I 

117TH CONGRESS 

1ST SESSION H. R. 2768 

To make housing more affordable, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 22, 2021 

Mr. CLEAVER (for himself, Mr. KHANNA, Ms. NORTON, Mr. GARCI ́A of Illinois, Mr. COHEN, Ms. SCHAKOWSKY, Ms. PRESSLEY, Ms. MOORE of Wisconsin, Ms. BONAMICI, and Ms. LEE of California) introduced the following bill; which was referred to the Committee on Financial Services, 

and in addition to the Committees on the Judiciary, Veterans’ Affairs, 

and Ways and Means, 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 2021’’. 

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 


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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 communities formerly segregated by law. 

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. 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 certain 

trusts. 

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

TITLE V—ACCESSIBILITY REQUIREMENTS 

Sec. 501. Accessibility requirements. 

1 TITLE I—MAKING HOUSING 

2 MORE AFFORDABLE 

3 SEC. 101. LOCAL HOUSING INNOVATION GRANTS. 

4 (a) DEFINITIONS.—In this section: 

5 (1) ELEMENTARY SCHOOL; SECONDARY

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

8 in section 8101 of the Elementary and Secondary 

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


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1 (2) ELIGIBLE ENTITY.—The term ‘‘eligible enti2 ty’’ means— 

3 (A) a State; or 

4 (B) a unit of general local government. 

5 (3) INSTITUTION OF HIGHER EDUCATION.—The 

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

7 meaning given the term in section 101 of the Higher 

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

9 (4) METROPOLITAN AREA; STATE; UNIT OF

10 GENERAL LOCAL GOVERNMENT.—The terms ‘‘metro11 politan area’’, ‘‘State’’, and ‘‘unit of general local 

12 government’’ have the meanings given those terms in 

13 section 102 of the Housing and Community Devel14 opment Act of 1974 (42 U.S.C. 5302). 

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

16 the Secretary of Housing and Urban Development. 

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

18 the date of enactment of this Act, the Secretary shall es19 tablish a program to make grants to eligible entities 

20 that— 

21 (1) reform local land use restrictions to bring 

22 down the costs of producing affordable housing; and 

23 (2) remove unnecessary barriers to building af24 fordable units in their communities. 


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1 (c) ELIGIBLE ACTIVITIES.—An eligible entity receiv2 ing a grant under this section may use funds to— 

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

4 section 105 of the Housing and Community Devel5 opment Act of 1974 (42 U.S.C. 5305); 

6 (2) carry out any of the activities permitted 

7 under the program for national infrastructure in8 vestments (commonly known as the ‘‘Better Utilizing 

9 Investments to Leverage Development (BUILD) dis10 cretionary grant program’’) authorized under the 

11 heading ‘‘NATIONAL INFRASTRUCTURE INVEST12 MENTS’’ under the heading ‘‘OFFICE OF THE SEC13 RETARY’’ in title I of division L of the Consolidated 

14 Appropriations Act, 2018 (Public Law 115–141; 

15 132 Stat. 972) or a subsequent appropriations Act; 

16 or 

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

18 by public elementary schools, public secondary 

19 schools, and public institutions of higher education, 

20 including modernization, renovation, and repairs 

21 that— 

22 (A) promote physical, sensory, and envi23 ronmental accessibility; and 

24 (B) are consistent with a recognized green 

25 building rating system. 


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1 (d) APPLICATION.— 

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

3 grant under this section shall submit to the Sec4 retary an application that demonstrates that the eli5 gible entity has carried out, or is in the process of 

6 carrying out, initiatives that facilitate the expansion 

7 of the supply of well-located affordable housing. 

8 (2) ACTIVITIES.—Initiatives that meet the cri9 teria described in paragraph (1)— 

10 (A) include— 

11 (i) establishing ‘‘by-right’’ develop12 ment, which allows jurisdictions to admin13 istratively approve new developments that 

14 are consistent with their zoning code; 

15 (ii) revising or eliminating off-street 

16 parking requirements to reduce the cost of 

17 housing production; 

18 (iii) instituting measures that 

19 incentivize owners of vacant land to rede20 velop the space into affordable housing or 

21 other productive uses; 

22 (iv) revising minimum lot size require23 ments and bans or limits on multifamily 

24 construction to allow for denser and more 

25 affordable development; 


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1 (v) instituting incentives to promote 

2 dense development, such as density bo3 nuses; 

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

7 moderate-income renters or homebuyers; 

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

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

12 and affordability; 

13 (viii) allowing accessory dwelling 

14 units; 

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

17 and 

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

21 (I) providing access to counsel 

22 for tenants facing eviction; 

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


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

3 rents; 

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

6 measure described in subclause (I), 

7 (II), or (III); 

8 (V) protections against construc9 tive eviction; 

10 (VI) tenant right-to-organize 

11 laws; 

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

14 begin an illegal eviction; and 

15 (VIII) landlord-tenant mediation 

16 or other non-eviction diversion pro17 grams; and 

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

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

24 (3) RELATION TO CONSOLIDATED PLAN.—An 

25 eligible entity shall include in an application subVerDate Sep 11 2014 04:50 Jun 02, 2021 Jkt 019200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H2768.IH H2768

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

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

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

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

8 any successor regulation (commonly referred to as a 

9 ‘‘consolidated plan’’). 

10 (e) LABOR LAWS.— 

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

12 employed by contractors or subcontractors in the 

13 performance of construction work financed in whole 

14 or in part with a grant received under this section 

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

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

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

20 Act’’). 

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

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

24 and functions set forth in Reorganization Plan 

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


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

2 Code. 

3 (f) AUTHORIZATION OF APPROPRIATIONS.—There is 

4 authorized to be appropriated to carry out this section 

5 $2,000,000,000 for each of fiscal years 2022 through 

6 2026. 

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

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

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

13 ‘‘(3) AUTHORIZATION OF APPROPRIATIONS.— 

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

16 years 2022 through 2031.’’. 

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

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

20 at the end the following: 

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

22 is authorized to be appropriated to the Capital Magnet 

23 Fund $2,500,000,000 for each of fiscal years 2022 

24 through 2031.’’. 


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1 (c) PUBLIC HOUSING CAPITAL FUND.—Section 

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

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

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

5 assistance from the Capital Fund, 

6 $3,592,000,000 for fiscal year 2022.’’. 

7 (d) INDIAN HOUSING BLOCK GRANT PROGRAM.— 

8 Section 108 of the Native American Housing Assistance 

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

10 amended— 

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

12 for each of fiscal years 2009 through 2013’’ and in13 serting ‘‘$2,500,000,000 for fiscal year 2022 and 

14 such sums as may be necessary for each of fiscal 

15 years 2023 through 2031’’; and 

16 (2) by striking the second sentence. 

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

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

22 and 2005’’ and inserting ‘‘20,000,000 for fiscal year 2022 

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

24 2023 through 2031’’. 


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

2 the Treasury not otherwise appropriated, there is appro3 priated for fiscal year 2022— 

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

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

6 $140,000,000; 

7 (2) to provide assistance under section 514 of 

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

9 (3) to provide assistance under section 515 of 

10 such Act (42 U.S.C. 1485), $140,000,000; 

11 (4) to provide assistance under section 516 of 

12 such Act (42 U.S.C. 1486), $20,000,000; 

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

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

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

19 Act (42 U.S.C. 1484, 1485, 1486)), $120,000,000. 

20 (g) MIDDLE CLASS HOUSING EMERGENCY FUND.— 

21 (1) DEFINITIONS.—In this subsection— 

22 (A) the term ‘‘affordable rental housing 

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

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


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

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

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

4 1437a(b)(7)). 

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

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

8 Housing Emergency Fund’’, which shall be funded 

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

11 law. 

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

13 fund established under paragraph (2), the Secretary 

14 of Housing and Urban Development shall award 

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

17 (A) there is a shortage of affordable rental 

18 housing units available to individuals with an 

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

21 over the preceding 5 years substantially faster 

22 than the area median income; or 

23 (B) there is a shortage of housing units 

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


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1 median income and median home prices have 

2 risen on average over the preceding 5 years 

3 substantially faster than the area median in4 come. 

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

6 this subsection shall be used to fund— 

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

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

11 other qualified purchasers (as defined by the 

12 Secretary), of rental housing units or units for 

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

15 income; and 

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

18 (i) the provision of legal advice and 

19 representation for tenants facing eviction; 

20 (ii) enforcement of anti-harassment 

21 laws; 

22 (iii) emergency rental assistance; and 

23 (iv) other measures as specified by the 

24 Secretary of Housing and Urban Develop25 ment. 


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1 (5) LABOR LAWS.— 

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

6 under this subsection shall be paid wages at 

7 rates not less than those prevailing on similar 

8 construction in the locality as determined by 

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

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

13 (B) AUTHORITY AND FUNCTIONS.—With 

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

16 have the authority and functions set forth in 

17 Reorganization Plan Numbered 14 of 1950 (64 

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

19 title 40, United States Code. 

20 (6) REGULATIONS.—The Secretary of Housing 

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

23 (A) the metrics that the Secretary will use 

24 to determine eligibility for a grant under this 

25 subsection; 


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

3 policymaking and planning for the construction 

4 or acquisition of housing units as described in 

5 paragraph 4(A); and 

6 (C) a requirement that all housing units 

7 constructed or acquired using grants awarded 

8 under the subsection are affordable to residents 

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

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

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

14 $4,000,000,000 for fiscal year 2022. 

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

17 LOANS. 

18 (a) FINDINGS.—Congress finds that— 

19 (1) the Federal Housing Administration, the 

20 Federal National Mortgage Association, and the 

21 Federal Home Loan Mortgage Corporation provide 

22 critical homeownership opportunities that greatly 

23 benefit individuals, families, and communities; and 

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


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1 (A) preserve owner-occupied homes with 

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

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

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

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

10 low- and moderate-income homeowners. 

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

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

14 the following: 

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

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

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

18 Title program’ means the program of the Federal 

19 Housing Administration carried out under section 

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

21 any successor regulation; and 

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

23 meaning given the term ‘nonprofit organization’ in 

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1 tion and Resident Homeownership Act of 1990 (12 

2 U.S.C. 4119). 

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

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

8 Housing Administration after foreclosure or conveyed to 

9 third parties under the Claim Without Conveyance of Title 

10 program are sold— 

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

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

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

14 and 

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

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

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

20 program that provide an exclusive listing period during 

21 which only eligible Governmental Entities, HUD-approved 

22 Nonprofit Organizations, and Owner-Occupant Buyers 

23 may submit bids. 

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


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

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

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

7 ‘‘(a) DEFINITION.—In this section, the term ‘commu8 nity partner’ has the meaning given the term in section 

9 259. 

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

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

12 transfer any mortgage insured under this title that is se13 cured by a single-family residential property (in this sec14 tion referred to as a ‘covered mortgage’). 

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

16 ‘‘(1) IN GENERAL.—The Secretary— 

17 ‘‘(A) may sell or transfer a covered mort18 gage only if— 

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

20 substantially below the capital ratio re21 quired under section 205(f)(2); 

22 ‘‘(ii) the Secretary certifies that other 

23 reasonable measures are not available to 

24 restore the Fund to that capital ratio; and 


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1 ‘‘(iii) the Secretary complies with 

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

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

4 mortgages as are necessary to assist in restora5 tion of that capital ratio. 

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

7 ‘‘(A) IN GENERAL.—If the Secretary in8 tends to sell or transfer a covered mortgage, the 

9 Secretary shall provide the current borrower 

10 and all owners of record of the property secur11 ing the covered mortgage, or require that the 

12 current borrower and owners of record be pro13 vided, a separate written notice of the intent to 

14 sell the covered mortgage that— 

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

16 class mail not less than 90 days before the 

17 date on which the loan is included in any 

18 proposed sale; and 

19 ‘‘(ii) includes— 

20 ‘‘(I) a description of the loss 

21 mitigation options of the Federal 

22 Housing Administration that are 

23 available to borrowers in financial dis24 tress and the obligation of servicers to 


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1 consider borrowers in default for those 

2 options; 

3 ‘‘(II) a description of the actions 

4 that the servicer of the loan has taken 

5 to review and implement those options 

6 for the borrower; and 

7 ‘‘(III) a description of the proce8 dures the borrower may use to contest 

9 with the Secretary the compliance by 

10 the servicer with that obligation. 

11 ‘‘(B) JUDICIAL REVIEW.—The determina12 tion of the Secretary to authorize the sale of a 

13 mortgage insured under this title shall be re14 viewable under chapter 7 of title 5, United 

15 States Code, for abuse of discretion and arbi16 trary and capricious agency action. 

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

18 sell any covered mortgage through any type of 

19 non-performing loan sale auction program until 

20 the Secretary issues rules, through the notice 

21 and comment rule making procedures under 

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

23 address essential aspects of any non-performing 

24 loan sale program, including— 


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

2 for sale; 

3 ‘‘(ii) notice to borrowers prior to in4 clusion of the loan in a sale; and 

5 ‘‘(iii) review of loss mitigation status 

6 prior to the sale, selection of eligible bid7 ders, loss mitigation guidelines applicable 

8 to loan purchasers, and reporting require9 ments for purchasers. 

10 ‘‘(3) CERTIFICATION REQUIREMENT FOR LEND11 ERS AND SERVICERS.— 

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

13 payment of an insurance claim under this title 

14 in connection with any non-performing loan 

15 sale, the lender or servicer of the loan shall pro16 vide the Secretary and the borrower with writ17 ten certification of the loss mitigation review 

18 contained in the FHA Single Family Housing 

19 Policy Handbook 4000.1, or any successor 

20 handbook. 

21 ‘‘(B) FALSE STATEMENTS.— 

22 ‘‘(i) IN GENERAL.—Any false state23 ment provided in a certification described 

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


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1 ‘‘(I) recovery by the Secretary of 

2 any amounts paid under the insurance 

3 claim and any other penalties and 

4 sanctions authorized under Federal 

5 law; and 

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

7 the borrower against the lender and 

8 servicer, with remedies to include 

9 compensatory and punitive damages 

10 and an assessment of costs and attor11 ney’s fees. 

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

13 purchaser has acquired title to the prop14 erty as a primary residence— 

15 ‘‘(I) a certification described in 

16 subparagraph (A) that contains a 

17 false statement shall be a basis for re18 voking the transfer of the property; 

19 and 

20 ‘‘(II) the pre-sale lender and 

21 servicer of the property shall— 

22 ‘‘(aa) resume servicing the 

23 loan as a loan insured under this 

24 title; and 


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1 ‘‘(bb) reimburse the Sec2 retary for any insurance claim 

3 paid and all costs related to the 

4 sale of the property. 

5 ‘‘(4) REQUIREMENTS FOR PURCHASERS.— 

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

7 covered mortgage shall offer the borrower on 

8 the covered mortgage— 

9 ‘‘(i) appropriate loss mitigation op10 tions, including affordable and sustainable 

11 loan modifications; and 

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

13 or a deed in lieu of foreclosure. 

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

15 specific formula, calculations, waterfall steps, 

16 and other terms for appropriate loss mitigation 

17 options described in subparagraph (A) shall be 

18 published by the Secretary, made available to 

19 the public, and included in a written notice 

20 given to borrowers before any acceleration or 

21 foreclosure is initiated after a loan sale. 

22 ‘‘(5) REQUIREMENTS FOR TRANSFEREES.— 

23 With respect to a transferee, including any subse24 quent transferee, of a covered mortgage that is sold 

25 under this title— 


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

2 to the Secretary that the transferee will comply 

3 with the provisions of this section in the mar4 keting and transfer of any property received in 

5 the disposition of any transferred loan; 

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

7 Secretary records documenting that the trans8 fers of those properties are in compliance with 

9 this section; and 

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

11 transferee to comply with the requirements 

12 under this section for a loan in default shall be 

13 a defense to foreclosure, and a transferee may 

14 not execute a foreclosure judgment or order of 

15 sale, or conduct a foreclosure sale, until the 

16 transferee has complied with all requirements 

17 under this section. 

18 ‘‘(d) LIMITATIONS.—With respect to covered mort19 gages that are sold under this title and foreclosed upon 

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

21 that are the subject of the covered mortgages in an auc22 tion shall be— 

23 ‘‘(1) sold to owner-occupants; 

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

25 will operate the property as affordable rental housVerDate Sep 11 2014 04:50 Jun 02, 2021 Jkt 019200 PO 00000 Frm 00024 Fmt 6652 Sfmt 6201 E:\BILLS\H2768.IH H2768

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1 ing for households below 80 percent of the area me2 dian income for a period of not less than 15 years; 

3 or 

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

5 agency that is certified by the Secretary and will re6 develop the property for owner occupancy or afford7 able rental housing. 

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

9 shall implement policies, procedures, and controls to— 

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

11 ‘‘(2) engage in consultations with community 

12 partners before the sale of a pool of covered mort13 gages under this title to determine whether that sale 

14 can be designed to meet the specific needs of the 

15 communities served by the community partners; and 

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

17 mortgages to community partners by— 

18 ‘‘(A) designing pools of covered mortgages 

19 for direct sale to a community partner, the 

20 price of which shall be set by the Secretary 

21 based on a pricing model that considers— 

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

23 the properties; and 

24 ‘‘(ii) the potential impact of fore25 closures on those properties to the value of 


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1 other homes that secure mortgages insured 

2 under this title in the same census tract; 

3 or 

4 ‘‘(B) in the case of an auction, if the win5 ning bid is not from a community partner, per6 mitting any community partner that bid during 

7 that same auction to have a final opportunity to 

8 enter a higher bid on the pool.’’. 

9 (c) FANNIE MAE.—Section 302 of the Federal Na10 tional Mortgage Association Charter Act (12 U.S.C. 1717) 

11 is amended by adding at the end the following: 

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

13 mortgage that is secured by a single-family residential 

14 property (in this subsection referred to as a ‘covered mort15 gage’) under this section unless the requirements of this 

16 subsection are met. 

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

18 a covered mortgage, the corporation shall provide the cur19 rent borrower and all owners of record of the property se20 curing the covered mortgage, or require that the current 

21 borrower and owners of record be provided, a separate 

22 written notice of the intent to sell the covered mortgage 

23 that— 


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

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

3 loan is included in any proposed sale; and 

4 ‘‘(ii) includes— 

5 ‘‘(I) a description of the loss mitigation op6 tions of the corporation that are available to 

7 borrowers in financial distress and the obliga8 tion of servicers to consider borrowers in de9 fault for those options; 

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

11 servicer of the loan has taken to review and im12 plement those options for the borrower; and 

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

14 borrower may use to contest with the corpora15 tion the compliance by the servicer with that 

16 obligation. 

17 ‘‘(B) The corporation may not sell any covered mort18 gage through any type of non-performing loan sale auction 

19 program until the corporation issues rules, through the no20 tice and comment rule making procedures under section 

21 553 of title 5, United States Code, that address essential 

22 aspects of any non-performing loan sale program, includ23 ing— 

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


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

2 the loan in a sale; and 

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

4 the sale, selection of eligible bidders, loss mitigation 

5 guidelines applicable to loan purchasers, and report6 ing requirements for purchasers. 

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

8 offer the borrower on the covered mortgage— 

9 ‘‘(i) appropriate loss mitigation options, includ10 ing affordable and sustainable loan modifications; 

11 and 

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

13 in lieu of foreclosure. 

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

15 steps, and other terms for appropriate loss mitigation op16 tions described in subparagraph (A) shall be published by 

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

18 in a written notice given to borrowers before any accelera19 tion or foreclosure is initiated after a loan sale. 

20 ‘‘(4) With respect to a transferee, including any sub21 sequent transferee, of a covered mortgage that is sold by 

22 the corporation under this section— 

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

24 the corporation that the transferee will comply with 

25 the provisions of this subsection in the marketing 


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1 and transfer of any property received in the disposi2 tion of any transferred loan; 

3 ‘‘(B) the transferee shall provide to the corpora4 tion records documenting that the transfers of those 

5 properties are in compliance with this subsection; 

6 and 

7 ‘‘(C) the failure of the corporation or the trans8 feree to comply with the requirements under this 

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

10 foreclosure, and a transferee may not execute a fore11 closure judgment or order of sale, or conduct a fore12 closure sale, until the transferee has complied with 

13 all requirements under this subsection. 

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

15 by the corporation under this section and foreclosed upon 

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

17 that are the subject of the covered mortgages in an auc18 tion shall be— 

19 ‘‘(A) sold to owner-occupants; 

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

21 will operate the property as affordable rental hous22 ing for households below 80 percent of the area me23 dian income for a period of not less than 15 years; 

24 or 


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

2 agency that is certified by the corporation and will 

3 redevelop the property for owner occupancy or af4 fordable rental housing. 

5 ‘‘(6) The corporation shall implement policies, proce6 dures, and controls to— 

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

8 ‘‘(B) engage in consultations with community 

9 partners before the sale of a pool of covered mort10 gages under this section to determine whether that 

11 sale can be designed to meet the specific needs of 

12 the communities served by the community partners; 

13 and 

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

15 mortgages to community partners by— 

16 ‘‘(i) designing pools of covered mortgages 

17 for direct sale to a community partner, the 

18 price of which shall be set by the corporation 

19 based on a pricing model that considers— 

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

21 the properties; and 

22 ‘‘(II) the potential impact of fore23 closures on those properties to the value of 

24 other homes in the same census tract; or 


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1 ‘‘(ii) in the case of an auction, if the win2 ning bid is not from a community partner, per3 mitting any community partner that bid during 

4 that same auction to have a final opportunity to 

5 enter a higher bid on the pool.’’. 

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

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

8 is amended by adding at the end the following: 

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

10 mortgage that is secured by a single-family residential 

11 property (in this subsection referred to as a ‘covered mort12 gage’) under this section unless the requirements of this 

13 subsection are met. 

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

15 a covered mortgage, the Corporation shall provide the cur16 rent borrower and all owners of record of the property se17 curing the covered mortgage, or require that the current 

18 borrower and owners of record be provided, a separate 

19 written notice of the intent to sell the covered mortgage 

20 that— 

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

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

23 loan is included in any proposed sale; and 

24 ‘‘(ii) includes— 


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•HR 2768 IH

1 ‘‘(I) a description of the loss mitigation op2 tions of the Corporation that are available to 

3 borrowers in financial distress and the obliga4 tion of servicers to consider borrowers in de5 fault for those options; 

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

7 servicer of the loan has taken to review and im8 plement those options for the borrower; and 

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

10 borrower may use to contest with the Corpora11 tion the compliance by the servicer with that 

12 obligation. 

13 ‘‘(B) The Corporation may not sell any covered mort14 gage through any type of non-performing loan sale auction 

15 program until the Corporation issues rules, through the 

16 notice and comment rule making procedures under section 

17 553 of title 5, United States Code, that address essential 

18 aspects of any non-performing loan sale program, includ19 ing— 

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

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

22 the loan in a sale; and 

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

24 the sale, selection of eligible bidders, loss mitigation 


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•HR 2768 IH

1 guidelines applicable to loan purchasers, and report2 ing requirements for purchasers. 

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

4 offer the borrower on the covered mortgage— 

5 ‘‘(i) appropriate loss mitigation options, includ6 ing affordable and sustainable loan modifications; 

7 and 

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

9 in lieu of foreclosure. 

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

11 steps, and other terms for appropriate loss mitigation op12 tions described in subparagraph (A) shall be published by 

13 the Corporation, made available to the public, and in14 cluded in a written notice given to borrowers before any 

15 acceleration or foreclosure is initiated after a loan sale. 

16 ‘‘(4) With respect to a transferee, including any sub17 sequent transferee, of a covered mortgage that is sold by 

18 the Corporation under this section— 

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

20 the Corporation that the transferee will comply with 

21 the provisions of this subsection in the marketing 

22 and transfer of any property received in the disposi23 tion of any transferred loan; 

24 ‘‘(B) the transferee shall provide to the Cor25 poration records documenting that the transfers of 


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•HR 2768 IH

1 those properties are in compliance with this sub2 section; and 

3 ‘‘(C) the failure of the Corporation or the trans4 feree to comply with the requirements under this 

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

6 foreclosure, and a transferee may not execute a fore7 closure judgment or order of sale, or conduct a fore8 closure sale, until the transferee has complied with 

9 all requirements under this subsection. 

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

11 by the Corporation under this section and foreclosed upon 

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

13 that are the subject of the covered mortgages in an auc14 tion shall be— 

15 ‘‘(A) sold to owner-occupants; 

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

17 will operate the property as affordable rental hous18 ing for households below 80 percent of the area me19 dian income for a period of not less than 15 years; 

20 or 

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

22 agency that is certified by the Corporation and will 

23 redevelop the property for owner occupancy or af24 fordable rental housing. 


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1 ‘‘(6) The Corporation shall implement policies, proce2 dures, and controls to— 

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

4 ‘‘(B) engage in consultations with community 

5 partners before the sale of a pool of covered mort6 gages under this section to determine whether that 

7 sale can be designed to meet the specific needs of 

8 the communities served by the community partners; 

9 and 

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

11 mortgages to community partners by— 

12 ‘‘(i) designing pools of covered mortgages 

13 for direct sale to a community partner, the 

14 price of which shall be set by the Corporation 

15 based on a pricing model that considers— 

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

17 the properties; and 

18 ‘‘(II) the potential impact of fore19 closures on those properties to the value of 

20 other homes in the same census tract; or 

21 ‘‘(ii) in the case of an auction, if the win22 ning bid is not from a community partner, per23 mitting any community partner that bid during 

24 that same auction to have a final opportunity to 

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


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1 TITLE II—TAKING THE FIRST 

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

5 NEGLIGENCE 

6 SEC. 201. DOWN PAYMENT ASSISTANCE PROGRAM FOR 

7 COMMUNITIES FORMERLY SEGREGATED BY 

8 LAW. 

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

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

11 the primary way working families build wealth. 

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

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

17 prosperity and access to opportunity for a family. 

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

20 the 1960s, the Federal Government systematically 

21 denied African Americans and other marginalized 

22 groups the ability to obtain mortgage credit, buy 

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


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1 (4) The Federal Government, through the 

2 Home Owners’ Loan Corporation and the Federal 

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

5 race, national origin, and religion that reflected 

6 practices in the private sector and became a model 

7 for their widespread adoption across the housing in8 dustry. 

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

12 in the community of their choice. 

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

14 lenders targeted borrowers of color with abusive 

15 loans while government regulators sat on their 

16 hands, further extracting wealth from these same 

17 communities. 

18 (7) The legacy of housing discrimination and 

19 regulatory negligence is a contributor to a large and 

20 growing gap in wealth and outcomes between Black 

21 and White families. The typical White family has 8 

22 times the wealth of the typical Black family. The 

23 gap between the White homeownership rate and the 

24 Black homeownership rate is bigger today than it 

25 was when housing discrimination was legal. Nearly 


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1 75 percent of formerly redlined communities are low2 or moderate-income and 64 percent are still commu3 nities of color. 

4 (8) The purpose of this section is for the Fed5 eral Government to take the first step toward ad6 dressing the racial wealth gap that it contributed to 

7 creating by helping individuals or descendants of in8 dividuals who were harmed by housing discrimina9 tion or negligence by the Federal Government. 

10 (b) DEFINITIONS.—In this section: 

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

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

13 defined by the Secretary by regulation under sub14 section (h), who— 

15 (A) is a first-time homebuyer; 

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

17 percent of the area median income; and 

18 (C)(i) resided in that geographic area 

19 throughout the 4-year period ending on the 

20 date of enactment of this Act; 

21 (ii) resided in that geographic area for a 

22 period of not less than 4 years before moving 

23 out of the geographic area subsequent to a fore24 closure, short sale, or deed in lieu of foreclosure 

25 on a home that— 


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1 (I) was the primary residence of the 

2 resident; and 

3 (II) was purchased or refinanced dur4 ing the period beginning on January 1, 

5 2001, and ending on December 31, 2008; 

6 or 

7 (iii) resided in that geographic area for a 

8 period of not less than 4 years before moving 

9 out of the geographic area due to a major dis10 aster declared by the President or a State, ter11 ritorial, or Tribal government. 

12 (2) FIRST-TIME HOMEBUYER.—The term ‘‘first13 time homebuyer’’ means an individual (and if mar14 ried, the spouse of the individual) who— 

15 (A) intends to purchase a property for use 

16 as a principal residence; and 

17 (B) during the 3-year period ending on the 

18 date of purchase of the property described in 

19 subparagraph (B)— 

20 (i) has had no ownership in a prin21 cipal residence; or 

22 (ii) surrendered an ownership interest 

23 in a principal residence as part of a divorce 

24 proceeding. 


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1 (3) LOW-INCOME COMMUNITY.—The term ‘‘low2 income community’’ has the meaning given the term 

3 in section 45D of the Internal Revenue Code of 

4 1986. 

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

6 the Secretary of Housing and Urban Development. 

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

8 Treasury of the United States a fund that— 

9 (1) shall be administered by the Secretary, act10 ing through the Office of Housing of the Depart11 ment of Housing and Urban Development; and 

12 (2) shall be used— 

13 (A) to provide grants to eligible residents 

14 to purchase homes; 

15 (B) for outreach to financial institutions in 

16 targeted areas and eligible residents, including 

17 for the administration of that outreach; 

18 (C) for counseling or financial education 

19 administered by counseling agencies approved 

20 by the Secretary in order to ensure sustainable 

21 homeownership; 

22 (D) to create and maintain the database 

23 described in subsection (h)(3); and 

24 (E) to maintain any records required to 

25 implement this section. 


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1 (d) GRANT AMOUNT.—An eligible resident may re2 ceive a grant under subsection (c) in an amount equal to— 

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

4 value of the property to be purchased; or 

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

6 purchased exceeds the principal obligation amount 

7 limitation for mortgages insured under title II of the 

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

9 percent of the maximum principal obligation limita10 tion for the property to be purchased. 

11 (e) RELATION TO FHA LOAN.—An eligible resident 

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

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

14 1707 et seq.) as a condition of receiving a grant under 

15 subsection (c). 

16 (f) GEOGRAPHIC AREA.—An eligible resident shall 

17 not be required to purchase a home within the geographic 

18 area described in subsection (b)(1)(C) as a condition of 

19 receiving a grant under subsection (c). 

20 (g) LAYERING OF ASSISTANCE.—Receipt by an eligi21 ble recipient of assistance for a down payment from a 

22 source other than the fund established under subsection 

23 (c), including assistance from the Federal Government, a 

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


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

2 eligible recipient for assistance under subsection (c). 

3 (h) REGULATIONS AND DATABASE.—Not later than 

4 1 year after the date of enactment of this Act, the Sec5 retary shall— 

6 (1) in consultation with interested parties, in7 cluding housing counseling agencies approved by the 

8 Secretary and individuals or groups with expertise in 

9 fair housing, promulgate regulations relating to the 

10 use of the fund established under subsection (c), in11 cluding defining the geographic areas in which resi12 dents are eligible to receive grants under subsection 

13 (c), which shall include— 

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

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

16 Home Owners’ Loan Corporation that are, as of 

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

18 communities; 

19 (B) census tracts that were designated for 

20 non-White citizens in jurisdictions that histori21 cally had racially segregated zoning codes and 

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

23 low-income communities; and 


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1 (C) census tracts that are racially or eth2 nically concentrated areas of poverty, which 

3 shall mean a census tract— 

4 (i) with a non-White population of not 

5 less than 50 percent; and 

6 (ii) in which— 

7 (I) not less than 40 percent of 

8 families living in the census tract have 

9 incomes that are at or below the pov10 erty line; or 

11 (II) the average tract poverty 

12 rate is 3 or more times the average 

13 tract poverty tract for the metropoli14 tan or micropolitan area; 

15 (2) promulgate regulations relating to the dis16 bursement of funds under this section to ensure that 

17 an eligible resident is able to receive funds before 

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

19 which may include creating a program that allows a 

20 lender to be reimbursed by the fund established 

21 under subsection (c) if the lender— 

22 (A) provides an eligible resident with funds 

23 for the closing; or 

24 (B) allows an eligible resident to be 

25 preapproved to receive assistance under this 


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1 section when arranging financing for the home 

2 of the eligible resident; 

3 (3) create a publicly accessible database that al4 lows individuals, real estate professionals, and lend5 ers to determine whether a borrower is eligible for 

6 assistance under this section; and 

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

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

10 not otherwise appropriated, there is appropriated to the 

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

12 be necessary for each of fiscal years 2022 through 2031 

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

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

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

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

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

21 201 of the American Housing and Economic Mobil22 ity Act of 2021.’’. 

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

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


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1 the down payment assistance program established under 

2 section 201 of the American Housing and Economic Mo3 bility Act of 2021,’’ after ‘‘mortgage products’’. 

4 SEC. 202. FORMULA GRANT PROGRAM FOR COMMUNITIES 

5 WITH AN APPRAISAL GAP. 

6 (a) DEFINITIONS.—In this section— 

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

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

9 price of a dwelling unit is lower than the median 

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

11 dwelling unit; 

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

13 of Housing and Urban Development; and 

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

15 term in section 3(b)(7) of the United States Hous16 ing Act of 1937 (42 U.S.C. 1437a(b)(7)). 

17 (b) ESTABLISHMENT.—The Secretary shall establish 

18 a formula grant program to provide funding to States to 

19 support neighborhoods with an appraisal gap, including 

20 borrowers with negative equity in their primary residence 

21 in those neighborhoods, through— 

22 (1) measures that provide funds to borrowers 

23 to— 

24 (A) pay down arrears on an otherwise af25 fordable loan; 


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•HR 2768 IH

1 (B) pay down arrears or principal on a 

2 loan in order to qualify for a loan modification 

3 that will allow the borrower to keep the home; 

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

5 mortgage or home equity line of credit; 

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

7 (E) pay delinquent taxes and tax liens; 

8 (F) pay off delinquent water or sewer bills 

9 and liens; and 

10 (G) pay for home repairs or maintenance 

11 or for modifications to bring the home into 

12 compliance with any applicable codes; and 

13 (2) programs to purchase or rehabilitate vacant 

14 or distressed properties to enhance neighborhood 

15 property values. 

16 (c) FORMULA.—The Secretary shall distribute 

17 amounts under this section to States based on— 

18 (1) the number of borrowers with a primary 

19 residence with negative equity in each State; and 

20 (2) the share of neighborhoods with an ap21 praisal gap in each State. 

22 (d) AUTHORIZATION OF APPROPRIATIONS.—There is 

23 authorized to be appropriated to carry out this section 

24 $2,000,000,000 for fiscal year 2022. 


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1 SEC. 203. STRENGTHENING THE COMMUNITY REINVEST2 MENT ACT OF 1977. 

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

4 ‘‘Community Reinvestment Reform Act of 2021’’. 

5 (b) AMENDMENTS TO THE COMMUNITY REINVEST6 MENT ACT OF 1977.—The Community Reinvestment Act 

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

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

9 2901, 2902) and inserting the following: 

10 ‘‘SEC. 802. FINDINGS AND PURPOSE. 

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

12 ‘‘(1) regulated financial institutions are re13 quired by law to demonstrate that they serve the 

14 convenience and needs of the communities in which 

15 they are chartered or do business, in particular low16 and moderate-income communities; 

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

18 include the need for credit services, deposit services, 

19 transaction services, other financial services, and 

20 community development loans and investments; and 

21 ‘‘(3) regulated financial institutions have a con22 tinuing and affirmative obligation to meet the credit 

23 or other financial needs of the local communities in 

24 which they are chartered or do business. 

25 ‘‘(b) PURPOSE.—It is the purpose of this title to re26 quire each appropriate Federal financial supervisory agenVerDate Sep 11 2014 04:50 Jun 02, 2021 Jkt 019200 PO 00000 Frm 00047 Fmt 6652 Sfmt 6201 E:\BILLS\H2768.IH H2768

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1 cy to use its authority when examining regulated financial 

2 institutions to ensure that those institutions meet the 

3 credit and other financial needs of the local communities 

4 in which they are chartered or do business consistent with 

5 the safe and sound operation of those institutions. 

6 ‘‘SEC. 803. DEFINITIONS. 

7 ‘‘In this title: 

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

9 The term ‘application for a deposit facility’ means 

10 an application to the appropriate Federal financial 

11 supervisory agency otherwise required under Federal 

12 law or regulations thereunder for— 

13 ‘‘(A) a charter for a national bank or Fed14 eral savings and loan association; 

15 ‘‘(B) deposit insurance in connection with 

16 a newly chartered State bank, savings bank, 

17 savings and loan association, or similar institu18 tion; 

19 ‘‘(C) the establishment of a domestic 

20 branch or other facility with the ability to ac21 cept deposits of a regulated financial institu22 tion; 

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

24 branch office of a regulated financial institu25 tion; 


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

2 acquisition of the assets of, or the assumption 

3 of the liabilities of a regulated financial institu4 tion requiring approval under section 18(c) of 

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

6 1828(c)); or 

7 ‘‘(F) the acquisition of shares in, or the as8 sets of, a regulated financial institution requir9 ing approval under section 3 of the Bank Hold10 ing Company Act of 1956 (12 U.S.C. 1842). 

11 ‘‘(2) APPROPRIATE FEDERAL BANKING AGEN12 CY.—The term ‘appropriate Federal banking agency’ 

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

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

15 ‘‘(3) APPROPRIATE FEDERAL FINANCIAL SU16 PERVISORY AGENCY.—The term ‘appropriate Fed17 eral financial supervisory agency’ means— 

18 ‘‘(A) the appropriate Federal banking 

19 agency with respect to depository institutions 

20 and depository institution holding companies; 

21 and 

22 ‘‘(B) the Bureau of Consumer Financial 

23 Protection with respect to any covered person 

24 supervised by the Bureau pursuant to section 

25 1024 of the Dodd-Frank Wall Street Reform 


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

2 5514). 

3 ‘‘(4) ASSESSMENT AREA.—The term ‘assess4 ment area’ means, with respect to a regulated finan5 cial institution, each community, including a State, 

6 metropolitan area, or urban or rural county, in 

7 which the institution— 

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

9 automated teller machines, or retail offices; 

10 ‘‘(B) is represented by an agent; 

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

12 or other products relative to the total number 

13 of loans or other products made by the institu14 tion; 

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

16 of the loans of the institution; 

17 ‘‘(E) has conducted not less than 75 per18 cent of the business of the institution; or 

19 ‘‘(F) has received not less than 75 percent 

20 of the deposits of the institution. 

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

22 ‘community benefits plan’ means a plan that pro23 vides measurable goals for future amounts of safe 

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1 munities and other distressed or underserved com2 munities. 

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

4 ‘community development’ includes— 

5 ‘‘(A) affordable housing for low- or mod6 erate-income individuals and avoidance of pat7 terns of lending resulting in the loss of afford8 able housing units; 

9 ‘‘(B) community development services, in10 cluding counseling and successful mortgage or 

11 loan modifications of delinquent loans; 

12 ‘‘(C) activities that promote integration; 

13 ‘‘(D) activities that promote economic de14 velopment by financing small businesses or 

15 farms that meet the size eligibility requirements 

16 of the development company or small business 

17 investment company programs under section 

18 121.301 of title 13, Code of Federal Regula19 tions, or any successor regulation, with an em20 phasis on small businesses that have gross an21 nual revenues of not more than $1,000,000; 

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

23 ‘‘(i) low- or moderate-income geog24 raphies; 

25 ‘‘(ii) designated disaster areas; 


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1 ‘‘(iii) distressed or underserved non2 metropolitan middle-income geographies 

3 designated by the Federal Financial Insti4 tutions Examination Council, based on— 

5 ‘‘(I) rates of poverty, unemploy6 ment, and population loss; or 

7 ‘‘(II) population size, density, 

8 and dispersion, if those activities help 

9 to meet essential community needs, 

10 including the needs of low- and mod11 erate-income individuals; or 

12 ‘‘(iv) other distressed or underserved 

13 communities; 

14 ‘‘(F) activities that promote physical, envi15 ronmental, and sensory accessibility in housing 

16 stock that is integrated into the community; 

17 and 

18 ‘‘(G) other activities that promote the ob19 jectives of this title, as determined by the ap20 propriate Federal financial supervisory agen21 cies. 

22 ‘‘(7) DEPOSITORY INSTITUTION; DEPOSITORY

23 INSTITUTION HOLDING COMPANY.—The terms ‘de24 pository institution’ and ‘depository institution hold25 ing company’ have the meanings given those terms 


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1 in section 3 of the Federal Deposit Insurance Act 

2 (12 U.S.C. 1813). 

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

4 community’ means all of the assessment areas of a 

5 regulated financial institution. 

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

7 term ‘enumerated consumer laws’ has the meaning 

8 given the term in section 1002 of the Consumer Fi9 nancial Protection Act of 2010 (12 U.S.C. 5481). 

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

11 means a census tract delineated by the Bureau of 

12 the Census in the most recent decennial census. 

13 ‘‘(11) INSURED DEPOSITORY INSTITUTION.— 

14 The term ‘insured depository institution’ has the 

15 meaning given the term in section 3 of the Federal 

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

17 ‘‘(12) OTHER DISTRESSED OR UNDERSERVED

18 COMMUNITY.—The term ‘other distressed or under19 served community’ means an area or census tract 

20 that, according to a periodic review and data anal21 ysis by the appropriate Federal financial supervisory 

22 agencies on an interagency basis through the Fed23 eral Financial Institutions Examination Council, is 

24 experiencing economic hardship or is underserved by 

25 financial institutions. 


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1 ‘‘(13) REGULATED FINANCIAL INSTITUTION.— 

2 The term ‘regulated financial institution’ means— 

3 ‘‘(A) an insured depository institution; 

4 ‘‘(B) a depository institution holding com5 pany; and 

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

7 ‘‘(14) U.S. NONBANK MORTGAGE ORIGI8 NATOR.—The term ‘U.S. nonbank mortgage origi9 nator’ means a covered person subject to section 

10 1024 of the Dodd-Frank Wall Street Reform and 

11 Consumer Protection Act (12 U.S.C. 5514) that of12 fers or provides— 

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

14 estate for use by consumers primarily for per15 sonal, family, or household purposes; or 

16 ‘‘(B) loan modification or foreclosure relief 

17 services in connection with a loan described in 

18 subparagraph (A).’’; 

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

20 (A) by redesignating subsections (c) and 

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

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

23 inserting the following: 

24 ‘‘(a) DEPOSITORY INSTITUTIONS AND BANK HOLD25 ING COMPANIES.—In connection with its examination of 


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

2 nonbank mortgage originator, the appropriate Federal fi3 nancial supervisory agency shall perform the following: 

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

5 meeting the credit and other financial needs of its 

6 entire community, in particular low- and moderate7 income people and communities, and other distressed 

8 or underserved communities, consistent with the safe 

9 and sound operation of the institution. 

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

11 activities in meeting the credit and other financial 

12 needs of the assessment areas of the institution, con13 sistent with the safe and sound operation of the in14 stitution: 

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

16 business, consumer, and other lending and fi17 nancial products, that responds to credit needs 

18 or other financial needs. 

19 ‘‘(B) Community development lending and 

20 investments, which may include a consideration 

21 of— 

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

23 efforts by the institution to assist existing 

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1 main in affordable housing in their com2 munity; and 

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

4 institution that result in the construction, 

5 rehabilitation, or preservation of affordable 

6 housing units. 

7 ‘‘(C) Retail financial services and commu8 nity development services. 

9 ‘‘(3) With respect to its evaluation of an appli10 cation for a deposit facility by the institution— 

11 ‘‘(A) consider the record described in para12 graph (1), the overall rating of the institution 

13 under this section, and any improvement plans 

14 submitted pursuant to this section; 

15 ‘‘(B) provide an opportunity for public 

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

17 ‘‘(C) consider changes in the community 

18 reinvestment performance of the institution 

19 since the most recent rating under this section 

20 by the appropriate Federal financial supervisory 

21 agency; and 

22 ‘‘(D) require— 

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

24 including a community benefits plan with 

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1 sponsible lending and other financial prod2 ucts that is commensurate with the ability 

3 of the institution to accomplish those 

4 goals; 

5 ‘‘(ii) that the institution consult with 

6 community-based organizations and other 

7 community stakeholders in developing the 

8 community benefits plan; and 

9 ‘‘(iii) a public hearing for any institu10 tion that has a received a ‘need-to-improve’ 

11 or ‘low satisfactory’ grade in any individual 

12 assessment area during the most recent ex13 amination. 

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

15 connection with its examination of a U.S. nonbank mort16 gage originator, the appropriate Federal financial super17 visory agency shall perform the following: 

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

19 mortgage originator in meeting the credit or other 

20 financial needs of its entire community, in particular 

21 low-income and moderate-income people and commu22 nities and other distressed or underserved 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, grants to, or 

19 loans to community development financial 

20 institutions (as defined in section 103 of 

21 the Community Development Banking and 

22 Financial Institutions Act of 1994 (12 

23 U.S.C. 4702)), community development 

24 corporations (as defined in section 613 of 

25 the Community Economic Development 


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1 Act of 1981 (42 U.S.C. 9802)), and other 

2 nonprofit 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, 

24 which shall be commensurate with the abil25 ity of the institution to accomplish the 


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1 plan, by the U.S. nonbank mortgage origi2 nator to the appropriate Federal financial 

3 supervisory agency; 

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

5 originator consult with community-based 

6 organizations and other community stake7 holders in developing the community bene8 fits plan; and 

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

10 nonbank mortgage originator that has a 

11 received a ‘need-to-improve’ or ‘low satis12 factory’ grade in any individual assessment 

13 area during the most recent examination. 

14 ‘‘(c) REQUIREMENTS.— 

15 ‘‘(1) IN GENERAL.—In connection with its ex16 amination of a regulated financial institution under 

17 subsection (a) or (b), the appropriate Federal finan18 cial supervisory agency shall— 

19 ‘‘(A) consider public comments received by 

20 the appropriate Federal financial supervisory 

21 agency regarding the record of the institution in 

22 meeting the credit or other financial needs of 

23 its entire community, including low- and mod24 erate-income communities; and 

25 ‘‘(B) require— 


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1 ‘‘(i) an improvement plan for an insti2 tution that receives a rating of ‘low satis3 factory’ or lower on the written evaluation 

4 of the institution, or such a rating in any 

5 individual assessment area; and 

6 ‘‘(ii) the improvement plan described 

7 in clause (i) to result in the reasonable 

8 likelihood that the institution will obtain a 

9 rating of at least ‘high satisfactory’ in 

10 meeting community credit or other finan11 cial needs in the relevant measure on the 

12 next examination. 

13 ‘‘(2) IMPROVEMENT PLAN.— 

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

15 institution that is required to submit an im16 provement plan required under paragraph 

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

18 appropriate Federal financial supervisory agen19 cy not later than 90 days after receiving notice 

20 that the regulated financial institution is re21 quired to submit the plan. 

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

23 an improvement plan of a regulated financial 

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


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1 the appropriate Federal financial supervisory 

2 agency shall— 

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

4 public for review and comment for a period 

5 of not less than 60 days; and 

6 ‘‘(ii) require the regulated financial 

7 institution to revise, as appropriate, the 

8 improvement plan in response to the public 

9 comments received under the public review 

10 and comment period described in clause (i) 

11 and submit the plan to the appropriate 

12 Federal financial supervisory agency not 

13 later than 60 days after the end of that pe14 riod. 

15 ‘‘(3) EXAMINATION OF CERTAIN REGULATED

16 FINANCIAL INSTITUTIONS.—In the case of a regu17 lated financial institution whose lending or other 

18 business is not clustered in geographical areas and 

19 is thinly dispersed across the country, the institution 

20 shall— 

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

22 (b), as applicable— 

23 ‘‘(i) by considering the effectiveness of 

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1 and moderate-income individuals across the 

2 country regardless of where the individuals 

3 reside; and 

4 ‘‘(ii) based on objective thresholds de5 veloped by the appropriate Federal finan6 cial supervisory agencies to clarify when 

7 lending or other business is dispersed 

8 across the country and not clustered in 

9 distinct geographical areas, which may in10 clude low levels of lending or other finan11 cial products across States or other areas; 

12 and 

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

14 underserved communities. 

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

16 pursuant to an order by an court or administrative body 

17 or a settlement with a government agency or a private 

18 party may not be considered in an assessment conducted 

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

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

21 bank holding company under this section shall incorporate 

22 evaluations of subsidiary regulated financial institutions 

23 made by the appropriate Federal financial supervisory 

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

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


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1 (i) by striking paragraph (2); 

2 (ii) by redesignating paragraph (3) as 

3 paragraph (2); and 

4 (iii) in paragraph (2), as so redesig5 nated, by striking subparagraph (C); and 

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

7 by striking ‘‘subsection (a)’’ and inserting ‘‘sub8 sections (a) and (b)’’; 

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

10 (A) in subsection (a)— 

11 (i) by striking ‘‘an insured depository 

12 institution’’ and inserting ‘‘a regulated fi13 nancial institution’’; and 

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

15 ‘‘credit’’; 

16 (B) in subsection (b)— 

17 (i) in paragraph (1)— 

18 (I) in subparagraph (A)— 

19 (aa) in clause (ii), by strik20 ing ‘‘and’’ at the end; 

21 (bb) by redesignating clause 

22 (iii) as clause (iv); and 

23 (cc) by inserting after clause 

24 (ii) the following: 


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1 ‘‘(iii) disclose whether the institution en2 gaged in acts or practices that the Bureau of 

3 Consumer Financial Protection has determined, 

4 and has publicly disclosed, violate the enumer5 ated consumer laws; and’’; and 

6 (II) by striking subparagraph (B) 

7 and inserting the following: 

8 ‘‘(B) METROPOLITAN AREA DISTINCTIONS.— 

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

10 of subparagraph (A) shall be presented separately 

11 for each assessment area. 

12 ‘‘(C) TREATMENT WITH RESPECT TO VIOLA13 TIONS OF ENUMERATED CONSUMER LAWS.—If a 

14 regulated financial institution has engaged in acts or 

15 practices that the appropriate Federal financial su16 pervisory agency has determined to be unfair, decep17 tive, or abusive or acts or practices that violate enu18 merated consumer laws intended to ensure the fair, 

19 equitable, and nondiscriminatory access to credit for 

20 individuals and communities that are enforced by 

21 the Bureau of Consumer Financial Protection or 

22 other Federal or State agencies, the written evalua23 tion shall be negatively influenced in a manner com24 mensurate with the extent of the harm suffered by 

25 those individuals and communities.’’; 


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1 (ii) in paragraph (2)— 

2 (I) by striking subparagraphs 

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

4 the following: 

5 ‘‘(A) ‘Outstanding record of meeting com6 munity credit or other financial needs’. 

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

8 community credit or other financial needs’. 

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

10 community credit or other financial needs’. 

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

12 community credit or other financial needs’. 

13 ‘‘(E) ‘Substantial noncompliance in meet14 ing community credit or other financial 

15 needs’.’’; and 

16 (iii) by inserting after the flush text 

17 following paragraph (2) the following: 

18 ‘‘(3) ADDITIONAL AUTHORITY.—The appro19 priate Federal financial supervisory agencies may— 

20 ‘‘(A) alter the ratings under this sub21 section to change or include additional ratings; 

22 and 

23 ‘‘(B) develop an accompanying point sys24 tem that includes ranges for each rating cat25 egory under paragraph (2).’’; 


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

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

4 following: 

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

6 institution appeals the assigned rating under this section, 

7 the appropriate Federal financial supervisory agency shall 

8 post a public notice of the appeal on the part of the 

9 website of the appropriate Federal financial supervisory 

10 agency that contains information on this title.’’; 

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

12 (A) by striking ‘‘Regulations’’ and insert13 ing the following: 

14 ‘‘(a) IN GENERAL.—Regulations’’; 

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

16 striking ‘‘companies,,’’ and inserting ‘‘compa17 nies,’’; and 

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

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

20 after the date of enactment of this subsection and every 

21 5 years thereafter, the appropriate Federal financial su22 pervisory agencies shall— 

23 ‘‘(1) review the regulations promulgated to 

24 carry out this title; and 


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1 ‘‘(2) report to Congress any recommendations 

2 for updates to the regulations and this title, which 

3 may include consideration of— 

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

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

6 title; 

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

8 and deposits; and 

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

10 this title are reducing disparities in access to 

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

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

13 ‘‘SEC. 810. DATA COLLECTION AND REPORTING REQUIRE14 MENTS. 

15 ‘‘(a) DATA COLLECTION.— 

16 ‘‘(1) CONSUMER LOANS.— 

17 ‘‘(A) IN GENERAL.—Each regulated finan18 cial institution shall collect and maintain in ma19 chine readable form, as prescribed by the ap20 propriate Federal financial supervisory agency, 

21 data for consumer loans originated or pur22 chased by the regulated financial institution, in23 cluding motor vehicle loans, credit cards, lines 

24 of credit, and other secured or unsecured loans. 

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1 tain data separately for each category of con2 sumer loan, including the following for each 

3 loan: 

4 ‘‘(i) A unique number or alpha-nu5 meric symbol that can be used to identify 

6 the relevant loan. 

7 ‘‘(ii) The loan amount at origination 

8 or purchase. 

9 ‘‘(iii) The loan location. 

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

11 borrower that the regulated financial insti12 tution considered in making its credit deci13 sion. 

14 ‘‘(B) EXEMPTIONS.—The appropriate Fed15 eral financial supervisory agencies may exempt 

16 classes of regulated financial institutions from 

17 the requirements under subparagraph (A) due 

18 to low levels of consumer lending or other fac19 tors. 

20 ‘‘(2) COMMUNITY DEVELOPMENT LOANS AND

21 INVESTMENTS.— 

22 ‘‘(A) COLLECTION AND MAINTENANCE OF

23 DATA.—Each regulated financial institution 

24 shall collect and maintain in machine readable 

25 form, as prescribed by the appropriate Federal 


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1 financial supervisory agency, data on the cat2 egories of community development lending and 

3 investments, including data regarding financing 

4 affordable housing, small business development, 

5 and economic development. 

6 ‘‘(B) PUBLIC DISSEMINATION.—Each reg7 ulated financial institution shall— 

8 ‘‘(i) publicly disseminate the data de9 scribed in subparagraph (A) on a county 

10 level and for categories of census tracts in11 cluding low- and moderate-income census 

12 tracts or other distressed and underserved 

13 census tracts; and 

14 ‘‘(ii) consider disseminating the data 

15 described in subparagraph (A) by indi16 vidual census tracts in addition to the cat17 egories described in clause (i). 

18 ‘‘(3) ASSESSMENT AREA DATA.— 

19 ‘‘(A) IN GENERAL.—Each regulated finan20 cial institution shall collect and report to the 

21 appropriate Federal financial supervisory agen22 cy by March 1 of each year a list for each as23 sessment area showing the geographies within 

24 the area. 


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1 ‘‘(B) PUBLICATION.—The appropriate 

2 Federal financial supervisory agencies shall 

3 make the list of assessment areas reported by 

4 each regulated financial institution under sub5 paragraph (A) publicly available on the part of 

6 the website of the appropriate Federal financial 

7 supervisory agency that contains information on 

8 this title. 

9 ‘‘(4) DEPOSITS.—The appropriate Federal fi10 nancial supervisory agencies shall— 

11 ‘‘(A) collect data from regulated financial 

12 institutions that reflects— 

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

14 institutions that reside in categories of 

15 census tracts including low- and moderate16 income census tracts or other distressed 

17 and underserved census tracts and the dol18 lar amount of deposits of those customers; 

19 and 

20 ‘‘(ii) the number of small businesses 

21 that are located in the census tract cat22 egories described in clause (i); and 

23 ‘‘(B) consider the dissemination of the de24 posit data collected under subparagraph (A) by 


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1 individual census tracts in addition to the cat2 egories described in that subparagraph. 

3 ‘‘(b) AGGREGATE DISCLOSURE STATEMENTS.— 

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

5 financial supervisory agency shall prepare annually, 

6 for each assessment area, a disclosure statement of 

7 home, small business, small farm, and consumer 

8 lending for each regulated financial institution sub9 ject to reporting under this section and an aggre10 gated statement for all reporting institutions com11 bined, which shall indicate, for each assessment 

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

13 small farm, and consumer loans originated or pur14 chased sorted by income level of borrowers, race and 

15 ethnicity of borrowers, revenue size of small business 

16 and farms, and categories of census tracts. 

17 ‘‘(2) DEPOSITS AND COMMUNITY DEVELOP18 MENT LOANS AND INVESTMENTS.—An appropriate 

19 Federal financial supervisory agency shall include 

20 data on deposits and community development loans 

21 and investments in the disclosure statements pre22 pared under paragraph (1). 

23 ‘‘(3) ADJUSTED FORM.—An appropriate Fed24 eral financial supervisory agency may adjust the 

25 form of the disclosure statement prepared under 


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1 paragraph (1) if necessary, because of special cir2 cumstances, to protect the privacy of a borrower or 

3 the competitive position of a regulated financial in4 stitution. 

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

6 Financial Institutions Examination Council, in consulta7 tion with the appropriate Federal financial supervisory 

8 agencies, shall implement a system— 

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

10 a searchable format the data maintained under 

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

12 ‘‘(2) that ensures that personally identifiable fi13 nancial information is not disclosed to public. 

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

15 supervisory agency may not use the authorities of the ap16 propriate Federal financial supervisory agency under this 

17 section to obtain a record from a regulated financial insti18 tution for the purpose of gathering or analyzing the per19 sonally identifiable financial information of a consumer.’’. 

20 (c) AMENDMENT TO THE BANK HOLDING COMPANY

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

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

23 to read as follows: 

24 ‘‘(6) NOTICE AND OPPORTUNITY FOR COMMENT

25 REQUIRED.— 


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

2 company shall directly or indirectly acquire, and 

3 no company that becomes a financial holding 

4 company shall directly or indirectly acquire con5 trol of, any company in the United States, in6 cluding through merger, consolidation, or other 

7 type of business combination, that is engaged in 

8 activities permitted under this subsection or 

9 subsection (n) or (o), unless— 

10 ‘‘(i) the holding company has provided 

11 notice to the Board, not later than 60 days 

12 prior to the proposed acquisition or prior 

13 to becoming a financial holding company, 

14 and during that time period, or such 

15 longer time period not exceeding an addi16 tional 60 days, as established by the 

17 Board; 

18 ‘‘(ii) the Board has provided public 

19 notice and opportunity for comment for 

20 not less than 60 days; and 

21 ‘‘(iii) the Board has not issued a no22 tice disapproving the proposed acquisition 

23 or retention. 


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

2 reviewing any prior notice filed under this para3 graph, the Board shall— 

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

5 financial holding company under the Com6 munity Reinvestment Act of 1977 (12 

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

8 plans submitted pursuant to that Act; 

9 ‘‘(ii) provide opportunity for public 

10 comment for a period of not less than 60 

11 days; 

12 ‘‘(iii) consider changes in the commu13 nity reinvestment performance of the fi14 nancial holding company since the last rat15 ing under the Community Reinvestment 

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

17 the appropriate Federal financial super18 visory agency; and 

19 ‘‘(iv) require— 

20 ‘‘(I) a demonstration that grant21 ing the application for a deposit facil22 ity is in the public interest, which 

23 shall include submission to the appro24 priate Federal financial supervisory 

25 agency of a community benefits plan 


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1 commensurate with the ability of the 

2 institution to carry out that plan; 

3 ‘‘(II) that the institution consult 

4 with community-based organizations 

5 and other community stakeholders in 

6 developing the community benefits 

7 plan; and 

8 ‘‘(III) a public hearing for any 

9 bank that has received a ‘need-to-im10 prove’ or ‘low satisfactory’ grade in 

11 any assessment area during the last 

12 examination under the Community 

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

14 2901 et seq.).’’. 

15 (d) TECHNICAL AND CONFORMING AMENDMENT.— 

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

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

18 804(c) of the Community Reinvestment Act of 1977 (12 

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

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

21 2903(f))’’. 

22 SEC. 204. AMENDMENTS RELATING TO CREDIT UNION 

23 SERVICE TO UNDERSERVED AREAS. 

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

25 U.S.C. 1751 et seq.) is amended— 


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

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

3 the end; 

4 (B) in paragraph (9), by striking the pe5 riod at the end and inserting ‘‘; and’’; and 

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

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

8 ‘‘(A) means a local community, neighbor9 hood, or rural district that— 

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

11 in section 103 of the Community Develop12 ment Banking and Financial Institutions 

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

14 such additional requirements that the 

15 Board may impose; and 

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

17 the Board and the Federal banking agen18 cies (as defined in section 3 of the Federal 

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

20 by other depository institutions (as defined 

21 in section 19(b)(1)(A) of the Federal Re22 serve Act (12 U.S.C. 461(b)(1)(A)); and 

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

24 includes, with respect to any Federal credit 


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1 union, any geographic area within which the 

2 credit union— 

3 ‘‘(i) has received approval to provide 

4 service before the date of enactment of this 

5 paragraph from the Administration; and 

6 ‘‘(ii) has established a service facility 

7 before that date of enactment.’’; 

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

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

10 adherence by a Federal credit union to a significant 

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

12 that Federal credit union that describes how the 

13 Federal credit union will serve the deposit and other 

14 financial needs of the community.’’; and 

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

16 (A) in subsection (c), by amending para17 graph (2) to read as follows: 

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

19 ‘‘(A) IN GENERAL.—Notwithstanding sub20 section (b), the Board may approve an applica21 tion by a Federal credit union to allow the 

22 membership of the credit union to include any 

23 person or organization whose principal resi24 dence or place of business is located within a 


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1 local community, neighborhood, or rural district 

2 if— 

3 ‘‘(i) the Board determines— 

4 ‘‘(I) at any time after August 7, 

5 1998, that the local community, 

6 neighborhood, or rural district taken 

7 into account for purposes of this para8 graph is an underserved area; and 

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

10 that the credit union is well capital11 ized or adequately capitalized (as de12 fined in section 216(c)(1)); and 

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

14 period beginning on the date of the ap15 proval, the credit union has established 

16 and maintains an ongoing method to pro17 vide services in the local community, neigh18 borhood, or rural district. 

19 ‘‘(B) TERMINATION OF APPROVAL.— 

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

21 Federal credit union to meet the require22 ment of clause (ii) of subparagraph (A) by 

23 the end of the 24-month period referred to 

24 in that clause shall constitute a termi25 nation, as a matter of law, of any approval 


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1 of an application under this paragraph by 

2 the Board with respect to the membership 

3 of the credit union. 

4 ‘‘(ii) SIGNIFICANT UNMET NEEDS

5 PLAN.—The Board may terminate the 

6 membership of a Federal credit union upon 

7 a finding that the credit union is not meet8 ing the terms of the significant unmet 

9 needs plan of the credit union submitted 

10 under subsection (h)(1). 

11 ‘‘(C) CREDIT UNION REPORTING REQUIRE12 MENT.—Any Federal credit union that has an 

13 application approved under this paragraph 

14 shall, as part of the ordinary course of the ex15 amination cycle and supervision process, submit 

16 a report to the Administration that includes— 

17 ‘‘(i) the number of members of the 

18 credit union who are members by reason of 

19 the application; 

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

21 maintained by the credit union in the local 

22 community, neighborhood, or rural district 

23 taken into account by the Board in approv24 ing the application; and 


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

2 Board by regulation, demonstrating com3 pliance by the credit union with the signifi4 cant unmet needs plan submitted by the 

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

6 specified by the Administration. 

7 ‘‘(D) PUBLICATION BY ADMINISTRA8 TION.—The Administration shall publish an an9 nual report containing— 

10 ‘‘(i) a list of all the applications ap11 proved under this paragraph before the 

12 date on which the report is published; 

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

14 underserved areas taken into account in 

15 approving those applications; 

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

17 credit unions who are members by reason 

18 of the approval of those applications; and 

19 ‘‘(iv) evidence demonstrating compli20 ance by credit unions with significant 

21 unmet needs plans submitted by the credit 

22 unions under subsection (h)(1), as speci23 fied by the Administration.’’; 

24 (B) in subsection (e)(2), by inserting ‘‘sub25 section (c)(2) and’’ after ‘‘provided in’’; and 


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

2 ‘‘(h) ADDITIONAL REQUIREMENTS FOR COMMUNITY

3 CREDIT UNIONS.— 

4 ‘‘(1) IN GENERAL.—A Federal credit union de5 siring membership as a credit union described in 

6 subsection (b)(3) shall submit to the Board a busi7 ness plan, which shall include, among other issues, 

8 a marketing plan that identifies— 

9 ‘‘(A) the unique needs of the various demo10 graphic groups in the proposed community; and 

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

12 each group, particularly underserved groups, to 

13 address those needs. 

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

15 respect to a Federal credit union desiring member16 ship as a credit union described in subsection (b)(3) 

17 for an area with multiple political jurisdictions with 

18 a population of not less than 2,500,000, the Admin19 istration shall— 

20 ‘‘(A) publish a notice in the Federal Reg21 ister seeking comment from interested parties 

22 about the proposed community; and 

23 ‘‘(B) conduct a public hearing regarding 

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


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

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

3 Administration Board shall issue final regulations to im4 plement the amendments made by subsection (a). 

5 SEC. 205. ELIGIBILITY OF CERTAIN DIRECT DESCENDANTS 

6 OF CERTAIN VETERANS FOR HOUSING LOANS 

7 GUARANTEED BY THE SECRETARY OF VET8 ERANS AFFAIRS. 

9 (a) EXPANSION OF DEFINITION OF VETERAN FOR

10 PURPOSES OF HOUSING LOAN BENEFITS.—Section 

11 3701(b) of title 38, United States Code, is amended by 

12 adding at the end the following new paragraph: 

13 ‘‘(8)(A) The term ‘veteran’ also includes, for 

14 purposes of home loans, any direct descendant of a 

15 veteran described in subparagraph (B) if the de16 scendant is living on the date of the enactment of 

17 the American Housing and Economic Mobility Act of 

18 2021. 

19 ‘‘(B) A veteran described in this clause is a vet20 eran who— 

21 ‘‘(i) served on active duty at any time dur22 ing the period between June 22, 1944, and 

23 April 11, 1968; 

24 ‘‘(ii) is deceased; and 


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1 ‘‘(iii) did not receive a housing loan benefit 

2 under this chapter during his or her lifetime. 

3 ‘‘(C) In this paragraph, the term ‘direct de4 scendant’ includes a legally adopted descendant.’’. 

5 (b) EXPANSION OF ELIGIBILITY.—Section 

6 3702(a)(2) of such title is amended by adding at the end 

7 the following new subparagraph: 

8 ‘‘(H) Each direct descendant described in sec9 tion 3701(b)(8) of this title.’’. 

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

11 this section shall take effect on the date that is one year 

12 after the date of the enactment of this Act. 

13 (d) REGULATIONS.—Not later than 180 days after 

14 the date of the enactment of this Act, the Secretary of 

15 Veterans Affairs shall prescribe regulations to carry out 

16 the amendments made by this section. 

17 TITLE III—REMOVING BARRIERS 

18 THAT ISOLATE COMMUNITIES 

19 SEC. 301. EXPANDING RIGHTS UNDER THE FAIR HOUSING 

20 ACT. 

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

22 made by this section are— 

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

24 create greater consistency in, the protections against 


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1 discrimination on the basis of all covered character2 istics; and 

3 (2) to provide guidance and notice to individ4 uals, organizations, corporations, and agencies re5 garding their obligations under Federal law. 

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

7 The Fair Housing Act (42 U.S.C. 3601 et seq.) is amend8 ed— 

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

10 at the end the following: 

11 ‘‘(p) ‘Gender identity’ means the gender-related iden12 tity, appearance, or mannerisms or other gender-related 

13 characteristics of an individual, regardless of the individ14 ual’s designated sex at birth. 

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

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

17 or any successor regulation. 

18 ‘‘(r) ‘Sexual orientation’ means homosexuality, het19 erosexuality, or bisexuality. 

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

21 there is a reasonable expectation that the income will con22 tinue from— 

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

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

25 grant, loan, or rental assistance program, including 


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1 vouchers issued under the United States Housing 

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

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

5 benefit; or 

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

8 ‘‘(t) ‘Veteran status’ means— 

9 ‘‘(1) a member of the uniformed services, as de10 fined in section 101 of title 10, United States Code; 

11 or 

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

13 38, United States Code.’’; 

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

15 (A) by inserting ‘‘actual or perceived’’ be16 fore ‘‘race, color’’ each place that term appears; 

17 (B) by striking ‘‘sex,’’ each place that term 

18 appears and inserting ‘‘sex (including sexual 

19 orientation and gender identity), marital status, 

20 source of income, veteran status,’’; and 

21 (C) in subsection (c)— 

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

23 make’’; and 

24 (ii) by adding at the end the fol25 lowing: 


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

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

3 loan program for veterans or based upon veteran 

4 status; or 

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

6 assistance under— 

7 ‘‘(i) section 8(o)(19) of the United States 

8 Housing Act of 1937 (42 U.S.C. 1437f(o)(19)); 

9 ‘‘(ii) the Homeless Providers Grant and 

10 Per Diem program of the Department of Vet11 erans Affairs; or 

12 ‘‘(iii) any other Federal housing assistance 

13 program for veterans or based on veteran sta14 tus.’’; 

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

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

18 and 

19 (B) by striking ‘‘sex,’’ each place that term 

20 appears and inserting ‘‘sex (including sexual 

21 orientation and gender identity), marital status, 

22 source of income, veteran status,’’; 

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

24 (A) by inserting ‘‘actual or perceived’’ be25 fore ‘‘race, color’’; and 


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1 (B) by striking ‘‘sex,’’ each place that term 

2 appears and inserting ‘‘sex (including sexual 

3 orientation and gender identity), marital status, 

4 source of income, veteran status,’’; and 

5 (5) in section 808(e)(6) (42 U.S.C. 3608(e)(6)), 

6 by striking ‘‘sex,’’ and inserting ‘‘sex (including sex7 ual orientation and gender identity), marital status, 

8 source of income, veteran status,’’. 

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

10 the Civil Rights Act of 1968 (42 U.S.C. 3631) is amend11 ed— 

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

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

14 (2) by striking ‘‘sex,’’ each place that term ap15 pears and inserting ‘‘sex (including sexual orienta16 tion (as such term is defined in section 802 of this 

17 Act) and gender identity (as defined in section 802 

18 of this Act)), marital status (as defined in section 

19 802), source of income (as defined in section 802), 

20 veteran status (as defined in section 802),’’. 

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

22 amendments made by this section shall be construed to 

23 mean that a particular class of individuals was not pro24 tected against discrimination under Federal law as in ef25 fect on the day before the date of enactment of this Act. 


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1 SEC. 302. IMPROVING OUTCOMES IN HOUSING ASSISTANCE 

2 PROGRAMS. 

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

4 the Native American Housing Assistance and Self-Deter5 mination Act of 1996 (25 U.S.C. 4181) is amended by 

6 adding at the end the following: 

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

8 not apply with respect to tenant-based assistance provided 

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

10 1937 (42 U.S.C. 1437f(o)).’’. 

11 (b) SUPPLEMENTAL ADMINISTRATIVE FEE.—Section 

12 8(q)(2)(B) of the United States Housing Act of 1937 (42 

13 U.S.C. 1437f(q)(2)(B)) is amended by inserting ‘‘, includ14 ing the cost of assisting families with children or families 

15 with a member with a disability that move to lower pov16 erty, higher opportunity neighborhoods (as determined by 

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

18 after ‘‘programs’’. 

19 (c) REGIONAL PLANNING TO INCREASE ACCESS TO

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

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

22 is amended by adding at the end the following: 

23 ‘‘(21) INCREASING ACCESS TO HIGHER OPPOR24 TUNITY AREAS.— 

25 ‘‘(A) LOCATION ANALYSIS.— 


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1 ‘‘(i) IN GENERAL.—A public housing 

2 agency that administers the program 

3 under this subsection in a metropolitan 

4 area shall— 

5 ‘‘(I) analyze the locations where 

6 the participants in the program of the 

7 public housing agency live; and 

8 ‘‘(II) based on the analysis de9 scribed in subclause (I), establish poli10 cies and practices to reduce disparities 

11 and barriers to access to locations 

12 throughout the metropolitan area that 

13 evidence indicates are more likely to 

14 improve outcomes for children or 

15 adults. 

16 ‘‘(ii) CONSIDERATIONS.—The location 

17 analysis required under this subparagraph 

18 shall— 

19 ‘‘(I) consider separately the loca20 tions of families with children, house21 holds that include a person with dis22 abilities, and other groups protected 

23 under the Fair Housing Act (42 

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


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1 ‘‘(II) include an analysis of the 

2 locations in relation to dwelling units 

3 with rents that are potentially afford4 able to voucher holders and the likely 

5 impact of key neighborhood attributes 

6 on their well-being and long-term suc7 cess, based on Federal and available 

8 local data. 

9 ‘‘(iii) MAPPING TOOLS.—The Sec10 retary shall— 

11 ‘‘(I) provide mapping tools and 

12 other information necessary for a pub13 lic housing agency to perform the lo14 cation analysis under this subpara15 graph using the demographic data on 

16 participating families submitted to the 

17 Secretary under part 908 of title 24, 

18 Code of Federal Regulations, or any 

19 successor regulation; 

20 ‘‘(II) publish a notice in the Fed21 eral Register, subject to public com22 ment, that specifies the data sources 

23 and definitions that will be incor24 porated in each mapping tool required 

25 under subclause (I); and 


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1 ‘‘(III) update the notice required 

2 under subclause (II) as needed based 

3 on changes in the availability of rel4 evant data or evidence of neighbor5 hood attributes likely to impact the 

6 well-being and long-term success of 

7 participants in the program under this 

8 subsection. 

9 ‘‘(iv) FREQUENCY AND AVAIL10 ABILITY.—The location analysis required 

11 under this subparagraph shall— 

12 ‘‘(I) be performed by each public 

13 housing agency described in clause (i) 

14 not less frequently than once every 5 

15 years; 

16 ‘‘(II) be performed by all public 

17 housing agencies in a metropolitan 

18 area in the same year, as determined 

19 by the Secretary; and 

20 ‘‘(III) be made available to the 

21 public in a manner that protects the 

22 privacy of program participants. 

23 ‘‘(B) REGIONAL POLICIES TO INCREASE

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1 HOODS.—Each public housing agency described 

2 in subparagraph (A)(i) shall— 

3 ‘‘(i) consult with other such public 

4 housing agencies in the same metropolitan 

5 area, or smaller regional area approved by 

6 the Secretary, about the possible barriers 

7 and other reasons for the disparities iden8 tified in the location analysis required 

9 under subparagraph (A); 

10 ‘‘(ii) identify policies or practices that 

11 those public housing agencies could adopt 

12 individually or in collaboration, or other 

13 strategies that recipients of grants or other 

14 funding from the Secretary could adopt, to 

15 reduce the barriers and disparities and in16 crease the share of families with children 

17 and other demographic groups using 

18 vouchers in higher-opportunity neighbor19 hoods in the metropolitan area or region; 

20 and 

21 ‘‘(iii) include in the administrative 

22 plan required under section 982.54 of title 

23 24, Code of Federal Regulations, or any 

24 successor regulation, the policies that the 


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1 public housing agency has adopted under 

2 this paragraph. 

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

4 include public housing agency performance in 

5 achieving the goal described in subparagraph 

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

7 performance in managing the program under 

8 this subsection required under part 985 of title 

9 24, Code of Federal Regulations, or any suc10 cessor regulation.’’. 

11 (d) REQUIRED REGULATORY CHANGES TO PUBLIC

12 HOUSING AGENCY CONSORTIA.— 

13 (1) DEFINITIONS.—In this subsection: 

14 (A) MOVING TO WORK DEMONSTRATION

15 PROGRAM.—The term ‘‘Moving to Work dem16 onstration program’’ means the program estab17 lished under section 204 of the Departments of 

18 Veterans Affairs and Housing and Urban De19 velopment, and Independent Agencies Appro20 priations Act, 1996 (Public Law 104–134; 110 

21 Stat. 1321–281). 

22 (B) PUBLIC HOUSING AGENCY.—The term 

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

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

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


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

2 after the date of enactment of this Act, the Sec3 retary of Housing and Urban Development shall es4 tablish policies and procedures that— 

5 (A) enable public housing agencies that 

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

7 of the United States Housing Act of 1937 (42 

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

9 agencies participating in the Moving to Work 

10 demonstration program— 

11 (i) to consolidate their funding con12 tracts for assistance provided under section 

13 8(o) of such Act (42 U.S.C. 1437f(o)) into 

14 a single contract; 

15 (ii) to consolidate their funding con16 tracts for assistance provided under sub17 sections (d) and (e) of section 9 of such 

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

19 (iii) to exercise the consolidation op20 tions under each of clauses (i) and (ii); and 

21 (B) enable public housing agencies to form 

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

23 U.S.C. 1437k(a)) that consolidate the adminis24 tration of certain aspects of their housing pro25 grams to increase access to higher-opportunity 


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1 areas or for other purposes, subject to such re2 quirements as the Secretary may establish. 

3 (3) MOVING TO WORK AGENCIES.—Any flexi4 bility or waiver applicable to the Moving to Work 

5 demonstration program shall not apply to any activi6 ties or funds administered through a partial consor7 tium formed under paragraph (2)(B) by 1 or more 

8 public housing agencies participating in the Moving 

9 to Work demonstration program. 

10 TITLE IV—ESTATE TAX REFORM 

11 SEC. 401. AMENDMENT TO INTERNAL REVENUE CODE OF 

12 1986. 

13 Except as otherwise expressly provided, whenever in 

14 this title an amendment or repeal is expressed in terms 

15 of an amendment to, or repeal of, a section or other provi16 sion, the reference shall be considered to be made to a 

17 section or other provision of the Internal Revenue Code 

18 of 1986. 

19 SEC. 402. RATE ADJUSTMENT. 

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

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

If the amount with respect to 

which the tentative tax to 

be computed is: 

The tentative tax is: 

Not over $13,000,000 ................... 55 percent of such amount. 

Over $13,000,000 but not over 

$93,000,000.

$7,150,000, plus 60 percent of the 

excess of such amount over 

$13,000,000. 


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If the amount with respect to 

which the tentative tax to 

be computed is: 

The tentative tax is: 

Over $93,000,000 .......................... $55,150,000, plus 65 percent of the 

excess of such amount over 

$93,000,000. 

1 (b) REDUCTION OF BASIC EXCLUSION AMOUNT.— 

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

3 follows: 

4 ‘‘(3) BASIC EXCLUSION AMOUNT.—For pur5 poses of this subsection, the basic exclusion amount 

6 is $3,500,000.’’. 

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

8 2001 is amended— 

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

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

11 (2) by adding at the end the following new sub12 section: 

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

14 ‘‘(1) IN GENERAL.—In the case of a taxable es15 tate for which the applicable amount is in excess of 

16 $1,000,000,000, the tax determined under sub17 section (b) shall be increased by an amount equal to 

18 10 percent of such applicable amount. 

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

20 this subsection, the applicable amount shall be equal 

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


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

2 taxable estate.’’. 

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

4 GRANTOR RETAINED ANNUITY TRUSTS. 

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

6 amended— 

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

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

9 and by moving such subparagraphs (as so redesig10 nated) 2 ems to the right; 

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

12 the following: 

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

14 (3) by striking ‘‘paragraph (1) or (2)’’ in para15 graph (1)(C) (as so redesignated) and inserting 

16 ‘‘subparagraph (A) or (B)’’; and 

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

18 paragraph: 

19 ‘‘(2) ADDITIONAL REQUIREMENTS WITH RE20 SPECT TO GRANTOR RETAINED ANNUITIES.—For 

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

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

23 regard to this paragraph) which is retained by the 

24 transferor, such interest shall be treated as de25 scribed in such paragraph only if— 


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

2 referred to in such paragraph is for a term of 

3 not less than 10 years, 

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

5 on an annual basis, do not decrease relative to 

6 any prior year during the first 10 years of the 

7 term referred to in subparagraph (A), and 

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

9 equal to or greater than 10 percent of the value 

10 of the assets transferred to the trust, deter11 mined as of the time of the transfer.’’. 

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

13 this section shall apply to transfers made after the date 

14 of the enactment of this Act. 

15 SEC. 404. CERTAIN TRANSFER TAX RULES APPLICABLE TO 

16 GRANTOR TRUSTS. 

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

18 at the end the following new chapter: 

19 ‘‘CHAPTER 16—SPECIAL RULES FOR 

20 GRANTOR TRUSTS 

‘‘Sec. 2901. Application of transfer taxes. 

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

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

23 trust to which this section applies— 


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1 ‘‘(1) the value of the gross estate of the de2 ceased deemed owner of such portion shall include 

3 all assets attributable to that portion at the time of 

4 the death of such owner, 

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

6 or more beneficiaries during the life of the deemed 

7 owner of such portion shall be treated as a transfer 

8 by gift for purposes of chapter 12, and 

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

10 deemed owner of such portion, such owner ceases to 

11 be treated as the owner of such portion under sub12 part E of part 1 of subchapter J of chapter 1, all 

13 assets attributable to such portion at such time shall 

14 be treated for purposes of chapter 12 as a transfer 

15 by gift made by the deemed owner. 

16 ‘‘(b) PORTION OF TRUST TO WHICH SECTION AP17 PLIES.—This section shall apply to— 

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

19 which the grantor is the deemed owner, and 

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

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

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

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

24 sale, exchange, or comparable transaction with the 

25 trust that is disregarded for purposes of subtitle A. 


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

2 described with respect to a transaction is the portion of 

3 the trust attributable to the property received by the trust 

4 in such transaction, including all retained income there5 from, appreciation thereon, and reinvestments thereof, net 

6 of the amount of consideration received by the deemed 

7 owner in such transaction. 

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

9 ‘‘(1) any trust that is includible in the gross es10 tate of the deemed owner (without regard to sub11 section (a)(1)), and 

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

13 determines by regulations or other guidance does not 

14 have as a significant purpose the avoidance of trans15 fer taxes. 

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

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

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

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

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

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

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

23 gift by the deemed owner to the trust previously taken 

24 into account by the deemed owner under chapter 12. 


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1 ‘‘(f) LIABILITY FOR PAYMENT OF TAX.—Any tax im2 posed pursuant to subsection (a) shall be a liability of the 

3 trust.’’. 

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

5 for subtitle B is amended by adding at the end the fol6 lowing new item: 

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

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

8 this section shall apply— 

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

10 enactment of this Act; 

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

12 the date of the enactment of this Act which is attrib13 utable to a contribution made on or after such date; 

14 and 

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

16 the date of the enactment of this Act to which sec17 tion 2901(a) of the Internal Revenue Code of 1986 

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

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

20 Code on or after such date. 

21 SEC. 405. ELIMINATION OF GENERATION-SKIPPING TRANS22 FER TAX EXEMPTION FOR CERTAIN TRUSTS. 

23 (a) IN GENERAL.—Section 2642 is amended by add24 ing at the end the following new subsection: 


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1 ‘‘(h) ELIMINATION OF GST EXEMPTION FOR CER2 TAIN TRUSTS.— 

3 ‘‘(1) IN GENERAL.— 

4 ‘‘(A) TRANSFERS FROM NON-QUALIFYING

5 TRUSTS.—In the case of any generation-skip6 ping transfer made from a trust that is not a 

7 qualifying trust, the inclusion ratio with respect 

8 to any property transferred in such transfer 

9 shall be 1. 

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

11 of this subsection, the term ‘qualifying trust’ 

12 means a trust for which the date of termination 

13 of such trust is not greater than 50 years after 

14 the date on which such trust is created. 

15 ‘‘(2) TRUSTS CREATED BEFORE DATE OF EN16 ACTMENT.—In the case of any trust created before 

17 the date of the enactment of this subsection, such 

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

19 period of 50 years after the date of the enactment 

20 of this subsection. 

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

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

23 trust which is treated as a separate trust under sec24 tion 2654(b)(1), such separate trust shall be treated 


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1 as created on the date of the first transfer described 

2 in such section with respect to such separate trust. 

3 ‘‘(4) DATE OF CREATION OF POUR-OVER

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

5 transfer of property which involves the transfer of 

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

7 the creation of the transferee trust shall be treated 

8 as being the earlier of— 

9 ‘‘(A) the date of the creation of such trans10 feree trust, or 

11 ‘‘(B) the date of the creation of the trans12 feror trust. 

13 In the case of multiple transfers to which the pre14 ceding sentence applies, the date of the creation of 

15 the transferor trust shall be determined under the 

16 preceding sentence before the application of the pre17 ceding sentence to determine the date of the creation 

18 of the transferee trust. 

19 ‘‘(5) REGULATIONS.—The Secretary may pre20 scribe such regulations or other guidance as may be 

21 necessary or appropriate to carry out this sub22 section.’’. 

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

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

25 of this Act. 


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1 SEC. 406. SIMPLIFYING GIFT TAX EXCLUSION FOR ANNUAL 

2 GIFTS. 

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

4 is amended to read as follows: 

5 ‘‘(1) IN GENERAL.— 

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

7 gifts made to any person by the donor during 

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

9 gifts to such person shall not, for purposes of 

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

11 of gifts made during such year. 

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

13 ‘‘(i) IN GENERAL.—The aggregate 

14 amount excluded under subparagraph (A) 

15 with respect to all transfers described in 

16 clause (ii) made by the donor during the 

17 calendar year shall not exceed twice the 

18 dollar amount in effect under such sub19 paragraph for such calendar year. 

20 ‘‘(ii) TRANSFERS SUBJECT TO LIMITA21 TION.—The transfers described in this 

22 clause are— 

23 ‘‘(I) a transfer in trust, 

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

25 a passthrough entity, 


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1 ‘‘(III) a transfer of an interest 

2 subject to a prohibition on sale, and 

3 ‘‘(IV) any other transfer of prop4 erty that, without regard to with5 drawal, put, or other such rights in 

6 the donee, cannot immediately be liq7 uidated by the donee.’’. 

8 (b) CONFORMING AMENDMENT.—Section 2503 is 

9 amended by striking subsection (c). 

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

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

12 such regulations or other guidance as may be necessary 

13 or appropriate to carry out the amendments made by this 

14 section. 

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

16 this section shall apply to any calendar year beginning 

17 after the date of the enactment of this Act. 

18 TITLE V—ACCESSIBILITY 

19 REQUIREMENTS 

20 SEC. 501. ACCESSIBILITY REQUIREMENTS. 

21 In the case of housing that is constructed, altered, 

22 or otherwise assisted using amounts made available to the 

23 Secretary of Housing and Urban Development under this 

24 Act or an amendment made by this Act, sections 8.22 and 

25 8.23 of title 24, Code of Federal Regulations (or any sucVerDate Sep 11 2014 04:50 Jun 02, 2021 Jkt 019200 PO 00000 Frm 00106 Fmt 6652 Sfmt 6201 E:\BILLS\H2768.IH H2768

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1 cessor regulations) shall be applied such that the number 

2 of dwelling units required to be accessible under those sec3 tions is twice the number that would otherwise be required 

4 to be accessible under those sections. 

Æ 


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