencies located in a State in which--
                    (A) there is a shortage of affordable rental 
                housing units available to individuals with an income 
                that is at or below the area median income and median 
                rents have risen on average over the preceding 5 years 
                substantially faster than the area median income; or
                    (B) there is a shortage of housing units available 
                for sale that are affordable to individuals with an 
                income that is at or below the area median income and 
                median home prices have risen on average over the 
                preceding 5 years substantially faster than the area 
                median income.
            (4) Use of funds.--Grants received under this subsection 
        shall be used to fund--
                    (A) the construction or acquisition, by nonprofit 
                organizations, State or local agencies, special-purpose 
                units of local government, resident councils organized 
                to acquire housing, and other qualified purchasers (as 
                defined by the Secretary), of rental housing units or 
                units for purchase that are affordable to residents 
                making less than 120 percent of the area median income; 
                and
                    (B) measures to prevent tenant displacement and 
                harassment, including--
                            (i) the provision of legal advice and 
                        representation for tenants facing eviction;
                            (ii) enforcement of anti-harassment laws;
                            (iii) emergency rental assistance; and
                            (iv) other measures as specified by the 
                        Secretary of Housing and Urban Development.
            (5) Labor laws.--
                    (A) In general.--All laborers and mechanics 
                employed by contractors or subcontractors in the 
                performance of construction work financed in whole or 
                in part with a grant received under this subsection 
                shall be paid wages at rates not less than those 
                prevailing on similar construction in the locality as 
                determined by the Secretary of Labor in accordance with 
                subchapter IV of chapter 31 of title 40, United States 
                Code (commonly known as the ``Davis-Bacon Act'').
                    (B) Authority and functions.--With respect to the 
                labor standards specified in subparagraph (A), the 
                Secretary of Labor shall have the authority and 
                functions set forth in Reorganization Plan Numbered 14 
                of 1950 (64 Stat. 1267; 5 U.S.C. App.) and section 3145 
                of title 40, United States Code.
            (6) Regulations.--The Secretary of Housing and Urban 
        Development shall promulgate regulations to carry out this 
        subsection that include--
                    (A) the metrics that the Secretary will use to 
                determine eligibility for a grant under this 
                subsection;
                    (B) a requirement that grantees and subgrantees 
                consult with impacted communities in policymaking and 
                planning for the construction or acquisition of housing 
                units as described in paragraph 4(A); and
                    (C) a requirement that all housing units 
                constructed or acquired using grants awarded under the 
                subsection are affordable to residents making less than 
                120 percent of the area median income in perpetuity.
            (7) Appropriations.--Out of funds in the Treasury not 
        otherwise appropriated, there is appropriated to the fund 
        established under this subsection $4,000,000,000 for fiscal 
        year 2025.

SEC. 103. CONDITIONS FOR THE SALE OF REAL ESTATE-OWNED PROPERTIES AND 
              NON-PERFORMING LOANS.

    (a) Findings.--Congress finds that--
            (1) the Federal Housing Administration, the Federal 
        National Mortgage Association, and the Federal Home Loan 
        Mortgage Corporation provide critical homeownership 
        opportunities that greatly benefit individuals, families, and 
        communities; and
            (2) it is the purpose of this section to--
                    (A) preserve owner-occupied homes with mortgages 
                insured by the Federal Housing Administration or 
                purchased by the Federal National Mortgage Association 
                or the Federal Home Loan Mortgage Corporation for 
                continued use as owner-occupied homes; and
                    (B) direct that, upon the sale of those properties 
                or transfer of those mortgages, certain percentages of 
                those properties are sold to low- and moderate-income 
                homeowners.
    (b) Loans Insured by the Federal Housing Administration.--Title II 
of the National Housing Act (12 U.S.C. 1707 et seq.) is amended by 
adding at the end the following:

``SEC. 259. SALE OF REAL ESTATE-OWNED PROPERTIES.

    ``(a) Definitions.--In this section--
            ``(1) the term `Claim Without Conveyance of Title program' 
        means the program of the Federal Housing Administration carried 
        out under section 203.368 of title 24, Code of Federal 
        Regulations, or any successor regulation; and
            ``(2) the term `community partner' has the meaning given 
        the term `nonprofit organization' in section 229 of the Low-
        Income Housing Preservation and Resident Homeownership Act of 
        1990 (12 U.S.C. 4119).
    ``(b) Requirement.--Not later than 1 year after the date of 
enactment of this section, the Secretary shall develop programs within 
the Federal Housing Administration to ensure that not less than 75 
percent of the single-family residential properties conveyed to the 
Federal Housing Administration after foreclosure or conveyed to third 
parties under the Claim Without Conveyance of Title program are sold--
            ``(1) directly to an owner-occupant; or
            ``(2) to community partners that will--
                    ``(A) rehabilitate or develop the property; and
                    ``(B) sell the property to an owner-occupant.
    ``(c) Guidelines.--Not later than 1 year after the date of 
enactment of this section, the Secretary shall develop guidelines for 
the Claim Without Conveyance of Title program that provide an exclusive 
listing period during which only eligible Governmental Entities, HUD-
approved Nonprofit Organizations, and Owner-Occupant Buyers may submit 
bids.
    ``(d) Anti-Predatory Feature.--Unless the Secretary provides prior 
approval, the Secretary shall prohibit any purchaser of a real estate-
owned property of the Federal Housing Administration from reselling the 
property within 15 years of purchase using a land installment contract 
or through any other mechanism that does not transfer title to the 
buyer at the time of sale.

``SEC. 260. SALE OF NON-PERFORMING LOANS.

    ``(a) Definitions.--In this section--
            ``(1) the term `community partner' has the meaning given 
        the term in section 259; and
            ``(2) the term `covered mortgage'--
                    ``(A) means any mortgage insured under this title 
                that is secured by a single-family residential 
                property; and
                    ``(B) includes the promissory note secured by the 
                mortgage described in subparagraph (A).
    ``(b) Restriction on Sale or Transfer.--Except as provided in this 
section, the Secretary may not sell or transfer any covered mortgage.
    ``(c) Conditions for Sale or Transfer.--
            ``(1) In general.--The Secretary--
                    ``(A) may sell or transfer a covered mortgage only 
                if--
                            ``(i) the capital level of the Fund is 
                        substantially below the capital ratio required 
                        under section 205(f)(2);
                            ``(ii) the Secretary certifies that other 
                        reasonable measures are not available to 
                        restore the Fund to that capital ratio; and
                            ``(iii) the Secretary complies with 
                        paragraph (2)(C), if applicable; and
                    ``(B) may sell or transfer only such covered 
                mortgages as are necessary to assist in restoration of 
                that capital ratio.
            ``(2) Requirements for the secretary.--
                    ``(A) In general.--If the Secretary intends to sell 
                or transfer a covered mortgage, the Secretary shall 
                provide the current borrower and all owners of record 
                of the property securing the covered mortgage, or 
                require that the current borrower and owners of record 
                be provided, a separate written notice of the intent to 
                sell the covered mortgage that--
                            ``(i) is mailed via certified and first 
                        class mail not less than 90 days before the 
                        date on which the loan is included in any 
                        proposed sale; and
                            ``(ii) includes--
                                    ``(I) a description of the loss 
                                mitigation options of the Federal 
                                Housing Administration that are 
                                available to borrowers in financial 
                                distress and the obligation of 
                                servicers to consider borrowers in 
                                default for those options;
                                    ``(II) a description of the actions 
                                that the servicer of the loan has taken 
                                to review and implement those options 
                                for the borrower; and
                                    ``(III) a description of the 
                                procedures the borrower may use to 
                                contest with the Secretary the 
                                compliance by the servicer with that 
                                obligation.
                    ``(B) Judicial review.--The determination of the 
                Secretary to authorize the sale of a mortgage insured 
                under this title shall be reviewable under chapter 7 of 
                title 5, United States Code, for abuse of discretion 
                and arbitrary and capricious agency action.
                    ``(C) Auctions.--The Secretary may not sell any 
                covered mortgage through any type of non-performing 
                loan sale auction program until the Secretary issues 
                rules, through the notice and comment rule making 
                procedures under section 553 of title 5, United States 
                Code, that address essential aspects of any non-
                performing loan sale program, including--
                            ``(i) the method of selection of loans for 
                        sale;
                            ``(ii) notice to borrowers prior to 
                        inclusion of the loan in a sale; and
                            ``(iii) review of loss mitigation status 
                        prior to the sale, selection of eligible 
                        bidders, loss mitigation guidelines applicable 
                        to loan purchasers, and reporting requirements 
                        for purchasers.
            ``(3) Certification requirement for lenders and 
        servicers.--
                    ``(A) Certification.--As a condition to payment of 
                an insurance claim under this title in connection with 
                any non-performing loan sale, the lender or servicer of 
                the loan shall provide the Secretary and the borrower 
                with written certification of the loss mitigation 
                review contained in the FHA Single Family Housing 
                Policy Handbook 4000.1, or any successor handbook, 
                which certification shall include a description of the 
                actions the lender or servicer has taken, prior to 
                transfer of the loan to the Secretary, to--
                            ``(i) review the borrower for all available 
                        loss mitigation options of the Federal Housing 
                        Administration; and
                            ``(ii) implement the options described in 
                        clause (i) that are appropriate to the 
                        borrower.
                    ``(B) False statements.--
                            ``(i) In general.--Any false statement 
                        provided in a certification described in 
                        subparagraph (A) shall be a basis for--
                                    ``(I) recovery by the Secretary of 
                                any amounts paid under the insurance 
                                claim and any other penalties and 
                                sanctions authorized under Federal law; 
                                and
                                    ``(II) a private right of action by 
                                the borrower against the lender and 
                                servicer, with remedies to include 
                                compensatory and punitive damages and 
                                an assessment of costs and attorney's 
                                fees.
                            ``(ii) Transfers.--Unless a bona fide 
                        purchaser has acquired title to the property as 
                        a primary residence--
                                    ``(I) a certification described in 
                                subparagraph (A) that contains a false 
                                statement shall be a basis for revoking 
                                the transfer of the property; and
                                    ``(II) the pre-sale lender and 
                                servicer of the property shall--
                                            ``(aa) resume servicing the 
                                        loan as a loan insured under 
                                        this title; and
                                            ``(bb) reimburse the 
                                        Secretary for any insurance 
                                        claim paid and all costs 
                                        related to the sale of the 
                                        property.
            ``(4) Requirements for purchasers.--
                    ``(A) In general.--Each purchaser of a covered 
                mortgage shall offer the borrower on the covered 
                mortgage loss mitigation options that allow for payment 
                reduction at least as great as would be available to 
                the borrower if the loan had not been sold.
                    ``(B) Loss mitigation options.--The specific 
                formula, calculations, waterfall steps, and other terms 
                for appropriate loss mitigation options described in 
                subparagraph (A) shall be published by the Secretary, 
                made available to the public, and included in a written 
                notice given to borrowers before any acceleration or 
                foreclosure is initiated after a loan sale.
            ``(5) Requirements for transferees.--With respect to a 
        transferee, including any subsequent transferee, of a covered 
        mortgage that is sold under this title--
                    ``(A) the transferee shall certify in writing to 
                the Secretary that the transferee will comply with the 
                provisions of this section in the marketing and 
                transfer of any property received in the disposition of 
                any transferred loan;
                    ``(B) the transferee shall provide to the Secretary 
                records documenting that the transfers of those 
                properties are in compliance with this section; and
                    ``(C) the failure of the Secretary or the 
                transferee to comply with the requirements under this 
                section for a loan in default shall be a defense to 
                foreclosure, and a transferee may not execute a 
                foreclosure judgment or order of sale, or conduct a 
                foreclosure sale, until the transferee has complied 
                with all requirements under this section.
    ``(d) Limitations.--With respect to covered mortgages that are sold 
under this title and acquired by the buyer through foreclosure sale, 
not less than 90 percent of the properties that are the subject of the 
covered mortgages shall be--
            ``(1) sold to owner-occupants;
            ``(2) operated or transferred to an entity that will 
        operate the property as affordable rental housing for 
        households below 80 percent of the area median income for a 
        period of not less than 15 years; or
            ``(3) transferred or donated to a nonprofit agency that is 
        certified by the Secretary and will redevelop the property for 
        owner occupancy or affordable rental housing.
    ``(e) Prioritization of Sales.--The Secretary shall implement 
policies, procedures, and controls to--
            ``(1) identify and recruit community partners;
            ``(2) engage in consultations with community partners 
        before the sale of a pool of covered mortgages under this title 
        to determine whether that sale can be designed to meet the 
        specific needs of the communities served by the community 
        partners; and
            ``(3) prioritize the sale of pools of single-family 
        mortgages to community partners by--
                    ``(A) designing pools of covered mortgages for 
                direct sale to a community partner, the price of which 
                shall be set by the Secretary based on a pricing model 
                that considers--
                            ``(i) the current fair market value of the 
                        properties; and
                            ``(ii) the potential impact of foreclosures 
                        on those properties to the value of other homes 
                        that secure mortgages insured under this title 
                        in the same census tract; or
                    ``(B) in the case of an auction, if the winning bid 
                is not from a community partner, permitting any 
                community partner that bid during that same auction to 
                have a final opportunity to enter a higher bid on the 
                pool.''.
    (c) Fannie Mae.--Section 302 of the Federal National Mortgage 
Association Charter Act (12 U.S.C. 1717) is amended by adding at the 
end the following:
    ``(d)(1) In this subsection, the term `covered mortgage'--
            ``(A) means any mortgage that is secured by a single-family 
        residential property; and
            ``(B) includes the promissory note secured by the mortgage 
        described in subparagraph (A).
    ``(2) The corporation may not sell or transfer any covered mortgage 
under this section unless the requirements of this subsection are met.
    ``(3)(A) If the corporation intends to sell or transfer a covered 
mortgage, the corporation shall provide the current borrower and all 
owners of record of the property securing the covered mortgage, or 
require that the current borrower and owners of record be provided, a 
separate written notice of the intent to sell the covered mortgage 
that--
            ``(i) is mailed via certified and first class mail not less 
        than 90 days before the date on which the loan is included in 
        any proposed sale; and
            ``(ii) includes--
                    ``(I) a description of the loss mitigation options 
                of the corporation that are available to borrowers in 
                financial distress and the obligation of servicers to 
                consider borrowers in default for those options;
                    ``(II) a description of the actions that the 
                servicer of the loan has taken to review and implement 
                those options for the borrower; and
                    ``(III) a description of the procedures the 
                borrower may use to contest with the corporation the 
                compliance by the servicer with that obligation.
    ``(B) The Federal Housing Finance Agency, as receiver for the 
corporation, may not authorize the corporation to sell any covered 
mortgage through any type of non-performing loan sale auction program 
until the Director of the Federal Housing Finance Agency issues rules, 
through the notice and comment rule making procedures under section 553 
of title 5, United States Code, that address essential aspects of any 
non-performing loan sale program, including--
            ``(i) the method of selection of loans for sale;
            ``(ii) notice to borrowers prior to inclusion of the loan 
        in a sale; and
            ``(iii) review of loss mitigation status prior to the sale, 
        selection of eligible bidders, loss mitigation guidelines 
        applicable to loan purchasers, and reporting requirements for 
        purchasers.
    ``(4)(A) Each purchaser of a covered mortgage shall offer the 
borrower on the covered mortgage loss mitigation options that allow for 
payment reduction at least as great as would be available to the 
borrower if the loan had not been sold.
    ``(B) The specific formula, calculations, waterfall steps, and 
other terms for loss mitigation options described in subparagraph (A) 
shall be published by the corporation, made available to the public, 
and included in a written notice given to borrowers before any 
acceleration or foreclosure is initiated after a loan sale.
    ``(5) With respect to a transferee, including any subsequent 
transferee, of a covered mortgage that is sold by the corporation under 
this section--
            ``(A) the transferee shall certify in writing to the 
        corporation that the transferee will comply with the provisions 
        of this subsection in the marketing and transfer of any 
        property received in the disposition of any transferred loan;
            ``(B) the transferee shall provide to the corporation 
        records documenting that the transfers of those properties are 
        in compliance with this subsection; and
            ``(C) the failure of the corporation or the transferee to 
        comply with the requirements under this subsection for a loan 
        in default shall be a defense to foreclosure, and a transferee 
        may not execute a foreclosure judgment or order of sale, or 
        conduct a foreclosure sale, until the transferee has complied 
        with all requirements under this subsection.
    ``(6) With respect to covered mortgages that are sold by the 
corporation under this section and foreclosed upon by the buyer, not 
less than 90 percent of the properties that are the subject of the 
covered mortgages in an auction shall be--
            ``(A) sold to owner-occupants;
            ``(B) operated or transferred to an entity that will 
        operate the property as affordable rental housing for 
        households below 80 percent of the area median income for a 
        period of not less than 15 years; or
            ``(C) transferred or donated to a nonprofit agency that is 
        certified by the corporation and will redevelop the property 
        for owner occupancy or affordable rental housing.
    ``(7) The corporation shall implement policies, procedures, and 
controls to--
            ``(A) identify and recruit community partners;
            ``(B) engage in consultations with community partners 
        before the sale of a pool of covered mortgages under this 
        section to determine whether that sale can be designed to meet 
        the specific needs of the communities served by the community 
        partners; and
            ``(C) prioritize the sale of pools of single-family 
        mortgages to community partners by--
                    ``(i) designing pools of covered mortgages for 
                direct sale to a community partner, the price of which 
                shall be set by the corporation based on a pricing 
                model that considers--
                            ``(I) the current fair market value of the 
                        properties; and
                            ``(II) the potential impact of foreclosures 
                        on those properties to the value of other homes 
                        in the same census tract; or
                    ``(ii) in the case of an auction, if the winning 
                bid is not from a community partner, permitting any 
                community partner that bid during that same auction to 
                have a final opportunity to enter a higher bid on the 
                pool.''.
    (d) Freddie Mac.--Section 305 of the Federal Home Loan Mortgage 
Corporation Act (12 U.S.C. 1454) is amended by adding at the end the 
following:
    ``(e)(1) In this subsection, the term `covered mortgage'--
            ``(A) means any mortgage that is secured by a single-family 
        residential property; and
            ``(B) includes the promissory note secured by the mortgage 
        described in subparagraph (A).
    ``(2) The Corporation may not sell or transfer any covered mortgage 
under this section unless the requirements of this subsection are met.
    ``(3)(A) If the Corporation intends to sell or transfer a covered 
mortgage, the Corporation shall provide the current borrower and all 
owners of record of the property securing the covered mortgage, or 
require that the current borrower and owners of record be provided, a 
separate written notice of the intent to sell the covered mortgage 
that--
            ``(i) is mailed via certified and first class mail not less 
        than 90 days before the date on which the loan is included in 
        any proposed sale; and
            ``(ii) includes--
                    ``(I) a description of the loss mitigation options 
                of the Corporation that are available to borrowers in 
                financial distress and the obligation of servicers to 
                consider borrowers in default for those options;
                    ``(II) a description of the actions that the 
                servicer of the loan has taken to review and implement 
                those options for the borrower; and
                    ``(III) a description of the procedures the 
                borrower may use to contest with the Corporation the 
                compliance by the servicer with that obligation.
    ``(B) The Federal Housing Finance Agency, as receiver for the 
Corporation, may not sell any covered mortgage through any type of non-
performing loan sale auction program until the Director of the Federal 
Housing Finance Agency issues rules, through the notice and comment 
rule making procedures under section 553 of title 5, United States 
Code, that address essential aspects of any non-performing loan sale 
program, including--
            ``(i) the method of selection of loans for sale;
            ``(ii) notice to borrowers prior to inclusion of the loan 
        in a sale; and
            ``(iii) review of loss mitigation status prior to the sale, 
        selection of eligible bidders, loss mitigation guidelines 
        applicable to loan purchasers, and reporting requirements for 
        purchasers.
    ``(4)(A) Each purchaser of a covered mortgage shall offer the 
borrower on the covered mortgage loss mitigation options that allow for 
payment reduction at least as great as would be available to the 
borrower if the loan had not been sold.
    ``(B) The specific formula, calculations, waterfall steps, and 
other terms for loss mitigation options described in subparagraph (A) 
shall be published by the Corporation, made available to the public, 
and included in a written notice given to borrowers before any 
acceleration or foreclosure is initiated after a loan sale.
    ``(5) With respect to a transferee, including any subsequent 
transferee, of a covered mortgage that is sold by the Corporation under 
this section--
            ``(A) the transferee shall certify in writing to the 
        Corporation that the transferee will comply with the provisions 
        of this subsection in the marketing and transfer of any 
        property received in the disposition of any transferred loan;
            ``(B) the transferee shall provide to the Corporation 
        records documenting that the transfers of those properties are 
        in compliance with this subsection; and
            ``(C) the failure of the Corporation or the transferee to 
        comply with the requirements under this subsection for a loan 
        in default shall be a defense to foreclosure, and a transferee 
        may not execute a foreclosure judgment or order of sale, or 
        conduct a foreclosure sale, until the transferee has complied 
        with all requirements under this subsection.
    ``(6) With respect to covered mortgages that are sold by the 
Corporation under this section and foreclosed upon by the buyer, not 
less than 90 percent of the properties that are the subject of the 
covered mortgages in an auction shall be--
            ``(A) sold to owner-occupants;
            ``(B) operated or transferred to an entity that will 
        operate the property as affordable rental housing for 
        households below 80 percent of the area median income for a 
        period of not less than 15 years; or
            ``(C) transferred or donated to a nonprofit agency that is 
        certified by the Corporation and will redevelop the property 
        for owner occupancy or affordable rental housing.
    ``(7) The Corporation shall implement policies, procedures, and 
controls to--
            ``(A) identify and recruit community partners;
            ``(B) engage in consultations with community partners 
        before the sale of a pool of covered mortgages under this 
        section to determine whether that sale can be designed to meet 
        the specific needs of the communities served by the community 
        partners; and
            ``(C) prioritize the sale of pools of single-family 
        mortgages to community partners by--
                    ``(i) designing pools of covered mortgages for 
                direct sale to a community partner, the price of which 
                shall be set by the Corporation based on a pricing 
                model that considers--
                            ``(I) the current fair market value of the 
                        properties; and
                            ``(II) the potential impact of foreclosures 
                        on those properties to the value of other homes 
                        in the same census tract; or
                    ``(ii) in the case of an auction, if the winning 
                bid is not from a community partner, permitting any 
                community partner that bid during that same auction to 
                have a final opportunity to enter a higher bid on the 
                pool.''.
    (e) Sale of Re-Performing Loans.--The Federal Housing Enterprises 
Financial Safety and Soundness Act of 1992 (12 U.S.C. 4501 et seq.) is 
amended by inserting after section 1328 (12 U.S.C. 4548) the following:

``SEC. 1329. SALE OF RE-PERFORMING LOANS.

    ``(a) Bulk Auction or Group Sales.--An enterprise may not conduct 
bulk auctions or other group sales of single family re-performing 
residential loans unless the following requirements are met:
            ``(1) The enterprise establishes a system that provides 
        priority to Federal, State, local, or Tribal governments or 
        nonprofit organizations that have the capacity and experience 
        required for buying, servicing, and resolving single family 
        mortgage loans in a manner that promotes affordable housing, 
        fair housing, affordable homeownership, provision of housing 
        counseling, or neighborhood stabilization.
            ``(2) Clear, written notice is sent by the enterprise or 
        servicer through certified and first-class mail to the borrower 
        and all owners of record, with a copy sent to the enterprise if 
        sent by the servicer, not less than 90 days before the 
        inclusion of the loan in any proposed sale--
                    ``(A) stating that the loan will be included in a 
                bulk auction or group sale of re-performing loans; and
                    ``(B) describing the bulk auction or group sale 
                process, including--
                            ``(i) the loss mitigation or other 
                        protections available to the borrower and other 
                        owners of record both before and after the 
                        auction or sale; and
                            ``(ii) the obligations of the servicer of 
                        the loan before and after the auction or sale, 
                        including loss mitigation requirements.
            ``(3) The enterprise requires in the terms of the bulk 
        auction or group sale that purchasers take loans subject to the 
        following requirements:
                    ``(A) The purchaser is required to offer targeted 
                payment relief options to borrowers that become more 
                than 60 days delinquent on their mortgage after their 
                loan is sold that includes deferral of principal and 
                term extension options that reduce payments to an 
                affordable level.
                    ``(B) The purchaser is required to offer a deferral 
                program to borrowers that become more than 60 days 
                delinquent on their mortgage after their loan is sold 
                that offers terms and protections at least as favorable 
                as those available under loss mitigation guidelines of 
                the enterprise, including the absence of fees, to 
                borrowers who can afford their pre-hardship mortgage 
                payment.
                    ``(C) Failure by the purchaser to follow the 
                established loss mitigation guidelines shall serve as a 
                defense to a judicial foreclosure and a basis to enjoin 
                or otherwise stay a non-judicial foreclosure.
                    ``(D) Data reporting as provided under subsection 
                (b)(1).
                    ``(E) If a property becomes vacant, the purchaser 
                shall not release the lien until the property is sold 
                or donated.
                    ``(F) Use of contract for deed, lease to own, or a 
                land installment contract to sell or otherwise transfer 
                any property that is secured by a purchased loan shall 
                be prohibited unless the tenant or purchaser is a 
                nonprofit organization.
    ``(b) Data and Reporting.--
            ``(1) Purchaser reporting.--During the 4-year period 
        following any auction or sale of single family re-performing 
        residential mortgage loans under subsection (a), the Director 
        shall require the enterprise to collect from each purchaser of 
        such loans, including any subsequent purchaser of a loan, 
        quarterly loan-level data regarding the treatment and outcome 
        of the loan, including--
                    ``(A) loan characteristics, including loan type, 
                remaining loan term, loan to value ratio, number of 
                months in arrears, and loan status;
                    ``(B) loss mitigation data, including whether loss 
                mitigation was provided by the purchaser, debt-to-
                income ratio and percent payment reduction for any 
                modified loans, and performance of modified loans;
                    ``(C) demographic data for each borrower and any 
                co-borrower, including race, national origin, sex, ZIP 
                Code, and census tract, and, if available, disability 
                status and veteran status; and
                    ``(D) other purchaser actions, including charge 
                offs and resales of loans and dates for such actions.
            ``(2) Semiannual reports to congress.--The Director shall 
        submit to Congress, and make publicly available at no cost to 
        the public in a readily accessible format on the website of the 
        Agency, semi-annual reports on--
                    ``(A) loans sold in an auction or sale under 
                subsection (a) by each enterprise, disaggregated by 
                pool, including--
                            ``(i) the number of loans and types of 
                        loans;
                            ``(ii) mean and median delinquency and loan 
                        to value ratios at the time of the sale;
                            ``(iii) the number and percentage of loans 
                        modified prior to auction or sale; and
                            ``(iv) demographic and geographic data, 
                        including property locations by census tract or 
                        larger geographic location if necessary to 
                        protect personally identifiable information;
                    ``(B) the performance of loans after an auction or 
                sale under subsection (a), disaggregated by loan pool, 
                including the initial purchaser, current owner, current 
                servicer, data summarizing any alternatives to 
                foreclosure offered and enacted, and data summarizing 
                the data collected under subparagraph (A); and
                    ``(C) the results of a fair lending analysis 
                conducted based on the data in subparagraphs (A) and 
                (B) to identify any discriminatory impacts or outcomes 
                associated with the auctions or sales.
    ``(c) Penalties for Noncompliance.--The enterprises may forcibly 
retain loans or properties, without providing compensation, from 
purchasers that do not meet the requirements under subsection (a)(3).
    ``(d) Regulations.--The Director shall issue regulations defining 
the terms of permissible auctions or sales in accordance with the 
requirements in this section.''.

   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.

    (a) Definitions.--In this section:
            (1) Eligible resident.--The term ``eligible resident'' 
        means an individual who--
                    (A) is a first-time homebuyer;
                    (B) is a first-generation homebuyer; and
                    (C) has an income that is less than--
                            (i) 120 percent of the area median income; 
                        or
                            (ii) in the case of a homebuyer acquiring a 
                        property for use as a principal residence that 
                        is located in a high-cost area, as determined 
                        by the Secretary, 140 percent of the area 
                        median income.
            (2) First-generation homebuyer.--The term ``first-
        generation homebuyer'' means a homebuyer who is, as self-
        attested by the homebuyer, an individual--
                    (A) whose parents do not, or did not at the time of 
                their death, to the best of the individual's knowledge, 
                have any present ownership interest in a principal 
                residence in any State, excluding ownership of heir 
                property; and
                    (B) whose spouse or domestic partner has not, 
                during the 3-year period ending on the date of purchase 
                of a property using a grant under subsection (b), had 
                any present ownership interest in a principal residence 
                in any State, excluding ownership of heir property, 
                without regard to whether the spouse or domestic 
                partner is a co-borrower on a mortgage for the property 
                being purchased.
            (3) First-time homebuyer.--The term ``first-time 
        homebuyer'' means a homebuyer who is, as self-attested by the 
        homebuyer, an individual (and if married or in a domestic 
        partnership, the spouse or domestic partner of the individual) 
        who, during the 3-year period ending on the date of purchase of 
        a property using a grant under subsection (b)--
                    (A) has had no present ownership in a principal 
                residence in any State, excluding ownership of heir 
                property; or
                    (B) surrendered any present ownership interest in a 
                principal residence in any State, excluding ownership 
                of heir property, as part of a divorce proceeding.
            (4) Heir property.--The term ``heir property'' means 
        residential property for which title--
                    (A) passed by operation of law through intestacy; 
                and
                    (B) is held by 2 or more heirs as tenants in 
                common.
            (5) Secretary.--The term ``Secretary'' means the Secretary 
        of Housing and Urban Development.
            (6) State.--The term ``State'' includes the District of 
        Columbia and any territory or possession of the United States.
    (b) Establishment.--There is established in the Treasury of the 
United States a fund that--
            (1) shall be administered by the Secretary, acting through 
        the Office of Housing of the Department of Housing and Urban 
        Development; and
            (2) shall be used--
                    (A) to provide grants to eligible residents to 
                purchase a property for use as a principal residence;
                    (B) for outreach to financial institutions in 
                targeted areas and eligible residents, including for 
                the administration of that outreach;
                    (C) for counseling or financial education 
                administered by counseling agencies approved by the 
                Secretary in order to ensure sustainable homeownership; 
                and
                    (D) to maintain any records required to implement 
                this section.
    (c) Grant Amount.--An eligible resident may receive a grant under 
subsection (b) in an amount equal to--
            (1) not more than 3.5 percent of the appraised value of the 
        property to be purchased; or
            (2) if the appraised value of the property to be purchased 
        exceeds the principal obligation amount limitation for 
        mortgages insured under title II of the National Housing Act 
        (12 U.S.C. 1707 et seq.), 3.5 percent of the maximum principal 
        obligation limitation for the property to be purchased.
    (d) Relation to FHA Loan.--An eligible resident shall not be 
required to obtain a mortgage that is insured under title II of the 
National Housing Act (12 U.S.C. 1707 et seq.) as a condition of 
receiving a grant under subsection (b).
    (e) Layering of Assistance.--Receipt by an eligible recipient of 
assistance for a down payment from a source other than the fund 
established under subsection (b), including assistance from the Federal 
Government, a State or local government, or any other public, private, 
or nonprofit source, shall not affect the eligibility of the eligible 
recipient for assistance under subsection (b).
    (f) Regulations and Database.--Not later than 1 year after the date 
of enactment of this Act, the Secretary shall--
            (1) in consultation with interested parties, including 
        housing counseling agencies approved by the Secretary and 
        individuals or groups with expertise in fair housing, 
        promulgate regulations relating to the use of the fund 
        established under subsection (b);
            (2) promulgate regulations relating to the disbursement of 
        funds under this section to ensure that an eligible resident is 
        able to receive funds before the closing date for the home of 
        the eligible resident, which may include creating a program 
        that allows a lender to be reimbursed by the fund established 
        under subsection (b) if the lender--
                    (A) provides an eligible resident with funds for 
                the closing; or
                    (B) allows an eligible resident to be preapproved 
                to receive assistance under this section when arranging 
                financing for the home of the eligible resident; and
            (3) establish methods to verify that an individual is an 
        eligible resident.
    (g) Appropriation.--Out of funds in the Treasury not otherwise 
appropriated, there is appropriated to the fund established under 
subsection (b) such sums as may be necessary for each of fiscal years 
2025 through 2034 to carry out the activities under subsection (b)(2).
    (h) Inclusion of Program in Home Buying Information Booklets.--
Section 5(b) of the Real Estate Settlement Procedures Act of 1974 (12 
U.S.C. 2604(b)) is amended by inserting after paragraph (14) the 
following:
            ``(15) Information relating to the down payment assistance 
        program established under section 201 of the American Housing 
        and Economic Mobility Act of 2024.''.
    (i) Inclusion of Program as Mortgage Product.--Section 203(f)(1) of 
the National Housing Act (12 U.S.C. 1709(f)(1)) is amended by inserting 
``, including the down payment assistance program established under 
section 201 of the American Housing and Economic Mobility Act of 
2024,'' after ``mortgage products''.
    (j) Reliance on Borrower Attestations.--No additional documentation 
beyond the borrower's attestation shall be required to demonstrate 
eligibility under paragraphs (2) and (3) of subsection (a), and no 
creditor shall be subject to liability, including monetary penalties or 
requirements to indemnify a Federal agency or repurchase a loan that 
has been sold or securitized, for the provision of down payment 
assistance under this section to a borrower who does not meet the 
eligibility requirements under those paragraphs if the creditor does so 
in good faith reliance on borrower attestations of eligibility required 
by those paragraphs or any regulation promulgated to carry out those 
paragraphs.
    (k) Repayment of Assistance.--
            (1) Requirement.--An eligible resident who receives a grant 
        under subsection (b) to purchase a property for use as a 
        principal residence and does not occupy the property as a 
        principal residence for 5 years or more shall repay to the 
        Secretary a proportional amount of the grant based on the 
        number of years, if any, for which the eligible resident has 
        occupied the property as a principal residence.
            (2) Limitation.--Notwithstanding paragraph (1), an eligible 
        resident who receives a grant under subsection (b) to purchase 
        a property for use as a principal residence and does not occupy 
        the property as a principal residence for 5 years or more shall 
        not be liable to the Secretary for repayment under paragraph 
        (1) of this subsection if--
                    (A) the failure to occupy the property as a 
                principal residence is due at least in part to a 
                hardship; or
                    (B) the eligible resident sells the property before 
                the expiration of the 5-year period beginning on the 
                date of acquisition and the capital gains from the sale 
                to a bona fide purchaser in an arm's length transaction 
                are less than the amount the eligible resident would be 
                required to repay under paragraph (1).

SEC. 202. FORMULA GRANT PROGRAM FOR COMMUNITIES WITH AN APPRAISAL GAP.

    (a) Definitions.--In this section--
            (1) the term ``neighborhood with an appraisal gap'' means a 
        census tract in which the median sales price of a dwelling unit 
        is lower than the median cost to acquire and rehabilitate, or 
        build, a new dwelling unit;
            (2) the term ``Secretary'' means the Secretary of Housing 
        and Urban Development; and
            (3) the term ``State'' has the meaning given the term in 
        section 3(b)(7) of the United States Housing Act of 1937 (42 
        U.S.C. 1437a(b)(7)).
    (b) Establishment.--The Secretary shall establish a formula grant 
program to provide funding to States to support neighborhoods with an 
appraisal gap, including borrowers with negative equity in their 
primary residence in those neighborhoods, through--
            (1) measures that provide funds to borrowers to--
                    (A) pay down arrears on an otherwise affordable 
                loan;
                    (B) pay down arrears or principal on a loan in 
                order to qualify for a loan modification that will 
                allow the borrower to keep the home;
                    (C) pay off, or pay down part of, a second mortgage 
                or home equity line of credit;
                    (D) pay off a small-dollar mortgage;
                    (E) pay delinquent taxes and tax liens;
                    (F) pay off delinquent water or sewer bills and 
                liens; and
                    (G) pay for home repairs or maintenance or for 
                modifications to bring the home into compliance with 
                any applicable codes; and
            (2) programs to purchase or rehabilitate vacant or 
        distressed properties to enhance neighborhood property values.
    (c) Formula.--The Secretary shall distribute amounts under this 
section to States based on--
            (1) the number of borrowers with a primary residence with 
        negative equity in each State; and
            (2) the share of neighborhoods with an appraisal gap in 
        each State.
    (d) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $5,000,000,000 for fiscal year 
2025.

SEC. 203. STRENGTHENING THE COMMUNITY REINVESTMENT ACT OF 1977.

    (a) Short Title.--This section may be cited as the ``Community 
Reinvestment Reform Act of 2024''.
    (b) Amendments to the Community Reinvestment Act of 1977.--The 
Community Reinvestment Act of 1977 (12 U.S.C. 2901 et seq.) is 
amended--
            (1) by striking sections 802 and 803 (12 U.S.C. 2901, 2902) 
        and inserting the following:

``SEC. 802. FINDINGS AND PURPOSE.

    ``(a) Findings.--Congress finds that--
            ``(1) regulated financial institutions are required by law 
        to demonstrate that they serve the convenience and needs of the 
        communities in which they are chartered or do business, in 
        particular low- and moderate-income communities;
            ``(2) the convenience and needs of communities include the 
        need for credit services, deposit services, transaction 
        services, other financial services, and community development 
        loans and investments; and
            ``(3) regulated financial institutions have a continuing 
        and affirmative obligation to meet the credit or other 
        financial needs of all the local communities in which they are 
        chartered or do business, including communities in which--
                    ``(A) the institutions make loans and do not accept 
                deposits; or
                    ``(B) the institutions accept deposits but do not 
                make loans.
    ``(b) Purpose.--It is the purpose of this title to require each 
appropriate Federal financial supervisory agency to use its authority 
when examining regulated financial institutions to ensure that those 
institutions meet the credit and other financial needs of the local 
communities in which they are chartered or do business consistent with 
the safe and sound operation of those institutions.

``SEC. 803. DEFINITIONS.

    ``In this title:
            ``(1) Application for a deposit facility.--The term 
        `application for a deposit facility' means an application to 
        the appropriate Federal financial supervisory agency otherwise 
        required under Federal law or regulations thereunder for--
                    ``(A) a charter for a national bank or Federal 
                savings and loan association;
                    ``(B) deposit insurance in connection with a newly 
                chartered State bank, savings bank, savings and loan 
                association, or similar institution;
                    ``(C) the establishment of a domestic branch or 
                other facility with the ability to accept deposits of a 
                regulated financial institution;
                    ``(D) the relocation of the home office or a branch 
                office of a regulated financial institution;
                    ``(E) the merger or consolidation with, the 
                acquisition of the assets of, or the assumption of the 
                liabilities of a regulated financial institution 
                requiring approval under section 18(c) of the Federal 
                Deposit Insurance Act (12 U.S.C. 1828(c)); or
                    ``(F) the acquisition of shares in, or the assets 
                of, a regulated financial institution requiring 
                approval under section 3 of the Bank Holding Company 
                Act of 1956 (12 U.S.C. 1842).
            ``(2) Appropriate federal banking agency.--The term 
        `appropriate Federal banking agency' has the meaning given the 
        term in section 3 of the Federal Deposit Insurance Act (12 
        U.S.C. 1813).
            ``(3) Appropriate federal financial supervisory agency.--
        The term `appropriate Federal financial supervisory agency' 
        means--
                    ``(A) the appropriate Federal banking agency with 
                respect to depository institutions and depository 
                institution holding companies; and
                    ``(B) the Bureau of Consumer Financial Protection 
                with respect to any covered person supervised by the 
                Bureau pursuant to section 1024 of the Dodd-Frank Wall 
                Street Reform and Consumer Protection Act (12 U.S.C. 
                5514).
            ``(4) Assessment area.--The term `assessment area' means, 
        with respect to a regulated financial institution, each 
        community, including a State, metropolitan area, or urban or 
        rural county, in which the institution--
                    ``(A) maintains deposit-taking branches, automated 
                teller machines, or retail offices;
                    ``(B) is represented by an agent; or
                    ``(C) issues a significant number of loans or other 
                products relative to the total number of loans or other 
                products made by the institution or relative to the 
                total number of loans or other products offered by the 
                private sector market.
            ``(5) Climate resiliency and disaster mitigation.--The term 
        `climate resiliency and disaster mitigation' means activities 
        that--
                    ``(A) assist individuals and communities to prepare 
                for, adapt to, and withstand climate-related risks, 
                natural disasters, or weather-related disasters;
                    ``(B) benefit or serve residents of low- to 
                moderate-income census tracts or climate vulnerable 
                communities and do not directly result in forced or 
                involuntary relocation of those residents; and
                    ``(C) are done in conjunction with--
                            ``(i) a plan, program or initiative of a 
                        Federal, State, local or Tribal government; or
                            ``(ii) a mission-driven nonprofit 
                        organization that is focused on benefiting or 
                        serving targeted census tracts or climate 
                        vulnerable communities.
            ``(6) Climate vulnerable communities.--The term `climate 
        vulnerable communities' means communities experiencing 
        heightened risk and increased sensitivity to climate change 
        with less capacity and fewer resources to cope with, adapt to, 
        or recover from climate impacts, as determined by the 
        appropriate Federal financial supervisory agencies using tools 
        developed by Federal agencies that identify census tracts as 
        disadvantaged based in part on environmental factors, including 
        the climate and economic justice screening tool developed by 
        the Council on Environmental Quality.
            ``(7) Community benefits plan.--The term `community 
        benefits plan' means a plan that provides measurable goals for 
        future amounts of safe and sound loans, investments, services, 
        and other financial products for low- and moderate-income 
        communities and other distressed or underserved communities.
            ``(8) Community development.--The term `community 
        development' includes--
                    ``(A) affordable housing for low- or moderate-
                income individuals and avoidance of patterns of lending 
                resulting in the loss of affordable housing units and 
                housing for low- and moderate-income individuals in 
                high-opportunity areas;
                    ``(B) community development services, including 
                counseling and successful mortgage or loan 
                modifications of delinquent loans;
                    ``(C) activities that promote integration;
                    ``(D) activities that promote economic development 
                by financing small businesses or farms that meet the 
                size eligibility requirements of the development 
                company or small business investment company programs 
                under section 121.301 of title 13, Code of Federal 
                Regulations, or any successor regulation, with an 
                emphasis on small businesses that have gross annual 
                revenues of not more than $1,000,000;
                    ``(E) activities that revitalize or stabilize--
                            ``(i) low- or moderate-income geographies;
                            ``(ii) designated disaster areas;
                            ``(iii) distressed or underserved 
                        nonmetropolitan middle-income geographies 
                        designated by the Federal Financial 
                        Institutions Examination Council, based on--
                                    ``(I) rates of poverty, 
                                unemployment, and population loss; or
                                    ``(II) population size, density, 
                                and dispersion, if those activities 
                                help to meet essential community needs, 
                                including the needs of low- and 
                                moderate-income individuals; or
                            ``(iv) other distressed or underserved 
                        communities;
                    ``(F) activities that promote physical, 
                environmental, and sensory accessibility in housing 
                stock that is integrated into the community; and
                    ``(G) other activities that promote the objectives 
                of this title, as determined by the appropriate Federal 
                financial supervisory agencies.
            ``(9) Depository institution; depository institution 
        holding company; insured depository institution.--The terms 
        `depository institution', `depository institution holding 
        company', and `insured depository institution' have the 
        meanings given those terms in section 3 of the Federal Deposit 
        Insurance Act (12 U.S.C. 1813).
            ``(10) Entire community.--The term `entire community' 
        means--
                    ``(A) all of the assessment areas of a regulated 
                financial institution; and
                    ``(B) areas outside of assessment areas described 
                in subparagraph (A) in which a regulated financial 
                institution has made loans or received deposits.
            ``(11) Enumerated consumer laws.--The term `enumerated 
        consumer laws' has the meaning given the term in section 1002 
        of the Consumer Financial Protection Act of 2010 (12 U.S.C. 
        5481).
            ``(12) Fossil fuel.--The term `fossil fuel' means coal, 
        petroleum, methane gas (often referred to as `natural gas'), or 
        any derivative of coal, petroleum, or methane gas that is used 
        for fuel directly or indirectly, such as for generating 
        electricity.
            ``(13) Fossil fuel company.--The term `fossil fuel company' 
        means any company that--
                    ``(A) is among the 200 companies with the largest 
                fossil fuel reserves in the world;
                    ``(B) is among the 30 largest public company owners 
                in the world of coal-fired power plants;
                    ``(C) has as its core business--
                            ``(i) the construction or operation of 
                        fossil fuel infrastructure; or
                            ``(ii) the exploration, extraction, 
                        refining, processing or distribution of fossil 
                        fuels; or
                    ``(D) receives more than 50 percent of its gross 
                revenue from companies that meet the definition under 
                subparagraph (A), (B), or (C).
            ``(14) Fossil fuel expansion.--The term `fossil fuel 
        expansion' means financing for new fossil fuel infrastructure 
        projects, including financing of exploration activities, that 
        would--
                    ``(A) increase greenhouse gas emissions; and
                    ``(B) increase the difficulty of achieving Federal, 
                State, or local carbon emission reduction goals.
            ``(15) Fossil fuel infrastructure.--The term `fossil fuel 
        infrastructure' means oil or gas wells, oil or gas pipelines 
        and refineries, oil, coal or gas-fired power plants, oil and 
        gas storage tanks, fossil fuel export terminals, and any other 
        infrastructure used exclusively for fossil fuels, including 
        facilities with carbon capture, utilization, and storage.
            ``(16) Geography.--The term `geography' means a census 
        tract delineated by the Bureau of the Census in the most recent 
        decennial census.
            ``(17) Intermediate bank.--The term `intermediate bank' is 
        a depository institution with assets between $391,000,000 and 
        $1,564,000,000, as adjusted annually for purposes of an 
        examination under section 804.
            ``(18) Large bank.--The term `large bank' is a depository 
        institution with assets of not less than $1,564,000,000, as 
        adjusted annually for purposes of an examination under section 
        804.
            ``(19) Other distressed or underserved community.--The term 
        `other distressed or underserved community' means an area or 
        census tract that, according to a periodic review and data 
        analysis by the appropriate Federal financial supervisory 
        agencies on an interagency basis through the Federal Financial 
        Institutions Examination Council of certain metrics, such as 
        loans per households or small business, is experiencing 
        economic hardship or is underserved by financial institutions.
            ``(20) Other underserved population.-- The term `other 
        underserved population' means a population that is experiencing 
        ongoing effects of discrimination or is relatively underserved 
        by financial institutions, as measured by loans per households 
        or other similar metrics.
            ``(21) Regulated financial institution.--The term 
        `regulated financial institution' means--
                    ``(A) an insured depository institution;
                    ``(B) a depository institution holding company; and
                    ``(C) a U.S. nonbank mortgage originator.
            ``(22) Small bank.--The term `small bank' is a depository 
        institution with assets of less than $391,000,000, as adjusted 
        annually to take into account inflation for purposes of 
        determining which institutions are subject to an examination 
        under section 804.
            ``(23) U.S. nonbank mortgage originator.--The term `U.S. 
        nonbank mortgage originator' means a covered person subject to 
        section 1024 of the Dodd-Frank Wall Street Reform and Consumer 
        Protection Act (12 U.S.C. 5514) that offers or provides--
                    ``(A) origination of loans secured by real estate 
                for use by consumers primarily for personal, family, or 
                household purposes; or
                    ``(B) loan modification or foreclosure relief 
                services in connection with a loan described in 
                subparagraph (A).'';
            (2) in section 804 (12 U.S.C. 2903)--
                    (A) by redesignating subsections (c) and (d) as 
                subsections (f) and (g), respectively;
                    (B) by striking subsections (a) and (b) and 
                inserting the following:
    ``(a) Depository Institutions and Bank Holding Companies.--
            ``(1) In general.--In connection with its examination of a 
        regulated financial institution other than a U.S. nonbank 
        mortgage originator, the appropriate Federal financial 
        supervisory agency shall perform the following:
                    ``(A) Assess the record of the institution in 
                meeting the credit and other financial needs of its 
                entire community, in particular low- and moderate-
                income people and communities, and other distressed or 
                underserved communities, and other underserved 
                populations consistent with the safe and sound 
                operation of the institution.
                    ``(B) Assess the effectiveness of the following 
                activities in meeting the credit and other financial 
                needs of the assessment areas of the institution, 
                consistent with the safe and sound operation of the 
                institution:
                            ``(i) Retail lending, including home, small 
                        business, consumer, automobile, and other 
                        lending and financial products, that responds 
                        to credit needs or other financial needs.
                            ``(ii) Community development lending and 
                        investments, which may include a consideration 
                        of--
                                    ``(I) the origination of loans and 
                                other efforts by the institution to 
                                assist existing low- and moderate-
                                income residents to remain in 
                                affordable housing in their community; 
                                and
                                    ``(II) the origination of loans by 
                                the institution that result in the 
                                construction, rehabilitation, or 
                                preservation of affordable housing 
                                units.
                            ``(iii) Community development finance tests 
                        or similar tests developed by the Federal bank 
                        agencies shall include separate quantitative 
                        measures for community development investments. 
                        The evaluation of investments shall positively 
                        or negatively affect test scores depending on 
                        bank performance, in community development 
                        finance tests or similar tests.
                            ``(iv) Retail financial services and 
                        community development services.
                            ``(v) Evaluation of the responsiveness, 
                        affordability, and sustainability of retail 
                        financial services including credit and deposit 
                        products shall positively or negatively affect 
                        tests scores, depending on bank performance, in 
                        the retail products and service test or similar 
                        tests.
                            ``(vi) Retail lending assessment areas, as 
                        defined by the regulations in part 25 of title 
                        12, Code of Federal Regulations, or any 
                        successor regulations, shall be established for 
                        large banks and intermediate banks if not more 
                        than 90 percent of the retail loans of the bank 
                        are in facility-based assessment areas 
                        containing their branches and deposit-taking 
                        automated teller machines. Large banks and 
                        intermediate bank evaluations shall also 
                        examine lending outside of retail lending 
                        assessment areas and facility-based assessment 
                        areas. Evaluations of these loans shall be 
                        considered when assigning an institution level 
                        rating to the bank.
                    ``(C) With respect to its evaluation of an 
                application for a deposit facility by the institution--
                            ``(i) consider the record described in 
                        subparagraph (A), the effectiveness of the 
                        activities described in subparagraph (B), the 
                        overall rating of the institution under this 
                        section, and any improvement plans submitted 
                        pursuant to this section;
                            ``(ii) provide an opportunity for public 
                        comment for a period of not less than 60 days;
                            ``(iii) consider changes in the community 
                        reinvestment performance of the institution 
                        since the most recent rating under this section 
                        by the appropriate Federal financial 
                        supervisory agency; and
                            ``(iv) require--
                                    ``(I) a demonstration of public 
                                benefit, including a community benefits 
                                plan with measurable goals regarding 
                                increasing responsible lending and 
                                other financial products that is 
                                commensurate with the ability of the 
                                institution to accomplish those goals;
                                    ``(II) that the institution consult 
                                with community-based organizations and 
                                other community stakeholders in 
                                developing the community benefits plan; 
                                and
                                    ``(III) a public hearing for any 
                                institution that has a received a 
                                `need-to-improve' or `low satisfactory' 
                                grade in any individual assessment area 
                                during the most recent examination.
            ``(2) Consideration of lending in partnership with non-
        depository lenders.--
                    ``(A) In general.--As part of assessing a financial 
                institution under paragraph (1), the appropriate 
                Federal financial supervisory agency shall evaluate the 
                performance of the financial institution in originating 
                loans for small farms, consumer loans (including 
                residential mortgages, unsecured installment loans, 
                advances, and lines of credit), and loans for small 
                businesses (including unsecured installment loans, 
                advances, and lines of credit) in partnership with 1 or 
                more non-depository lenders.
                    ``(B) Affordability and sustainability.--In making 
                the evaluation described in subparagraph (A), the 
                appropriate Federal financial supervisory agency shall 
                consider the affordability and sustainability of the 
                loan originations made in partnership with 1 or more 
                non-depository lenders.
                    ``(C) Definitions.--In this paragraph:
                            ``(i) Non-depository lender.--The term 
                        `non-depository lender' means a lender that is 
                        not an insured depository institution.
                            ``(ii) Small business; small farm.--The 
                        terms `small business' and `small farm' have 
                        the meanings given those terms under the 
                        regulations promulgated by the Bureau 
                        implementing the amendments made by section 
                        1071 of the Dodd Frank Wall Street Reform and 
                        Consumer Protection Act of 2010 (Public Law 
                        111-203; 124 Stat. 2056) under part 1002 of 
                        title 12, Code of Federal Regulations, or any 
                        successor regulation.
            ``(3) Deductions for fossil expansion.--
                    ``(A) In general.--As part of assessing a financial 
                institution under paragraph (1), the appropriate 
                Federal financial supervisory agency shall--
                            ``(i) determine the total dollar amount of 
                        loans and investments to fossil fuel companies 
                        for the purposes of fossil fuel expansion that 
                        were originated or held by the financial 
                        institution during the period covered by an 
                        examination under section 804; and
                            ``(ii) deduct not more than that total 
                        dollar amount from the reported community 
                        development loans and investments of the 
                        financial institution, both in the aggregate 
                        and at the local market, or assessment area, 
                        level.
                    ``(B) Activities.--The deduction described in 
                subparagraph (A)(ii) may only be offset by financing by 
                the institution of climate resiliency and disaster 
                mitigation activities specifically targeted to 
                underserved communities, such as--
                            ``(i) the development of climate resilient 
                        affordable housing, schools, and small 
                        businesses (as defined in paragraph (2)(C));
                            ``(ii) clean electricity projects and 
                        microgrids;
                            ``(iii) nature-based protective 
                        infrastructure;
                            ``(iv) building decarbonization, which 
                        includes holistic home weatherization and 
                        health interventions;
                            ``(v) lending to green small businesses and 
                        companies with legitimate public 
                        decarbonization transition plans, strategies, 
                        and targets;
                            ``(vi) electric public transit and electric 
                        vehicle charging infrastructure;
                            ``(vii) investments in weatherization and 
                        climate resilience for local businesses;
                            ``(viii) operational and technical support 
                        and capacity building for environmental and 
                        climate justice organizations, including 
                        support for community groups active in 
                        environmental testing and training of community 
                        members to identify climate or environmental 
                        risks and opportunities in their communities; 
                        and
                            ``(ix) workforce development related to the 
                        transition away from fossil fuels, including 
                        activities to train workers on skills needed to 
                        participate in carbon-pollution-free energy 
                        sectors.
            ``(4) Penalties for sustained failing performance.--A 
        regulated financial institution other than a U.S. nonbank 
        mortgage originator that receives overall performance ratings 
        under this section of `needs to improve' or `substantial 
        noncompliance' for 2 consecutive examinations shall be subject 
        to the following penalties, as deemed applicable by the 
        appropriate Federal financial supervisory agency:
                    ``(A) Restrictions on the institution's growth 
                (overall or in discrete areas), business activities, or 
                payment of dividends, including restrictions on ability 
                to sell loans originated by the institution to 
                enterprises, as defined in section 1303 of the Federal 
                Housing Enterprises Financial Safety and Soundness Act 
                of 1992 (12 U.S.C. 4502).
                    ``(B) Recommendations to appropriate State agencies 
                that State mortgage licenses be suspended or revoked 
                with a statement of facts covering the justification 
                for the recommended suspension or revocation.
                    ``(C) Requiring the institution to simplify or 
                reduce its operations, including that the institution 
                reduce its asset size, divest subsidiaries or business 
                lines, or exit from 1 or more markets of operation.
                    ``(D) Recovery, or claw back, of portions of 
                executive compensation received during consecutive 
                evaluation periods under this section of which the 
                institution received an overall performance rating of 
                `needs to improve' or `substantial noncompliance'.
    ``(b) U.S. Nonbank Mortgage Originator.--
            ``(1) In general.--In connection with its examination of a 
        U.S. nonbank mortgage originator, the appropriate Federal 
        financial supervisory agency shall perform the following:
                    ``(A) Assess the record of the U.S. nonbank 
                mortgage originator in meeting the credit or other 
                financial needs of its entire community, in particular 
                low-income and moderate-income people and communities 
                and other distressed or underserved communities and 
                other underserved populations, consistent with the safe 
                and sound operation of the U.S. nonbank mortgage 
                originator.
                    ``(B) Assess, as appropriate, the following 
                activities in the assessment areas of the U.S. nonbank 
                mortgage originator:
                            ``(i) Retail lending, including home loans.
                            ``(ii) Community development services.
                            ``(iii) Community development lending and 
                        investments, which may include a consideration 
                        of--
                                    ``(I) the origination of loans and 
                                other efforts by the institution to 
                                assist existing low- and moderate-
                                income residents to remain in 
                                affordable housing in their community;
                                    ``(II) the origination of loans by 
                                the institution that result in the 
                                construction, rehabilitation or 
                                preservation of affordable housing 
                                units; and
                                    ``(III) investments in, grants to, 
                                or loans to community development 
                                financial institutions (as defined in 
                                section 103 of the Community 
                                Development Banking and Financial 
                                Institutions Act of 1994 (12 U.S.C. 
                                4702)), community development 
                                corporations (as defined in section 613 
                                of the Community Economic Development 
                                Act of 1981 (42 U.S.C. 9802)), and 
                                other nonprofit organizations serving 
                                the housing and development needs of 
                                the community.
                            ``(iv) Retail lending assessment areas, as 
                        defined by the regulations in part 25 of title 
                        12, Code of Federal Regulations, or any 
                        successor regulation, shall be established if 
                        not more than 90 percent of the retail loans of 
                        the U.S. nonbank originator are in facility-
                        based assessment areas containing offices or 
                        agents. The evaluations shall also examine 
                        lending outside of retail lending assessment 
                        areas and facility-based assessment areas. 
                        Evaluations of these loans shall be considered 
                        when assigning an institution level rating to 
                        the U.S. nonbank mortgage originator.
                    ``(C) With respect to its evaluation of an 
                application for a deposit facility by the U.S. nonbank 
                mortgage originator--
                            ``(i) consider the record described in 
                        subparagraph (A) the overall rating of the U.S. 
                        nonbank mortgage originator under this section, 
                        and any improvement plans submitted pursuant to 
                        this section;
                            ``(ii) provide an opportunity for public 
                        comment for a period of not less than 60 days;
                            ``(iii) consider changes in the community 
                        reinvestment performance of the U.S. nonbank 
                        mortgage originator since the most recent 
                        rating under this section by the appropriate 
                        Federal financial supervisory agency; and
                            ``(iv) require--
                                    ``(I) a demonstration that granting 
                                the application for a deposit facility 
                                is in the public interest, which shall 
                                include a submission of a community 
                                benefits plan, which shall be 
                                commensurate with the ability of the 
                                institution to accomplish the plan, by 
                                the U.S. nonbank mortgage originator to 
                                the appropriate Federal financial 
                                supervisory agency;
                                    ``(II) that the U.S. nonbank 
                                mortgage originator consult with 
                                community-based organizations and other 
                                community stakeholders in developing 
                                the community benefits plan; and
                                    ``(III) a public hearing for any 
                                U.S. nonbank mortgage originator that 
                                has a received a `need-to-improve' or 
                                `low satisfactory' grade in any 
                                individual assessment area during the 
                                most recent examination.
            ``(2) Penalties and fees.--The appropriate Federal 
        financial supervisory agency shall have the same authority to 
        assess penalties and fees under subsection (a)(4) for U.S. 
        nonbank mortgage originator as is the case for regulated 
        financial institutions described in subsection (a).
            ``(3) Authority to adjust examination and supervisory 
        fees.--The appropriate Federal financial supervisory agencies 
        shall have the authority to adjust the dollar amount of 
        examination and supervisory fees, based in part, on the rating 
        of institutions under this section.
    ``(c) Requirements.--
            ``(1) In general.--In connection with its examination of a 
        regulated financial institution under subsection (a) or (b), 
        the appropriate Federal financial supervisory agency shall--
                    ``(A) consider public comments received by the 
                appropriate Federal financial supervisory agency 
                regarding the record of the institution in meeting the 
                credit or other financial needs of its entire 
                community, including low- and moderate-income 
                communities, and hold not less than 1 public hearing to 
                receive comments for large banks with assets of not 
                less than $50,000,000,000; and
                    ``(B) require--
                            ``(i) an improvement plan for an 
                        institution that receives a rating of `low 
                        satisfactory' or lower on the written 
                        evaluation of the institution, or such a rating 
                        in any individual assessment area; and
                            ``(ii) the improvement plan described in 
                        clause (i) to result in the reasonable 
                        likelihood that the institution will obtain a 
                        rating of at least `high satisfactory' in 
                        meeting community credit or other financial 
                        needs in the relevant measure on the next 
                        examination.
            ``(2) Improvement plan.--
                    ``(A) In general.--A regulated financial 
                institution that is required to submit an improvement 
                plan required under paragraph (1)(B) shall submit the 
                plan in writing to the appropriate Federal financial 
                supervisory agency not later than 90 days after 
                receiving notice that the regulated financial 
                institution is required to submit the plan.
                    ``(B) Public comment.--Upon receipt of an 
                improvement plan of a regulated financial institution 
                required under paragraph (1)(B), the appropriate 
                Federal financial supervisory agency shall--
                            ``(i) make the plan available to the public 
                        for review and comment for a period of not less 
                        than 60 days; and
                            ``(ii) require the regulated financial 
                        institution to revise, as appropriate, the 
                        improvement plan in response to the public 
                        comments received under the public review and 
                        comment period described in clause (i) and 
                        submit the plan to the appropriate Federal 
                        financial supervisory agency not later than 60 
                        days after the end of that period.
            ``(3) Examination of certain regulated financial 
        institutions.--In the case of a regulated financial institution 
        whose lending or other business is not clustered in 
        geographical areas and is thinly dispersed across the country, 
        the institution shall--
                    ``(A) be evaluated under subsection (a) or (b), as 
                applicable--
                            ``(i) by considering the effectiveness of 
                        the institution in serving customers or 
                        borrowers, with a special emphasis on low- and 
                        moderate-income individuals and other 
                        underserved populations across the country 
                        regardless of where the individuals reside; and
                            ``(ii) based on objective thresholds 
                        developed by the appropriate Federal financial 
                        supervisory agencies to clarify when lending or 
                        other business is dispersed across the country 
                        and not clustered in distinct geographical 
                        areas, which may include low levels of lending 
                        or other financial products across States or 
                        other areas; and
                    ``(B) meet the needs of other distressed or 
                underserved communities.
    ``(d) Consideration.--Remediation of consumers pursuant to an order 
by a court or administrative body or a settlement with a government 
agency or a private party may not be considered in an assessment 
conducted under subsection (a)(2) or (b)(2).
    ``(e) Rule of Construction.--An evaluation of a bank holding 
company under this section shall incorporate evaluations of subsidiary 
regulated financial institutions made by the appropriate Federal 
financial supervisory agency of each subsidiary, if applicable.'';
                    (C) in subsection (f), as so redesignated--
                            (i) by striking paragraph (2);
                            (ii) by redesignating paragraph (3) as 
                        paragraph (2); and
                            (iii) in paragraph (2), as so redesignated, 
                        by striking subparagraph (C); and
                    (D) in subsection (g), as so redesignated, by 
                striking ``subsection (a)'' and inserting ``subsections 
                (a) and (b)'';
            (3) in section 807 (12 U.S.C. 2906)--
                    (A) in subsection (a)--
                            (i) by striking ``an insured depository 
                        institution'' and inserting ``a regulated 
                        financial institution''; and
                            (ii) by inserting ``or financial'' after 
                        ``credit'';
                    (B) in subsection (b)--
                            (i) in paragraph (1)--
                                    (I) in subparagraph (A)--
                                            (aa) in clause (ii), by 
                                        striking ``and'' at the end;
                                            (bb) by redesignating 
                                        clause (iii) as clause (iv); 
                                        and
                                            (cc) by inserting after 
                                        clause (ii) the following:
                    ``(iii) disclose whether the institution engaged in 
                acts or practices that the Bureau of Consumer Financial 
                Protection has determined, and has publicly disclosed, 
                violate the enumerated consumer laws; and''; and
                                    (II) by striking subparagraph (B) 
                                and inserting the following:
            ``(B) Evaluation on an assessment area basis.--The 
        information required under subsections (a) and (b) of section 
        804 shall be presented separately for each assessment area.
            ``(C) Treatment with respect to violations of enumerated 
        consumer laws.--If a regulated financial institution has 
        engaged in acts or practices that the appropriate Federal 
        financial supervisory agency has determined to be unfair, 
        deceptive, or abusive or acts or practices that violate 
        enumerated consumer laws intended to ensure the fair, 
        equitable, and nondiscriminatory access to credit for 
        individuals and communities that are enforced by the Bureau of 
        Consumer Financial Protection or other Federal or State 
        agencies, the written evaluation shall be negatively influenced 
        in a manner commensurate with the extent of the harm suffered 
        by those individuals and communities.'';
                            (ii) in paragraph (2)--
                                    (I) by striking subparagraphs (A), 
                                (B), (C), and (D) and inserting the 
                                following:
                    ``(A) `Outstanding record of meeting community 
                credit or other financial needs'.
                    ``(B) `High Satisfactory record of meeting 
                community credit or other financial needs'.
                    ``(C) `Low Satisfactory record of meeting community 
                credit or other financial needs'.
                    ``(D) `Needs to improve record of meeting community 
                credit or other financial needs'.
                    ``(E) `Substantial noncompliance in meeting 
                community credit or other financial needs'.''; and
                            (iii) by inserting after the flush text 
                        following paragraph (2) the following:
            ``(3) Additional authority.--The appropriate Federal 
        financial supervisory agencies may--
                    ``(A) alter the ratings under this subsection to 
                change or include additional ratings for the overall 
                ratings and subtest ratings; and
                    ``(B) develop an accompanying point system that 
                includes ranges for each rating category under 
                paragraph (2).'';
                    (C) by redesignating subsection (e) as subsection 
                (f); and
                    (D) by inserting after subsection (d) the 
                following:
    ``(e) Appeals of Rating.--If a regulated financial institution 
appeals the assigned rating under this section, the appropriate Federal 
financial supervisory agency shall--
            ``(1) post a public notice of the appeal on the part of the 
        website of the appropriate Federal financial supervisory agency 
        that contains information on this title; and
            ``(2) provide an opportunity for public comment on the 
        appeal.'';
            (4) in section 806 (12 U.S.C. 2905)--
                    (A) by striking ``Regulations'' and inserting the 
                following:
    ``(a) In General.--Regulations'';
                    (B) in subsection (a), as so designated, by 
                striking ``companies,,'' and inserting ``companies,''; 
                and
                    (C) by adding at the end the following:
    ``(b) Periodic Review.--Not later than 5 years after the date of 
enactment of this subsection and every 5 years thereafter, the 
appropriate Federal financial supervisory agencies shall--
            ``(1) review the regulations promulgated to carry out this 
        title; and
            ``(2) report to Congress any recommendations for updates to 
        the regulations and this title, which may include consideration 
        of--
                    ``(A) data collection under this title;
                    ``(B) the rigor of evaluations under this title;
                    ``(C) the assessment area coverage of loans and 
                deposits; and
                    ``(D) the extent to which the provisions of this 
                title are reducing disparities in access to credit and 
                capital by income and race.''; and
            (5) by adding at the end the following:

``SEC. 810. DATA COLLECTION AND REPORTING REQUIREMENTS.

    ``(a) Data Collection.--
            ``(1) Consumer loans.--
                    ``(A) In general.--Each regulated financial 
                institution shall collect and maintain in machine 
                readable form, as prescribed by the appropriate Federal 
                financial supervisory agency, data for consumer loans 
                originated or purchased by the regulated financial 
                institution, including motor vehicle loans, credit 
                cards, lines of credit, and other secured or unsecured 
                loans. The regulated financial institution shall 
                maintain data separately for each category of consumer 
                loan, including the following for each loan:
                            ``(i) A unique number or alpha-numeric 
                        symbol that can be used to identify the 
                        relevant loan.
                            ``(ii) The loan amount at origination or 
                        purchase.
                            ``(iii) The loan location.
                            ``(iv) The gross annual income of the 
                        borrower that the regulated financial 
                        institution considered in making its credit 
                        decision.
                    ``(B) Exemptions.--The appropriate Federal 
                financial supervisory agencies may exempt classes of 
                regulated financial institutions from the requirements 
                under subparagraph (A) due to low levels of consumer 
                lending or other factors.
            ``(2) Community development loans and investments.--
                    ``(A) Collection and maintenance of data.--Each 
                regulated financial institution shall collect and 
                maintain in machine readable form, as prescribed by the 
                appropriate Federal financial supervisory agency, data 
                on the categories of community development lending and 
                investments, including data regarding financing 
                affordable housing, small business development, and 
                economic development.
                    ``(B) Public dissemination.--Each regulated 
                financial institution and the appropriate Federal 
                financial supervisory agencies shall--
                            ``(i) publicly disseminate the data 
                        described in subparagraph (A) on a county level 
                        and for categories of census tracts including 
                        low- and moderate-income census tracts or other 
                        distressed and underserved census tracts; and
                            ``(ii) consider disseminating the data 
                        described in subparagraph (A) by individual 
                        census tracts in addition to the categories 
                        described in clause (i).
            ``(3) Assessment area data.--
                    ``(A) In general.--Each regulated financial 
                institution shall collect and report to the appropriate 
                Federal financial supervisory agency by March 1 of each 
                year a list for each assessment area showing the 
                geographies within the area.
                    ``(B) Publication.--The appropriate Federal 
                financial supervisory agencies shall make the list of 
                assessment areas reported by each regulated financial 
                institution under subparagraph (A) publicly available 
                on the part of the website of the appropriate Federal 
                financial supervisory agency that contains information 
                on this title.
            ``(4) Deposits.--The appropriate Federal financial 
        supervisory agencies shall--
                    ``(A) collect data from regulated financial 
                institutions that reflects--
                            ``(i) the number of customers of those 
                        institutions that reside in categories of 
                        census tracts including low- and moderate-
                        income census tracts or other distressed and 
                        underserved census tracts and the dollar amount 
                        of deposits of those customers; and
                            ``(ii) the number of small businesses that 
                        are located in the census tract categories 
                        described in clause (i); and
                    ``(B) consider the dissemination of the deposit 
                data collected under subparagraph (A) by individual 
                census tracts in addition to the categories described 
                in that subparagraph.
    ``(b) Aggregate Disclosure Statements.--
            ``(1) In general.--Each appropriate Federal financial 
        supervisory agency shall prepare annually, for each assessment 
        area, a disclosure statement of home, small business, small 
        farm, and consumer lending for each regulated financial 
        institution subject to reporting under this section and an 
        aggregated statement for all reporting institutions combined, 
        which shall indicate, for each assessment area, the number and 
        amount of all small business, small farm, and consumer loans 
        originated or purchased sorted by income level of borrowers, 
        race and ethnicity of borrowers, revenue size of small business 
        and farms, and categories of census tracts.
            ``(2) Deposits and community development loans and 
        investments.--An appropriate Federal financial supervisory 
        agency shall include data on deposits and community development 
        loans and investments in the disclosure statements prepared 
        under paragraph (1).
            ``(3) Adjusted form.--An appropriate Federal financial 
        supervisory agency may adjust the form of the disclosure 
        statement prepared under paragraph (1) if necessary, because of 
        special circumstances, to protect the privacy of a borrower or 
        the competitive position of a regulated financial institution.
    ``(c) Central Data Depositories.--The Federal Financial 
Institutions Examination Council, in consultation with the appropriate 
Federal financial supervisory agencies, shall implement a system--
            ``(1) to allow the public to access online and in a 
        searchable format the data maintained under paragraphs (1) 
        through (4) of subsection (a); and
            ``(2) that ensures that personally identifiable financial 
        information is not disclosed to public.
    ``(d) Limitation.--An appropriate Federal financial supervisory 
agency may not use the authorities of the appropriate Federal financial 
supervisory agency under this section to obtain a record from a 
regulated financial institution for the purpose of gathering or 
analyzing the personally identifiable financial information of a 
consumer.

``SEC. 811. COMMUNITY ADVISORY COMMITTEES.

    ``(a) Depository Institutions.--Each regulated financial 
institution that is not a U.S. nonbank mortgage originator shall form a 
separate Community Advisory Committee (which shall be composed of a 
diverse set of consumer, housing, community development, and other 
stakeholder groups) in each of the following:
            ``(1) With respect to a depository institution with 
        consolidated assets equal to or greater than $2,000,000,000 the 
        branches of which are located in 1 census region, each 
        metropolitan statistical area where the financial institution 
        or any subsidiaries of the financial institution have a branch 
        or other facility (including an automated teller machine) and 
        each metropolitan statistical area where the financial 
        institution has a substantial number of customers who maintain 
        deposit accounts with the financial institution.
            ``(2) With respect to a depository institution with 
        consolidated assets equal to or greater than $2,000,000,000 the 
        branches of which are located in more than 1 census region, 
        each census division within each of the regions.
            ``(3) With respect to a depository institution with 
        consolidated assets of less than $2,000,000,000, each State 
        where the financial institution or any subsidiaries of the 
        financial institution are located.
    ``(b) U.S. Nonbank Mortgage Originators.--Each U.S. nonbank 
mortgage originator shall form a separate Community Advisory Committee 
(which shall be composed of a diverse set of consumer, housing, 
community development, and other stakeholder groups) in each of the 
following:
            ``(1) With respect to a U.S. nonbank mortgage originator 
        that is required to make a number of disclosures under the Home 
        Mortgage Disclosure Act of 1975 (12 U.S.C. 2801 et seq.) that 
        is less than the national median, each State in which the U.S. 
        nonbank mortgage originator offers loans.
            ``(2) With respect to a U.S. nonbank mortgage originator 
        that is required to make a number of disclosures under the Home 
        Mortgage Disclosure Act of 1975 (12 U.S.C. 2801 et seq.) that 
        is more than the national median, each census division within 
        the census regions in which the U.S. nonbank mortgage 
        originator offers loans.
    ``(c) Biannual Consultation.--The executives of each regulated 
financial institution shall meet not less frequently than twice per 
year with the Community Advisory Committees of the regulated financial 
institution formed under subsection (a) or (b), as applicable--
            ``(1) to discuss the financial institution's current work 
        to meet the credit and deposit needs of low- and moderate-
        income individuals and underserved communities, persons with 
        disabilities, LGBTQ+ communities, and Chinese, Asian Indian, 
        Filipino, Japanese, Korean, Vietnamese, Pakistani, Cambodian, 
        Hmong, Laotian, Thai, Taiwanese, Burmese, Bangladeshi, 
        Nepalese, Indonesian, Malaysian, Hispanic or Latino, Black or 
        African American, American Indian and Alaska Native, Native 
        Hawaiian, Samoan, Chamorro, Tongan, iTaukei, Marshallese, and 
        Other Pacific Islander communities, as applicable to the 
        geographic areas of the financial institution;
            ``(2) with respect to an institution described in 
        subsection (a)(2) or a U.S. nonbank mortgage originator 
        described in subsection (b)(2), to assist the executives in 
        developing and updating a plan for how the institution will 
        work to meet the credit needs of the institution's entire 
        community, including low- and moderate-income neighborhoods; 
        and
            ``(3) to discuss the institution's data (which shall be 
        disaggregated by Chinese, Asian Indian, Filipino, Japanese, 
        Korean, Vietnamese, Pakistani, Cambodian, Hmong, Laotian, Thai, 
        Taiwanese, Burmese, Bangladeshi, Nepalese, Indonesian, 
        Malaysian, Hispanic or Latino, Black or African American, 
        American Indian and Alaska Native, and Native Hawaiian, Samoan, 
        Chamorro, Tongan, iTaukei, Marshallese and Other Pacific 
        Islander communities, as applicable to the institution's 
        geographic areas) on--
                    ``(A) mortgage lending and lending to small 
                businesses and small farms, as defined in section 
                804(a)(2)(C);
                    ``(B) retail products and services;
                    ``(C) community development services; and
                    ``(D) community development financing.
    ``(d) Specific Consultations.--In addition to the consultations 
required under paragraph (2), the executives of a depository 
institution described in subsection (a)(2) shall meet with the 
Community Advisory Committee of the institution before--
            ``(1) the institution applies for a merger or acquisition;
            ``(2) the institution, or any subsidiary of the 
        institution, applies for deposit insurance;
            ``(3) the institution applies to open a new branch or to 
        relocate an existing branch; or
            ``(4) the institution provides notice that it would close a 
        branch or other facility.

``SEC. 812. STUDY ON DISCRIMINATION AND DISPARITIES IN ACCESS TO 
              CREDIT.

    ``(a) Study.--Not later than the end of the 2-year period beginning 
on the date of enactment of this section, and every 2 years thereafter, 
the appropriate Federal financial supervisory agencies shall, jointly, 
and in consultation with such other Federal or State agencies as the 
appropriate Federal financial supervisory agencies determine 
appropriate, complete an interagency statistical study to identify--
            ``(1) metropolitan areas and rural counties that either 
        experience ongoing discrimination or exhibit significant racial 
        disparities in access to credit for any racial or ethnic group; 
        and
            ``(2) significant disparities in access to branches by 
        racial or ethnic composition of census tract and disparities in 
        access to community development financing by racial or ethnic 
        composition of census tract.
    ``(b) Use of Data.--In carrying out each study required under 
subsection (a), the appropriate Federal financial supervisory agencies 
shall make use of data including--
            ``(1) data obtained under the Home Mortgage Disclosure Act 
        of 1975 (12 U.S.C. 2801 et seq.);
            ``(2) data obtained under section 704B of the Equal Credit 
        Opportunity Act (15 U.S.C. 1691o-2);
            ``(3) data obtained under this Act;
            ``(4) available State data; and
            ``(5) information contained in public litigation against 
        regulated financial institutions for redlining or lending 
        discrimination (including litigation initiated by the Bureau of 
        Consumer Financial Protection, the Department of Housing and 
        Urban Affairs, the Department of Justice, or by private 
        parties).
    ``(c) Report.--Upon the completion of each study required under 
subsection (a), the appropriate Federal financial supervisory agencies 
shall jointly submit to the Committee on Banking, Housing, and Urban 
Affairs of the Senate and the Committee on Financial Services of the 
House of Representatives a report that includes--
            ``(1) all findings and determinations made in carrying out 
        the study; and
            ``(2) policy recommendations to remedy the discrimination 
        and disparities identified in the study.

``SEC. 813. PUBLIC REGISTRIES.

    ``The appropriate Federal supervisory financial agencies, acting 
through the Federal Financial Institutions Examination Council, shall--
            ``(1) maintain a list of community-based organizations and 
        other stakeholders who wish to be listed and who have commented 
        on examinations conducted under section 804 and applications 
        regarding community needs and bank performance; and
            ``(2) conduct outreach to community groups and strive for 
        geographical diversity, gender and racial diversity, and 
        diversity in terms of various types of needs, including 
        affordable housing and economic development to community 
        facilities.''.
    (c) Amendment to the Bank Holding Company Act of 1956.--Section 
4(k)(6) of the Bank Holding Company Act of 1956 (12 U.S.C. 1843(k)(6)) 
is amended to read as follows:
            ``(6) Notice and opportunity for comment required.--
                    ``(A) In general.--No financial holding company 
                shall directly or indirectly acquire, and no company 
                that becomes a financial holding company shall directly 
                or indirectly acquire control of, any company in the 
                United States, including through merger, consolidation, 
                or other type of business combination, that is engaged 
                in activities permitted under this subsection or 
                subsection (n) or (o), unless--
                            ``(i) the holding company has provided 
                        notice to the Board, not later than 60 days 
                        prior to the proposed acquisition or prior to 
                        becoming a financial holding company, and 
                        during that time period, or such longer time 
                        period not exceeding an additional 60 days, as 
                        established by the Board;
                            ``(ii) the Board has provided public notice 
                        and opportunity for comment for not less than 
                        60 days; and
                            ``(iii) the Board has not issued a notice 
                        disapproving the proposed acquisition or 
                        retention.
                    ``(B) Factors for consideration.--In reviewing any 
                prior notice filed under this paragraph, the Board 
                shall--
                            ``(i) consider the overall rating of the 
                        financial holding company under the Community 
                        Reinvestment Act of 1977 (12 U.S.C. 2901 et 
                        seq.) and any improvement plans submitted 
                        pursuant to that Act;
                            ``(ii) provide opportunity for public 
                        comment for a period of not less than 60 days;
                            ``(iii) consider changes in the community 
                        reinvestment performance of the financial 
                        holding company since the last rating under the 
                        Community Reinvestment Act of 1977 (12 U.S.C. 
                        2901 et seq.) by the appropriate Federal 
                        financial supervisory agency; and
                            ``(iv) require--
                                    ``(I) a demonstration that granting 
                                the application for a deposit facility 
                                is in the public interest, which shall 
                                include submission to the appropriate 
                                Federal financial supervisory agency of 
                                a community benefits plan commensurate 
                                with the ability of the institution to 
                                carry out that plan;
                                    ``(II) that the institution consult 
                                with community-based organizations and 
                                other community stakeholders in 
                                developing the community benefits plan; 
                                and
                                    ``(III) a public hearing for any 
                                bank that has received a `need-to-
                                improve' or `low satisfactory' grade in 
                                any assessment area during the last 
                                examination under the Community 
                                Reinvestment Act of 1977 (12 U.S.C. 
                                2901 et seq.).''.
    (d) Technical and Conforming Amendment.--Section 10(c)(2)(H)(i) of 
the Home Owners' Loan Act (12 U.S.C. 1467a(c)(2)(H)(i)) is amended by 
striking ``section 804(c) of the Community Reinvestment Act of 1977 (12 
U.S.C. 2903(c))'' and inserting ``section 804(f) of the Community 
Reinvestment Act of 1977 (12 U.S.C. 2903(f))''.

SEC. 204. AMENDMENTS RELATING TO CREDIT UNION SERVICE TO UNDERSERVED 
              AREAS.

    (a) In General.--The Federal Credit Union Act (12 U.S.C. 1751 et 
seq.) is amended--
            (1) in section 101 (12 U.S.C. 1752)--
                    (A) in paragraph (8), by striking ``and'' at the 
                end;
                    (B) in paragraph (9), by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(10) the term `underserved area'--
                    ``(A) means a local community, neighborhood, or 
                rural district that--
                            ``(i) is an investment area, as defined in 
                        section 103 of the Community Development 
                        Banking and Financial Institutions Act of 1994 
                        (12 U.S.C. 4702), that meets such additional 
                        requirements that the Board may impose; and
                            ``(ii) is underserved, based on data of the 
                        Board and the Federal banking agencies (as 
                        defined in section 3 of the Federal Deposit 
                        Insurance Act (12 U.S.C. 1813)), by other 
                        depository institutions (as defined in section 
                        19(b)(1)(A) of the Federal Reserve Act (12 
                        U.S.C. 461(b)(1)(A)); and
                    ``(B) notwithstanding subparagraph (A), includes, 
                with respect to any Federal credit union, any 
                geographic area within which the credit union--
                            ``(i) has received approval to provide 
                        service as an underserved area before the date 
                        of enactment of this paragraph from the 
                        Administration; and
                            ``(ii) has established a service facility 
                        before that date of enactment.'';
            (2) in section 106 (12 U.S.C. 1756)--
                    (A) in the first sentence, by striking ``Federal'' 
                and inserting ``(a) Federal''; and
                    (B) by adding at the end the following:
    ``(b) The Board shall monitor adherence by a Federal credit union 
to a significant unmet needs plan submitted under section 109(h) by 
that Federal credit union that describes how the Federal credit union 
will serve the deposit and other financial needs of the community.''; 
and
            (3) in section 109 (12 U.S.C. 1759)--
                    (A) in subsection (c), by amending paragraph (2) to 
                read as follows:
            ``(2) Exception for underserved areas.--
                    ``(A) In general.--Notwithstanding subsection (b), 
                the Board may approve an application by a Federal 
                credit union to allow the membership of the credit 
                union to include any person or organization whose 
                principal residence or place of business is located 
                within a local community, neighborhood, or rural 
                district if--
                            ``(i) the Board determines--
                                    ``(I) at any time after August 7, 
                                1998, that the local community, 
                                neighborhood, or rural district taken 
                                into account for purposes of this 
                                paragraph is an underserved area; and
                                    ``(II) at the time of the approval, 
                                that the credit union is well 
                                capitalized or adequately capitalized 
                                (as defined in section 216(c)(1)); and
                            ``(ii) before the end of the 24-month 
                        period beginning on the date of the approval, 
                        the credit union has established and maintains 
                        an ongoing method to provide services in the 
                        local community, neighborhood, or rural 
                        district.
                    ``(B) Termination of approval.--
                            ``(i) In general.--Any failure of a Federal 
                        credit union to meet the requirement of clause 
                        (ii) of subparagraph (A) by the end of the 24-
                        month period referred to in that clause shall 
                        constitute a termination, as a matter of law, 
                        of any approval of an application under this 
                        paragraph by the Board with respect to the 
                        membership of the credit union.
                            ``(ii) Significant unmet needs plan.--The 
                        Board may terminate the approval of an 
                        application under this paragraph with respect 
                        to the membership of a Federal credit union 
                        upon a finding that the credit union is not 
                        meeting the terms of the significant unmet 
                        needs plan of the credit union submitted under 
                        subsection (h)(1).
                    ``(C) Credit union reporting requirement.--Any 
                Federal credit union that has an application approved 
                under this paragraph shall, as part of the ordinary 
                course of the examination cycle and supervision 
                process, submit a report to the Administration that 
                includes--
                            ``(i) the number of members of the credit 
                        union who are members by reason of the 
                        application;
                            ``(ii) the number of offices or facilities 
                        maintained by the credit union in the local 
                        community, neighborhood, or rural district 
                        taken into account by the Board in approving 
                        the application; and
                            ``(iii) evidence, as specified by the Board 
                        by regulation, demonstrating compliance by the 
                        credit union with the significant unmet needs 
                        plan submitted by the credit union under 
                        subsection (h)(1), as specified by the 
                        Administration.
                    ``(D) Publication by administration.--The 
                Administration shall publish an annual report 
                containing--
                            ``(i) a list of all the applications 
                        approved under this paragraph before the date 
                        on which the report is published;
                            ``(ii) the number and locations of the 
                        underserved areas taken into account in 
                        approving those applications;
                            ``(iii) the total number of members of 
                        credit unions who are members by reason of the 
                        approval of those applications; and
                            ``(iv) evidence demonstrating compliance by 
                        credit unions with significant unmet needs 
                        plans submitted by the credit unions under 
                        subsection (h)(1), as specified by the 
                        Administration.'';
                    (B) in subsection (e)(2), by inserting ``subsection 
                (c)(2) and'' after ``provided in''; and
                    (C) by adding at the end the following:
    ``(h) Additional Requirements for Community Credit Unions.--
            ``(1) In general.--A Federal credit union desiring a field 
        of membership as a credit union described in subsection (b)(3) 
        shall submit to the Board a business plan, which shall include, 
        among other issues, a marketing plan that identifies--
                    ``(A) the unique needs of the various demographic 
                groups in the proposed community; and
                    ``(B) how the credit union will market to each 
                group, particularly underserved groups, to address 
                those needs.
            ``(2) Public comment and hearing.--With respect to a 
        Federal credit union desiring a field of membership as a credit 
        union described in subsection (b)(3) for an area with multiple 
        political jurisdictions with a population of not less than 
        2,500,000, the Administration shall--
                    ``(A) publish a notice in the Federal Register 
                seeking comment from interested parties about the 
                proposed community; and
                    ``(B) conduct a public hearing regarding the 
                application of the Federal credit union.''.
    (b) Regulations.--Not later than 1 year after the date of enactment 
of this Act, the National Credit Union Administration Board shall issue 
final regulations to implement the amendments made by subsection (a).

SEC. 205. RAISING PUBLIC WELFARE CAPS.

    (a) National Banks.--The paragraph designated as the ``Eleventh.'' 
of section 5136 of the Revised Statutes of the United States (12 U.S.C. 
24) is amended to read as follows: ``Eleventh. To make investments 
directly or indirectly, each of which promotes the public welfare by 
benefitting primarily low- and moderate-income communities or families 
(such as by providing housing, services, or jobs). An association shall 
not make any such investment if the investment would expose the 
association to unlimited liability. The Comptroller of the Currency 
shall limit an association's investments in any 1 project and an 
association's aggregate investments under this paragraph. Aggregate 
investments for associations that do not meet the criteria of being 
well capitalized, as defined in section 24.2(e) of title 12, Code of 
Federal Regulations, or any successor regulation, under this paragraph 
shall not exceed an amount equal to the sum of 5 percent of the 
association's capital stock actually paid in and unimpaired and 5 
percent of the association's unimpaired surplus fund, unless the 
Comptroller determines by order that the higher amount will pose no 
significant risk to the affected deposit insurance fund, and the 
association is adequately capitalized. In no case shall aggregate 
investments of an association that do not meet the criteria for being 
well capitalized under this paragraph exceed an amount equal to the sum 
of 15 percent of the association's capital stock actually paid in and 
unimpaired and 15 percent of the association's unimpaired surplus fund. 
Aggregate investments of well capitalized associations, as defined in 
section 24.2(e) of title 12, Code of Federal Regulations, or any 
successor regulation, under this paragraph shall not exceed an amount 
equal to the sum of 15 percent of the association's capital stock 
actually paid in and unimpaired and 15 percent of the association's 
unimpaired surplus fund, unless the Comptroller determines by order 
that the higher amount will pose no significant risk to the affected 
deposit insurance fund. With respect to any association that meets the 
criteria for being well capitalized, as defined in section 24.2(e) of 
title 12, Code of Federal Regulations, or any successor regulation, 
aggregate investments under this paragraph shall not exceed an amount 
equal to the sum of 25 percent of the association's capital stock 
actually paid in and unimpaired and 25 percent of the association's 
unimpaired surplus fund. The foregoing standards and limitations apply 
to investments under this paragraph made by a national bank directly 
and by its subsidiaries.''.
    (b) Conforming Amendments for State Member Banks.--The 23rd 
undesignated paragraph of section 9 of the Federal Reserve Act (12 
U.S.C. 338a) is amended to read as follows:
        ``A State member bank may make investments directly or 
        indirectly, each of which promotes the public welfare by 
        benefitting primarily low- and moderate-income communities or 
        families (such as by providing housing, services, or jobs), to 
        the extent permissible under State law. A State member bank 
        shall not make any such investment if the investment would 
        expose the State member bank to unlimited liability. Aggregate 
        investments for State member banks that do not meet the 
        criteria of being well capitalized, as defined in section 
        208.43(b) of title 12, Code of Federal Regulations, or any 
        successor regulation, under this paragraph shall not exceed an 
        amount equal to the sum of 5 percent of the association's 
        capital stock actually paid in and unimpaired and 5 percent of 
        the association's unimpaired surplus fund, unless the Board 
        determines by order that the higher amount will pose no 
        significant risk to the affected deposit insurance fund, and 
        the association is adequately capitalized. In no case shall 
        aggregate investments of a State member bank that does not meet 
        the criteria for being well capitalized under this paragraph 
        exceed an amount equal to the sum of 15 percent of the 
        association's capital stock actually paid in and unimpaired and 
        15 percent of the association's unimpaired surplus fund. 
        Aggregate investments of well capitalized State member banks, 
        as defined in section 208.43(b) of title 12, Code of Federal 
        Regulations, or any successor regulation, with an examination 
        rating under section 804 of the Community Reinvestment Act of 
        1977 (12 U.S.C. 2903) of `outstanding' or `satisfactory', under 
        this paragraph shall not exceed an amount equal to the sum of 
        15 percent of the State member bank's capital stock actually 
        paid in and unimpaired and 15 percent of the state member 
        Bank's unimpaired surplus fund, unless the Board determines by 
        order that the higher amount will pose no significant risk to 
        the affected deposit insurance fund. With respect to any State 
        member bank that meets meet the criteria for being well 
        capitalized as defined in section 208.43(b) of title 12, Code 
        of Federal Regulations, or any successor regulation, with an 
        examination rating under section 804 of the Community 
        Reinvestment Act of 1977 (12 U.S.C. 2903) of `outstanding' or 
        `satisfactory', aggregate investments under this paragraph 
        shall not exceed an amount equal to the sum of 25 percent of 
        the State member bank's capital stock actually paid in and 
        unimpaired and 25 percent of the State member bank's unimpaired 
        surplus fund. The foregoing standards and limitations apply to 
        investments under this paragraph made by a State member bank 
        directly and by its subsidiaries.''.

SEC. 206. TEMPORARY ELIGIBILITY OF CERTAIN DIRECT DESCENDANTS OF 
              CERTAIN VETERANS FOR HOUSING LOANS GUARANTEED BY THE 
              SECRETARY OF VETERANS AFFAIRS.

    (a) In General.--During the period described in subsection (b)--
            (1) section 3701(b) of title 38, United States Code, shall 
        be applied and administered by adding at the end the following 
        new paragraph:
            ``(8)(A) The term `veteran' also includes, for purposes of 
        home loans, any direct descendant of a veteran described in 
        subparagraph (B) if the descendant--
                    ``(i) is living on the date of the enactment of the 
                American Housing and Economic Mobility Act of 2024;
                    ``(ii) is a first-time homebuyer; and
                    ``(iii) is a first-generation homebuyer.
            ``(B) A veteran described in this clause is a veteran who--
                    ``(i) served on active duty at any time during the 
                period between June 22, 1944, and April 11, 1968;
                    ``(ii) is deceased; and
                    ``(iii) did not receive a housing loan benefit 
                under this chapter during his or her lifetime.
            ``(C) In this paragraph:
                    ``(i) The term `direct descendant' includes a 
                legally adopted descendant.
                    ``(ii) The terms `first-generation homebuyer' and 
                `first-time homebuyer' have the meanings given those 
                terms in section 201(a) of the American Housing and 
                Economic Mobility Act of 2024.''; and
            (2) section 3702(a)(2) of such title shall be applied and 
        administered by adding at the end the following new 
        subparagraph:
            ``(H) Each direct descendant described in section 
        3701(b)(8) of this title.''.
    (b) Period Described.--The period described in this subsection is 
the period beginning one year after the date of the enactment of this 
Act and ending ten years after the date on which the Secretary of 
Veterans Affairs prescribes the regulations required by subsection (c).
    (c) Regulations.--
            (1) In general.--Not later than 180 days after the date of 
        the enactment of this Act, the Secretary of Veterans Affairs 
        shall prescribe regulations to carry out this section.
            (2) Elements.--The regulations required by paragraph (1) 
        shall provide rules and procedures for determining--
                    (A) the eligibility of a direct descendant for 
                housing loan benefits under this section when the 
                records of the Veterans Benefits Administration are 
                incomplete or otherwise inadequate to verify 
                eligibility; and
                    (B) appropriate implementation of this section if 
                more than one direct descendant of a veteran seeks 
                housing loan benefits under this section.

         TITLE III--REMOVING BARRIERS THAT ISOLATE COMMUNITIES

SEC. 301. EXPANDING RIGHTS UNDER THE FAIR HOUSING ACT.

    (a) Purposes.--The purposes of the amendments made by this section 
are--
            (1) to expand, as well as clarify, confirm, and create 
        greater consistency in, the protections against discrimination 
        on the basis of all covered characteristics; and
            (2) to provide guidance and notice to individuals, 
        organizations, corporations, and agencies regarding their 
        obligations under Federal law.
    (b) Amendments to the Fair Housing Act.--The Fair Housing Act (42 
U.S.C. 3601 et seq.) is amended--
            (1) in section 802 (42 U.S.C. 3602), by adding at the end 
        the following:
    ``(p) `Gender identity' means the gender-related identity, 
appearance, or mannerisms or other gender-related characteristics of an 
individual, regardless of the individual's designated sex at birth.
    ``(q) `Marital status' has the meaning given the term in section 
202.2 of title 12, Code of Federal Regulations, or any successor 
regulation.
    ``(r) `Sexual orientation' means homosexuality, heterosexuality, or 
bisexuality.
    ``(s) `Source of income' includes income for which there is a 
reasonable expectation that the income will continue from--
            ``(1) a profession, occupation, or job;
            ``(2) any government or private assistance, grant, loan, or 
        rental assistance program, including vouchers issued under the 
        United States Housing Act of 1937 (42 U.S.C. 1437 et seq.);
            ``(3) a gift, an inheritance, a pension, an annuity, 
        alimony, child support, or other consideration or benefit; or
            ``(4) the sale or pledge of property or an interest in 
        property.
    ``(t) `Veteran status' means--
            ``(1) a member of the uniformed services, as defined in 
        section 101 of title 10, United States Code; or
            ``(2) a veteran, as defined in section 101 of title 38, 
        United States Code.'';
            (2) in section 804 (42 U.S.C. 3604)--
                    (A) by inserting ``actual or perceived'' before 
                ``race, color'' each place that term appears;
                    (B) by striking ``sex,'' each place that term 
                appears and inserting ``sex (including sexual 
                orientation and gender identity), marital status, 
                source of income, veteran status,''; and
                    (C) in subsection (c)--
                            (i) by inserting ``(1)'' before ``To 
                        make''; and
                            (ii) by adding at the end the following:
    ``(2) Nothing in this title shall be construed to--
            ``(A) prohibit a lender from implementing a loan program 
        for veterans or based upon veteran status; or
            ``(B) prohibit an entity from providing housing assistance 
        under--
                    ``(i) section 8(o)(19) of the United States Housing 
                Act of 1937 (42 U.S.C. 1437f(o)(19));
                    ``(ii) the Homeless Providers Grant and Per Diem 
                program of the Department of Veterans Affairs; or
                    ``(iii) any other Federal housing assistance 
                program for veterans or based on veteran status.'';
            (3) in section 805 (42 U.S.C. 3605)--
                    (A) by inserting ``actual or perceived'' before 
                ``race, color'' each place that term appears; and
                    (B) by striking ``sex,'' each place that term 
                appears and inserting ``sex (including sexual 
                orientation and gender identity), marital status, 
                source of income, veteran status,'';
            (4) in section 806 (42 U.S.C. 3606)--
                    (A) by inserting ``actual or perceived'' before 
                ``race, color''; and
                    (B) by striking ``sex,'' each place that term 
                appears and inserting ``sex (including sexual 
                orientation and gender identity), marital status, 
                source of income, veteran status,''; and
            (5) in section 808(e)(6) (42 U.S.C. 3608(e)(6)), by 
        striking ``sex,'' and inserting ``sex (including sexual 
        orientation and gender identity), marital status, source of 
        income, veteran status,''.
    (c) Prevention of Intimidation.--Section 901 of the Civil Rights 
Act of 1968 (42 U.S.C. 3631) is amended--
            (1) by inserting ``actual or perceived'' before ``race, 
        color'' each place that term appears; and
            (2) by striking ``sex,'' each place that term appears and 
        inserting ``sex (including sexual orientation (as such term is 
        defined in section 802 of this Act) and gender identity (as 
        defined in section 802 of this Act)), marital status (as 
        defined in section 802), source of income (as defined in 
        section 802), veteran status (as defined in section 802),''.
    (d) Rule of Construction.--Nothing in the amendments made by this 
section shall be construed to mean that a particular class of 
individuals was not protected against discrimination under Federal law 
as in effect on the day before the date of enactment of this Act.

SEC. 302. IMPROVING OUTCOMES IN HOUSING ASSISTANCE PROGRAMS.

    (a) Indian Housing Assistance.--Section 502 of the Native American 
Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 4181) 
is amended by adding at the end the following:
    ``(c) Applicability.--Subsections (a) and (b) shall not apply with 
respect to tenant-based assistance provided under section 8(o) of the 
United States Housing Act of 1937 (42 U.S.C. 1437f(o)).''.
    (b) Supplemental Administrative Fee.--Section 8(q)(2)(B) of the 
United States Housing Act of 1937 (42 U.S.C. 1437f(q)(2)(B)) is amended 
by inserting ``, including the cost of assisting families with children 
or families with a member with a disability that move to lower poverty, 
higher opportunity neighborhoods (as determined by the Secretary based 
on objective, evidence-based criteria)'' after ``programs''.
    (c) Regional Planning To Increase Access to Higher Opportunity 
Areas.--Section 8(o) of the United States Housing Act of 1937 (42 
U.S.C. 1437f(o)) is amended by adding at the end the following:
            ``(22) Increasing access to higher opportunity areas.--
                    ``(A) Location analysis.--
                            ``(i) In general.--A public housing agency 
                        that administers the program under this 
                        subsection in a metropolitan area shall--
                                    ``(I) analyze the locations where 
                                the participants in the program of the 
                                public housing agency live; and
                                    ``(II) based on the analysis 
                                described in subclause (I), establish 
                                policies and practices to reduce 
                                disparities and barriers to access to 
                                locations throughout the metropolitan 
                                area that evidence indicates are more 
                                likely to improve outcomes for children 
                                or adults.
                            ``(ii) Considerations.--The location 
                        analysis required under this subparagraph 
                        shall--
                                    ``(I) consider separately the 
                                locations of families with children, 
                                households that include a person with 
                                disabilities, and other groups 
                                protected under the Fair Housing Act 
                                (42 U.S.C. 3601 et seq.); and
                                    ``(II) include an analysis of the 
                                locations in relation to dwelling units 
                                with rents that are potentially 
                                affordable to voucher holders and the 
                                likely impact of key neighborhood 
                                attributes on their well-being and 
                                long-term success, based on Federal and 
                                available local data.
                            ``(iii) Mapping tools.--The Secretary 
                        shall--
                                    ``(I) provide mapping tools and 
                                other information necessary for a 
                                public housing agency to perform the 
                                location analysis under this 
                                subparagraph using the demographic data 
                                on participating families submitted to 
                                the Secretary under part 908 of title 
                                24, Code of Federal Regulations, or any 
                                successor regulation;
                                    ``(II) publish a notice in the 
                                Federal Register, subject to public 
                                comment, that specifies the data 
                                sources and definitions that will be 
                                incorporated in each mapping tool 
                                required under subclause (I); and
                                    ``(III) update the notice required 
                                under subclause (II) as needed based on 
                                changes in the availability of relevant 
                                data or evidence of neighborhood 
                                attributes likely to impact the well-
                                being and long-term success of 
                                participants in the program under this 
                                subsection.
                            ``(iv) Frequency and availability.--The 
                        location analysis required under this 
                        subparagraph shall--
                                    ``(I) be performed by each public 
                                housing agency described in clause (i) 
                                not less frequently than once every 5 
                                years;
                                    ``(II) be performed by all public 
                                housing agencies in a metropolitan area 
                                in the same year, as determined by the 
                                Secretary; and
                                    ``(III) be made available to the 
                                public in a manner that protects the 
                                privacy of program participants.
                    ``(B) Regional policies to increase access to 
                higher opportunity neighborhoods.--Each public housing 
                agency described in subparagraph (A)(i) shall--
                            ``(i) consult with other such public 
                        housing agencies in the same metropolitan area, 
                        or smaller regional area approved by the 
                        Secretary, about the possible barriers and 
                        other reasons for the disparities identified in 
                        the location analysis required under 
                        subparagraph (A);
                            ``(ii) identify policies or practices that 
                        those public housing agencies could adopt 
                        individually or in collaboration, or other 
                        strategies that recipients of grants or other 
                        funding from the Secretary could adopt, to 
                        reduce the barriers and disparities and 
                        increase the share of families with children 
                        and other demographic groups using vouchers in 
                        higher-opportunity neighborhoods in the 
                        metropolitan area or region; and
                            ``(iii) include in the administrative plan 
                        required under section 982.54 of title 24, Code 
                        of Federal Regulations, or any successor 
                        regulation, the policies that the public 
                        housing agency has adopted under this 
                        paragraph.
                    ``(C) Assessment.--The Secretary shall include 
                public housing agency performance in achieving the goal 
                described in subparagraph (A)(i)(II) in the periodic 
                assessment of agency performance in managing the 
                program under this subsection required under part 985 
                of title 24, Code of Federal Regulations, or any 
                successor regulation.''.
    (d) Required Regulatory Changes to Public Housing Agency 
Consortia.--
            (1) Definitions.--In this subsection:
                    (A) Moving to work demonstration program.--The term 
                ``Moving to Work demonstration program'' means the 
                program established under section 204 of the 
                Departments of Veterans Affairs and Housing and Urban 
                Development, and Independent Agencies Appropriations 
                Act, 1996 (Public Law 104-134; 110 Stat. 1321-281).
                    (B) Public housing agency.--The term ``public 
                housing agency'' has the meaning given the term in 
                section 3(b)(6) of the United States Housing Act of 
                1937 (42 U.S.C. 1437a(b)(6)).
            (2) Requirement.--Not later than 1 year after the date of 
        enactment of this Act, the Secretary of Housing and Urban 
        Development shall establish policies and procedures that--
                    (A) enable public housing agencies that elect to 
                operate in consortia under section 13(a) of the United 
                States Housing Act of 1937 (42 U.S.C. 1437k(a)), 
                excluding public housing agencies participating in the 
                Moving to Work demonstration program--
                            (i) to consolidate their funding contracts 
                        for assistance provided under section 8(o) of 
                        such Act (42 U.S.C. 1437f(o)) into a single 
                        contract;
                            (ii) to consolidate their funding contracts 
                        for assistance provided under subsections (d) 
                        and (e) of section 9 of such Act (42 U.S.C. 
                        1437g); or
                            (iii) to exercise the consolidation options 
                        under each of clauses (i) and (ii); and
                    (B) enable public housing agencies to form partial 
                consortia under such section 13(a) (42 U.S.C. 1437k(a)) 
                that consolidate the administration of certain aspects 
                of their housing programs to increase access to higher-
                opportunity areas or for other purposes, subject to 
                such requirements as the Secretary may establish.
            (3) Moving to work agencies.--Any flexibility or waiver 
        applicable to the Moving to Work demonstration program shall 
        not apply to any activities or funds administered through a 
        partial consortium formed under paragraph (2)(B) by 1 or more 
        public housing agencies participating in the Moving to Work 
        demonstration program.

                      TITLE IV--ESTATE TAX REFORM

SEC. 401. AMENDMENT TO INTERNAL REVENUE CODE OF 1986.

    Except as otherwise expressly provided, whenever in this title an 
amendment or repeal is expressed in terms of an amendment to, or repeal 
of, a section or other provision, the reference shall be considered to 
be made to a section or other provision of the Internal Revenue Code of 
1986.

SEC. 402. RATE ADJUSTMENT.

    (a) Increase in Estate Tax Rates.--The table contained in section 
2001(c) is amended to read as follows:

If the amount with respect to which The tentative tax is:
        the tentative tax to be 
        computed is:
    Not over $13,000,000...........
                                        55 percent of such amount.
    Over $13,000,000 but not over 
        $93,000,000.
                                        $7,150,000, plus 60 percent of 
                                                the excess of such 
                                                amount over 
                                                $13,000,000.
    Over $93,000,000...............
                                        $55,150,000, plus 65 percent of 
                                                the excess of such 
                                                amount over 
                                                $93,000,000.

    (b) Reduction of Basic Exclusion Amount.--Paragraph (3) of section 
2010(c) is amended to read as follows:
            ``(3) Basic exclusion amount.--For purposes of this 
        subsection, the basic exclusion amount is $3,500,000.''.
    (c) Surtax on Billion Dollar Estates.--Section 2001 is amended--
            (1) in subsection (b), by striking ``The tax'' and 
        inserting ``Subject to subsection (h), the tax'', and
            (2) by adding at the end the following new subsection:
    ``(h) Surtax on Billion Dollar Estates.--
            ``(1) In general.--In the case of a taxable estate for 
        which the applicable amount is in excess of $1,000,000,000, the 
        tax determined under subsection (b) shall be increased by an 
        amount equal to 10 percent of such applicable amount.
            ``(2) Applicable amount.--For purposes of this subsection, 
        the applicable amount shall be equal to the sum of the amounts 
        under subparagraphs (A) and (B) of paragraph (1) of subsection 
        (b) for the taxable estate.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to estates of decedents dying, and generation-skipping transfers 
and gifts made, after the date of the enactment of this Act.

SEC. 403. REQUIRED MINIMUM 10-YEAR TERM, ETC., FOR GRANTOR RETAINED 
              ANNUITY TRUSTS.

    (a) In General.--Subsection (b) of section 2702 is amended--
            (1) by redesignating paragraphs (1), (2), and (3) as 
        subparagraphs (A), (B), and (C), respectively, and by moving 
        such subparagraphs (as so redesignated) 2 ems to the right;
            (2) by striking ``For purposes of'' and inserting the 
        following:
            ``(1) In general.--For purposes of'';
            (3) by striking ``paragraph (1) or (2)'' in paragraph 
        (1)(C) (as so redesignated) and inserting ``subparagraph (A) or 
        (B)''; and
            (4) by adding at the end the following new paragraph:
            ``(2) Additional requirements with respect to grantor 
        retained annuities.--For purposes of subsection (a), in the 
        case of an interest described in paragraph (1)(A) (determined 
        without regard to this paragraph) which is retained by the 
        transferor, such interest shall be treated as described in such 
        paragraph only if--
                    ``(A) the right to receive the fixed amounts 
                referred to in such paragraph is for a term of not less 
                than 10 years,
                    ``(B) such fixed amounts, when determined on an 
                annual basis, do not decrease relative to any prior 
                year during the first 10 years of the term referred to 
                in subparagraph (A), and
                    ``(C) the remainder interest has a value equal to 
                or greater than 10 percent of the value of the assets 
                transferred to the trust, determined as of the time of 
                the transfer.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to transfers made after the date of the enactment of this Act.

SEC. 404. CERTAIN TRANSFER TAX RULES APPLICABLE TO GRANTOR TRUSTS.

    (a) In General.--Subtitle B is amended by adding at the end the 
following new chapter:

             ``CHAPTER 16--SPECIAL RULES FOR GRANTOR TRUSTS

``Sec. 2901. Application of transfer taxes.

``SEC. 2901. APPLICATION OF TRANSFER TAXES.

    ``(a) In General.--In the case of any portion of a trust to which 
this section applies--
            ``(1) the value of the gross estate of the deceased deemed 
        owner of such portion shall include all assets attributable to 
        that portion at the time of the death of such owner,
            ``(2) any distribution from such portion to one or more 
        beneficiaries during the life of the deemed owner of such 
        portion shall be treated as a transfer by gift for purposes of 
        chapter 12, and
            ``(3) if at any time during the life of the deemed owner of 
        such portion, such owner ceases to be treated as the owner of 
        such portion under subpart E of part 1 of subchapter J of 
        chapter 1, all assets attributable to such portion at such time 
        shall be treated for purposes of chapter 12 as a transfer by 
        gift made by the deemed owner.
    ``(b) Portion of Trust to Which Section Applies.--This section 
shall apply to--
            ``(1) the portion of a trust with respect to which the 
        grantor is the deemed owner, and
            ``(2) the portion of the trust to which a person who is not 
        the grantor is a deemed owner by reason of the rules of subpart 
        E of part 1 of subchapter J of chapter 1, and such deemed owner 
        engages in a sale, exchange, or comparable transaction with the 
        trust that is disregarded for purposes of subtitle A.
For purposes of paragraph (2), the portion of the trust described with 
respect to a transaction is the portion of the trust attributable to 
the property received by the trust in such transaction, including all 
retained income therefrom, appreciation thereon, and reinvestments 
thereof, net of the amount of consideration received by the deemed 
owner in such transaction.
    ``(c) Exceptions.--This section shall not apply to--
            ``(1) any trust that is includible in the gross estate of 
        the deemed owner (without regard to subsection (a)(1)), and
            ``(2) any other type of trust that the Secretary determines 
        by regulations or other guidance does not have as a significant 
        purpose the avoidance of transfer taxes.
    ``(d) Deemed Owner Defined.--For purposes of this section, the term 
`deemed owner' means any person who is treated as the owner of a 
portion of a trust under subpart E of part 1 of subchapter J of chapter 
1.
    ``(e) Reduction for Taxable Gifts to Trust Made by Owner.--The 
amount to which subsection (a) applies shall be reduced by the value of 
any transfer by gift by the deemed owner to the trust previously taken 
into account by the deemed owner under chapter 12.
    ``(f) Liability for Payment of Tax.--Any tax imposed pursuant to 
subsection (a) shall be a liability of the trust.''.
    (b) Clerical Amendment.--The table of chapters for subtitle B is 
amended by adding at the end the following new item:

           ``Chapter 16. Special Rules for Grantor Trusts''.

    (c) Effective Date.--The amendments made by this section shall 
apply--
            (1) to trusts created on or after the date of the enactment 
        of this Act;
            (2) to any portion of a trust established before the date 
        of the enactment of this Act which is attributable to a 
        contribution made on or after such date; and
            (3) to any portion of a trust established before the date 
        of the enactment of this Act to which section 2901(a) of the 
        Internal Revenue Code of 1986 (as added by subsection (a)) 
        applies by reason of a transaction described in section 
        2901(b)(2) of such Code on or after such date.

SEC. 405. ELIMINATION OF GENERATION-SKIPPING TRANSFER TAX EXEMPTION FOR 
              TRANSFERS TO CERTAIN PERSONS.

    (a) In General.--Section 2642 is amended by adding at the end the 
following new subsection:
    ``(h) Elimination of GST Exemption for Transfers to Certain 
Persons.--
            ``(1) In general.--
                    ``(A) Transfer to non-exempt person.--In the case 
                of any direct skip or taxable distribution made to any 
                person who is not an exempt person, the inclusion ratio 
                shall be 1.
                    ``(B) Taxable termination.--In the case of any 
                taxable termination which occurs at any time 
                immediately after no exempt person is a beneficiary of 
                the trust, the inclusion ratio shall be 1.
                    ``(C) Exempt person.--
                            ``(i) In general.--For purposes of this 
                        subsection, the term `exempt person' means--
                                    ``(I) a natural person--
                                            ``(aa) who is assigned to a 
                                        generation which is 2 or fewer 
                                        generations below the 
                                        generation assignment of the 
                                        transferor, or
                                            ``(bb) whose date of birth 
                                        precedes the date on which the 
                                        trust was created, or
                                    ``(II) a trust in which all 
                                interests are held by persons described 
                                in subclause (I).
                            ``(ii) Exception.--For purposes of clause 
                        (i)(II), any interest which is used primarily 
                        to postpone or avoid the application of this 
                        subsection shall be disregarded.
            ``(2) Date of creation.--
                    ``(A) In general.--For purposes of determining the 
                date on which a trust was created under paragraph 
                (1)(C)(i)(I)(bb), if the trust was created before 
                January 1, 2024, such trust shall be deemed to have 
                been created on January 1, 2024.
                    ``(B) Date of creation of pour-over trusts.--
                            ``(i) In general.--In the case of any 
                        generation-skipping transfer of property which 
                        involves the transfer of property from one 
                        trust to another trust, the date of the 
                        creation of the transferee trust shall be 
                        treated as being the earlier of--
                                    ``(I) the date of the creation of 
                                such transferee trust, or
                                    ``(II) the date of the creation of 
                                the transferor trust.
                            ``(ii) Multiple transfers.--In the case of 
                        multiple transfers to which clause (i) 
                        applies--
                                    ``(I) the date of the creation of 
                                the transferor trust shall be 
                                determined under such clause, and
                                    ``(II) subsequent to the 
                                determination described in subclause 
                                (I), the date of the creation of the 
                                transferee trust shall be determined 
                                under such clause.
            ``(3) Generation assignment.--For purposes of this 
        subsection, the provisions of section 2653(a) shall not apply.
            ``(4) Regulations.--The Secretary may prescribe such 
        regulations or other guidance as may be necessary or 
        appropriate to carry out this subsection.''.
    (b) Repeal.--Section 1433(b)(2) of the Tax Reform Act of 1986 
(Public Law 99-514) is repealed.
    (c) Effective Dates.--
            (1) In general.--The amendment made by subsection (a) shall 
        take effect on the date of the enactment of this Act.
            (2) Repeal.--The amendment made by subsection (b) shall 
        apply to generation-skipping transfers (within the meaning of 
        section 2611 of the Internal Revenue Code of 1986) made after 
        the date of enactment of this Act.

SEC. 406. SIMPLIFYING GIFT TAX EXCLUSION FOR ANNUAL GIFTS.

    (a) In General.--Paragraph (1) of section 2503(b) is amended to 
read as follows:
            ``(1) In general.--
                    ``(A) Limit per donee.--In the case of gifts made 
                to any person by the donor during the calendar year, 
                the first $10,000 of such gifts to such person shall 
                not, for purposes of subsection (a), be included in the 
                total amount of gifts made during such year.
                    ``(B) Cumulative limit per donor.--
                            ``(i) In general.--The aggregate amount 
                        excluded under subparagraph (A) with respect to 
                        all transfers described in clause (ii) made by 
                        the donor during the calendar year shall not 
                        exceed twice the dollar amount in effect under 
                        such subparagraph for such calendar year.
                            ``(ii) Transfers subject to limitation.--
                        The transfers described in this clause are--
                                    ``(I) a transfer in trust,
                                    ``(II) a transfer of an interest in 
                                a passthrough entity,
                                    ``(III) a transfer of an interest 
                                subject to a prohibition on sale, and
                                    ``(IV) any other transfer of 
                                property that, without regard to 
                                withdrawal, put, or other such rights 
                                in the donee, cannot immediately be 
                                liquidated by the donee.''.
    (b) Conforming Amendment.--Section 2503 is amended by striking 
subsection (c).
    (c) Regulations.--The Secretary of the Treasury, or the Secretary 
of the Treasury's delegate, may prescribe such regulations or other 
guidance as may be necessary or appropriate to carry out the amendments 
made by this section.
    (d) Effective Date.--The amendments made by this section shall 
apply to any calendar year beginning after the date of the enactment of 
this Act.

SEC. 407. CLARIFICATION REGARDING DISALLOWANCE OF STEP-UP IN BASIS FOR 
              PROPERTY HELD IN CERTAIN GRANTOR TRUSTS.

    (a) In General.--Section 1014 is amended--
            (1) by redesignating subsection (f) as subsection (g), and
            (2) by inserting after subsection (e) the following:
    ``(f) Property Held in Certain Grantor Trusts.--This section shall 
not apply to property--
            ``(1) held in a trust of which the transferor is considered 
        the owner under subpart E of part I of subchapter J, and
            ``(2) if, after the transfer of such property to the trust, 
        such property is not includible in the gross estate of the 
        transferor for purposes of chapter 11.''.
    (b) Conforming Amendment.--Section 6662(k) is amended by striking 
``1014(f)'' and inserting ``1014(g)''.
    (c) Effective Date.--The amendments made by this section shall 
apply to transfers after the date of the enactment of this Act.
    (d) No Inference.--No inference may be drawn from the amendments 
made by this section with respect to the application of section 1014 of 
the Internal Revenue Code of 1986 to property described in subsection 
(f) of such section (as added by subsection (a)) which was transferred 
on or before the date of enactment of this Act.

SEC. 408. LIMITATION ON DISCOUNTS; VALUATION RULES FOR CERTAIN 
              TRANSFERS OF NONBUSINESS ASSETS.

    (a) In General.--Chapter 14 of subtitle B is amended by adding at 
the end the following new section:

``SEC. 2705. LIMITATION ON DISCOUNTS; VALUATION RULES FOR CERTAIN 
              TRANSFERS OF NONBUSINESS ASSETS.

    ``(a) Limitation on Discount by Reason of Family Control.--
            ``(1) In general.--For purposes of this subtitle, in the 
        case of the transfer of any interest in an entity other than an 
        interest which is actively traded (within the meaning of 
        section 1092), if the transferor, the transferee, and members 
        of the family of the transferor and transferee have control of 
        such entity immediately before such transfer, no discount shall 
        be allowed--
                    ``(A) by reason of the fact that the transferor or 
                transferee does not have control of such entity,
                    ``(B) by reason of the lack of marketability of the 
                interest, or
                    ``(C) for any other reason.
            ``(2) Definitions.--In this subsection, the terms `control' 
        and `member of the family' have the same meanings given such 
        terms in section 2704(c).
            ``(3) Attribution.--For purposes of this section, the rule 
        of section 2701(e)(3) shall apply for purposes of determining 
        the interests held by any individual.
    ``(b) Valuation Rules for Certain Transfers of Nonbusiness 
Assets.--
            ``(1) In general.--For purposes of this subtitle, in the 
        case of the transfer of any interest in an entity other than an 
        interest which is actively traded (within the meaning of 
        section 1092)--
                    ``(A) the value of any nonbusiness assets held by 
                the entity with respect to such interest shall be 
                determined as if the transferor had transferred such 
                assets directly to the transferee (and no valuation 
                discount shall be allowed with respect to such 
                nonbusiness assets), and
                    ``(B) such nonbusiness assets shall not be taken 
                into account in determining the value of the interest 
                in the entity.
            ``(2) Nonbusiness assets.--For purposes of this 
        subsection--
                    ``(A) In general.--The term `nonbusiness asset' 
                means any asset other than an asset which is used in 
                the active conduct of a trade or business.
                    ``(B) Passive assets treated as nonbusiness 
                assets.--
                            ``(i) In general.--For purposes of 
                        subparagraph (A), a passive asset shall be 
                        treated as a nonbusiness asset unless--
                                    ``(I) the asset is property 
                                described in paragraph (1) or (4) of 
                                section 1221(a) or is a hedge with 
                                respect to such property, or
                                    ``(II) the asset is real property 
                                used in the active conduct of 1 or more 
                                real property trades or businesses 
                                (within the meaning of section 
                                469(c)(7)(C)) in which the transferor 
                                materially participates and with 
                                respect to which the transferor meets 
                                the requirements of section 
                                469(c)(7)(B)(ii).
                            ``(ii) Material participation.--For 
                        purposes of clause (i)(II), material 
                        participation shall be determined under the 
                        rules of section 469(h), except that section 
                        469(h)(3) shall be applied without regard to 
                        the limitation to farming activity.
                    ``(C) Working capital treated as used in trade or 
                business.--Any asset (including a passive asset) which 
                is held as a part of the reasonably required working 
                capital needs of a trade or business shall be treated 
                as used in the active conduct of a trade or business.
            ``(3) Passive asset.--For purposes of this subsection, the 
        term `passive asset' means any--
                    ``(A) cash or cash equivalents,
                    ``(B) stock in a corporation or any other equity, 
                profits, or capital interest in any entity,
                    ``(C) evidence of indebtedness, option, forward or 
                futures contract, notional principal contract, or 
                derivative,
                    ``(D) asset described in clause (iii), (iv), or (v) 
                of section 351(e)(1)(B),
                    ``(E) annuity,
                    ``(F) real property used in 1 or more real property 
                trades or businesses (as defined in section 
                469(c)(7)(C)),
                    ``(G) asset (other than a patent, trademark, or 
                copyright) which produces royalty income,
                    ``(H) commodity,
                    ``(I) collectible (within the meaning of section 
                408(m)), or
                    ``(J) any other asset specified in regulations 
                prescribed by the Secretary.
            ``(4) Look-thru rule.--
                    ``(A) In general.--If a nonbusiness asset of an 
                entity described in paragraph (1) consists of a 10-
                percent interest in any other entity, this subsection 
                shall be applied by disregarding the 10-percent 
                interest and by treating the entity as holding directly 
                its ratable share of the assets of the other entity.
                    ``(B) 10-percent interest.--The term `10-percent 
                interest' means--
                            ``(i) in the case of an interest in a 
                        corporation, direct ownership of at least 10 
                        percent (by vote or value) of the stock in such 
                        corporation,
                            ``(ii) in the case of an interest in a 
                        partnership, direct ownership of at least 10 
                        percent of the capital or profits interest in 
                        the partnership, and
                            ``(iii) in any other case, direct ownership 
                        of at least 10 percent of the beneficial 
                        interests in the entity.''.
    (b) Conforming Amendments.--
            (1) Section 2031(b) of the Internal Revenue Code of 1986 is 
        amended by inserting ``(after application of section 2705(b))'' 
        after ``shall be determined''.
            (2) The table of sections of chapter 14 of subtitle B of 
        such Code is amended by adding at the end the following:

``Sec. 2705. Limitation on discounts; valuation rules for certain 
                            transfers of nonbusiness assets.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to transfers after the date of the enactment of this Act.

SEC. 409. SURCHARGE ON HIGH INCOME ESTATES AND TRUSTS.

    (a) In General.--Subchapter A of chapter 1 is amended by adding at 
the end the following new part:

        ``PART VIII--SURCHARGE ON HIGH INCOME ESTATES AND TRUSTS

``Sec. 59B. Surcharge on high income estates and trusts.

``SEC. 59B. SURCHARGE ON HIGH INCOME ESTATES AND TRUSTS.

    ``(a) General Rule.--In the case of an estate or trust, there is 
hereby imposed (in addition to any other tax imposed by this subtitle) 
a tax equal to the sum of--
            ``(1) 5 percent of so much of the modified adjusted gross 
        income of the taxpayer as exceeds $200,000, plus
            ``(2) 3 percent of so much of the modified adjusted gross 
        income of the taxpayer as exceeds $500,000.
    ``(b) Modified Adjusted Gross Income.--For purposes of this 
section--
            ``(1) In general.--The term `modified adjusted gross 
        income' means adjusted gross income reduced by any deduction 
        (not taken into account in determining adjusted gross income) 
        allowed for investment interest (as defined in section 163(d)) 
        or business interest (as defined in section 163(j)).
            ``(2) Adjusted gross income.--Adjusted gross income shall 
        be determined as provided in section 67(e) and reduced by the 
        amount allowed as a deduction under section 642(c).
    ``(c) Special Rules.--
            ``(1) Charitable trusts.--Subsection (a) shall not apply to 
        a trust all the unexpired interests in which are devoted to one 
        or more of the purposes described in section 170(c)(2)(B).
            ``(2) Not treated as tax imposed by this chapter for 
        certain purposes.--The tax imposed under this section shall not 
        be treated as tax imposed by this chapter for purposes of 
        determining the amount of any credit under this chapter (other 
        than sections 27 and 901) or for purposes of section 55.
            ``(3) Electing small business trusts.--For purposes of the 
        determination of adjusted gross income, section 641(c)(1)(A) 
        shall not apply and all portions of any electing small business 
        trust shall be treated as a single trust.
    ``(d) Regulations.--The Secretary shall issue such regulations or 
other guidance as may be necessary or appropriate to carry out the 
purposes of this section, including regulations or other guidance to 
prevent the avoidance of the purposes of this section.''.
    (b) Coordination With Certain Provisions.--
            (1) Interest on certain deferred tax liability.--Section 
        453A(c) is amended by redesignating paragraph (6) as paragraph 
        (7) and by inserting after paragraph (5) the following new 
        paragraph:
            ``(6) Surcharge on high income estates and trusts taken 
        into account in determining maximum rate of tax.--For purposes 
        of paragraph (3)(B), in the case of an estate or trust, the 
        maximum rate of tax in effect under section 1 shall be treated 
        as being equal to the sum of such rate and the rates in effect 
        under paragraphs (1) and (2) of section 59B(a).''.
            (2) Limitation on foreign tax credit.--
                    (A) Section 904(b)(3)(E)(i)(I) is amended by 
                inserting ``increased, in the case of an estate or 
                trust, by the sum of the rates set forth in paragraphs 
                (1) and (2) of section 1A(a)'' after ``(whichever 
                applies)''.
                    (B) Section 904(d)(2)(F) is amended by adding at 
                the end the following: ``For purposes of the first 
                sentence of this subparagraph, in the case of an estate 
                or trust, the highest rate of tax specified in section 
                1 shall be treated as being equal to the sum of such 
                rate and the rates in effect under paragraphs (1) and 
                (2) of section 59B(a).''.
            (3) Election by individuals to be subject to tax at 
        corporate rates.--Section 962(a)(1) is amended by striking 
        ``and 55'' and inserting 55``, and 59B''.
            (4) Interest on certain tax deferral.--Section 1291(c)(2) 
        is amended by adding at the end the following: ``For purposes 
        of the preceding sentence, in the case of an estate or trust, 
        the highest rate of tax in effect under section 1 shall be 
        treated as being equal to the sum of such rate and the rates in 
        effect under paragraphs (1) and (2) of section 59B(a).''.
            (5) Withholding of tax on foreign partners' share of 
        effectively connected income.--Section 1446(b)(2) is amended by 
        adding at the end the following flush sentence:
        ``For purposes of subparagraph (A), in the case of a partner 
        which is an estate or trust, the highest rate of tax in effect 
        under section 1 shall be treated as being equal to the sum of 
        such rate and the rates in effect under paragraphs (1) and (2) 
        of section 59B(a).''.
            (6) Partnership adjustments.--
                    (A) Section 6225(b)(1) is amended by adding at the 
                end the following flush sentence:
        ``For purposes of subparagraph (B), in the case of an estate or 
        trust, the highest rate of tax in effect under section 1 shall 
        be treated as being equal to the sum of such rate and the rates 
        in effect under paragraphs (1) and (2) of section 59B(a).''.
                    (B) Section 6225(c)(4)(A) is amended--
                            (i) by striking ``subsection (b)(1)(A)'' 
                        and inserting ``subsection (b)(1)(B)'', and
                            (ii) by striking ``or'' at the end of 
                        clause (i), by adding ``or'' at the end of 
                        clause (ii), and by inserting after clause (ii) 
                        the following new clause:
                            ``(iii) is not an estate or trust subject 
                        to one or both of the rates of tax in effect 
                        under paragraphs (1) and (2) of section 
                        59B(a),''.
            (7) Required payments for entities electing not to have 
        required taxable year.--The second sentence of section 7519(b) 
        is amended by inserting ``and, in the case of an estate or 
        trust, increased by the sum of the rates in effect under 
        paragraphs (1) and (2) of section 59B(a)'' before the period at 
        the end.
    (c) Clerical Amendment.--The table of parts for subchapter A of 
chapter 1 is amended by adding at the end the following new item:

      ``PART VIII--Surcharge on High Income Estates and Trusts''.

    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

SEC. 410. MODIFICATION OF RULES FOR VALUE OF CERTAIN FARM, ETC., REAL 
              PROPERTY.

    (a) In General.--Paragraph (2) of section 2032A(a) of the Internal 
Revenue Code of 1986 is amended by striking ``$750,000'' and inserting 
``$3,000,000''.
    (b) Inflation Adjustment.--Paragraph (3) of section 2032A(a) of 
such Code is amended--
            (1) by striking ``1998'' and inserting ``2025'',
            (2) by striking ``$750,000'' each place it appears and 
        inserting ``$3,000,000'', and
            (3) by striking ``calendar year 1997'' and inserting 
        ``calendar year 2024'' in subparagraph (B).
    (c) Effective Date.--The amendments made by this section shall 
apply to estates of decedents dying, and gifts made, after December 31, 
2024.

SEC. 411. MODIFICATION OF ESTATE TAX RULES WITH RESPECT TO LAND SUBJECT 
              TO CONSERVATION EASEMENTS.

    (a) Modification of Exclusion Limitation.--Subparagraph (B) of 
section 2031(c)(1) of the Internal Revenue Code of 1986 is amended by 
striking ``$500,000'' and inserting ``$2,000,000''.
    (b) Modification of Applicable Percentage.--Paragraph (2) of 
section 2031(c) of the Internal Revenue Code of 1986 is amended by 
striking ``40 percent'' and inserting ``60 percent''.
    (c) Effective Date.--The amendments made by this section shall 
apply to estates of decedents dying, and gifts made, after December 31, 
2024.

                  TITLE V--ACCESSIBILITY REQUIREMENTS

SEC. 501. ACCESSIBILITY REQUIREMENTS.

    In the case of housing that is constructed, altered, or otherwise 
assisted using amounts made available to the Secretary of Housing and 
Urban Development under this Act or an amendment made by this Act, 
sections 8.22 and 8.23 of title 24, Code of Federal Regulations (or any 
successor regulations) shall be applied such that the number of 
dwelling units required to be accessible under those sections is twice 
the number that would otherwise be required to be accessible under 
those sections.
                                 <all>
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