I 

115TH CONGRESS 

2D SESSION H. R. 7262 

To make housing more affordable, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

DECEMBER 11, 2018 

Mr. RICHMOND (for himself, Mr. CUMMINGS, Ms. LEE, and Ms. MOORE) introduced the following bill; which was referred to the Committee on Financial Services, and in addition to the Committees on Ways and Means, 

the Judiciary, Transportation and Infrastructure, and Education and the 

Workforce, for a period to be subsequently determined by the Speaker, 

in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To make housing more affordable, and for other purposes. 

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

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

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

5 ‘‘American Housing and Economic Mobility Act of 2018’’. 

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

7 this Act is as follows: 

Sec. 1. Short title; table of contents. 

TITLE I—MAKING HOUSING MORE AFFORDABLE 

Sec. 101. Local housing innovation grants. 


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Sec. 102. Investing in affordable housing infrastructure. 

TITLE II—REVERSING THE LEGACY OF HOUSING 

DISCRIMINATION AND GOVERNMENT NEGLIGENCE 

Sec. 201. Down payment assistance program for communities formerly segregated by law. 

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

from the financial crisis. 

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

TITLE III—REMOVING BARRIERS THAT ISOLATE COMMUNITIES 

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

Sec. 302. Improving outcomes in housing assistance programs. 

TITLE IV—ESTATE TAX REFORM 

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

Sec. 402. Rate adjustment. 

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

trusts. 

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

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

trusts. 

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

1 TITLE I—MAKING HOUSING 

2 MORE AFFORDABLE 

3 SEC. 101. LOCAL HOUSING INNOVATION GRANTS. 

4 (a) DEFINITIONS.—In this section: 

5 (1) ELEMENTARY SCHOOL; SECONDARY

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

8 in section 8101 of the Elementary and Secondary 

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

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

12 (A) a State; 

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

14 (C) a metropolitan area. 


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1 (3) INSTITUTION OF HIGHER EDUCATION.—The 

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

3 meaning given the term in section 101 of the Higher 

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

5 (4) METROPOLITAN AREA; STATE; UNIT OF

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

8 government’’ have the meanings given those terms in 

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

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

12 the Secretary of Housing and Urban Development. 

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

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

16 that— 

17 (1) reform local land use restrictions to bring 

18 down the costs of producing affordable housing; and 

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

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

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

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


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1 (2) carry out any of the activities permitted 

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

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

6 of division L of the Consolidated Appropriations Act, 

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

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

10 by public elementary schools, public secondary 

11 schools, and public institutions of higher education, 

12 including modernization, renovation, and repairs 

13 that are consistent with a recognized green building 

14 rating system. 

15 (d) APPLICATION.— 

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

17 grant under this section shall submit to the Sec18 retary an application that demonstrates that the eli19 gible entity has carried out, or is in the process of 

20 carrying out, initiatives that facilitate the expansion 

21 of the supply of well-located affordable housing. 

22 (2) ACTIVITIES.—Initiatives that meet the cri23 teria described in paragraph (1)— 

24 (A) include— 


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1 (i) establishing ‘‘by-right’’ develop2 ment, which allows jurisdictions to admin3 istratively approve new developments that 

4 are consistent their zoning code; 

5 (ii) revising or eliminating off-street 

6 parking requirements to reduce the cost of 

7 housing production; 

8 (iii) instituting measures that 

9 incentivize owners of vacant land to rede10 velop the space into affordable housing or 

11 other productive uses; 

12 (iv) revising minimum lot size require13 ments and bans or limits on multifamily 

14 construction to allow for denser and more 

15 affordable development; 

16 (v) instituting incentives to promote 

17 dense development, such as density bo18 nuses; 

19 (vi) passing inclusionary zoning ordi20 nances that require a portion of newly de21 veloped units to be reserved for low- and 

22 moderate-income renters or homebuyers; 

23 (vii) streamlining regulatory require24 ments and shortening processes, reforming 

25 zoning codes, or other initiatives that reVerDate Sep 11 2014 21:58 Dec 14, 2018 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H7262.IH H7262

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1 duce barriers to housing supply elasticity 

2 and affordability; 

3 (viii) allowing accessory dwelling 

4 units; and 

5 (ix) using local tax incentives to pro6 mote development of affordable housing; 

7 and 

8 (B) do not include activities that alter or9 dinances that govern wage and hour laws, fam10 ily and medical leave laws, or protections for 

11 workers’ health and safety, anti-discrimination, 

12 and right to organize. 

13 (e) LABOR LAWS.— 

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

15 employed by contractors or subcontractors in the 

16 performance of construction work financed in whole 

17 or in part with a grant received under this section 

18 shall be paid wages at rates not less than those pre19 vailing on similar construction in the locality as de20 termined by the Secretary of Labor in accordance 

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

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

23 Act’’). 

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

25 apply with respect to— 


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1 (A) the rehabilitation of residential prop2 erty if the property contains less than 8 units; 

3 or 

4 (B) construction carried out by employees 

5 of the eligible entity receiving the grant under 

6 this section. 

7 (f) AUTHORIZATION OF APPROPRIATIONS.—There 

8 are authorized to be appropriated to carry out this section 

9 $2,000,000,000 for each of fiscal years 2019 through 

10 2023. 

11 SEC. 102. INVESTING IN AFFORDABLE HOUSING INFRA12 STRUCTURE. 

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

14 Federal Housing Enterprises Financial Safety and Sound15 ness Act of 1992 (12 U.S.C. 4568(a)) is amended by add16 ing at the end the following: 

17 ‘‘(3) AUTHORIZATION OF APPROPRIATIONS.— 

18 There is authorized to be appropriated to the Hous19 ing Trust Fund $44,500,000,000 for each of fiscal 

20 years 2019 through 2028.’’. 

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

22 Federal Housing Enterprises Financial Safety and Sound23 ness Act of 1992 (12 U.S.C. 4569) is amended by adding 

24 at the end the following: 


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

2 is authorized to be appropriated to the Capital Magnet 

3 Fund $2,500,000,000 for each of fiscal years 2019 

4 through 2028.’’. 

5 (c) INDIAN HOUSING BLOCK GRANT PROGRAM.— 

6 Section 108 of the Native American Housing Assistance 

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

8 amended— 

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

10 for each of fiscal years 2009 through 2013’’ and in11 serting ‘‘$2,500,000,000 for fiscal year 2019 and 

12 such sums as may be necessary for each of fiscal 

13 years 2020 through 2028’’; and 

14 (2) by striking the second sentence. 

15 (d) RURAL HOUSING PROGRAMS.—Out of funds in 

16 the Treasury not otherwise appropriated, there is appro17 priated for fiscal year 2019— 

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

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

20 $140,000,000; 

21 (2) to provide assistance under section 514 of 

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

23 (3) to provide assistance under section 515 of 

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


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1 (4) to provide assistance under section 516 of 

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

3 (5) to provide direct loans under section 523 of 

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

5 (e) MIDDLE CLASS HOUSING EMERGENCY FUND.— 

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

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

8 which monthly rent is 30 percent or less than the 

9 monthly area median income. 

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

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

13 Housing Emergency Fund’’, which shall be funded 

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

16 law. 

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

18 fund established under paragraph (1), the Secretary 

19 of Housing and Urban Development shall award 

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

22 (A) there is a shortage of affordable rental 

23 housing units available to individuals with an 

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


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1 over the preceding 3 years substantially faster 

2 than the area median income; or 

3 (B) there is a shortage of housing units 

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

6 median income and median home prices have 

7 risen on average over the preceding 3 years 

8 substantially faster than the area median in9 come. 

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

11 this subsection shall be used to fund the construc12 tion of rental housing units that are affordable to 

13 residents making less than 120 percent of the area 

14 median income. 

15 (5) LABOR LAWS.— 

16 (A) IN GENERAL.—All laborers and me17 chanics employed by contractors or subcontrac18 tors in the performance of construction work fi19 nanced in whole or in part with a grant received 

20 under this subsection shall be paid wages at 

21 rates not less than those prevailing on similar 

22 construction in the locality as determined by 

23 the Secretary of Labor in accordance with sub24 chapter IV of chapter 31 of title 40, United 


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1 States Code (commonly known as the ‘‘Davis2 Bacon Act’’). 

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

4 not apply with respect to— 

5 (i) the rehabilitation of residential 

6 property if the property contains less than 

7 8 units; or 

8 (ii) construction carried out by em9 ployees of the eligible entity receiving the 

10 grant under this section. 

11 (6) REGULATIONS.—The Secretary of Housing 

12 and Urban Development shall promulgate regula13 tions to carry out this subsection, including with re14 spect to the metrics the Secretary shall use to deter15 mine eligibility for a grant under this subsection. 

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

17 Treasury not otherwise appropriated, there is appro18 priated to the fund established under this subsection 

19 $4,000,000,000 for fiscal year 2019. 


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1 TITLE II—REVERSING THE LEG2 ACY OF HOUSING DISCRIMI3 NATION AND GOVERNMENT 

4 NEGLIGENCE 

5 SEC. 201. DOWN PAYMENT ASSISTANCE PROGRAM FOR 

6 COMMUNITIES FORMERLY SEGREGATED BY 

7 LAW. 

8 (a) DEFINITIONS.—In this section: 

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

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

11 defined by the Secretary by regulation under sub12 section (e), who— 

13 (A) is a first-time homebuyer; 

14 (B) resided in that geographic area during 

15 the 4-year period preceding the date of enact16 ment of this Act; and 

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

18 percent of the area median income. 

19 (2) FIRST-TIME HOMEBUYER.—The term ‘‘first20 time homebuyer’’ means an individual (and if mar21 ried, the spouse of the individual) who has had no 

22 ownership in a principal residence during the 3-year 

23 period ending on the date of purchase of the prop24 erty. 


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

2 the Secretary of Housing and Urban Development. 

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

4 Office of Housing of the Department of Housing and 

5 Urban Development a fund, to be administered by the Sec6 retary, that shall be used— 

7 (1) to provide grants to eligible residents to 

8 purchase homes; and 

9 (2) for outreach to financial institutions in tar10 geted areas and eligible residents. 

11 (c) GRANT AMOUNT.—Eligible residents may receive 

12 a grant from the fund established under subsection (b) 

13 in an amount equal to— 

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

15 value of the property to be purchased; or 

16 (2) if the appraised value is more than the prin17 cipal obligation amount limitation for mortgages in18 sured under title II of the National Housing Act (12 

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

20 principal obligation limitation for the property to be 

21 purchased. 

22 (d) FHA LOAN.—An eligible resident is not required 

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

24 National Housing Act (12 U.S.C. 1707 et seq.) as a condi25 tion of receiving a grant under this section. 


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1 (e) REGULATIONS AND DATABASE.—Not later than 

2 1 year after the date of enactment of this Act, the Sec3 retary shall— 

4 (1) finalize regulations relating to the use of 

5 the fund established under subsection (b), including 

6 defining the geographic areas in which residents are 

7 eligible to receive grants through the fund, which 

8 shall include— 

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

10 in maps drawn by the Home Owners’ Loan 

11 Corporation that are, as of the date of enact12 ment of this Act, low-income communities; and 

13 (B) census tracts that were designated for 

14 non-White citizens in jurisdictions that histori15 cally had racially segregated zoning codes and 

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

17 low-income communities; 

18 (2) finalize regulations relating to the disburse19 ment of funds under this section to ensure that eligi20 ble residents are able to receive funds before the 

21 closing date for their home, which may include cre22 ating a program that allows a lender to be reim23 bursed by the fund established under subsection (b) 

24 if the lender— 


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1 (A) provides the eligible resident with 

2 funds for the closing; or 

3 (B) allows eligible residents to be 

4 preapproved to receive assistance under this 

5 section when arranging financing for their 

6 home; 

7 (3) create a publicly accessible database that al8 lows individuals, real estate professionals, and lend9 ers to determine whether a borrower is eligible for 

10 assistance under this section; and 

11 (4) establish methods to verify that an indi12 vidual is an eligible resident. 

13 (f) APPROPRIATIONS.—Out of funds in the Treasury 

14 not otherwise appropriated, there are appropriated to the 

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

16 be necessary for each of fiscal years 2019 through 2028 

17 to provide grants under this section and to carry out con18 sumer education efforts related to this section. 

19 (g) INCLUSION OF PROGRAM IN HOME BUYING IN20 FORMATION BOOKLETS.—Section 5(b) of the Real Estate 

21 Settlement Procedures Act of 1974 (12 U.S.C. 2605) is 

22 amended by inserting after paragraph (14) the following: 

23 ‘‘(15) Information relating to the down pay24 ment assistance program established under section 


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1 201 of the American Housing and Economic Mobil2 ity Act of 2018.’’. 

3 (h) INCLUSION OF PROGRAM AS MORTGAGE PROD4 UCT.—Section 203(f)(1) of the National Housing Act (12 

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

6 the down payment assistance program established under 

7 section 201 of the American Housing and Economic Mo8 bility Act of 2018’’ after ‘‘mortgage products,’’. 

9 SEC. 202. FORMULA GRANT PROGRAM FOR COMMUNITIES 

10 THAT HAVE NOT RECOVERED FROM THE FI11 NANCIAL CRISIS. 

12 (a) ESTABLISHMENT.—The Secretary of Housing 

13 and Urban Development shall establish a formula grant 

14 program to provide funding to States to assist borrowers 

15 with negative equity in their primary residence through— 

16 (1) loan modifications or loan refinancing pro17 grams that provide principal reduction; 

18 (2) programs to purchase or rehabilitate vacant 

19 land and foreclosed homes to enhance neighborhood 

20 property values; and 

21 (3) loan programs to help underwater borrowers 

22 rehabilitate or conduct maintenance on their homes. 

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

24 Urban Development shall distribute amounts under this 


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1 section based on the number of borrowers in the State 

2 with a primary residence with negative equity. 

3 (c) AUTHORIZATION OF APPROPRIATIONS.—There is 

4 authorized to be appropriated to carry out this section 

5 $2,000,000,000 for fiscal year 2019. 

6 SEC. 203. STRENGTHENING THE COMMUNITY REINVEST7 MENT ACT OF 1977. 

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

9 ‘‘Community Reinvestment Reform Act of 2018’’. 

10 (b) AMENDMENTS TO THE COMMUNITY REINVEST11 MENT ACT OF 1977.—The Community Reinvestment Act 

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

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

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

15 ‘‘SEC. 802. FINDINGS AND PURPOSE. 

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

17 ‘‘(1) regulated financial institutions are re18 quired by law to demonstrate that they serve the 

19 convenience and needs of the communities in which 

20 they are chartered or do business, in particular low21 and moderate-income communities; 

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

23 include the need for credit services, deposit services, 

24 transaction services, other financial services, and 

25 community development loans and investments; and 


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1 ‘‘(3) regulated financial institutions have a con2 tinuing and affirmative obligation to meet the credit 

3 or other financial needs of the local communities in 

4 which they are chartered or do business. 

5 ‘‘(b) PURPOSE.—It is the purpose of this title to re6 quire each appropriate Federal financial supervisory agen7 cy to use its authority when examining regulated financial 

8 institutions to ensure that those institutions meet the 

9 credit or other financial needs of the local communities 

10 in which they are chartered or do business consistent with 

11 the safe and sound operation of those institutions. 

12 ‘‘SEC. 803. DEFINITIONS. 

13 ‘‘In this title: 

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

15 The term ‘application for a deposit facility’ means 

16 an application to the appropriate Federal financial 

17 supervisory agency otherwise required under Federal 

18 law or regulations thereunder for— 

19 ‘‘(A) a charter for a national bank or Fed20 eral savings and loan association; 

21 ‘‘(B) deposit insurance in connection with 

22 a newly chartered State bank, savings bank, 

23 savings and loan association, or similar institu24 tion; 


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1 ‘‘(C) the establishment of a domestic 

2 branch or other facility with the ability to ac3 cept deposits of a regulated financial institu4 tion; 

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

6 branch office of a regulated financial institu7 tion; 

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

9 the acquisition of the assets, or the assumption 

10 of the liabilities of a regulated financial institu11 tion requiring approval under section 18(c) of 

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

13 1828(c)); or 

14 ‘‘(F) the acquisition of shares in, or the as15 sets of, a regulated financial institution requir16 ing approval under section 3 of the Bank Hold17 ing Company Act of 1956 (12 U.S.C. 1842). 

18 ‘‘(2) APPROPRIATE FEDERAL BANKING AGEN19 CY.—The term ‘appropriate Federal banking agency’ 

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

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

22 ‘‘(3) APPROPRIATE FEDERAL FINANCIAL SU23 PERVISORY AGENCY.—The term ‘appropriate Fed24 eral financial supervisory agency’ means— 


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1 ‘‘(A) the appropriate Federal banking 

2 agency with respect to depository institutions 

3 and depository institution holding companies; 

4 ‘‘(B) the Bureau of Consumer Financial 

5 Protection with respect to any covered person 

6 supervised by the Bureau pursuant to section 

7 1024 of the Dodd-Frank Wall Street Reform 

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

9 5514); and 

10 ‘‘(C) the National Credit Union Adminis11 tration with respect to credit unions that are 

12 not designated as low-income credit unions. 

13 ‘‘(4) ASSESSMENT AREA.—The term ‘assess14 ment area’ means, with respect to a regulated finan15 cial institution, each community, including a State, 

16 metropolitan area, and urban or rural county, in 

17 which the institution— 

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

19 automated teller machines, or retail offices; 

20 ‘‘(B) is represented by an agent; 

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

22 or other products relative to the total number 

23 of loans or other products made by the institu24 tion; 


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

2 of the loans of the institution; or 

3 ‘‘(E) has conducted not less than 75 per4 cent of the business of the institution. 

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

6 ‘community benefits plan’ means a plan that pro7 vides measurable goals for future amounts of safe 

8 and sound loans, investments, services, and other fi9 nancial products for low- and moderate-income com10 munities and other underserved or distressed com11 munities. 

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

13 ‘community development’ means— 

14 ‘‘(A) affordable housing for low- or mod15 erate-income individuals and avoidance of pat16 terns of lending resulting in the loss of afford17 able housing units; 

18 ‘‘(B) community development services in19 cluding counseling and successful mortgage or 

20 loan modifications of delinquent loans; 

21 ‘‘(C) activities that promote integration; 

22 ‘‘(D) activities that promote economic de23 velopment by financing small businesses or 

24 farms that meet the size eligibility requirements 

25 of the development company or small business 


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1 investment company programs under section 

2 121.301 of title 13, Code of Federal Regula3 tions, or any successor thereto, with an empha4 sis on small businesses that have gross annual 

5 revenues of not more than $1,000,000; or 

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

7 ‘‘(i) low- or moderate-income geog8 raphies; 

9 ‘‘(ii) designated disaster areas; 

10 ‘‘(iii) distressed or underserved non11 metropolitan middle-income geographies 

12 designated by the Federal Financial Insti13 tutions Examination Council, based on— 

14 ‘‘(I) rates of poverty, unemploy15 ment, and population loss; or 

16 ‘‘(II) population size, density, 

17 and dispersion, if those activities help 

18 to meet essential community needs, 

19 including the needs of low- and mod20 erate-income individuals; or 

21 ‘‘(iv) other distressed and underserved 

22 communities. 

23 ‘‘(7) DEPOSITORY INSTITUTION; DEPOSITORY

24 INSTITUTION HOLDING COMPANY.—The terms ‘de25 pository institution’ and ‘depository institution holdVerDate Sep 11 2014 21:58 Dec 14, 2018 Jkt 089200 PO 00000 Frm 00022 Fmt 6652 Sfmt 6201 E:\BILLS\H7262.IH H7262

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1 ing company’ have the meanings given those terms 

2 in section 3 of the Federal Deposit Insurance Act 

3 (12 U.S.C. 1813). 

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

5 community’ means all of the assessment areas of a 

6 regulated financial institution. 

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

8 term ‘enumerated consumer laws’ has the meaning 

9 given the term in section 1002 of the Consumer Fi10 nancial Protection Act of 2010 (12 U.S.C. 5481). 

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

12 means a census tract delineated by the Bureau of 

13 the Census in the most recent decennial census. 

14 ‘‘(11) INSURED DEPOSITORY INSTITUTION.— 

15 The term ‘insured depository institution’ has the 

16 meaning given the term in section 3 of the Federal 

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

18 ‘‘(12) OTHER DISTRESSED OR UNDERSERVED

19 COMMUNITY.—The term ‘other distressed or under20 served community’ means an area that, according to 

21 a periodic review and data analysis by the appro22 priate Federal financial supervisory agencies on an 

23 interagency basis through the Federal Financial In24 stitutions Examination Council, is experiencing ecoVerDate Sep 11 2014 21:58 Dec 14, 2018 Jkt 089200 PO 00000 Frm 00023 Fmt 6652 Sfmt 6201 E:\BILLS\H7262.IH H7262

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1 nomic hardship or is underserved by financial insti2 tutions. 

3 ‘‘(13) REGULATED FINANCIAL INSTITUTION.— 

4 The term ‘regulated financial institution’ means— 

5 ‘‘(A) an insured depository institution; 

6 ‘‘(B) a depository institution holding com7 pany; 

8 ‘‘(C) a credit union, other than a low-in9 come credit union; and 

10 ‘‘(D) a U.S. nonbank mortgage originator. 

11 ‘‘(14) U.S. NONBANK MORTGAGE ORIGI12 NATOR.—The term ‘U.S. nonbank mortgage origi13 nator’ means a covered person subject to section 

14 1024 of the Dodd-Frank Wall Street Reform and 

15 Consumer Protection Act (12 U.S.C. 5514) that of16 fers or provides— 

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

18 estate for use by consumers primarily for per19 sonal, family, or household purposes; or 

20 ‘‘(B) loan modification or foreclosure relief 

21 services in connection with a loan described in 

22 subparagraph (A).’’; 

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

24 (A) by redesignating subsections (c) and 

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


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

2 inserting the following: 

3 ‘‘(a) DEPOSITORY INSTITUTIONS AND BANK HOLD4 ING COMPANIES.—In connection with its examination of 

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

6 nonbank mortgage originator, the appropriate Federal fi7 nancial supervisory agency shall perform the following: 

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

9 meeting the credit or other financial needs of its en10 tire community, in particular low- and moderate-in11 come people and communities, and distressed or un12 derserved communities, consistent with the safe and 

13 sound operation of the institution. 

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

15 activities in meeting the credit or other financial 

16 needs of the assessment areas of the institution, con17 sistent with the safe and sound operation of the in18 stitution: 

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

20 business, consumer, and other lending and fi21 nancial products, that responds to credit needs 

22 or other financial needs. 

23 ‘‘(B) Community development lending and 

24 investments, which may include a consideration 

25 of— 


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

2 efforts by the institution to assist existing 

3 low- and moderate-income residents to re4 main in affordable housing in their com5 munity; and 

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

7 institution that result in the construction, 

8 rehabilitation, or preservation of affordable 

9 housing units. 

10 ‘‘(C) Retail financial services and commu11 nity development services. 

12 ‘‘(3) With respect to its evaluation of an appli13 cation for a deposit facility by the institution— 

14 ‘‘(A) consider the record described in para15 graph (1), the overall rating of the institution 

16 under this section, and any improvement plans 

17 submitted pursuant to this section; 

18 ‘‘(B) provide an opportunity for public 

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

20 ‘‘(C) consider changes in the community 

21 reinvestment performance of the institution 

22 since the most recent rating under this section 

23 by the appropriate Federal financial supervisory 

24 agency; and 

25 ‘‘(D) require— 


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

2 including a community benefits plan with 

3 measurable goals regarding increasing re4 sponsible lending and other financial prod5 ucts; 

6 ‘‘(ii) that the institution consult with 

7 community-based organizations and other 

8 community stakeholders in developing the 

9 community benefits plan; and 

10 ‘‘(iii) a public hearing for any institu11 tion that has a received a ‘need-to-improve’ 

12 or ‘sufficient’ grade in any individual as13 sessment area during the most recent ex14 amination. 

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

16 connection with its examination of a U.S. nonbank mort17 gage originator, the appropriate Federal financial super18 visory agency shall perform the following: 

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

20 mortgage originator in meeting the credit or other 

21 financial needs of its entire community, in particular 

22 low-income and moderate-income people and commu23 nities, consistent with the safe and sound operation 

24 of the U.S. nonbank mortgage originator. 


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1 ‘‘(2) Assess, as appropriate, the following activi2 ties in the assessment areas of the U.S. nonbank 

3 mortgage originator: 

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

5 ‘‘(B) Community development services. 

6 ‘‘(C) Community development lending and 

7 investments, which may include a consideration 

8 of— 

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

10 efforts by the institution to assist existing 

11 low- and moderate-income residents to re12 main in affordable housing in their com13 munity; 

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

15 institution that result in the construction, 

16 rehabilitation or preservation of affordable 

17 housing units; and 

18 ‘‘(iii) investments in or loans to com19 munity development financial institutions 

20 (as defined in section 103 of the Commu21 nity Development Banking and Financial 

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

23 4702)), community development corpora24 tions (as defined in section 613 of the 

25 Community Economic Development Act of 


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1 1981 (42 U.S.C. 9802)), and other non2 profit organizations serving the housing 

3 and development needs of the community. 

4 ‘‘(3) With respect to its evaluation of an appli5 cation for a deposit facility by the U.S. nonbank 

6 mortgage originator— 

7 ‘‘(A) consider the record described in para8 graph (1), the overall rating of the U.S. 

9 nonbank mortgage originator under this sec10 tion, and any improvement plans submitted 

11 pursuant to this section; 

12 ‘‘(B) provide an opportunity for public 

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

14 ‘‘(C) consider changes in the community 

15 reinvestment performance of the U.S. nonbank 

16 mortgage originator since the most recent rat17 ing under this section by the appropriate Fed18 eral financial supervisory agency; and 

19 ‘‘(D) require— 

20 ‘‘(i) a demonstration that granting the 

21 application for a deposit facility is in the 

22 public interest, which shall include a sub23 mission of a community benefits plan by 

24 the U.S. nonbank mortgage originator to 


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1 the appropriate Federal financial super2 visory agency; 

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

4 originator consult with community-based 

5 organizations and other community stake6 holders in developing the community bene7 fits plan; and 

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

9 nonbank mortgage originator that has a 

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

11 grade in any individual assessment area 

12 during the most recent examination. 

13 ‘‘(c) REQUIREMENTS.— 

14 ‘‘(1) IN GENERAL.—In connection with its ex15 amination of a regulated financial institution under 

16 subsection (a) or (b), the appropriate Federal finan17 cial supervisory agency shall— 

18 ‘‘(A) consider public comments received by 

19 the appropriate Federal financial supervisory 

20 agency regarding the record of the institution in 

21 meeting the credit or other financial needs of 

22 its entire community, including low- and mod23 erate-income communities; and 

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

25 institution that receives a rating of ‘sufficient’ 


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1 or lower on the written evaluation of the insti2 tution, or such a rating in any individual as3 sessment area, and require the improvement 

4 plan to result in the reasonable likelihood that 

5 the institution will obtain a rating of at least 

6 ‘satisfactory record of meeting community cred7 it or other financial needs’ in the relevant meas8 ure on the next examination. 

9 ‘‘(2) IMPROVEMENT PLAN.— 

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

11 institution that is required to submit an im12 provement plan required under paragraph 

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

14 appropriate Federal financial supervisory agen15 cy not later than 90 days after receiving notice 

16 that the regulated financial institution is re17 quired to submit the plan. 

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

19 an improvement plan of a regulated financial 

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

21 the appropriate Federal financial supervisory 

22 agency shall— 

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

24 public for review and comment for a period 

25 of not less than 60 days; and 


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1 ‘‘(ii) require the regulated financial 

2 institution to revise, as appropriate, the 

3 improvement plan in response to the public 

4 comments received under the public review 

5 and comment period described in clause (i) 

6 and submit the plan to the appropriate 

7 Federal financial supervisory agency not 

8 later than 60 days after the end of that pe9 riod. 

10 ‘‘(3) EXAMINATION OF CERTAIN REGULATED

11 FINANCIAL INSTITUTIONS.—In the case of a regu12 lated financial institution whose lending or other 

13 business is not clustered in geographical areas and 

14 is thinly dispersed across the country, the institution 

15 shall— 

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

17 (b), as applicable— 

18 ‘‘(i) by considering the effectiveness of 

19 the institution in serving customers or bor20 rowers, with a special emphasis on low21 and moderate-income individuals across the 

22 country regardless of where the individuals 

23 reside; and 

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1 cial supervisory agencies to clarify when 

2 lending or other business is dispersed 

3 across the country and not clustered in 

4 distinct geographical areas, which may in5 clude low levels of lending or other finan6 cial products across States or other areas; 

7 and 

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

9 underserved communities. 

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

11 pursuant to an order by an court or administrative body 

12 or a settlement with a government agency or a private 

13 party shall not be considered in an assessment conducted 

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

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

16 bank holding company under this section shall incorporate 

17 evaluations of subsidiary regulated financial institutions 

18 made by each subsidiary’s appropriate Federal financial 

19 supervisory agency, if applicable.’’; 

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

21 (i) by striking paragraph (2); and 

22 (ii) by redesignating paragraph (3) as 

23 paragraph (2); and 


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

2 by striking ‘‘subsection (a)’’ and inserting ‘‘sub3 sections (a) and (b)’’; 

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

5 (A) in subsection (a)— 

6 (i) by striking ‘‘an insured depository 

7 institution’’ and inserting ‘‘a regulated fi8 nancial institution’’; and 

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

10 ‘‘credit’’; 

11 (B) in subsection (b)— 

12 (i) in paragraph (1)— 

13 (I) in subparagraph (A)— 

14 (aa) in clause (ii), by strik15 ing ‘‘and’’ at the end; 

16 (bb) by redesignating clause 

17 (iii) as clause (iv); and 

18 (cc) by inserting after clause 

19 (ii) the following: 

20 ‘‘(iii) disclose whether the institution en21 gaged in acts or practices that the Bureau of 

22 Consumer Financial Protection has determined, 

23 and has publicly disclosed, violate the enumer24 ated consumer laws; and’’; and 


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1 (II) by striking subparagraph (B) 

2 and inserting the following: 

3 ‘‘(B) METROPOLITAN AREA DISTINCTIONS.— 

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

5 of subparagraph (A) shall be presented separately 

6 for each assessment area. 

7 ‘‘(C) TREATMENT WITH RESPECT TO VIOLA8 TIONS OF ENUMERATED CONSUMER LAWS.—If a 

9 regulated financial institution has engaged in acts or 

10 practices that the appropriate Federal financial su11 pervisory agency has determined to be unfair, decep12 tive, or abusive or acts or practices that violate enu13 merated consumer laws intended to ensure the fair, 

14 equitable, and nondiscriminatory access to credit for 

15 individuals and communities that are enforced by 

16 the Bureau of Consumer Financial Protection or 

17 other Federal or State agencies, the written evalua18 tion shall be negatively influenced in a manner com19 mensurate with the extent of the harm suffered by 

20 those individuals and communities.’’; 

21 (ii) in paragraph (2)— 

22 (I) by striking subparagraphs 

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

24 the following: 


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1 ‘‘(A) ‘Outstanding record of meeting com2 munity credit or other financial needs’. 

3 ‘‘(B) ‘Satisfactory record of meeting com4 munity credit or other financial needs’. 

5 ‘‘(C) ‘Sufficient record of meeting commu6 nity credit or other financial needs’. 

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

8 community credit or other financial needs’. 

9 ‘‘(E) ‘Substantial noncompliance in meet10 ing community credit or other financial 

11 needs’.’’; and 

12 (iii) by inserting after the flush text 

13 following paragraph (2) the following: 

14 ‘‘(3) ADDITIONAL AUTHORITY.—The appro15 priate Federal financial supervisory agencies may— 

16 ‘‘(A) alter the ratings under this sub17 section to change or include additional ratings; 

18 and 

19 ‘‘(B) develop an accompanying point sys20 tem that includes ranges for each rating cat21 egory under paragraph (2).’’; 

22 (C) by redesignating subsection (e) as sub23 section (g); and 

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

25 following: 


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

2 institution appeals the assigned rating under this section, 

3 the appropriate Federal financial supervisory agency shall 

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

5 appropriate Federal financial supervisory agency.’’; and 

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

7 ‘‘SEC. 810. DATA COLLECTION AND REPORTING REQUIRE8 MENTS. 

9 ‘‘(a) DATA COLLECTION.— 

10 ‘‘(1) SMALL BUSINESS AND SMALL FARM

11 LOANS.—Each regulated financial institution shall 

12 collect and maintain in machine readable form, as 

13 prescribed by the appropriate Federal financial su14 pervisory agency, until the completion of the next ex15 amination under this title, the following data for 

16 each small business or small farm loan originated or 

17 purchased by the regulated financial institution: 

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

19 symbol that can be used to identify the relevant 

20 loan. 

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

22 ‘‘(C) The loan location. 

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

24 a business or farm with gross annual revenues 

25 of $1,000,000 or less. 


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1 ‘‘(2) CONSUMER LOANS.—Each regulated finan2 cial institution shall collect and maintain in machine 

3 readable form, as prescribed by the appropriate Fed4 eral financial supervisory agency, data for consumer 

5 loans originated or purchased by the regulated fi6 nancial institution, including motor vehicle loans, 

7 credit cards, home equity loans, and other secured 

8 or unsecured loans. The regulated financial institu9 tion shall maintain data separately for each category 

10 of consumer loan, including the following for each 

11 loan: 

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

13 symbol that can be used to identify the relevant 

14 loan. 

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

16 purchase. 

17 ‘‘(C) The loan location. 

18 ‘‘(D) The gross annual income of the bor19 rower that the regulated financial institution 

20 considered in making its credit decision. 

21 ‘‘(3) COMMUNITY DEVELOPMENT LOANS AND

22 INVESTMENTS.—Each regulated financial institution 

23 shall collect and maintain in machine readable form, 

24 as prescribed by the appropriate Federal financial 

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1 munity development lending and investments, includ2 ing data regarding financing affordable housing, 

3 small business development, and economic develop4 ment. 

5 ‘‘(4) ASSESSMENT AREA DATA.—Each regu6 lated financial institution shall collect and report to 

7 the appropriate Federal financial supervisory agency 

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

9 area showing the geographies within the area. 

10 ‘‘(5) DEPOSITS.—The appropriate Federal Su11 pervisory agency shall collect data from regulated fi12 nancial institutions that reflects how many of the 

13 customers of those institutions are low- and mod14 erate-income customers and the services that are 

15 used by those customers. 

16 ‘‘(b) CRA SMALL BUSINESS DISCLOSURE STATE17 MENT.—The appropriate Federal financial supervisory 

18 agency shall prepare annually for each regulated financial 

19 institution that reports data pursuant to this section a 

20 statement to be known as the ‘CRA Small Business Dis21 closure Statement’ that contains, on a State-by-State 

22 basis, the following: 

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

24 area smaller than a county) with a population of 

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1 nancial institution reported a small business or small 

2 farm loan: 

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

4 business and small farm loans reported as origi5 nated or purchased located in low-, moderate-, 

6 middle-, and upper-income geographies. 

7 ‘‘(B) A list grouping each geography ac8 cording to whether the geography is low-, mod9 erate-, middle-, or upper-income. 

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

11 which the regulated financial institution re12 ported a small business or small farm loan. 

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

14 business and small farm loans to businesses 

15 and farms with gross annual revenues of 

16 $1,000,000 or less. 

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

18 area smaller than a county) with a population in ex19 cess of 500,000 in which the regulated financial in20 stitution reported a small business or small farm 

21 loan: 

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

23 business and small farm loans reported as origi24 nated or purchased located in geographies with 

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1 come of less than 10 percent, 10 or more but 

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

3 30 percent, 30 or more but less than 40 per4 cent, 40 or more but less than 50 percent, 50 

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

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

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

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

9 100 or more but less than 110 percent, 110 or 

10 more but less than 120 percent, and 120 per11 cent or more. 

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

13 county or assessment area according to whether 

14 the median income in the geography relative to 

15 the area median income is less than 10 percent, 

16 10 or more but less than 20 percent, 20 or 

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

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

19 50 percent, 50 or more but less than 60 per20 cent, 60 or more but less than 70 percent, 70 

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

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

23 than 100 percent, 100 or more but less than 

24 110 percent, 110 or more but less than 120 

25 percent, and 120 percent or more. 


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

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

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

5 business and small farm loans to businesses 

6 and farms with gross annual revenues of 

7 $1,000,000 or less. 

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

9 and small farm loans located inside each assessment 

10 area reported by the regulated financial institution 

11 and the number and amount of small business and 

12 small farm loans located outside the assessment 

13 areas reported by the regulated financial institution. 

14 ‘‘(4) The number and amount of community de15 velopment loans reported as originated or purchased. 

16 ‘‘(c) AGGREGATE DISCLOSURE STATEMENTS.— 

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

18 financial supervisory agency shall prepare annually, 

19 for each county and for each assessment area small20 er than a county, an aggregate disclosure statement 

21 of small business, small farm, and consumer lending 

22 by all regulated financial institutions subject to re23 porting under this section, which shall indicate, for 

24 each geography, the number and amount of all small 

25 business, small farm, and consumer loans originated 


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1 or purchased by reporting regulated financial insti2 tutions. 

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

5 form of the disclosure statement prepared under 

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

8 the competitive position of a regulated financial in9 stitution. 

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

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

13 agencies, shall implement a system— 

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

15 a searchable format the data maintained under 

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

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

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

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

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


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1 (c) AMENDMENT TO THE BANK HOLDING COMPANY

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

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

4 to read as follows: 

5 ‘‘(6) NOTICE AND OPPORTUNITY FOR COMMENT

6 REQUIRED.— 

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

8 company shall directly or indirectly acquire, and 

9 no company that becomes a financial holding 

10 company shall directly or indirectly acquire con11 trol of, any company in the United States, in12 cluding through merger, consolidation, or other 

13 type of business combination, that is engaged in 

14 activities permitted under this subsection or 

15 subsection (n) or (o), unless— 

16 ‘‘(i) the holding company has provided 

17 notice to the Board, not later than 60 days 

18 prior to the proposed acquisition or prior 

19 to becoming a financial holding company, 

20 and during that time period, or such 

21 longer time period not exceeding an addi22 tional 60 days, as established by the 

23 Board; 


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1 ‘‘(ii) the Board has provided public 

2 notice and opportunity for comment for 

3 not less than 60 days; and 

4 ‘‘(iii) the Board has not issued a no5 tice disapproving the proposed acquisition 

6 or retention. 

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

8 reviewing any prior notice filed under this para9 graph, the Board shall— 

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

11 financial holding company under the Com12 munity Reinvestment Act of 1977 (12 

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

14 plans submitted pursuant to that Act; 

15 ‘‘(ii) provide opportunity for public 

16 comment for a period of not less than 60 

17 days; 

18 ‘‘(iii) consider changes in the commu19 nity reinvestment performance of the fi20 nancial holding company since the last rat21 ing under the Community Reinvestment 

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

23 the appropriate Federal financial super24 visory agency; and 

25 ‘‘(iv) require— 


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1 ‘‘(I) a demonstration that grant2 ing the application for a deposit facil3 ity is in the public interest, which 

4 shall include submission to the appro5 priate Federal financial supervisory 

6 agency of a community benefits plan; 

7 ‘‘(II) that the institution consult 

8 with community-based organizations 

9 and other community stakeholders in 

10 developing the community benefits 

11 plan; and 

12 ‘‘(III) a public hearing for any 

13 bank that has received a ‘need-to-im14 prove’ or ‘sufficient’ grade in any as15 sessment area during the last exam16 ination under the Community Rein17 vestment Act of 1977 (12 U.S.C. 

18 2901 et seq.).’’. 

19 (d) TECHNICAL AND CONFORMING AMENDMENT.— 

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

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

22 804(c) of the Community Reinvestment Act of 1977 (12 

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

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

25 2903(f))’’. 


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1 TITLE III—REMOVING BARRIERS 

2 THAT ISOLATE COMMUNITIES 

3 SEC. 301. EXPANDING RIGHTS UNDER THE FAIR HOUSING 

4 ACT. 

5 (a) IN GENERAL.—The Fair Housing Act (42 U.S.C. 

6 3601 et seq.) is amended— 

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

8 at the end the following: 

9 ‘‘(p) ‘Gender identity’ means the gender-related iden10 tity, appearance, or mannerisms or other gender-related 

11 characteristics of an individual, with or without regard to 

12 the individual’s designated sex at birth. 

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

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

15 or any successor regulation. 

16 ‘‘(r) ‘Sexual orientation’ means homosexuality, het17 erosexuality, or bisexuality. 

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

19 there is a reasonable expectation that the income will con20 tinue from— 

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

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

23 grant, loan or rental assistance program, including 

24 low-income housing assistance certificates and 


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1 vouchers issued under the United States Housing 

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

3 ‘‘(3) a gift, an inheritance, a pension, an annu4 ity, alimony, child support, or other consideration or 

5 benefit; or 

6 ‘‘(4) the sale or pledge of property or an inter7 est in property.’’; 

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

9 (A) by inserting ‘‘actual or perceived’’ be10 fore ‘‘race, color’’ each place that term appears; 

11 and 

12 (B) by inserting ‘‘sexual orientation, gen13 der identity, marital status, source of income,’’ 

14 after ‘‘sex,’’ each place that term appears; 

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

16 (A) by inserting ‘‘actual or perceived’’ be17 fore ‘‘race, color’’ each place that term appears; 

18 and 

19 (B) by inserting ‘‘sexual orientation, gen20 der identity, marital status, source of income,’’ 

21 after ‘‘sex,’’ each place that term appears; 

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

23 (A) by inserting ‘‘actual or perceived’’ be24 fore ‘‘race, color’’; and 


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

3 after ‘‘sex,’’; and 

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

5 at the end the following: 

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

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

8 reasonable and non-discriminatory manner, the ability of 

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

10 (b) PREVENTION OF INTIMIDATION.—Section 901 of 

11 the Civil Rights Act of 1968 (42 U.S.C. 3631) is amend12 ed— 

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

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

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

16 in section 802), gender identity (as defined in sec17 tion 802), marital status (as defined in section 802), 

18 source of income (as defined in section 802),’’ after 

19 ‘‘sex,’’ each place that term appears. 

20 SEC. 302. IMPROVING OUTCOMES IN HOUSING ASSISTANCE 

21 PROGRAMS. 

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

23 the Native American Housing Assistance and Self-Deter24 mination Act of 1996 (25 U.S.C. 4181) is amended by 

25 adding at the end the following: 


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

2 not apply with respect to tenant-based assistance provided 

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

4 1937 (42 U.S.C. 1437f(o)).’’. 

5 (b) SUPPLEMENTAL ADMINISTRATIVE FEE.—Section 

6 8(q)(2)(B) of the United States Housing Act of 1937 (42 

7 U.S.C. 1437f(q)(2)(B)) is amended by inserting ‘‘, includ8 ing the cost of assisting families with children that move 

9 to lower poverty, higher opportunity neighborhoods (as de10 termined by the Secretary based on objective, evidence11 based criteria)’’ after ‘‘programs’’. 

12 (c) REGIONAL PLANNING TO INCREASE ACCESS TO

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

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

15 is amended by adding at the end the following: 

16 ‘‘(21) INCREASE ACCESS TO HIGHER OPPOR17 TUNITY AREAS.— 

18 ‘‘(A) LOCATION ANALYSIS.— 

19 ‘‘(i) IN GENERAL.—A public housing 

20 agency that administers the program 

21 under this subsection in a metropolitan 

22 area shall— 

23 ‘‘(I) analyze the locations where 

24 the participants of the program of the 

25 public housing agency live; and 


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1 ‘‘(II) based on the analysis de2 scribed in subclause (I), establish poli3 cies and practices to reduce disparities 

4 and barriers to access to locations 

5 throughout the metropolitan area that 

6 evidence indicates are more likely to 

7 improve outcomes for children or 

8 adults. 

9 ‘‘(ii) CONSIDERATIONS.—The location 

10 analysis required under this subparagraph 

11 shall— 

12 ‘‘(I) consider separately the loca13 tions of families with children, house14 holds that include a person with dis15 abilities, and other groups protected 

16 under the Fair Housing Act (42 

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

18 ‘‘(II) include an analysis of the 

19 locations in relation to dwelling units 

20 with rents that are potentially afford21 able to voucher holders and the likely 

22 impact of key neighborhood attributes 

23 on their well-being and long-term suc24 cess, based on Federal and available 

25 local data. 


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1 ‘‘(iii) MAPPING TOOLS.—The Sec2 retary shall— 

3 ‘‘(I) provide mapping tools and 

4 other information necessary for a pub5 lic housing agency to perform the lo6 cation analysis under this subpara7 graph using the demographic data on 

8 participating families submitted to the 

9 Secretary under part 908 of title 24, 

10 Code of Federal Regulations, or any 

11 successor regulation; 

12 ‘‘(II) publish a notice in the Fed13 eral Register, subject to public com14 ment, that specifies the data sources 

15 and definitions that will be incor16 porated in each mapping tool required 

17 under subclause (I); and 

18 ‘‘(III) update the notice required 

19 under subclause (II) as needed based 

20 on changes in the availability of rel21 evant data or evidence of neighbor22 hood attributes likely to impact the 

23 well-being and long-term success of 

24 participants in the program under this 

25 subsection. 


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1 ‘‘(iv) FREQUENCY AND AVAIL2 ABILITY.—The location analysis required 

3 under this subparagraph shall— 

4 ‘‘(I) be performed by each public 

5 housing agency described in clause (i) 

6 not less frequently than once every 5 

7 years; 

8 ‘‘(II) be performed by all public 

9 housing agencies in a metropolitan 

10 area in the same year, as determined 

11 by the Secretary; and 

12 ‘‘(III) be made available to the 

13 public in a manner that protects the 

14 privacy of program participants. 

15 ‘‘(B) REGIONAL POLICIES TO INCREASE

16 ACCESS TO HIGHER OPPORTUNITY NEIGHBOR17 HOODS.—Each public housing agency described 

18 in subparagraph (A)(i) shall— 

19 ‘‘(i) consult with other such public 

20 housing agencies in the same metropolitan 

21 area, or smaller regional area approved by 

22 the Secretary, about the possible barriers 

23 and other reasons for the disparities iden24 tified in the location analysis required 

25 under subparagraph (A); 


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1 ‘‘(ii) identify policies or practices that 

2 those public housing agencies could adopt 

3 individually or in collaboration, or other 

4 strategies that recipients of grants or other 

5 funding from the Secretary could adopt, to 

6 reduce the barriers and disparities and in7 crease the share of families with children 

8 and other demographic groups using 

9 vouchers in higher-opportunity neighbor10 hoods in the metropolitan area or region; 

11 and 

12 ‘‘(iii) include in the administrative 

13 plan required under section 982.54 of title 

14 24, Code of Federal Regulations, or any 

15 successor regulation, the policies that the 

16 public housing agency has adopted under 

17 this paragraph. 

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

19 include public housing agency performance in 

20 achieving the goal described in subparagraph 

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

22 performance in managing the program under 

23 this subsection required under part 985 of title 

24 24, Code of Federal Regulations, or any suc25 cessor regulation.’’. 


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1 (d) REQUIRED REGULATORY CHANGES TO PUBLIC

2 HOUSING AGENCY CONSORTIA.— 

3 (1) DEFINITIONS.—In this subsection: 

4 (A) MOVING TO WORK DEMONSTRATION

5 PROGRAM.—The term ‘‘Moving to Work dem6 onstration program’’ means the program estab7 lished under section 204 of the Departments of 

8 Veterans Affairs and Housing and Urban De9 velopment, and Independent Agencies Appro10 priations Act, 1996 (Public Law 104–134; 110 

11 Stat. 1321–281). 

12 (B) PUBLIC HOUSING AGENCY.—The term 

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

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

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

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

17 after the date of enactment of this Act, the Sec18 retary of Housing and Urban Development shall es19 tablish policies and procedures that— 

20 (A) enable public housing agencies that 

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

22 of the United States Housing Act of 1937 (42 

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

24 agencies participating in the Moving to Work 

25 demonstration program— 


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1 (i) to consolidate their funding con2 tracts for assistance provided under section 

3 8(o) of such Act (42 U.S.C. 1437f(o)) into 

4 a single contract; 

5 (ii) to consolidate their funding con6 tracts for assistance provided under sub7 sections (d) and (e) of section 9 of such 

8 Act 42 U.S.C. 1437g); or 

9 (iii) to exercise the consolidation op10 tions under each of clauses (i) and (ii); and 

11 (B) enable public housing agencies to form 

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

13 U.S.C. 1437k(a)) that consolidate administra14 tion of certain aspects of their housing pro15 grams to increase access to higher-opportunity 

16 areas or for other purposes, subject to such re17 quirements as the Secretary may establish. 

18 (3) MOVING TO WORK AGENCIES.—Any flexi19 bility or waiver applicable to the Moving to Work 

20 demonstration program shall not apply to any activi21 ties or funds administered through a partial con22 sortia formed under paragraph (2)(B) by 1 or more 

23 public housing agencies participating in the Moving 

24 to Work demonstration program. 


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1 TITLE IV—ESTATE TAX REFORM 

2 SEC. 401. AMENDMENT TO INTERNAL REVENUE CODE OF 

3 1986. 

4 Except as otherwise expressly provided, whenever in 

5 this title an amendment or repeal is expressed in terms 

6 of an amendment to, or repeal of, a section or other provi7 sion, the reference shall be considered to be made to a 

8 section or other provision of the Internal Revenue Code 

9 of 1986. 

10 SEC. 402. RATE ADJUSTMENT. 

11 (a) INCREASE IN MAXIMUM ESTATE TAX RATES.— 

12 The table contained in section 2001(c) is amended by 

13 striking the last row and inserting the following: 

Over $1,000,000 ............................ $345,800, plus 55 percent of the excess of such amount over 

$1,000,000. 

Over $13,000,000 .......................... $6,945,800, plus 60 percent of the 

excess of such amount over 

$13,000,000. 

Over $93,000,000 .......................... $54,945,800, plus 65 percent of the 

excess of such amount over 

$93,000,000. 

14 (b) REDUCTION OF BASIC EXCLUSION AMOUNT.— 

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

16 follows: 

17 ‘‘(3) BASIC EXCLUSION AMOUNT.—For pur18 poses of this subsection, the basic exclusion amount 

19 is $3,500,000.’’. 

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

21 2001 is amended— 


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

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

3 (2) by adding at the end the following new sub4 section: 

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

6 ‘‘(1) IN GENERAL.—In the case of a taxable es7 tate for which the applicable amount is in excess of 

8 $1,000,000,000, the tax determined under sub9 section (b) shall be increased by an amount equal to 

10 10 percent of such applicable amount. 

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

12 this subsection, the applicable amount shall be equal 

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

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

15 taxable estate.’’. 

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

17 GRANTOR RETAINED ANNUITY TRUSTS. 

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

19 amended— 

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

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

22 and by moving such subparagraphs (as so redesig23 nated) 2 ems to the right; 

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

25 the following: 


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

2 (3) by striking ‘‘paragraph (1) or (2)’’ in para3 graph (1)(C) (as so redesignated) and inserting 

4 ‘‘subparagraph (A) or (B)’’; and 

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

6 paragraph: 

7 ‘‘(2) ADDITIONAL REQUIREMENTS WITH RE8 SPECT TO GRANTOR RETAINED ANNUITIES.—For 

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

10 described in paragraph (1)(A) (determined without 

11 regard to this paragraph) which is retained by the 

12 transferor, such interest shall be treated as de13 scribed in such paragraph only if— 

14 ‘‘(A) the right to receive the fixed amounts 

15 referred to in such paragraph is for a term of 

16 not less than 10 years, 

17 ‘‘(B) such fixed amounts, when determined 

18 on an annual basis, do not decrease relative to 

19 any prior year during the first 10 years of the 

20 term referred to in subparagraph (A), and 

21 ‘‘(C) the remainder interest has a value 

22 equal to or greater than 10 percent of the value 

23 of the assets transferred to the trust, deter24 mined as of the time of the transfer.’’. 


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1 (b) EFFECTIVE DATE.—The amendments made by 

2 this section shall apply to transfers made after the date 

3 of the enactment of this Act. 

4 SEC. 404. CERTAIN TRANSFER TAX RULES APPLICABLE TO 

5 GRANTOR TRUSTS. 

6 (a) IN GENERAL.—Subtitle B is amended by adding 

7 at the end the following new chapter: 

8 ‘‘CHAPTER 16—SPECIAL RULES FOR 

9 GRANTOR TRUSTS 

‘‘Sec. 2901. Application of transfer taxes. 

10 ‘‘SEC. 2901. APPLICATION OF TRANSFER TAXES. 

11 ‘‘(a) IN GENERAL.—In the case of any portion of a 

12 trust to which this section applies— 

13 ‘‘(1) the value of the gross estate of the de14 ceased deemed owner of such portion shall include 

15 all assets attributable to that portion at the time of 

16 the death of such owner, 

17 ‘‘(2) any distribution from such portion to one 

18 or more beneficiaries during the life of the deemed 

19 owner of such portion shall be treated as a transfer 

20 by gift for purposes of chapter 12, and 

21 ‘‘(3) if at any time during the life of the 

22 deemed owner of such portion, such owner ceases to 

23 be treated as the owner of such portion under sub24 part E of part 1 of subchapter J of chapter 1, all 


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1 assets attributable to such portion at such time shall 

2 be treated for purposes of chapter 12 as a transfer 

3 by gift made by the deemed owner. 

4 ‘‘(b) PORTION OF TRUST TO WHICH SECTION AP5 PLIES.—This section shall apply to— 

6 ‘‘(1) the portion of a trust with respect to 

7 which the grantor is the deemed owner, and 

8 ‘‘(2) the portion of the trust to which a person 

9 who is not the grantor is a deemed owner by reason 

10 of the rules of subpart E of part 1 of subchapter J 

11 of chapter 1, and such deemed owner engages in a 

12 sale, exchange, or comparable transaction with the 

13 trust that is disregarded for purposes of subtitle A. 

14 For purposes of paragraph (2), the portion of the trust 

15 described with respect to a transaction is the portion of 

16 the trust attributable to the property received by the trust 

17 in such transaction, including all retained income there18 from, appreciation thereon, and reinvestments thereof, net 

19 of the amount of consideration received by the deemed 

20 owner in such transaction. 

21 ‘‘(c) EXCEPTIONS.—This section shall not apply to— 

22 ‘‘(1) any trust that is includible in the gross es23 tate of the deemed owner (without regard to sub24 section (a)(1)), and 


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1 ‘‘(2) any other type of trust that the Secretary 

2 determines by regulations or other guidance does not 

3 have as a significant purpose the avoidance of trans4 fer taxes. 

5 ‘‘(d) DEEMED OWNER DEFINED.—For purposes of 

6 this section, the term ‘deemed owner’ means any person 

7 who is treated as the owner of a portion of a trust under 

8 subpart E of part 1 of subchapter J of chapter 1. 

9 ‘‘(e) REDUCTION FOR TAXABLE GIFTS TO TRUST

10 MADE BY OWNER.—The amount to which subsection (a) 

11 applies shall be reduced by the value of any transfer by 

12 gift by the deemed owner to the trust previously taken 

13 into account by the deemed owner under chapter 12. 

14 ‘‘(f) LIABILITY FOR PAYMENT OF TAX.—Any tax im15 posed pursuant to subsection (a) shall be a liability of the 

16 trust.’’. 

17 (b) CLERICAL AMENDMENT.—The table of chapters 

18 for subtitle B is amended by adding at the end the fol19 lowing new item: 

‘‘CHAPTER 16. SPECIAL RULES FOR GRANTOR TRUSTS’’. 

20 (c) EFFECTIVE DATE.—The amendments made by 

21 this section shall apply— 

22 (1) to trusts created on or after the date of the 

23 enactment of this Act; 

24 (2) to any portion of a trust established before 

25 the date of the enactment of this Act which is attribVerDate Sep 11 2014 21:58 Dec 14, 2018 Jkt 089200 PO 00000 Frm 00062 Fmt 6652 Sfmt 6201 E:\BILLS\H7262.IH H7262

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1 utable to a contribution made on or after such date; 

2 and 

3 (3) to any portion of a trust established before 

4 the date of the enactment of this Act to which sec5 tion 2901(a) of the Internal Revenue Code of 1986 

6 (as added by subsection (a)) applies by reason of a 

7 transaction described in section 2901(b)(2) of such 

8 Code on or after such date. 

9 SEC. 405. ELIMINATION OF GENERATION-SKIPPING TRANS10 FER TAX EXEMPTION FOR CERTAIN TRUSTS. 

11 (a) IN GENERAL.—Section 2642 is amended by add12 ing at the end the following new subsection: 

13 ‘‘(h) ELIMINATION OF GST EXEMPTION FOR CER14 TAIN TRUSTS.— 

15 ‘‘(1) IN GENERAL.— 

16 ‘‘(A) TRANSFERS FROM NON-QUALIFYING

17 TRUSTS.—In the case of any generation-skip18 ping transfer made from a trust that is not a 

19 qualifying trust, the inclusion ratio with respect 

20 to any property transferred in such transfer 

21 shall be 1. 

22 ‘‘(B) QUALIFYING TRUST.—For purposes 

23 of this subsection, the term ‘qualifying trust’ 

24 means a trust for which the date of termination 


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1 of such trust is not greater than 50 years after 

2 the date on which such trust is created. 

3 ‘‘(2) TRUSTS CREATED BEFORE DATE OF EN4 ACTMENT.—In the case of any trust created before 

5 the date of the enactment of this subsection, such 

6 trust shall be deemed to be a qualifying trust for a 

7 period of 50 years after the date of the enactment 

8 of this subsection. 

9 ‘‘(3) DATE OF CREATION OF CERTAIN DEEMED

10 SEPARATE TRUSTS.—In the case of any portion of a 

11 trust which is treated as a separate trust under sec12 tion 2654(b)(1), such separate trust shall be treated 

13 as created on the date of the first transfer described 

14 in such section with respect to such separate trust. 

15 ‘‘(4) DATE OF CREATION OF POUR-OVER

16 TRUSTS.—In the case of any generation-skipping 

17 transfer of property which involves the transfer of 

18 property from 1 trust to another trust, the date of 

19 the creation of the transferee trust shall be treated 

20 as being the earlier of— 

21 ‘‘(A) the date of the creation of such trans22 feree trust, or 

23 ‘‘(B) the date of the creation of the trans24 feror trust. 


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1 In the case of multiple transfers to which the pre2 ceding sentence applies, the date of the creation of 

3 the transferor trust shall be determined under the 

4 preceding sentence before the application of the pre5 ceding sentence to determine the date of the creation 

6 of the transferee trust. 

7 ‘‘(5) REGULATIONS.—The Secretary may pre8 scribe such regulations or other guidance as may be 

9 necessary or appropriate to carry out this sub10 section.’’. 

11 (b) EFFECTIVE DATE.—The amendments made by 

12 this section shall take effect on the date of the enactment 

13 of this Act. 

14 SEC. 406. SIMPLIFYING GIFT TAX EXCLUSION FOR ANNUAL 

15 GIFTS. 

16 (a) IN GENERAL.—Paragraph (1) of section 2503(b) 

17 is amended to read as follows: 

18 ‘‘(1) IN GENERAL.— 

19 ‘‘(A) LIMIT PER DONEE.—In the case of 

20 gifts made to any person by the donor during 

21 the calendar year, the first $10,000 of such 

22 gifts to such person shall not, for purposes of 

23 subsection (a), be included in the total amount 

24 of gifts made during such year. 

25 ‘‘(B) CUMULATIVE LIMIT PER DONOR.— 


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1 ‘‘(i) IN GENERAL.—The aggregate 

2 amount excluded under subparagraph (A) 

3 with respect to all transfers described in 

4 clause (ii) made by the donor during the 

5 calendar year shall not exceed twice the 

6 dollar amount in effect under such sub7 paragraph for such calendar year. 

8 ‘‘(ii) TRANSFERS SUBJECT TO LIMITA9 TION.—The transfers described in this 

10 clause are— 

11 ‘‘(I) a transfer in trust, 

12 ‘‘(II) a transfer of an interest in 

13 a passthrough entity, 

14 ‘‘(III) a transfer of an interest 

15 subject to a prohibition on sale, and 

16 ‘‘(IV) any other transfer of prop17 erty that, without regard to with18 drawal, put, or other such rights in 

19 the donee, cannot immediately be liq20 uidated by the donee.’’. 

21 (b) CONFORMING AMENDMENT.—Section 2503 is 

22 amended by striking subsection (c). 

23 (c) REGULATIONS.—The Secretary of the Treasury, 

24 or the Secretary of the Treasury’s delegate, may prescribe 

25 such regulations or other guidance as may be necessary 


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1 or appropriate to carry out the amendments made by this 

2 section. 

3 (d) EFFECTIVE DATE.—The amendments made by 

4 this section shall apply to any calendar year beginning 

5 after the date of the enactment of this Act. 

Æ 


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