(4) The Federal Government, through the 
Home Owners’ Loan Corporation and the Federal 
Housing Administration, standardized and institu-
tionalized discriminatory policies on the basis of 
race, national origin, and religion that reflected 
practices in the private sector and became a model 
for their widespread adoption across the housing in-
dustry. 
(5) Racist restrictive covenants and zoning ordi-
nances also robbed families of color of the oppor-
tunity to live and build opportunity for their families 
in the community of their choice. 
(6) In the years before the 2008 financial crisis, 
lenders targeted borrowers of color with abusive 
loans while government regulators sat on their 
hands, further extracting wealth from these same 
communities. 
(7) The legacy of housing discrimination and 
regulatory negligence is a contributor to a large and 
growing gap in wealth and outcomes between Black 
and White families. The median income White fam-
ily in the United States has almost 10 times the 
wealth of the median income Black family in the 
United States. The gap between the White home-
ownership rate and the Black homeownership rate is 
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bigger today than it was when housing discrimina-
tion was legal. Seventy-five percent of formerly red-
lined communities are still low-income and 66 per-
cent are still minority communities. 
(8) The purpose of this section is for the Fed-
eral Government to take the first step toward ad-
dressing the racial wealth gap that it contributed to 
creating by helping individuals or descendants of in-
dividuals who were harmed by housing discrimina-
tion or negligence by the Federal Government. 
(b) DEFINITIONS.—In this section: 
(1) ELIGIBLE RESIDENT.—The term ‘‘eligible 
resident’’ means a resident of a geographic area, as 
defined by the Secretary by regulation under sub-
section (g), who— 
(A) is a first-time homebuyer; 
(B) has an income that is less than 120 
percent of the area median income; and 
(C)(i) resided in that geographic area dur-
ing the 4-year period preceding the date of en-
actment of this Act; 
(ii) resided in that geographic area for a 
period of 4 years before moving out of the geo-
graphic area subsequent to a foreclosure, short 
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sale, or deed in lieu of foreclosure on a home 
that— 
(I) was the primary residence of the 
resident; and 
(II) was purchased or refinanced dur-
ing the period beginning on January 1, 
2001, and ending on December 30, 2008; 
or 
(iii) resided in that geographic area for a 
period of 4 years before moving out of the geo-
graphic area due to a major disaster declared 
by the President or a State, territorial, or Trib-
al government. 
(2) FIRST-TIME HOMEBUYER.—The term ‘‘first- 
time homebuyer’’ means an individual (and if mar-
ried, the spouse of the individual) who— 
(A) has had no ownership in a principal 
residence during the 3-year period ending on 
the date of purchase of the property; or 
(B) who surrendered an ownership interest 
in a principal residence during the 3-year pe-
riod ending on the date of purchase of the prop-
erty as part of a divorce proceeding. 
(3) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Housing and Urban Development. 
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(c) ESTABLISHMENT.—There is established in the 
Office of Housing of the Department of Housing and 
Urban Development a fund, to be administered by the Sec-
retary, that shall be used— 
(1) to provide grants to eligible residents to 
purchase homes; 
(2) for outreach to financial institutions in tar-
geted areas and eligible residents, including for the 
administration of that outreach; 
(3) for counseling or financial education admin-
istered by counseling agencies approved by the Sec-
retary in order to ensure sustainable homeowner-
ship; 
(4) to create and maintain the database de-
scribed in subsection (g)(3); and 
(5) to maintain any records required to imple-
ment this section. 
(d) GRANT AMOUNT.—Eligible residents may receive 
a grant from the fund established under subsection (c) in 
an amount equal to— 
(1) not more than 3.5 percent of the appraised 
value of the property to be purchased; or 
(2) if the appraised value is more than the prin-
cipal obligation amount limitation for mortgages in-
sured under title II of the National Housing Act (12 
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U.S.C. 1707 et seq.), 3.5 percent of the maximum 
principal obligation limitation for the property to be 
purchased. 
(e) FHA LOAN.—An eligible resident is not required 
to obtain a mortgage that is insured under title II of the 
National Housing Act (12 U.S.C. 1707 et seq.) as a condi-
tion of receiving a grant under this section. 
(f) GEOGRAPHIC AREA.—An eligible resident is not 
required to purchase a home within the geographic area 
described in subsection (b)(1)(C) as a condition of receiv-
ing a grant under this section. 
(g) REGULATIONS AND DATABASE.—Not later than 
1 year after the date of enactment of this Act, the Sec-
retary shall— 
(1) in consultation with interested parties, in-
cluding housing counseling agencies approved by the 
Secretary and individuals or groups with expertise in 
fair housing, finalize regulations relating to the use 
of the fund established under subsection (c), includ-
ing defining the geographic areas in which residents 
are eligible to receive grants through the fund, which 
shall include— 
(A) census tracts graded as ‘‘hazardous’’ 
or ‘‘definitely declining’’in maps drawn by the 
Home Owners’ Loan Corporation that are, as of 
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the date of enactment of this Act, low-income 
communities; 
(B) census tracts that were designated for 
non-White citizens in jurisdictions that histori-
cally had racially segregated zoning codes and 
are, as of the date of enactment of this Act, 
low-income communities; and 
(C) census tracts that are racially or eth-
nically concentrated areas of poverty, which 
shall mean a census tract— 
(i) with a non-White population of 50 
percent or more; and 
(ii)(I) in which not less than 40 per-
cent of families living in the census tract 
have incomes that are at or below the pov-
erty line; or 
(II) in which the average tract poverty 
rate is 3 or more times the average tract 
poverty tract for the metropolitan or 
micropolitan area; 
(2) finalize regulations relating to the disburse-
ment of funds under this section to ensure that eligi-
ble residents are able to receive funds before the 
closing date for their home, which may include cre-
ating a program that allows a lender to be reim-
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bursed by the fund established under subsection (c) 
if the lender— 
(A) provides the eligible resident with 
funds for the closing; or 
(B) 
allows 
eligible 
residents 
to 
be 
preapproved to receive assistance under this 
section when arranging financing for their 
home; 
(3) create a publicly accessible database that al-
lows individuals, real estate professionals, and lend-
ers to determine whether a borrower is eligible for 
assistance under this section; and 
(4) establish methods to verify that an indi-
vidual is an eligible resident. 
(h) APPROPRIATIONS.—Out of funds in the Treasury 
not otherwise appropriated, there is appropriated to the 
fund established under subsection (c) such sums as may 
be necessary for each of fiscal years 2020 through 2029 
to provide grants under this section and to carry out con-
sumer education efforts related to this section. 
(i) INCLUSION OF PROGRAM IN HOME BUYING IN-
FORMATION BOOKLETS.—Section 5(b) of the Real Estate 
Settlement Procedures Act of 1974 (12 U.S.C. 2604(b)) 
is amended by inserting after paragraph (14) the fol-
lowing: 
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‘‘(15) Information relating to the down pay-
ment assistance program established under section 
201 of the American Housing and Economic Mobil-
ity Act of 2019.’’. 
(j) INCLUSION OF PROGRAM AS MORTGAGE PROD-
UCT.—Section 203(f)(1) of the National Housing Act (12 
U.S.C. 1709(f)(1)) is amended by inserting ‘‘, including 
the down payment assistance program established under 
section 201 of the American Housing and Economic Mo-
bility Act of 2019,’’ after ‘‘mortgage products’’. 
SEC. 202. FORMULA GRANT PROGRAM FOR COMMUNITIES 
THAT HAVE NOT RECOVERED FROM THE FI-
NANCIAL CRISIS. 
(a) ESTABLISHMENT.—The Secretary of Housing 
and Urban Development shall establish a formula grant 
program to provide funding to States to assist borrowers 
with negative equity in their primary residence through— 
(1) measures that provide funds to borrowers 
to— 
(A) pay down arrears on an otherwise af-
fordable loan; 
(B) pay down arrears or principal on a 
loan in order to qualify for a loan modification 
that will allow the borrower to keep their home; 
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(C) pay off the entire or pay down part of 
a second mortgage or home equity line of cred-
it; 
(D) pay off a small-dollar mortgage; 
(E) pay delinquent taxes and tax liens; 
(F) pay off delinquent water or sewer bills 
and liens; and 
(G) pay for home repairs or maintenance 
or for modifications to bring the home into 
compliance with any applicable codes; and 
(2) programs to purchase or rehabilitate vacant 
land and foreclosed homes to enhance neighborhood 
property values. 
(b) FORMULA.—The Secretary of Housing and 
Urban Development shall distribute amounts under this 
section based on the number of borrowers in the State 
with a primary residence with negative equity. 
(c) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated to carry out this section 
$2,000,000,000 for fiscal year 2020. 
SEC. 203. STRENGTHENING THE COMMUNITY REINVEST-
MENT ACT OF 1977. 
(a) SHORT TITLE.—This section may be cited as the 
‘‘Community Reinvestment Reform Act of 2019’’. 
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(b) AMENDMENTS TO THE COMMUNITY REINVEST-
MENT ACT OF 1977.—The Community Reinvestment Act 
of 1977 (12 U.S.C. 2901 et seq.) is amended— 
(1) by amending sections 802 and 803 (12 
U.S.C. 2901, 2902) to read as follows: 
‘‘SEC. 802. FINDINGS AND PURPOSE. 
‘‘(a) FINDINGS.—Congress finds that— 
‘‘(1) regulated financial institutions are re-
quired by law to demonstrate that they serve the 
convenience and needs of the communities in which 
they are chartered or do business, in particular low- 
and moderate-income communities; 
‘‘(2) the convenience and needs of communities 
include the need for credit services, deposit services, 
transaction services, other financial services, and 
community development loans and investments; and 
‘‘(3) regulated financial institutions have a con-
tinuing and affirmative obligation to meet the credit 
or other financial needs of the local communities in 
which they are chartered or do business. 
‘‘(b) PURPOSE.—It is the purpose of this title to re-
quire each appropriate Federal financial supervisory agen-
cy to use its authority when examining regulated financial 
institutions to ensure that those institutions meet the 
credit or other financial needs of the local communities 
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in which they are chartered or do business consistent with 
the safe and sound operation of those institutions. 
‘‘SEC. 803. DEFINITIONS. 
‘‘In this title: 
‘‘(1) APPLICATION FOR A DEPOSIT FACILITY.— 
The term ‘application for a deposit facility’ means 
an application to the appropriate Federal financial 
supervisory agency otherwise required under Federal 
law or regulations thereunder for— 
‘‘(A) a charter for a national bank or Fed-
eral savings and loan association; 
‘‘(B) deposit insurance in connection with 
a newly chartered State bank, savings bank, 
savings and loan association, or similar institu-
tion; 
‘‘(C) the establishment of a domestic 
branch or other facility with the ability to ac-
cept deposits of a regulated financial institu-
tion; 
‘‘(D) the relocation of the home office or a 
branch office of a regulated financial institu-
tion; 
‘‘(E) the merger or consolidation with, the 
acquisition of the assets of, or the assumption 
of the liabilities of a regulated financial institu-
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tion requiring approval under section 18(c) of 
the Federal Deposit Insurance Act (12 U.S.C. 
1828(c)); or 
‘‘(F) the acquisition of shares in, or the as-
sets of, a regulated financial institution requir-
ing approval under section 3 of the Bank Hold-
ing Company Act of 1956 (12 U.S.C. 1842). 
‘‘(2) APPROPRIATE FEDERAL BANKING AGEN-
CY.—The term ‘appropriate Federal banking agency’ 
has the meaning given the term in section 3 of the 
Federal Deposit Insurance Act (12 U.S.C. 1813). 
‘‘(3) APPROPRIATE
FEDERAL
FINANCIAL
SU-
PERVISORY
AGENCY.—The term ‘appropriate Fed-
eral financial supervisory agency’ means— 
‘‘(A) the appropriate Federal banking 
agency with respect to depository institutions 
and depository institution holding companies; 
and 
‘‘(B) the Bureau of Consumer Financial 
Protection with respect to any covered person 
supervised by the Bureau pursuant to section 
1024 of the Dodd-Frank Wall Street Reform 
and Consumer Protection Act (12 U.S.C. 
5514). 
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‘‘(4) ASSESSMENT
AREA.—The term ‘assess-
ment area’ means, with respect to a regulated finan-
cial institution, each community, including a State, 
metropolitan area, and urban or rural county, in 
which the institution— 
‘‘(A) maintains deposit-taking branches, 
automated teller machines, or retail offices; 
‘‘(B) is represented by an agent; 
‘‘(C) issues a significant number of loans 
or other products relative to the total number 
of loans or other products made by the institu-
tion; 
‘‘(D) has issued not less than 75 percent 
of the loans of the institution; or 
‘‘(E) has conducted not less than 75 per-
cent of the business of the institution. 
‘‘(5) COMMUNITY BENEFITS PLAN.—The term 
‘community benefits plan’ means a plan that pro-
vides measurable goals for future amounts of safe 
and sound loans, investments, services, and other fi-
nancial products for low- and moderate-income com-
munities and other distressed or underserved com-
munities. 
‘‘(6) COMMUNITY
DEVELOPMENT.—The term 
‘community development’ means— 
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‘‘(A) affordable housing for low- or mod-
erate-income individuals and avoidance of pat-
terns of lending resulting in the loss of afford-
able housing units; 
‘‘(B) community development services, in-
cluding counseling and successful mortgage or 
loan modifications of delinquent loans; 
‘‘(C) activities that promote integration; 
‘‘(D) activities that promote economic de-
velopment by financing small businesses or 
farms that meet the size eligibility requirements 
of the development company or small business 
investment company programs under section 
121.301 of title 13, Code of Federal Regula-
tions, or any successor regulation, with an em-
phasis on small businesses that have gross an-
nual revenues of not more than $1,000,000; 
‘‘(E) activities that revitalize or stabilize— 
‘‘(i) low- or moderate-income geog-
raphies; 
‘‘(ii) designated disaster areas; 
‘‘(iii) distressed or underserved non-
metropolitan middle-income geographies 
designated by the Federal Financial Insti-
tutions Examination Council, based on— 
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‘‘(I) rates of poverty, unemploy-
ment, and population loss; or 
‘‘(II) population size, density, 
and dispersion, if those activities help 
to meet essential community needs, 
including the needs of low- and mod-
erate-income individuals; or 
‘‘(iv) other distressed or underserved 
communities; or 
‘‘(F) activities that promote physical, envi-
ronmental, and sensory accessibility in housing 
stock that is integrated into the community. 
‘‘(7) DEPOSITORY
INSTITUTION; DEPOSITORY 
INSTITUTION HOLDING COMPANY.—The terms ‘de-
pository institution’ and ‘depository institution hold-
ing company’ have the meanings given those terms 
in section 3 of the Federal Deposit Insurance Act 
(12 U.S.C. 1813). 
‘‘(8) ENTIRE
COMMUNITY.—The term ‘entire 
community’ means all of the assessment areas of a 
regulated financial institution. 
‘‘(9) ENUMERATED
CONSUMER
LAWS.—The 
term ‘enumerated consumer laws’ has the meaning 
given the term in section 1002 of the Consumer Fi-
nancial Protection Act of 2010 (12 U.S.C. 5481). 
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‘‘(10) GEOGRAPHY.—The term ‘geography’ 
means a census tract delineated by the Bureau of 
the Census in the most recent decennial census. 
‘‘(11) INSURED
DEPOSITORY
INSTITUTION.— 
The term ‘insured depository institution’ has the 
meaning given the term in section 3 of the Federal 
Deposit Insurance Act (12 U.S.C. 1813). 
‘‘(12) OTHER DISTRESSED OR UNDERSERVED 
COMMUNITY.—The term ‘other distressed or under-
served community’ means an area that, according to 
a periodic review and data analysis by the appro-
priate Federal financial supervisory agencies on an 
interagency basis through the Federal Financial In-
stitutions Examination Council, is experiencing eco-
nomic hardship or is underserved by financial insti-
tutions. 
‘‘(13) REGULATED FINANCIAL INSTITUTION.— 
The term ‘regulated financial institution’ means— 
‘‘(A) an insured depository institution; 
‘‘(B) a depository institution holding com-
pany; and 
‘‘(C) a U.S. nonbank mortgage originator. 
‘‘(14) 
U.S. 
NONBANK
MORTGAGE
ORIGI-
NATOR.—The term ‘U.S. nonbank mortgage origi-
nator’ means a covered person subject to section 
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1024 of the Dodd-Frank Wall Street Reform and 
Consumer Protection Act (12 U.S.C. 5514) that of-
fers or provides— 
‘‘(A) origination of loans secured by real 
estate for use by consumers primarily for per-
sonal, family, or household purposes; or 
‘‘(B) loan modification or foreclosure relief 
services in connection with a loan described in 
subparagraph (A).’’; 
(2) in section 804 (12 U.S.C. 2903)— 
(A) by redesignating subsections (c) and 
(d) as subsections (f) and (g), respectively; 
(B) by striking subsections (a) and (b) and 
inserting the following: 
‘‘(a) DEPOSITORY INSTITUTIONS AND BANK HOLD-
ING COMPANIES.—In connection with its examination of 
a regulated financial institution other than a U.S. 
nonbank mortgage originator, the appropriate Federal fi-
nancial supervisory agency shall perform the following: 
‘‘(1) Assess the record of the institution in 
meeting the credit or other financial needs of its en-
tire community, in particular low- and moderate-in-
come people and communities, and other distressed 
or underserved communities, consistent with the safe 
and sound operation of the institution. 
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