SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Housing for the 21st Century Act’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows:
Sec. 1. Short title; table of contents. 
TITLE I—BUILDING SMARTER FOR THE 21ST CENTURY 
Sec. 101. Housing Supply Frameworks. 
Sec. 102. Accelerating home building grant program. 
Sec. 103. Federal guidelines for point-access block buildings. 
Sec. 104. Unlocking Housing Supply Through Streamlined and Modernized Re-
views. 
Sec. 105. Federal Housing Agency Application of Environmental Reviews. 
Sec. 106. Multifamily loan limits. 
Sec. 107. GAO study on workforce housing. 
TITLE II—MODERNIZING LOCAL DEVELOPMENT AND RURAL 
HOUSING PROGRAMS 
Sec. 201. HOME Reform. 
Sec. 202. Community Development Fund Amendments. 
Sec. 203. Grants for planning and implementation associated with affordable 
housing. 
Sec. 204. Rural housing service program improvements. 
Sec. 205. Choice in Affordable Housing. 
TITLE III—EXPANDING MANUFACTURED AND AFFORDABLE 
HOUSING FINANCE OPPORTUNITIES 
Sec. 301. Manufactured Housing Innovations. 
Sec. 302. FHA small-dollar mortgages. 
Sec. 303. Community investment and prosperity. 
TITLE IV—PROTECTING BORROWERS AND ASSISTED FAMILIES 
Sec. 401. Exclusion of certain disability benefits. 
Sec. 402. Military service question. 
Sec. 403. HUD–USDA–VA Interagency Coordination. 
Sec. 404. Family self-sufficiency escrow expansion pilot program. 
Sec. 405. Reforms to housing counseling and financial literacy programs. 
Sec. 406. Establishment of eviction helpline. 
Sec. 407. Temperature Sensor pilot program. 
Sec. 408. GAO studies. 
TITLE V—ENHANCING OVERSIGHT OF HOUSING PROVIDERS 
Sec. 501. Requirement to testify. 
Sec. 502. Improving public housing agency accountability.
TITLE VI—STRENGTHENING COMMUNITY BANKS’ ROLE IN 
HOUSING 
Sec. 601. Community Bank Deposit Access. 
Sec. 602. Keeping Deposits Local. 
Sec. 603. Supervisory Modifications for Appropriate Risk-based Testing. 
Sec. 604. Tailored Regulatory Updates for Supervisory Testing. 
Sec. 605. Credit Union Board Modernization. 
Sec. 606. Systemic Risk Authority Transparency. 
Sec. 607. Least cost exception. 
Sec. 608. Failing Bank Acquisition Fairness. 
Sec. 609. Advancing the Mentor-Prote´ge´ Program for Small Financial Institu-
tions. 
Sec. 610. American Access to Banking. 
Sec. 611. Promoting New Bank Formation. 
Sec. 612. Rural Depositories Revitalization Study. 
Sec. 613. Discretionary Surplus Fund.
TITLE I—BUILDING SMARTER 
FOR THE 21ST CENTURY 
SEC. 101. HOUSING SUPPLY FRAMEWORKS. 
(a) DEFINITIONS.—In this section: 
(1) AFFORDABLE HOUSING.—The term ‘‘afford-
able housing’’ means housing for which the monthly 
payment is not more than 30-percent of the monthly 
income of the household. 
(2) ASSISTANT SECRETARY.—The term ‘‘Assist-
ant Secretary’’ means the Assistant Secretary for 
Policy Development and Research of the Depart-
ment of Housing and Urban Development. 
(3) LOCAL
ZONING
FRAMEWORK.—The term 
‘‘local zoning framework’’ means the local zoning 
codes and other ordinances, procedures, and policies 
governing zoning and land-use at the local level.
(4) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Housing and Urban Development. 
(5) STATE
ZONING
FRAMEWORK.—The term 
‘‘State zoning framework’’ means the State legisla-
tion or State agency and department procedures, or 
such legislation or procedures in an insular area of 
the United States, enabling local planning and zon-
ing authorities and establishing and guiding related 
policies and programs. 
(b) GUIDELINES
ON STATE
AND LOCAL ZONING 
FRAMEWORKS.—
(1) IN GENERAL.—Not later than 3 years after 
the date of enactment of this Act, the Assistant Sec-
retary shall publish documents outlining guidelines 
and best practices to support production of adequate 
housing to meet the needs of communities and pro-
vide housing opportunities for individuals at every 
income level across communities with respect to—
(A) State zoning frameworks; and 
(B) local zoning frameworks. 
(2) CONSULTATION; PUBLIC COMMENT.—Dur-
ing the 2-year period beginning on the date of enact-
ment of this Act, in developing the guidelines and 
best practices required under paragraph (1), the As-
sistant Secretary shall—
(A) publish draft guidelines and best prac-
tices in the Federal Register for public com-
ment; and 
(B) establish a task force for the purpose 
of providing consultation to draft the guidelines 
and best practices published under subpara-
graph (A), the members of which shall in-
clude—
(i) urban planners and architects; 
(ii) housing developers, including af-
fordable and market-rate housing devel-
opers, manufactured housing developers, 
cooperative housing developers, and other 
business interests; 
(iii) community engagement experts 
and community members impacted by zon-
ing decisions; 
(iv) public housing agencies and tran-
sit authorities; 
(v) members of local zoning and plan-
ning boards and local and regional trans-
portation planning organizations; 
(vi) State officials responsible for 
housing or land use, including members of 
State zoning boards of appeals;
(vii) academic researchers; and 
(viii) home builders. 
(3) CONTENTS.—The guidelines and best prac-
tices required under paragraph (1) shall—
(A) with respect to State zoning frame-
works, outline potential models for updated 
State enabling legislation or State agency and 
department procedures; 
(B) include recommendations regarding—
(i) the reduction or elimination of 
parking minimums; 
(ii) the increase in maximum floor 
area ratio requirements and maximum 
building heights and the reduction in min-
imum lot sizes and set-back requirements; 
(iii) the elimination of restrictions 
against accessory dwelling units; 
(iv) increasing by-right uses, including 
duplex, triplex, or quadplex buildings, 
across cities or metropolitan areas; 
(v) mechanisms, including proximity 
to transit, to determine the appropriate 
scope for rezoning and ensure development 
that does not disproportionately burden 
residents of economically distressed areas;
(vi) provisions regarding review of by-
right development proposals to streamline 
review and reduce uncertainty, including—
(I) nondiscretionary, ministerial 
review; and 
(II) entitlement and design re-
view processes; 
(vii) the reduction of obstacles, regu-
latory or otherwise, to a range of housing 
types at all levels of affordability, including 
manufactured and modular housing; 
(viii) State model zoning regulations 
for directing local reforms, including mech-
anisms to encourage adoption; 
(ix) provisions to encourage transit-
oriented development, including increased 
permissible units per structure and re-
duced minimum lot sizes near existing or 
planned public transit stations; 
(x) potential reforms to strengthen 
the public engagement process; 
(xi) reforms to protest petition stat-
utes; 
(xii) the standardization, reduction, or 
elimination of impact fees;
(xviii) other land use measures that 
promote access to new housing opportuni-
ties identified by the Secretary; and 
(C) consider—
(i) the effects of adopting any rec-
ommendation on eligibility for Federal dis-
cretionary grants and tax credits for the 
purpose of housing or community develop-
ment; 
(ii) coordination between infrastruc-
ture investments and housing planning; 
(iii) local housing needs, including 
ways to set and measure housing goals and 
targets; 
(iv) a range of affordability for rental 
units, with a prioritization of units attain-
able to extremely low-, low-, and moderate-
income residents; 
(v) a range of affordability for home-
ownership; 
(vi) accountability measures; 
(vii) the long-term cost to residents 
and businesses if more housing is not con-
structed;
(viii) barriers to individuals seeking to 
access affordable housing in growing com-
munities and communities with economic 
opportunity; 
(ix) with respect to State zoning 
frameworks—
(I) distinctions between States 
providing constitutional or statutory 
home rule authority to municipalities 
and States operating under the Dillon 
Rule, as articulated in Hunter v. 
Pittsburgh, 207 U.S. 161 (1907); and 
(II) Statewide mechanisms to 
preserve existing affordability over the 
long term, including support for land 
banks and community land trusts; 
(x) public comments elicited under 
paragraph (2)(A); and 
(xi) other considerations, as identified 
by the Assistant Secretary. 
(c) ABOLISHMENT OF THE REGULATORY BARRIERS 
CLEARINGHOUSE.—
(1) IN
GENERAL.—The Regulatory Barriers 
Clearinghouse established pursuant to section 1205
of the Housing and Community Development Act of 
1992 (42 U.S.C. 12705d) is abolished. 
(2) REPEAL.—Section 1205 of the Housing and 
Community Development Act of 1992 (42 U.S.C. 
12705d) is repealed. 
(d) REPORTING.—Not later than 5 years after the 
date on which the Assistant Secretary publishes the final 
guidelines and best practices for State and local zoning 
frameworks under this section, the Assistant Secretary 
shall submit to the Congress a report describing—
(1) the States that have adopted recommenda-
tions from the guidelines and best practices, pursu-
ant to section 4 of this Act; 
(2) a summary of the localities that have adopt-
ed recommendations from the guidelines and best 
practices, pursuant to section 4 of this Act; 
(3) a list of States that adopted a State zoning 
framework; 
(4) a summary of the modifications that each 
State has made in their State zoning framework; 
(5) a general summary of the types of updates 
localities have made to their local zoning framework; 
(6) with respect to the States that have adopted 
a State zoning framework or recommendations from
the guidelines and best practices, the effect of such 
adoptions; and 
(7) a summary of any recommendations that 
were routinely not adopted by States or by localities. 
(e) RULE OF CONSTRUCTION.—Nothing in this sec-
tion may be construed to permit the Department of Hous-
ing and Urban Development to take an adverse action 
against or fail to provide otherwise offered actions or serv-
ices for any State or locality if the State or locality de-
clines to adopt a guideline or best practice under sub-
section (c). 
SEC. 102. ACCELERATING HOME BUILDING GRANT PRO-
GRAM. 
(a) IN GENERAL.—The Secretary may establish a 
pilot program to award grants to eligible entities to review 
designs of covered structures of mixed-income housing and 
designate such reviewed designs to be included in pattern 
books for use in the jurisdiction of the eligible entity. 
(b) RESTRICTION.—Amounts awarded under this sec-
tion may not be used for construction, alteration, or repair 
work. 
(c) CONSIDERATIONS.—In reviewing applications 
submitted by eligible entities for a grant under this sec-
tion, the Secretary shall consider—
(1) the need for affordable housing in the eligi-
ble entity; 
(2) the presence of high opportunity areas in 
the eligible entity; 
(3) coordination between the eligible entity and 
a State agency; and 
(4) coordination between the eligible entity and 
State, local, and regional transportation planning 
authorities. 
(d) SET-ASIDE FOR RURAL AREAS.—Of the amounts 
made available in each fiscal year for grants under this 
section, the Secretary shall ensure that not less than 10-
percent shall be used for grants to eligible entities that 
are located in rural areas. 
(e) REPORT REQUIREMENT.—Not later than 3 years 
after being awarded a grant under this section, an eligible 
entity shall submit to the Secretary a report that—
(1) describes the impacts of the activities car-
ried out using the amounts provided under this sec-
tion on improving the production and supply of af-
fordable housing; 
(2) includes a list of any pattern books the eli-
gible entity has established using amounts provided 
under this section, including a description of the de-
signs such pattern book includes;
(3) identifies the number of permits issued by 
the eligible entity for housing development using de-
signs from such pattern book; and 
(4) identifies the number of housing units pro-
duced in developments of the eligible entity using a 
design from such pattern book. 
(f) AVAILABILITY OF INFORMATION.—The Secretary 
shall—
(1) to the extent possible, encourage eligible en-
tities awarded grants under this section to make any 
pattern books established by such entity, and de-
signs in such pattern book, publicly available 
through a website; and 
(2) collect, identify, and disseminate best prac-
tices relating to pattern books and make such infor-
mation publicly available on a website of the Depart-
ment of Housing and Urban Development. 
(g) REPAYMENT OF AWARDED AMOUNTS.—The Sec-
retary may require an eligible entity to return, to the Sec-
retary, grant amounts awarded under this section if the 
Secretary determines that the eligible entity has not ap-
proved a sufficient number of building permits that use 
designs included in a pattern book established by the eligi-
ble entity, during the 5-year period following receipt of
the grant by the eligible entity, unless such period is ex-
tended by the Secretary. 
(h) SUNSET.—The pilot program established under 
this section shall terminate on the date that is 7 years 
after the date of the enactment of this section. 
(i) DEFINITIONS.—In this section: 
(1) AFFORDABLE HOUSING.—The term ‘‘afford-
able housing’’ means housing for which the total 
monthly housing cost payment is not more than 30-
percent of the monthly household income for a 
household earning not more than 80-percent of the 
area-median income. 
(2) COVERED STRUCTURE.—The term ‘‘covered 
structure’’ means a low-rise or mid-rise structure 
with not more than 25 dwelling units that may in-
clude—
(A) an accessory dwelling unit; 
(B) infill development; 
(C) a duplex; 
(D) a triplex; 
(E) a fourplex; 
(F) a cottage court; 
(G) a courtyard building; 
(H) a townhouse; 
(I) a multiplex; and
(J) any other structure with not less than 
2 dwelling units that the Secretary has deter-
mined in advance to be appropriate. 
(3) ELIGIBLE ENTITY.—The term ‘‘eligible enti-
ty’’ means—
(A) a unit of general local government, as 
defined in section 102(a) of the Housing and 
Community Development Act of 1974 (42 
U.S.C. 5302(a)); and 
(B) an Indian Tribe, as defined in section 
102(a) of the Housing and Community Devel-
opment Act of 1974 (42 U.S.C. 5302(a)). 
(4) HIGH
OPPORTUNITY
AREA.—The term 
‘‘high opportunity area’’ has the meaning given the 
term in section 1282.1 of title 12, Code of Federal 
Regulations, or any successor regulation. 
(5) INFILL
DEVELOPMENT.—The term ‘‘infill 
development’’ means a residential housing develop-
ment on small parcels in previously established areas 
for replacement by new or refurbished housing that 
utilizes existing utilities and infrastructure. 
(6) 
MIXED-INCOME
HOUSING.—The 
term 
‘‘mixed-income housing’’ means a housing develop-
ment that is comprised of housing units that pro-
mote differing levels of affordability in the commu-
nity. 
(7) PATTERN BOOK.—The term ‘‘pattern book’’ 
means a set of pre-reviewed, designated designs or 
construction plans that are assessed and approved as 
by-right development by localities for compliance 
with local building and permitting standards to 
streamline and expedite approval pathways for hous-
ing construction. 
(8) RURAL
AREA.—The term ‘‘rural area’’ 
means any area other than a city or town that has 
a population of less than 50,000 inhabitants. 
(9) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Housing and Urban Development. 
SEC. 103. FEDERAL GUIDELINES FOR POINT-ACCESS BLOCK 
BUILDINGS. 
(a) IN GENERAL.—Not later than 18 months after 
the date of enactment of this section, the Secretary of 
Housing and Urban Development shall issue guidelines to 
provide States, territories, Tribes, and localities with 
model code language, best practices, and technical guid-
ance that could be used to facilitate the permitting of 
point-access block residential buildings. 
(b) CONTENTS.—When developing the guidelines 
under subsection (a), the Secretary shall consider—
(1) fire safety considerations, including sprin-
kler coverage, smoke detection, ventilation, and 
building egress performance; 
(2) construction costs and potential impacts on 
housing affordability, including the potential for in-
creasing housing supply in high-cost jurisdictions; 
(3) flexibility for diverse consumer needs, in-
cluding family sizes, unit configurations, and acces-
sibility; 
(4) examples of single-stair codes adopted or 
considered by States and cities in the United States; 
(5) examples single-stair codes used in relevant 
international standards; 
(6) research and model language relating to 
single-stair codes produced by organizations that 
focus on point-access block building design and 
building-code reform; 
(7) consulting with experts, including devel-
opers, architects, fire marshals, researchers, econo-
mists, housing authorities, and officials in States 
that have enacted or piloted single-stair codes; and 
(8) alternative methods of safety compliance, 
including options that utilize additional passive or 
active safety features.
(c) COORDINATION
WITH
THE
INTERNATIONAL 
CODE COUNCIL.—The Secretary shall coordinate with the 
International Code Council to encourage the International 
Code Council to incorporate provisions about point-access 
block buildings into the International Building Code. 
(d) GRANTS.—
(1) IN GENERAL.—The Secretary may establish 
a program to award competitive grants to eligible 
entities to implement pilot projects that evaluate, 
demonstrate, or validate the safety, feasibility, or 
cost-effectiveness of point-access block residential 
buildings. 
(2) SUNSET.—The program established under 
paragraph (1) shall terminate on the date that is 7 
years after the date of the enactment of this sub-
section. 
(e) RULE OF CONSTRUCTION.—Nothing in this sec-
tion may be construed to preempt a State or local building 
code. 
(f) DEFINITIONS.—In this section: 
(1) ELIGIBLE ENTITY.—The term ‘‘eligible enti-
ty’’ means a State, unit of local government, Tribal 
Government, public housing agency, nonprofit hous-
ing organization, community development organiza-
tion, private developer, construction firm, qualified
design firm, engineering firm, academic institution, 
research institution, or any partnership or consor-
tium comprised of 2 or more such types of entities. 
(2) POINT-ACCESS
BLOCK
BUILDING.—The 
term ‘‘point-access block building’’ means a Group 
R–2 occupancy residential structure, as such term is 
defined by the International Building Code, in which 
a single internal stairway provides access and egress 
for all dwelling units in a building that is not great-
er than 6 stories in height. 
SEC. 
104. 
UNLOCKING 
HOUSING 
SUPPLY 
THROUGH 
STREAMLINED AND MODERNIZED REVIEWS. 
(a) NEPA STREAMLINING FOR HUD HOUSING-RE-
LATED ACTIVITIES.—
(1) IN GENERAL.—The Secretary of Housing 
and Urban Development shall, in accordance with 
section 553 of title 5, United States Code, expand 
and reclassify housing-related activities under the 
necessary administrative regulations as follows: 
(A) The following housing-related activities 
shall be subject to regulations equivalent or 
substantially similar to the regulations entitled 
‘‘exempt activities’’ as set forth in section 58.34 
of title 24, Code of Federal Regulations, as in 
effect on January 1, 2025:
(i) Tenant-based rental assistance, as 
defined in section 8(o) of the United 
States Housing Act of 1937 (42 U.S.C. 
1437f(o)). 
(ii) 
Supportive 
services, 
including 
health care, housing services, permanent 
housing placement, day care, nutritional 
services, short-term payment for rent, 
mortgage, or utility costs, and assistance 
in gaining access to Federal Government 
and State and local government benefits 
and services. 
(iii) Operating costs, including main-
tenance, security, operation, utilities, fur-
nishings, equipment, supplies, staff train-
ing, and recruitment and other incidental 
costs. 
(iv) Economic development activities, 
including equipment purchases, inventory 
financing, interest subsidies, operating ex-
penses, and similar costs not associated 
with construction or expansion of existing 
operations. 
(v) Activities to assist homebuyers to 
purchase existing dwelling units or dwell-
ing units under construction, including 
closing costs and down payment assistance, 
interest rate buydowns, and similar activi-
ties that result in the transfer of title. 
(vi) 
Affordable 
housing 
predevelopment costs related to obtaining 
site options, project financing, administra-
tive costs and fees for loan commitment, 
zoning approvals, and other related activi-
ties that do not have a physical impact. 
(vii) Approval of supplemental assist-
ance, including insurance or guarantee, to 
a project previously approved by the Sec-
retary. 
(viii) Emergency homeowner or renter 
assistance for HVAC, hot water heaters, 
and other necessary uses of existing utili-
ties required under applicable law. 
(B) The following housing-related activities 
shall be subject to regulations equivalent or 
substantially similar to the regulations enti-
tled—
(i) ‘‘categorical exclusions not subject 
to section 58.5’’; and
(ii) ‘‘categorical exclusions not subject 
to the Federal laws and authorities cited in 
sections 50.4’’ in section 58.35(b) and sec-
tion 50.19, respectively of title 24, Code of 
Federal Regulations, as in effect on Janu-
ary 1, 2025, if such activities do not mate-
rially alter environmental conditions and 
do not materially exceed the original scope 
of the project: 
(I) Acquisition, repair, improve-
ment, reconstruction, or rehabilitation 
of public facilities and improvements 
(other than buildings) if the facilities 
and improvements are in place and 
will be retained in the same use with-
out change in size or capacity of more 
than 20-percent, including replace-
ment of water or sewer lines, recon-
struction of curbs and sidewalks, and 
repaving of streets. 
(II) Rehabilitation of 1-to-4 unit 
residential buildings, and existing 
housing-related infrastructure, such 
as repairs or rehabilitation of existing
wells, septics, or utility lines that con-
nect to that housing. 
(III) New construction, develop-
ment, demolition, acquisition, or dis-
position on up to 4 scattered site ex-
isting dwelling units where there is a 
maximum of 4 units on any 1 site. 
(IV) Acquisitions (including leas-
ing) or disposition of, or equity loans 
on an existing structure, or acquisi-
tion (including leasing) of vacant land 
if the structure or land acquired, fi-
nanced, or disposed of will be retained 
for the same use. 
(C) The following housing-related activities 
shall be subject to regulations equivalent or 
substantially similar to the regulations enti-
tled—
(i) ‘‘categorical exclusions subject to 
section 58.5’’; and 
(ii) ‘‘categorical exclusions subject to 
the Federal laws and authorities cited in 
sections 50.4’’ in section 58.35(a) and sec-
tion 50.20, respectively, of title 24, Code of 
Federal Regulations, as in effect on Janu-
ary 1, 2025, if such activities do not mate-
rially alter environmental conditions and 
do not materially exceed the original scope 
of the project: 
(I) Acquisitions of open space or 
residential property, where such prop-
erty will be retained for the same use 
or will be converted to open space to 
help residents relocate out of an area 
designated as a high-risk area by the 
Secretary. 
(II) Conversion of existing office 
buildings into residential development, 
subject to—
(aa) a maximum number of 
units to be determined by the 
Secretary; and 
(bb) a limitation on the 
change in building size to not 
more than 20-percent. 
(III) New construction, develop-
ment, demolition, acquisition, or dis-
position on 5 to 15 dwelling units 
where there is a maximum of 15 units 
on any 1 site. The units can be 15 1-
unit buildings or 1 15-unit building, 
or any combination in between. 
(IV) New construction, develop-
ment, demolition, acquisition, or dis-
position on 15 or more housing units 
developed on scattered sites when 
there are not more than 15 housing 
units on any 1 site, and the sites are 
more than a set number of feet apart 
as determined by the Secretary. 
(V) Rehabilitation of buildings 
and improvements in the case of a 
building for residential use with 5 to 
15 units, if the density is not in-
creased beyond 15 units and the land 
use is not changed. 
(VI) Infill projects consisting of 
new construction, rehabilitation, or 
development of residential housing 
units. 
(VII) Buyouts, defined as the 
voluntary acquisition of properties lo-
cated in—
(aa) a floodway; 
(bb) a floodplain; or
(cc) an other area, clearly 
delineated by the grantee, that 
has been impacted by a predict-
able environmental threat to the 
safety and wellbeing of program 
beneficiaries caused or exacer-
bated by a federally declared dis-
aster. 
(2) REPORT.—The Secretary shall submit to 
the Committee on Banking, Housing, and Urban Af-
fairs of the Senate and the Committee on Financial 
Services of the House of Representatives annual re-
ports during the 5-year period beginning on the date 
that is 2 years after the date of enactment of this 
Act that provide a summary of findings of reduc-
tions in review times and administrative cost reduc-
tion, with a particular focus on the affordable hous-
ing sector, as a result of the actions set forth in this 
subsection, and any recommendations of the Sec-
retary for future congressional action with respect to 
revising categorical exclusions or exemptions under 
title 24, Code of Federal Regulations. 
(b) BETTER USE
OF INTERGOVERNMENTAL
AND 
LOCAL DEVELOPMENT FOR HOUSING.—
(1) DESIGNATION OF ENVIRONMENTAL REVIEW 
PROCEDURE.—The Department of Housing and 
Urban Development Act (42 U.S.C. 3531 et seq.) is 
amended by inserting after section 12 (42 U.S.C. 
3537a) the following: 
‘‘SEC. 13. DESIGNATION OF ENVIRONMENTAL REVIEW PRO-
CEDURE. 
‘‘(a) IN GENERAL.—Except as provided in subsection 
(b), the Secretary may, for purposes of environmental re-
view, decision-making, and action pursuant to the Na-
tional Environmental Policy Act of 1969 (42 U.S.C. 4321 
et seq.), and other provisions of law that further the pur-
poses of such Act, designate the treatment of assistance 
administered by the Secretary as funds for a special 
project for purposes of section 305(c) of the Multifamily 
Housing Property Disposition Reform Act of 1994 (42 
U.S.C. 3547). 
‘‘(b) EXCEPTION.—The designation described in sub-
section (a) shall not apply to assistance for which a proce-
dure for carrying out the responsibilities of the Secretary 
under the National Environmental Policy Act of 1969 (42 
U.S.C. 4321 et seq.), and other provisions of law that fur-
ther the purposes of such Act, is otherwise specified in 
law.’’.
(2) TRIBAL ASSUMPTION OF ENVIRONMENTAL 
REVIEW OBLIGATIONS.—Section 305(c) of the Multi-
family Housing Property Disposition Reform Act of 
1994 (42 U.S.C. 3547) is amended—
(A) by striking ‘‘State or unit of general 
local government’’ each place it appears and in-
serting ‘‘State, Indian Tribe, or unit of general 
local government’’; 
(B) in paragraph (1)(C), in the heading, 
by striking ‘‘STATE
OR
UNIT
OF
GENERAL 
LOCAL
GOVERNMENT’’ and inserting ‘‘STATE, 
INDIAN TRIBE, OR UNIT OF GENERAL LOCAL 
GOVERNMENT’’; and 
(C) by adding at the end the following: 
‘‘(5) DEFINITION OF INDIAN TRIBE.—For pur-
poses of this subsection, the term ‘Indian Tribe’ 
means a federally recognized Tribe, as defined in 
section 4(13)(B) of the Native American Housing 
Assistance and Self-Determination Act of 1996 (25 
U.S.C. 4103(13)(B)).’’. 
(c) APPLICABILITY.—Any activity generated under 
subsections (a) or (b) would be subject to an authorization 
of appropriations. 
(d) INFILL PROJECT DEFINED.—In this section, the 
term ‘‘infill project’’ means a project that—
(1) occurs within the geographic limits of a mu-
nicipality; 
(2) is adequately served by existing utilities and 
public services as required under applicable law; 
(3) is located on a site of previously disturbed 
land of not more than 5 acres and substantially sur-
rounded by residential or commercial development; 
(4) will repurpose a vacant or underutilized 
parcel of land, or a dilapidated or abandoned struc-
ture; and 
(5) will serve a residential or commercial pur-
pose. 
SEC. 105. FEDERAL HOUSING AGENCY APPLICATION OF EN-
VIRONMENTAL REVIEWS. 
(a) MEMORANDUM OF UNDERSTANDING.—
(1) IN
GENERAL.—Not later than 180 days 
after the date of enactment of this Act, the Sec-
retary of Housing and Urban Development and the 
Secretary of Agriculture shall enter into a memo-
randum of understanding to—
(A) evaluate the use of categorical exclu-
sions (as defined in section 111 of the National 
Environmental Policy Act of 1969 (42 U.S.C. 
4336e)) 
for 
housing 
projects 
funded 
by 
amounts from the Department of the Housing
and Urban Development and the Department of 
Agriculture; 
(B) develop a process to designate a lead 
agency among the Department of Housing and 
Urban Development and the Department of Ag-
riculture to streamline the adoption of environ-
mental impact statements and environmental 
assessments approved by the other agency to 
construct housing projects funded by amounts 
from both agencies; 
(C) maintain compliance with environ-
mental regulations under part 58 of title 24, 
Code of Federal Regulations, as in effect on 
January 1, 2025; and 
(D) evaluate the feasibility of a joint phys-
ical inspection process for housing projects 
funded by amounts from the Department of the 
Housing and Urban Development and the De-
partment of Agriculture. 
(2) REPORT.—Not later than 1 year after the 
date of enactment of this Act, the Secretary of 
Housing and Urban Development and the Secretary 
of Agriculture shall submit to the Committee on 
Banking, Housing, and Urban Affairs of the Senate 
and the Committee on Financial Services of the
House of Representatives a report that includes rec-
ommendations for legislative, regulatory, or adminis-
trative actions—
(A) to improve the efficiency and effective-
ness of housing projects funded by amounts 
from the Department of the Housing and 
Urban Development and the Department of Ag-
riculture; and 
(B) that do not materially, with respect to 
residents of housing projects described in sub-
paragraph (A)—
(i) reduce the safety of those resi-
dents; 
(ii) shift long-term costs onto those 
residents; or 
(iii) undermine the environmental 
standards of those residents. 
(b) STUDY AND REVIEW.—
(1) 
EXEMPTION.—In 
providing 
assistance 
under section 501, 502, 504, 515, 533, or 538 of 
the Housing Act of 1949 (42 U.S.C. 1471, 1472, 
1474, 1485, 1490m, or 1490p–2) for the construc-
tion or modification of residential housing located on 
an infill site, the Secretary of Agriculture shall not
be required to carry out any study or report on the 
environmental effects of such assistance. 
(2) REPORT.—Not later than the date that is 
5 years after the date of enactment of this section, 
the Secretary of Agriculture shall submit, to the 
Committee on Financial Services of the House of 
Representatives and the Committee on Banking, 
Housing, and Urban Affairs of the Senate, a report 
that—
(A) determines whether the implementa-
tion of this section—
(i) reduced the amount of time it 
takes to review an application for assist-
ance under the sections of the Housing Act 
of 1949 identified in paragraph (1); and 
(ii) reduced the administrative cost of 
providing such assistance; 
(B) describes how the implementation of 
this section affects the affordable housing sec-
tor in rural America; and 
(C) includes any legislative recommenda-
tions from the Secretary of Agriculture. 
(2) DEFINITIONS.—In this section: 
(A) GREENFIELD.—The term ‘‘greenfield’’ 
means a site that has not been developed, in-
cluding a woodland, farmland, and an open 
field. 
(B) INFILL SITE.—The term ‘‘infill site’’—
(i) means a site that is served by ex-
isting infrastructure, including water lines, 
sewer lines, and roads; and 
(ii) does not include—
(I) a site that is served by exist-
ing infrastructure that only consists 
of a road; 
(II) a site within a census tract 
designated as very high or relatively 
high risk for wildfire, coastal flooding, 
and riverine flooding under the Na-
tional Risk Index of the Federal 
Emergency Management Agency pur-
suant to section 206 of the Robert T. 
Stafford Disaster Relief and Emer-
gency Assistance Act (42 U.S.C. 
5136); and 
(III) a greenfield. 
SEC. 106. MULTIFAMILY LOAN LIMITS. 
(a) IN GENERAL.—Title II of the National Housing 
Act (12 U.S.C. 1707 et seq.) is amended—
(1) in section 206A (12 U.S.C. 1712a)—
‘‘(c) PUBLICATION.—The Secretary shall publish in 
the Federal Register any adjustments made to the Dollar 
Amounts.’’; 
(2) 
in 
section 
207(c)(3)(A) 
(12 
U.S.C. 
1713(c)(3)(A))—
(A) by striking ‘‘$38,025’’ and inserting 
‘‘$167,310’’; 
(B) by striking ‘‘$42,120’’ and inserting 
‘‘$185,328’’; 
(C) by striking ‘‘$50,310’’ and inserting 
‘‘$221,364’’; 
(D) by striking ‘‘$62,010’’ and inserting 
‘‘$272,844’’; 
(E) by striking ‘‘$70,200’’ and inserting 
‘‘$308,880’’; 
(F) by striking ‘‘, or not to exceed $17,460 
per space’’; 
(G) by striking ‘‘$43,875’’ and inserting 
‘‘$193,050’’; 
(H) by striking ‘‘$49,140’’ and inserting 
‘‘$216,216’’; 
(I) by striking ‘‘$60,255’’ and inserting 
‘‘$265,122’’; 
(J) by striking ‘‘$75,465’’ and inserting 
‘‘$332,046’’; and
(K) by striking ‘‘$85,328’’ and inserting 
‘‘$375,443’’; 
(3) 
in 
section 
213(b)(2) 
(12 
U.S.C. 
1715e(b)(2))—
(A) by striking ‘‘$41,207’’ and inserting 
‘‘$181,311’’; 
(B) by striking ‘‘$47,511’’ and inserting 
‘‘$209,048’’; 
(C) by striking ‘‘$57,300’’ and inserting 
‘‘$252,120’’; 
(D) by striking ‘‘$73,343’’ and inserting 
‘‘$322,709’’; 
(E) by striking ‘‘$81,708’’ and inserting 
‘‘$359,515’’; 
(F) by striking ‘‘$43,875’’ and inserting 
‘‘$193,050’’; 
(G) by striking ‘‘$49,710’’ and inserting 
‘‘$218,724’’; 
(H) by striking ‘‘$60,446’’ and inserting 
‘‘$265,962’’; 
(I) by striking ‘‘$78,197’’ and inserting 
‘‘$344,067’’; and 
(J) by striking ‘‘$85,836’’ and inserting 
‘‘$377,678’’;
(4) in section 220(d)(3)(B)(iii)(I) (12 U.S.C. 
1715k(d)(3)(B)(iii)(I))—
(A) by striking ‘‘$38,025’’ and inserting 
‘‘$167,310’’; 
(B) by striking ‘‘$42,120’’ and inserting 
‘‘$185,328’’; 
(C) by striking ‘‘$50,310’’ and inserting 
‘‘$221,364’’; 
(D) by striking ‘‘$62,010’’ and inserting 
‘‘$272,844’’; 
(E) by striking ‘‘$70,200’’ and inserting 
‘‘$308,880’’; 
(F) by striking ‘‘$43,875’’ and inserting 
‘‘$193,050’’; 
(G) by striking ‘‘$49,140’’ and inserting 
‘‘$216,216’’; 
(H) by striking ‘‘$60,255’’ and inserting 
‘‘$265,122’’; 
(I) by striking ‘‘$75,465’’ and inserting 
‘‘$332,046’’; and 
(J) by striking ‘‘$85,328’’ and inserting 
‘‘$375,443’’; 
(5) in section 221(d)(4)(ii)(I) (12 U.S.C. 
1715l(d)(4)(ii)(I))—
(A) by striking ‘‘$37,843’’ and inserting 
‘‘$166,509’’; 
(B) by striking ‘‘$42,954’’ and inserting 
‘‘$188,997’’; 
(C) by striking ‘‘$51,920’’ and inserting 
‘‘$228,448’’; 
(D) by striking ‘‘$65,169’’ and inserting 
‘‘$286,744’’; 
(E) by striking ‘‘$73,846’’ and inserting 
‘‘$324,922’’; 
(F) by striking ‘‘$40,876’’ and inserting 
‘‘$179,854’’; 
(G) by striking ‘‘$46,859’’ and inserting 
‘‘$206,180’’; 
(H) by striking ‘‘$56,979’’ and inserting 
‘‘$250,708’’; 
(I) by striking ‘‘$73,710’’ and inserting 
‘‘$324,324’’; and 
(J) by striking ‘‘$80,913’’ and inserting 
‘‘$356,017’’; 
(6) 
in 
section 
231(c)(2)(A) 
(12 
U.S.C. 
1715v(c)(2)(A))—
(A) by striking ‘‘$35,978’’ and inserting 
‘‘$166,509’’;
(B) by striking ‘‘$40,220’’ and inserting 
‘‘$188,997’’; 
(C) by striking ‘‘$48,029’’ and inserting 
‘‘$228,448’’; 
(D) by striking ‘‘$57,798’’ and inserting 
‘‘$286,744’’; 
(E) by striking ‘‘$67,950’’ and inserting 
‘‘$324,922’’; 
(F) by striking ‘‘$40,876’’ and inserting 
‘‘$179,854’’; 
(G) by striking ‘‘$46,859’’ and inserting 
‘‘$206,180’’; 
(H) by striking ‘‘$56,979’’ and inserting 
‘‘$250,708’’; 
(I) by striking ‘‘$73,710’’ and inserting 
‘‘$324,324’’; and 
(J) by striking ‘‘$80,913’’ and inserting 
‘‘$356,017’’; and 
(7) 
in 
section 
234(e)(3)(A) 
(12 
U.S.C. 
1715y(e)(3)(A))—
(A) by striking ‘‘$42,048’’ and inserting 
‘‘$185,011’’; 
(B) by striking ‘‘$48,481’’ and inserting 
‘‘$213,316’’;
General of the United States shall conduct a study and 
submit to the Congress a report that—
(1) identifies obstacles middle-income house-
holds face when looking to secure affordable hous-
ing; 
(2) identifies geographic areas where housing is 
the most unaffordable and unavailable for middle-in-
come households; 
(3) includes a list of Federal housing programs, 
including Federal tax credits, grants, and loan pro-
grams, that are not available to middle-income 
households due to their income status, including 
Federal housing programs designed to promote af-
fordability; 
(4) recommends income and other parameters 
to establish a clear and consistent Federal definition 
for the term ‘‘workforce housing’’ for use when de-
scribing the segment of housing that could be made 
available to such middle-income households in Fed-
eral housing programs if funding commensurate with 
the additional eligibility were to be made available; 
and 
(5) analyzes how to modify or newly develop 
new Federal housing programs and incentives to in-
clude ‘‘workforce housing’’ if funding commensurate
with the additional eligibility were to be made avail-
able. 
(b) MIDDLE-INCOME
HOUSEHOLD
DEFINED.—In 
this section, the term ‘‘middle income household’’ means 
a household with an income above 80-percent but that 
does not exceed 120-percent of the median family income 
of the area, as determined by the Secretary with adjust-
ments for smaller and larger families. 
TITLE II—MODERNIZING LOCAL 
DEVELOPMENT AND RURAL 
HOUSING PROGRAMS 
SEC. 201. HOME REFORM. 
(a) IN GENERAL.—Section 104 of the Cranston-Gon-
zalez National Affordable Housing Act (42 U.S.C. 12704) 
is amended—
(1) in paragraph (6)(B), by striking ‘‘signifi-
cant’’; and 
(2) by adding at end the following new para-
graph: 
‘‘(26) The term ‘infill housing project’ means a 
residential housing project that—
‘‘(A) is located within the geographic limits 
of a municipality;
‘‘(B) is adequately served by existing utili-
ties and public services as required under appli-
cable law; 
‘‘(C) is located on a site of previously dis-
turbed land of not more than 5 acres; and 
‘‘(D) is substantially surrounded by resi-
dential or commercial development, as deter-
mined by the Secretary.’’. 
(b) ASSISTANCE FOR LOW-INCOME FAMILIES.—Title 
II of the Cranston-Gonzalez National Affordable Housing 
Act (42 U.S.C. 12721 et seq.) is amended—
(1) in section 214(2), by striking ‘‘households 
that qualify as low-income families’’ and inserting 
‘‘families with a household income that does not ex-
ceed 100-percent of the median-family income of the 
area, as determined by the Secretary’’; 
(2) in section 215—
(A) in subsection (b)(2), by striking 
‘‘whose family qualifies as a low-income family’’ 
and inserting ‘‘with a family income that does 
not exceed 100-percent of the median-family in-
come of the area as determined by the Sec-
retary with adjustments for smaller and larger 
families’’; and
(B) in subsection (b)(3)(A)(ii), by striking 
‘‘low-income homebuyers’’ and inserting ‘‘home-
buyers with a household income that does not 
exceed 100-percent of the median-family income 
of the area, as determined by the Secretary 
with adjustments for smaller and larger fami-
lies’’; and 
(3) in section 271(c)—
(A) in paragraph (1)(B), by striking ‘‘low-
income’’ and inserting ‘‘families with a house-
hold income that does not exceed 100-percent of 
the median-family income of the area as deter-
mined by the Secretary with adjustments for 
smaller and larger families’’; and 
(B) in paragraph (2)(A), by striking ‘‘low-
income families’’ and inserting ‘‘families with a 
household income that does not exceed 100-per-
cent of the median-family income of the area as 
determined by the Secretary with adjustments 
for smaller and larger families’’. 
(c) CHOICES MADE BY PARTICIPATING JURISDIC-
TIONS.—Section 212(a)(2) of the Cranston-Gonzalez Na-
tional Affordable Housing Act (42 U.S.C. 12742) is 
amended to read as follows:
‘‘(2) LIMITATION.—The Secretary may not re-
strict a participating jurisdiction’s choice of rehabili-
tation, substantial rehabilitation, new construction, 
reconstruction, acquisition, or other eligible housing 
uses authorized in paragraph (1) unless such restric-
tion is explicitly authorized under section 223(2).’’. 
(d) USE OF AMOUNTS BY CERTAIN JURISDICTIONS 
FOR INFRASTRUCTURE IMPROVEMENTS.—
(1) IN GENERAL.—Section 212(a) of the Cran-
ston-Gonzalez National Affordable Housing Act (42 
U.S.C. 12742(a)) is amended by inserting after 
paragraph (3) the following: 
‘‘(4) 
INFRASTRUCTURE
IMPROVEMENTS
IN 
NONENTITLEMENT AREAS.—
‘‘(A) IN GENERAL.—A participating juris-
diction may use funds provided under this sub-
title for infrastructure improvements, including 
the installation or repair of water and sewer 
lines, sidewalks, roads, and utility connections 
if—
‘‘(i) such participating jurisdiction 
does not receive assistance under title I of 
the Housing and Community Development 
Act of 1974; and
‘‘(ii) such improvements are directly 
related to, and located within or imme-
diately adjacent to—
‘‘(I) housing assisted under this 
subtitle; or 
‘‘(II) housing assisted under sec-
tion 42 of the Internal Revenue Code 
of 1986. 
‘‘(B) APPLICATION
OF
LABOR
STAND-
ARDS.—The labor standards and requirements 
set forth in section 110 of the Housing and 
Community Development Act of 1974 (42 
U.S.C. 5310) shall apply to any infrastructure 
improvement conducted using funds provided 
under this subtitle. 
‘‘(C) RULE OF CONSTRUCTION.—Nothing 
in this paragraph may be construed to impose 
any requirements of the HOME Investment 
Partnerships program on housing that benefits 
from an infrastructure improvement conducted 
using funds provided under this subtitle but 
was not otherwise assisted under the HOME 
Investment Partnerships program.’’. 
(2) RULEMAKING.—Not later than 1 year after 
the date of the enactment of this section, the Sec-
retary shall issue rules to carry out the amendment 
made by paragraph (1). 
(e) PER UNIT INVESTMENT LIMITATIONS.—Section 
212(e)(1) of the Cranston-Gonzalez National Affordable 
Housing Act (42 U.S.C. 12742(e)(1)) is amended by strik-
ing the second sentence. 
(f) AFFORDABLE
RENTAL
HOUSING
QUALIFICA-
TIONS.—Section 215(a) of the Cranston-Gonzalez Na-
tional Affordable Housing Act (42 U.S.C. 12745(a)) is 
amended by adding at the end the following: 
‘‘(7) 
QUALIFICATION
EXCEPTION.—Notwith-
standing paragraph (1)(A), a rental unit shall be 
considered to qualify as affordable housing under 
this title if—
‘‘(A) the unit is occupied by a tenant re-
ceiving tenant-based rental assistance under 
section 8 of the United States Housing Act of 
1937 (42 U.S.C. 1437f); 
‘‘(B) the tenant’s contribution toward rent 
does not exceed the amount permitted under 
such section 8 assistance; and 
‘‘(C) the total rent for the unit does not 
exceed the amount approved by the public hous-
ing agency administering the assistance under 
that program.’’.
(g) 
AFFORDABLE
HOMEOWNERSHIP
HOUSING 
QUALIFICATIONS.—Section 215 of the Cranston-Gonzalez 
National Affordable Housing Act (42 U.S.C. 12745(b)) is 
amended—
(1) in subsection (b)—
(A) in paragraph (1), by striking ‘‘95 per-
cent’’ and inserting ‘‘110 percent’’; 
(B) in paragraph (3)—
(i) in subparagraph (A)(ii), by strik-
ing ‘‘or’’ at the end; 
(ii) in subparagraph (B), by striking 
‘‘and’’ at the end and inserting ‘‘or’’; and 
(iii) by adding at the end the fol-
lowing new subparagraph: 
‘‘(C) 
maintain 
long-term 
affordability 
through a shared equity ownership model, a 
community land trust, a limited equity coopera-
tive, a community development corporation, or 
other mechanism approved by the Secretary, 
that preserves affordability for future eligible 
homebuyers and ensures compliance with the 
purposes of this title, including through the use 
of purchase options, rights of first refusal or 
other preemptive rights to purchase housing; 
and’’; and
(2) by adding at the end the following: 
‘‘(c) QUALIFICATION EXCEPTIONS FOR HOMEOWN-
ERSHIP.—
‘‘(1) MILITARY MEMBERS.—A participating ju-
risdiction, in accordance with terms established by 
the Secretary, may suspend or waive the income 
qualifications described in subsection (b)(2) with re-
spect to housing that otherwise meets the criteria 
described in subsection (b) if the owner of the hous-
ing—
‘‘(A) is a member of a regular component 
of the armed forces or a member of the Na-
tional Guard on full-time National Guard duty, 
active Guard and Reserve duty, or inactive-duty 
training (as those terms are defined in section 
101(d) of title 10, United States Code); and 
‘‘(B) has received—
‘‘(i) temporary duty orders to deploy 
with a military unit or military orders to 
deploy as an individual acting in support of 
a military operation, to a location that is 
not within a reasonable distance from the 
housing, as determined by the Secretary, 
for a period of not less than 90 days; or
‘‘(ii) orders for a permanent change of 
station. 
‘‘(2) HEIRS AND BENEFICIARIES OF DECEASED 
OWNERS.—Housing that meets the criteria described 
in subsection (b)(3) prior to the death of an owner 
of such housing shall continue to qualify as afford-
able housing under this title if—
‘‘(A) the housing is the principal residence 
of an heir or beneficiary of the deceased owner, 
as defined by the Secretary; and 
‘‘(B) the heir or beneficiary, in accordance 
with terms established by the Secretary, as-
sumes the duties and obligations of the de-
ceased owner with respect to funds provided 
under this title.’’. 
(h) ELIMINATION
OF EXPIRATION
OF RIGHT
TO 
DRAW HOME INVESTMENT TRUST FUNDS.—Section 218 
of the Cranston-Gonzalez National Affordable Housing 
Act (42 U.S.C. 12748) is amended—
(1) by striking subsection (g); and 
(2) by redesignating subsection (h) as sub-
section (g). 
(i) ADJUSTED RECAPTURE
AND REUSE
OF SET-
ASIDE FOR COMMUNITY HOUSING DEVELOPMENTAL OR-
GANIZATIONS.—Section 231(b) of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12771(b)) is 
amended to read as follows: 
‘‘(b) RECAPTURE
AND REUSE.—If any funds re-
served under subsection (a) remain uninvested for a period 
of 24 months, the Secretary shall make such funds avail-
able to the participating jurisdiction for any eligible activi-
ties under title II of this Act without regard to whether 
a community housing development organization materially 
participates in the use of such funds.’’. 
(j) ASSET RECYCLING INFORMATION DISSEMINATION 
EXPANSION.—Section 245(b)(2) of the Cranston-Gonzalez 
National Affordable Housing Act (42 U.S.C. 12785(b)(2)) 
is amended by striking ‘‘95 percent’’ and inserting ‘‘110 
percent’’. 
(k) ENVIRONMENTAL REVIEW REQUIREMENTS.—
(1) IN GENERAL.—Section 288 of the Cran-
ston-Gonzalez National Affordable Housing Act (42 
U.S.C. 12838) is amended by adding at the end the 
following: 
‘‘(e) CATEGORICAL
EXEMPTIONS.—The following 
categories of activities carried out under this title shall 
be statutorily exempt from environmental review under the 
National Environmental Policy Act of 1969 (42 U.S.C. 
4321 et seq.), and shall not require further review under 
such Act—
‘‘(1) new construction infill housing projects; 
‘‘(2) acquisition of real property for affordable 
housing purposes; 
‘‘(3) rehabilitation projects carried out pursuant 
to section 212(a)(1); and 
‘‘(4) new construction projects of 15 units or 
less. 
‘‘(f) REMOVING DUPLICATIVE REVIEWS.—
‘‘(1) IN GENERAL.—To the extent practicable 
and permitted by law, the Secretary shall ensure 
that a project that has undergone an environmental 
review under this section shall not be subject to a 
duplicative environmental review solely due to the 
addition, substitution, or reallocation of other 
sources of Federal assistance, if the scope, scale, and 
location of the project remain substantially un-
changed. 
‘‘(2) COORDINATION OF ENVIRONMENTAL RE-
VIEW RESPONSIBILITIES.—The Secretary shall, by 
regulation, provide for coordination of environmental 
review responsibilities with other Federal agencies to 
streamline inter-agency compliance and avoid unnec-
essary duplication of effort under the National Envi-
ronmental Policy Act of 1969 (42 U.S.C. 4321 et 
seq.) and other applicable laws.
‘‘(3) RECOGNITION OF PRIOR REVIEWS BY RE-
SPONSIBLE ENTITIES.—A project may not be subject 
to an environmental review under this section if a 
substantially similar review has already been com-
pleted by an entity designated under section 
104(g)(1) of the Housing and Community Develop-
ment Act of 1974 (42 U.S.C. 5304(g)(1)) or by an-
other entity the Secretary determines to have equiv-
alent authority, if the scope, scale, and location of 
the project remain substantially unchanged.’’. 
(2) RULEMAKING.—Not later than 1 year after 
the date of the enactment of this Act, the Secretary 
shall issue such rules as the Secretary determines 
necessary to carry out the amendment made by this 
subsection. 
(3) APPLICABILITY.—Any activity generated 
under this subsection would be subject to an author-
ization of appropriations. 
(l) APPLICATION OF BUILD AMERICA, BUY AMERICA 
REQUIREMENTS
FOR HOME INVESTMENT PARTNER-
SHIPS PROGRAM.—
(1) IN
GENERAL.—Not later than 180 days 
after the date of the enactment of this section, the 
Secretary of Housing and Urban Development shall 
complete a review of the implementation of the Build
America, Buy America Act (title IV of division G of 
Public Law 117–58; 42 U.S.C. 8301 note) with re-
spect to the activities assisted under title II of the 
Cranston-Gonzalez National Affordable Housing Act 
(42 U.S.C. 12721 et seq.). 
(2) UPDATED GUIDANCE.—Not later than 90 
days after the review described in subsection (a) is 
completed, the Secretary shall issue updated guid-
ance to clarify the application of the Build America, 
Buy America Act (title IV of division G of Public 
Law 117–58; 42 U.S.C. 8301 note) with respect to 
the activities assisted under title II of the Cranston-
Gonzalez National Affordable Housing Act (42 
U.S.C. 12721 et seq.). 
(3) REPORT.—Not later than 270 days after 
the date of the enactment of this section, the Sec-
retary shall submit to the Committee on Financial 
Services of the House of Representatives and the 
Committee on Banking, Housing, and Urban Affairs 
of the Senate a report that describes—
(A) the results of the review required 
under subsection (a); and 
(B) the guidance issued as described in 
subsection (b).
(m) APPLICATION OF OTHER SPECIFIED STATUTORY 
REQUIREMENTS.—Title II of the Cranston-Gonzalez Na-
tional Affordable Housing Act (42 U.S.C. 12721 et seq.) 
is amended by adding at the end the following new section 
(and by conforming the table of sections in section 1(b), 
accordingly): 
‘‘SEC. 291. NONAPPLICABILITY OF CERTAIN REQUIRE-
MENTS FOR SMALL PROJECTS. 
‘‘Notwithstanding any other provision of law, the re-
quirements of section 3 of the Housing and Urban Devel-
opment Act of 1968 (12 U.S.C. 1701u), and any imple-
menting regulations or guidance, shall not apply to an ac-
tivity assisted under this title that involves rehabilitation, 
construction, or other development of housing if—
‘‘(1) the recipient of assistance under this title 
is—
‘‘(A) a State recipient pursuant to section 
216; or 
‘‘(B) a participating jurisdiction that re-
ceived a total allocation of less than $3,000,000 
in the most recent fiscal year pursuant to sec-
tion 216; and 
‘‘(2) the total number of dwelling units assisted 
as a part of such activity is 50 or fewer.’’.
(n) TECHNICAL AMENDMENTS.—The Cranston-Gon-
zalez National Affordable Housing Act (42 U.S.C. 12701 
et seq.) is amended—
(1) by striking ‘‘Stewart B. McKinney Home-
less Assistance Act’’ each place it appears and in-
serting ‘‘McKinney-Vento Homeless Assistance Act’’; 
and 
(2) by striking ‘‘Committee on Banking, Fi-
nance and Urban Affairs’’ each place it appears and 
inserting ‘‘Committee on Financial Services’’. 
(o) REALLOCATION NOT AVAILABLE FOR CERTAIN 
JURISDICTIONS.—Section 217(d) of the Cranston-Gon-
zalez National Affordable Housing Act (42 U.S.C. 
12747(d)) is amended—
(1) in paragraph (1), by striking the second 
sentence and inserting the following: ‘‘Subject to 
paragraph (4), jurisdictions eligible for such re-
allocations shall include participating jurisdictions 
and jurisdictions meeting the requirements of this 
title, including the requirements in paragraphs (3), 
(4), and (5) of section 216.’’; and 
(2) by adding at the end the following: 
‘‘(4) REALLOCATION NOT AVAILABLE FOR CER-
TAIN JURISDICTIONS.—The Secretary may decline to 
make a reallocation available to a jurisdiction eligible
for such reallocation if such jurisdiction has failed to 
meet or comply with any requirement under this 
title.’’. 
(p) AMENDMENTS TO QUALIFICATION AS AFFORD-
ABLE HOUSING.—Section 215(a) of the Cranston-Gon-
zalez National Affordable Housing Act (42 U.S.C. 
12745(a)) is amended—
(1) in paragraph (1)(E), by striking ‘‘except 
upon a foreclosure by a lender (or upon other trans-
fer in lieu of foreclosure) if such action (i) recog-
nizes any contractual or legal rights of public agen-
cies, nonprofit sponsors, or others to take actions 
that would avoid termination of low-income afford-
ability in the case of foreclosure or transfer in lieu 
of foreclosure, and (ii) is not for the purpose of 
avoiding low income affordability restrictions, as de-
termined by the Secretary; and’’ and inserting the 
following: ‘‘except—
‘‘(i) upon a foreclosure by a lender (or 
upon other transfer in lieu of foreclosure) 
if such action—
‘‘(I) recognizes any contractual 
or legal rights of public agencies, non-
profit sponsors, or others to take ac-
tions that would avoid termination of
low-income affordability in the case of 
foreclosure or transfer in lieu of fore-
closure; and 
‘‘(II) is not for the purpose of 
avoiding low-income affordability re-
strictions, as determined by the Sec-
retary; or 
‘‘(ii) where existing affordable housing 
is no longer financially viable due to un-
foreseen acts or occurrences beyond the 
reasonable contemplation or control of the 
participating jurisdiction in which the af-
fordable housing is located or the owner of 
the affordable housing that significantly 
impact the financial or physical condition 
of the affordable housing, as determined by 
the Secretary; and’’; and 
(2) by adding at the end the following: 
‘‘(8) SMALL-SCALE HOUSING.—
‘‘(A) IN
GENERAL.—Small-scale housing 
shall qualify as affordable housing under this 
title if—
‘‘(i) each dwelling unit in such hous-
ing bears rent in an amount that complies
with the requirements described in para-
graph (1)(A); 
‘‘(ii) each dwelling unit in such hous-
ing is occupied by a low-income family; 
‘‘(iii) no dwelling unit in such housing 
is refused for leasing to a holder of a 
voucher under section 8 of the United 
States Housing Act of 1937 (42 U.S.C. 
1437f) because of the status of the pro-
spective tenant as a holder of such vouch-
er; 
‘‘(iv) such housing complies with the 
requirement 
described 
in 
paragraph 
(1)(E); and 
‘‘(v) the participating jurisdiction in 
which such small-scale housing is located 
monitors the compliance of such housing 
with the requirements of this title in a 
manner consistent with the purposes of 
section 226(b), as determined by the Sec-
retary. 
‘‘(B) SMALL-SCALE HOUSING DEFINED.—
In this paragraph, the term ‘small-scale hous-
ing’ means housing with not more than 4 dwell-
ing units each of which is made available for 
rental.’’. 
(q) TENANT AND PARTICIPANT PROTECTIONS FOR 
SMALL-SCALE AFFORDABLE HOUSING.—Section 225 of 
the Cranston-Gonzalez National Affordable Housing Act 
(42 U.S.C. 12755) is amended by adding at the end the 
following: 
‘‘(e) EXCEPTION.—Paragraphs (2), (3), and (4) shall 
not apply to small-scale housing, as such term is defined 
in section 215(a)(7).’’. 
(r) REVISION OF DEFINITION OF COMMUNITY LAND 
TRUST.—Section 104 of the Cranston-Gonzalez National 
Affordable Housing Act (42 U.S.C. 12704) is amended by 
adding at the end the following: 
‘‘(27) The term ‘community land trust’ 
means a nonprofit entity, a State, a unit of 
local government or instrumentality of a State 
or unit of local government that—
‘‘(A) is not managed by, or an affil-
iate of, a for-profit organization; 
‘‘(B) has as a primary purpose of ac-
quiring, developing, or holding land to pro-
vide housing that is permanently afford-
able to low- and moderate-income persons;
‘‘(C) monitors properties to ensure af-
fordability is preserved; 
‘‘(D) provides housing that is perma-
nently affordable to low- and moderate-in-
come persons using a ground lease, deed 
covenant, or other similar legally enforce-
able measure, determined acceptable by the 
Secretary, that—
‘‘(i) keeps housing affordable to 
low- and moderate-income persons for 
not less than 30 years; and 
‘‘(ii) enables low- and moderate-
income persons to rent or purchase 
the housing for homeownership; and 
‘‘(E) maintains preemptive purchase 
options to purchase the property if such 
purchase would allow the housing to re-
main affordable to low-and moderate-in-
come persons.’’. 
(s) CONFORMING
AMENDMENTS.—The Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C. 
12701 et seq.) is amended—
(1) in section 233 by striking subsection (f); 
and
(2) in section 233(b)(6), by striking ‘‘to com-
munity land trusts (as such term is defined in sub-
section (f))’’ and inserting ‘‘to community land 
trusts (as such term is defined in section 104)’’. 
(t) MINIMUM ALLOCATIONS.—Section 217(b) of the 
Cranston-Gonzalez National Affordable Housing Act (42 
U.S.C. 12747 (b)) is amended—
(1) in paragraph (2), by striking ‘‘$500,000’’ 
each place that term appears and inserting 
‘‘$750,000’’; 
(2) in paragraph (3)—
(A) by striking ‘‘jurisdictions that are allo-
cated an amount of $500,000 or more’’ and in-
serting ‘‘jurisdictions that are allocated an 
amount of $750,000 or more’’; 
(B) by striking ‘‘that are allocated an 
amount less than $500,000’’ and inserting 
‘‘that are allocated an amount less than 
$750,000’’; and 
(C) by striking ‘‘, except as provided in 
paragraph (4)’’; and 
(3) by striking paragraph (4). 
(u) ADDITIONAL TECHNICAL CORRECTIONS.—The 
Cranston-Gonzalez National Affordable Housing Act (42 
U.S.C. 12701 et seq.) is amended—
(1) in section 108(a)(1), by striking ‘‘section 
105(b)(15)’’ and inserting ‘‘section 105(b)(18)’’; and 
(2) in section 217(b)(1)(F), by striking ‘‘Sub-
committee on Housing and Community Develop-
ment’’ and inserting ‘‘Subcommittee on Housing, 
Transportation, and Community Development’’. 
SEC. 202. COMMUNITY DEVELOPMENT FUND AMENDMENTS. 
(a) IDENTIFYING REGULATORY BARRIERS TO HOUS-
ING SUPPLY.—Section 104 of the Housing and Commu-
nity Development Act of 1974 (42 U.S.C. 5304) is amend-
ed by adding at the end the following: 
‘‘(n) PLAN TO TRACK AND REDUCE OVERLY BUR-
DENSOME LAND USE POLICIES.—
‘‘(1) IN GENERAL.—Beginning 1 year after the 
date of the enactment of this subsection, prior to re-
ceipt in any fiscal year of a grant from the Secretary 
under subsection (b), (d)(1), or (d)(2)(B) of section 
106, each recipient shall have prepared and sub-
mitted, not less frequently than once during the pre-
ceding 5-year period, a description of—
‘‘(A) whether the jurisdiction served by the 
recipient has adopted any of the types of land 
use policies described in paragraph (2) during 
the preceding 5-year period;
‘‘(B) the plans the jurisdiction served by 
the recipient has to adopt and implement any 
of the types of land use policies described in 
paragraph (2); and 
‘‘(C) any ways in which the jurisdiction 
served by the recipient expects the planned 
adoption of any of the types of land use policies 
described in paragraph (2) would benefit the ju-
risdiction. 
‘‘(2) TYPES
OF
LAND
USE
POLICIES.—The 
types of policies to be considered for the purposes of 
the submission of information required under para-
graph (1) include the following: 
‘‘(A) Expanding by-right multifamily zoned 
areas. 
‘‘(B) Allowing duplexes, triplexes, or 
fourplexes in areas zoned primarily for single-
family residential homes. 
‘‘(C) Allowing manufactured homes in 
areas zoned primarily for single-family residen-
tial homes. 
‘‘(D) Allowing multifamily development in 
retail, office, and light manufacturing zones.
‘‘(E) Allowing single-room occupancy de-
velopment wherever multifamily housing is al-
lowed. 
‘‘(F) Reducing minimum lot size. 
‘‘(G) Ensuring historic preservation re-
quirements and other land use policies or re-
quirements are coordinated to encourage cre-
ation of housing in historic buildings and his-
toric districts. 
‘‘(H) Increasing the allowable floor area 
ratio by allowing a higher ratio of total floor 
area in a building in comparison to its lot size. 
‘‘(I) Creating transit-oriented development 
zones. 
‘‘(J) Streamlining or shortening permitting 
processes and timelines, including through one-
stop and parallel-process permitting. 
‘‘(K) Eliminating or reducing off-street 
parking requirements. 
‘‘(L) Ensuring impact and utility invest-
ment fees accurately reflect required infrastruc-
ture needs and related impacts on housing af-
fordability are otherwise mitigated. 
‘‘(M) Allowing off-site construction, includ-
ing prefabricated construction.
‘‘(N) Reducing or eliminating minimum 
unit square footage requirements. 
‘‘(O) Allowing the conversion of office 
units to apartments. 
‘‘(P) Allowing the subdivision of single-
family homes into duplexes. 
‘‘(Q) Allowing accessory dwelling units, in-
cluding detached accessory dwelling units, on all 
lots with single-family homes. 
‘‘(R) Establishing density bonuses. 
‘‘(S) Eliminating or relaxing residential 
property height limitations. 
‘‘(T) Using property tax abatements to en-
able higher density and mixed-income commu-
nities. 
‘‘(U) Donating vacant land for affordable 
housing development. 
‘‘(V) Enacting other relevant high-density, 
single-family, and multifamily zoning policies 
that the recipient chooses to report. 
‘‘(3) EFFECT OF SUBMISSION.—A submission 
under this subsection shall not be binding with re-
spect to the use or distribution of amounts received 
under section 106.
‘‘(4) ACCEPTANCE
OR
NONACCEPTANCE
OF 
PLAN.—The acceptance or nonacceptance of any 
plan submitted under this subsection in which the 
information required under this subsection is pro-
vided may not be considered an endorsement or ap-
proval of the plan, policies, or methodologies, or lack 
thereof. 
‘‘(5) PROHIBITION ON USE OF INFORMATION 
FOR ENFORCEMENT.—Information provided by a re-
cipient to the Secretary under this subsection may 
not be used as the basis for any enforcement ac-
tion.’’. 
(b) ADDITION
OF AFFORDABLE HOUSING CON-
STRUCTION AS AN ELIGIBLE ACTIVITY.—
(1) ELIGIBLE ACTIVITY.—Section 105(a) of the 
Housing and Community Development Act of 1974 
(42 U.S.C. 5305(a)) is amended—
(A) in paragraph (25)(D), by striking 
‘‘and’’ at the end; 
(B) in paragraph (26), by striking the pe-
riod at the end and inserting ‘‘; and’’; and 
(C) by adding at the end the following new 
paragraph: 
‘‘(27) the new construction of affordable hous-
ing, within the meaning given such term under sec-
tion 215 of the Cranston-Gonzalez National Afford-
able Housing Act (42 U.S.C. 12745), and which 
shall not exceed 20-percent of the amounts allocated 
to the recipient.’’. 
(2) LOW- AND
MODERATE-INCOME
REQUIRE-
MENT.—Section 105(c)(3) of the Housing and Com-
munity Development Act of 1974 (42 U.S.C. 
5305(c)(3)) is amended by striking ‘‘or rehabilita-
tion’’ and inserting ‘‘, rehabilitation, or new con-
struction’’. 
(3) APPLICABILITY.—The amendments made 
by this subsection shall apply with respect only to 
amounts appropriated after the date of the enact-
ment of this Act. 
(c) DATABASES OF PUBLICLY OWNED LAND.—
(1) IN GENERAL.—Section 104(b) of the Hous-
ing and Community Development Act of 1974 (42 
U.S.C. 5304(b)) is amended—
(A) in paragraph (5), by striking ‘‘and’’ at 
the end; 
(B) in paragraph (6), by striking the pe-
riod at the end and inserting ‘‘; and’’; and 
(C) by adding at the end the following: 
‘‘(7) the grantee maintains, on a publicly acces-
sible website, a searchable database that identifies
all parcels of undeveloped land owned by the grant-
ee.’’. 
(2) EFFECTIVE DATE.—The amendments made 
by this subsection shall take effect on October 1, 
2026. 
SEC. 203. GRANTS FOR PLANNING AND IMPLEMENTATION 
ASSOCIATED WITH AFFORDABLE HOUSING. 
(a) IN GENERAL.—The Secretary of Housing and 
Urban Development shall, not later than 1 year after the 
date of the enactment of this section, establish a pilot pro-
gram to award grants on a competitive basis to eligible 
entities to assist planning and implementation activities 
associated with affordable housing. 
(b) USE OF AMOUNTS.—
(1) BY REGIONAL PLANNING AGENCIES.—If an 
eligible entity that receives amounts under this sec-
tion is a regional planning agency or consortia of re-
gional planning agencies, such eligible entity shall 
use such amounts to assist planning activities with 
respect to affordable housing, including—
(A) the development of housing plans; 
(B) the substantial improvement of State 
or local housing strategies; 
(C) the development of new regulatory re-
quirements and processes;
(D) updating zoning codes; 
(E) increasing the capacity to conduct 
housing inspections; 
(F) increasing the capacity to reduce bar-
riers to housing supply elasticity and housing 
affordability; 
(G) the development of local or regional 
plans for community development; and 
(H) the substantial improvement of com-
munity development strategies, including strate-
gies designed to—
(i) increase the availability of afford-
able housing and access to affordable hous-
ing; 
(ii) increase access to public transpor-
tation; and 
(iii) advance sustainable or location-
efficient community development goals. 
(2) BY STATES, INSULAR AREAS, METROPOLI-
TAN CITIES, AND URBAN COUNTIES.—If an eligible 
entity that receives amounts under this section is a 
State, insular area, metropolitan city, or urban 
county, such eligible entity shall use such amounts 
to—
(A) implement and administer housing 
strategies and housing plans; 
(B) implement and administer any plans to 
increase housing choice, address disparities in 
housing needs, and provide greater access to 
opportunity; 
(C) fund any community investments that 
support goals identified in a housing strategy or 
housing plan; 
(D) implement and administer regulatory 
requirements and processes with respect to re-
formed zoning codes; 
(E) increase the capacity to conduct hous-
ing inspections; 
(F) increase the capacity to reduce bar-
riers to housing supply elasticity and housing 
affordability; 
(G) implement and administer local or re-
gional plans for community development; and 
(H) fund any planning to increase—
(i) the availability of affordable hous-
ing and access to affordable housing; 
(ii) access to public transportation; 
and
(iii) any location-efficient community 
development goals. 
(3) USE FOR ADMINISTRATIVE COSTS.—A eligi-
ble entity that receives amounts under this section 
may not use more than 10-percent of such amounts 
for administrative costs. 
(c) COORDINATION.—To the extent practicable, the 
Secretary shall coordinate with the Federal Transit Ad-
ministrator in carrying out this section. 
(d) ADDITIONAL USES OF AMOUNTS.—
(1) HOUSING
CONSTRUCTION.—Expenditures 
on new construction of housing shall be an eligible 
expense under this section. 
(2) BUILDINGS
FOR
GENERAL
CONDUCT
OF 
GOVERNMENT.—Expenditures on building for the 
general conduct of government, other than the Fed-
eral Government, shall be eligible under this section 
when necessary and appropriate as a part of a nat-
ural hazard mitigation project. 
(e) EXPIRATION OF AUTHORITY.—After the expira-
tion of the 5-year period beginning on the date of the en-
actment of this section, the Secretary may not newly es-
tablish a pilot program as described in this section.
(f) SUNSET.—The pilot program established under 
this section shall terminate on the date that is 5 years 
after the date of the enactment of this section. 
(g) DEFINITIONS.—In this subsection: 
(1) ELIGIBLE ENTITY.—The term ‘‘eligible enti-
ty’’ means—
(A) a State, insular area, metropolitan 
city, or urban county, as such terms are defined 
in section 102 of the Housing and Community 
Development Act of 1974; or 
(B) a regional planning agency or con-
sortia of regional planning agencies. 
(2) HOUSING PLAN.—The term ‘‘housing plan’’ 
means a plan to, with respect to an area within the 
jurisdiction of an eligible entity—
(A) increase the amount of available hous-
ing to meet the demand for such housing and 
any projected increase in the demand for such 
housing; 
(B) increase the affordability of housing; 
(C) increase the accessibility of housing for 
people with disabilities, including location-effi-
cient housing; 
(D) preserve or improve the quality of 
housing;
(E) reduce barriers to housing develop-
ment; and 
(F) coordinate with transportation-related 
agencies. 
(3) HOUSING STRATEGY.—The term ‘‘housing 
strategy’’ means a housing strategy required under 
section 105 of the Cranston-Gonzalez National Af-
fordable Housing Act. 
SEC. 204. RURAL HOUSING SERVICE PROGRAM IMPROVE-
MENTS. 
(a) IN GENERAL.—Section 504(a) of the Housing 
Act of 1949 (42 U.S.C. 1474(a)) is amended—
(1) in the first sentence, by inserting ‘‘and may 
make a loan to an eligible low-income applicant’’ 
after ‘‘applicant’’; and 
(2) 
by 
striking 
‘‘$7,500’’ 
and 
inserting 
‘‘$15,000’’. 
(b) ANNUAL REPORT
ON RURAL HOUSING PRO-
GRAMS.—Title V of the Housing Act of 1949 (42 U.S.C. 
1471 et seq.), as amended by this section, is amended by 
adding at the end the following: 
‘‘SEC. 545. ANNUAL REPORT. 
‘‘(a) IN GENERAL.—The Secretary shall submit to 
the Committee on Financial Services of the House of Rep-
resentatives and the Committee on Banking, Housing, and
Urban Affairs of the Senate and publish on a website of 
the Department of Agriculture an annual report on the 
rural housing programs carried out under this title. 
‘‘(b) CONTENTS.—The report required under sub-
section (a) shall include significant details on the informa-
tion about the health of the programs carried out by the 
Rural Housing Service, including—
‘‘(1) raw data about loan performance that can 
be sorted by program and region; 
‘‘(2) a description of the housing stock of such 
programs; 
‘‘(3) information about why properties end par-
ticipation in such programs, including maturation 
prepayment, foreclosure, or other servicing issues; 
and 
‘‘(4) risk ratings for properties assisted under 
such programs. 
‘‘(c) PROTECTION OF INFORMATION.—Data included 
in a report required under subsection (a) may be aggre-
gated or anonymized to protect the financial information 
and personal information of program participants.’’. 
(c) APPLICATION REVIEW.—
(1) SENSE OF CONGRESS.—It is the sense of 
the Congress, not later than 90 days after the date 
on which the Secretary of Agriculture receives an
application for a loan, grant or combined loan and 
grant under section 502 or 504 of the Housing Act 
of 1949 (42 U.S.C. 1472, 1474), the Secretary of 
Agriculture should—
(A) review the application; 
(B) complete the underwriting; 
(C) make a determination of eligibility with 
respect to the application; and 
(D) notify the applicant of determination. 
(2) REPORT.—
(A) IN GENERAL.—Not later than 90 days 
after the date of enactment of this Act, and an-
nually thereafter until the date described in 
subparagraph (B), the Secretary of Agriculture 
shall submit to the Committee on Banking, 
Housing, and Urban Affairs of the Senate and 
the Committee on Financial Services of the 
House of Representatives a report that—
(i) details the timeliness of eligibility 
determinations and final determinations 
with respect to applications under section 
502 and 504 of the Housing Act of 1949 
(42 U.S.C. 1472, 1474), including jus-
tifications for any eligibility determinations 
taking longer than 90 days; and
(ii) 
includes 
recommendations 
to 
shorten the timeline for notifications of eli-
gibility determinations described in sub-
paragraph (A) to not more than 90 days. 
(B) DATE
DESCRIBED.—The date de-
scribed in this paragraph is the date on which, 
during the preceding 5-year period, the Sec-
retary of Agriculture provides each eligibility 
determination described in subparagraph (A) 
during the 90-day period beginning on the date 
on which each application is received. 
(d) GAO REPORT
ON RURAL HOUSING SERVICE 
TECHNOLOGY.—Not later than 1 year after the date of 
enactment of this Act, the Comptroller General of the 
United States shall submit to the Congress a report that 
includes—
(1) an analysis of how the outdated technology 
used by the Rural Housing Service impacts partici-
pants in the programs of the Rural Housing Service; 
(2) an estimate of the amount of funding that 
is needed to modernize the technology used by the 
Rural Housing Service; and 
(3) an estimate of the number and type of new 
employees the Rural Housing Service needs to mod-
ernize the technology used by the Rural Housing 
Service. 
SEC. 205. CHOICE IN AFFORDABLE HOUSING. 
(a) PREAPPROVAL OF UNITS.—Section 8(o)(8)(A) of 
the United States Housing Act of 1937 (42 U.S.C. 
1437f(o)(8)(A)) is amended by adding at the end the fol-
lowing: 
‘‘(iv) INITIAL INSPECTION PRIOR TO 
LEASE AGREEMENT.—
‘‘(I) 
DEFINITION.—In 
this 
clause, the term ‘new landlord’ means 
an owner of a dwelling unit who has 
not previously entered into a housing 
assistance payment contract with a 
public housing agency under this sub-
section for any dwelling unit. 
‘‘(II) EARLY INSPECTION.—Upon 
the request of a new landlord, a public 
housing agency may inspect the dwell-
ing unit owned by the new landlord to 
determine whether the unit meets the 
housing quality standards under sub-
paragraph (B) before the unit is se-
lected by a family assisted under this 
subsection.
‘‘(III) EFFECT.—An inspection 
conducted under subclause (II) that 
determines that the dwelling unit 
meets the housing quality standards 
under subparagraph (B) shall satisfy 
the requirements in this subparagraph 
and subparagraph (C) if the new 
landlord enters into a lease agreement 
with a family assisted under this sub-
section not later than 60 days after 
the date of the inspection. 
‘‘(IV) INFORMATION WHEN FAM-
ILY
IS
SELECTED.—When a public 
housing agency selects a family to 
participate in the tenant-based assist-
ance program under this subsection, 
the public housing agency shall in-
clude in the information provided to 
the family a list of dwelling units that 
have been inspected under subclause 
(II) and determined to meet the hous-
ing quality standards under subpara-
graph (B).’’. 
(b) SATISFACTION OF INSPECTION REQUIREMENTS 
THROUGH PARTICIPATION
IN OTHER HOUSING PRO-
GRAMS.—Section 8(o)(8) of the United States Housing 
Act of 1937 (42 U.S.C. 1437f(o)(8)) is amended by add-
ing at the end the following: 
‘‘(I) SATISFACTION
OF
INSPECTION
RE-
QUIREMENTS
THROUGH
PARTICIPATION
IN 
OTHER HOUSING PROGRAMS.—
‘‘(i) 
LOW-INCOME
HOUSING
TAX 
CREDIT-FINANCED
BUILDINGS.—A dwell-
ing unit shall be deemed to meet the in-
spection requirements under this para-
graph if—
‘‘(I) the dwelling unit is in a 
building, the acquisition, rehabilita-
tion, or construction of which was fi-
nanced by a person who received a 
low-income housing tax credit under 
section 42 of the Internal Revenue 
Code of 1986 in exchange for that fi-
nancing; 
‘‘(II) the dwelling unit was phys-
ically inspected and passed inspection 
as part of the low-income housing tax 
credit program described in subclause 
(I) during the preceding 12-month pe-
riod; and
‘‘(III) the applicable public hous-
ing agency is able to obtain the re-
sults of the inspection described in 
subclause (II). 
‘‘(ii) HOME
INVESTMENT
PARTNER-
SHIPS
PROGRAM.—A dwelling shall be 
deemed to meet the inspection require-
ments under this paragraph if—
‘‘(I) the dwelling unit is assisted 
under the HOME Investment Part-
nerships Program under title II of the 
Cranston-Gonzalez National Afford-
able Housing Act; 
‘‘(II) the dwelling unit was phys-
ically inspected and passed inspection 
as part of the program described in 
subclause (I) during the preceding 12-
month period; and 
‘‘(III) the applicable public hous-
ing agency is able to obtain the re-
sults of the inspection described in 
subclause (II). 
‘‘(iii) RURAL
HOUSING
SERVICE.—A 
dwelling unit shall be deemed to meet the
inspection requirements under this para-
graph if—
‘‘(I) the dwelling unit is assisted 
by the Rural Housing Service of the 
Department of Agriculture; 
‘‘(II) the dwelling unit was phys-
ically inspected and passed inspection 
in connection with the assistance de-
scribed in subclause (I) during the 
preceding 12-month period; and 
‘‘(III) the applicable public hous-
ing agency is able to obtain the re-
sults of the inspection described in 
subclause (II). 
‘‘(iv) REMOTE
OR
VIDEO
INSPEC-
TIONS.—When complying with inspection 
requirements for a housing unit located in 
a rural or small area using assistance 
under this subtitle, the Secretary may 
allow a grantee to conduct a remote or 
video inspection of a unit provided that the 
remote or video inspection—
‘‘(I) covers a substantially similar 
review of the relevant aspects of the
unit compared to an in-person inspec-
tion; 
‘‘(II) does not misrepresent the 
condition of the unit; and 
‘‘(III) provides the information 
necessary to fully and accurately 
evaluate the conditions of the unit to 
ensure that the unit meets the appli-
cable standards. 
‘‘(v) 
RULE
OF
CONSTRUCTION.—
Nothing in clause (i), (ii), (iii), or (iv) may 
be construed to affect the operation of a 
housing program described in, or author-
ized under a provision of law described in, 
that clause.’’. 
TITLE 
III—EXPANDING 
MANU-
FACTURED AND AFFORDABLE 
HOUSING FINANCE OPPORTU-
NITIES 
SEC. 301. MANUFACTURED HOUSING INNOVATIONS. 
(a) IN GENERAL.—Section 603(6) of the National 
Manufactured Housing Construction and Safety Stand-
ards Act of 1974 (42 U.S.C. 5402(6)) is amended by 
striking ‘‘on a permanent chassis’’ and inserting ‘‘with or 
without a permanent chassis’’.
(b) STANDARDS FOR MANUFACTURED HOMES BUILT 
WITHOUT A PERMANENT CHASSIS.—Section 604(a) of 
the National Manufactured Housing Construction and 
Safety Standards Act of 1974 (42 U.S.C. 5403) is amend-
ed by adding at the end the following: 
‘‘(7) STANDARDS FOR MANUFACTURED HOMES 
BUILT WITHOUT A PERMANENT CHASSIS.—
‘‘(A) IN
GENERAL.—The Secretary shall 
issue revised standards for manufactured homes 
built without a permanent chassis and shall 
consult with the consensus committee in the de-
velopment of such revised standards, using the 
process described in paragraph (4). 
‘‘(B) CREATING FINAL STANDARDS.—The 
Secretary shall, after consulting and conferring 
with the consensus committee, establish stand-
ards to ensure manufactured homes without a 
permanent chassis have—
‘‘(i) a distinct label to be issued by 
the Secretary distinguishing manufactured 
homes built without a permanent chassis 
from manufactured homes built on a per-
manent chassis; 
‘‘(ii) a data plate, as described in sec-
tion 3280.5 of title 24, Code of Federal
Regulations, distinguishing manufactured 
homes built without a permanent chassis 
from manufactured homes built on a per-
manent chassis; and 
‘‘(iii) a notation on any invoice pro-
duced by the manufacturer of a manufac-
tured home that is distinguishable from 
the invoice for a manufactured home con-
structed with a permanent chassis.’’. 
(c) MANUFACTURED HOME STANDARDS AND CER-
TIFICATIONS.—Section 604 of the National Manufactured 
Housing Construction and Safety Standards Act of 1974 
(42 U.S.C. 5403) is amended by adding at the end the 
following: 
‘‘(i) MANUFACTURED HOME STANDARDS AND CER-
TIFICATIONS.—
‘‘(1) IN GENERAL.—
‘‘(A) INITIAL CERTIFICATION.—Subject to 
subparagraph (B), not later than 1 year after 
the date of enactment of this subsection, a 
State shall submit to the Secretary an initial 
certification that the laws and regulations of 
the State—
‘‘(i) treat a manufactured home with-
out a chassis in parity with a manufac-
tured home (as defined and regulated by 
the State); and 
‘‘(ii) subject a manufactured home 
without a permanent chassis to the same 
laws and regulations of the State as a 
manufactured home built on a permanent 
chassis with respect to financing, title, in-
surance, manufacture, sale, taxes, trans-
portation, installation, and other areas as 
the Secretary determines, after consulta-
tion with and approval by the consensus 
committee, are necessary to give effect to 
the purpose of this section. 
‘‘(B) 
STATE
PLAN
SUBMISSION.—Any 
State plan submitted under section 623(c) of 
the National Manufactured Housing Construc-
tion and Safety Standards Act of 1974 (42 
U.S.C. 5422(c)) shall contain the required 
State certification under subparagraph (A) or 
paragraph (3) and, if contained therein, no ad-
ditional or State certification under subpara-
graph (A) or paragraph (3). 
‘‘(C) EXTENDED DEADLINE.—With respect 
to a State with a legislature that meets bienni-
ally, the deadline for the submission of the ini-
tial certification required under subparagraph 
(A) shall be 2 years after the date of enactment 
of this subsection. 
‘‘(D) LATE CERTIFICATION.—
‘‘(i) NO WAIVER.—The Secretary may 
not waive the prohibition described in 
paragraph (5)(B) with respect to a certifi-
cation submitted after the deadline under 
subparagraph (A) or paragraph (3) unless 
the Secretary approves the late certifi-
cation. 
‘‘(ii) 
RULE
OF
CONSTRUCTION.—
Nothing in this subsection shall be con-
strued to prevent a State from submitting 
the initial certification required under sub-
paragraph (A) after the required deadline 
under that subparagraph. 
‘‘(2) FORM OF STATE CERTIFICATION NOT PRE-
SENTED IN A STATE PLAN.—The initial certification 
required under paragraph (1)(A), if not submitted 
with a State plan under paragraph (1)(B), shall con-
tain, in a form prescribed by the Secretary, an attes-
tation by an official that the State has taken the 
steps necessary to ensure the veracity of the certifi-
cation required under paragraph (1)(A), including, 
as necessary, by—
‘‘(A) amending the definition of ‘manufac-
tured home’ in the laws and regulations of the 
State; and 
‘‘(B) directing State agencies to amend the 
definition of ‘manufactured home’ in regula-
tions. 
‘‘(3) ANNUAL
RECERTIFICATION.—Not later 
than a date to be determined by the Secretary each 
year, a State shall submit to the Secretary an addi-
tional certification that—
‘‘(A) confirms the accuracy of the initial 
certification submitted under subparagraph (A) 
or (B) of paragraph (1); and 
‘‘(B) certifies that any new laws or regula-
tions enacted or adopted by the State since the 
date of the previous certification do not change 
the veracity of the initial certification submitted 
under paragraph (1)(A). 
‘‘(4) LIST.—The Secretary shall publish and 
maintain in the Federal Register and on the website 
of the Department of Housing and Urban Develop-
ment a list of States that are up-to-date with the
submission of initial and subsequent certifications 
required under this subsection. 
‘‘(5) PROHIBITION.—
‘‘(A) DEFINITION.—In this paragraph, the 
term ‘covered manufactured home’ means a 
home that is—
‘‘(i) not considered a manufactured 
home under the laws and regulations of a 
State because the home is constructed 
without a permanent chassis; 
‘‘(ii) considered a manufactured home 
under the definition of the term in section 
603; and 
‘‘(iii) constructed after the date of en-
actment of this subsection. 
‘‘(B) 
BUILDING, 
INSTALLATION, 
AND 
SALE.—If a State does not submit a certifi-
cation under paragraph (1)(A) or paragraph (3) 
by the date on which those certifications are re-
quired to be submitted—
‘‘(i) with respect to a State in which 
the State administers the installation of 
manufactured homes, the State shall pro-
hibit the manufacture, installation, or sale
of a covered manufactured home within the 
State; and 
‘‘(ii) with respect to a State in which 
the Secretary administers the installation 
of manufactured homes, the State and the 
Secretary shall prohibit the manufacture, 
installation, or sale of a covered manufac-
tured home within the State.’’. 
(d) OTHER FEDERAL LAWS REGULATING MANUFAC-
TURED HOMES.—The Secretary of Housing and Urban 
Development may coordinate with the heads of other Fed-
eral agencies to ensure that Federal agencies treat a man-
ufactured home (that is defined in Federal laws and regu-
lations other than section 603 of the National Manufac-
tured Housing Construction and Safety Standards Act of 
1974 (42 U.S.C. 5402)) in the same manner as a manu-
factured home (that is defined in section 603 of the Na-
tional Manufactured Housing Construction and Safety 
Standards Act of 1974 (42 U.S.C. 5402)), as amended 
by this Act. 
(e) ASSISTANCE TO STATES.—Section 609 of the Na-
tional Manufactured Housing Construction and Safety 
Standards Act of 1974 (42 U.S.C. 5408) is amended—
(1) in paragraph (1), by striking ‘‘and’’ at the 
end;
(2) in paragraph (2), by striking the period at 
the end and inserting ‘‘; and’’; and 
(3) by adding at the end the following: 
‘‘(3) model guidance to support the submission 
of the certification required under section 604(i).’’. 
(f) PREEMPTION.—Nothing in this section or the 
amendments made by this section may be construed as 
limiting the scope of Federal preemption under section 
604(d) of the National Manufactured Housing Construc-
tion and Safety Standards Act of 1974 (42 U.S.C. 
5403(d)). 
(g) PRIMARY AUTHORITY TO ESTABLISH MANUFAC-
TURED
HOME
CONSTRUCTION
AND
SAFETY
STAND-
ARDS.—The National Manufactured Housing Construc-
tion and Safety Standards Act of 1974 (42 U.S.C. 5401 
et seq.) is further amended—
(1) in section 603(7), by inserting ‘‘energy effi-
ciency,’’ after ‘‘design,’’; and 
(2) in section 604, by adding at the end the fol-
lowing: 
‘‘(j) PRIMARY AUTHORITY TO ESTABLISH STAND-
ARDS.—
‘‘(1) IN GENERAL.—The Secretary shall have 
the primary authority to establish Federal manufac-
tured home construction and safety standards.
‘‘(2) APPROVAL FROM SECRETARY.—
‘‘(A) IN GENERAL.—The head of any Fed-
eral agency that seeks to establish a manufac-
tured home construction and safety standard on 
or after the date of the enactment of this sub-
section—
‘‘(i) shall submit to the Secretary a 
proposal describing such standard; and 
‘‘(ii) may not establish such standard 
without approval from the Secretary. 
‘‘(B) REJECTION
OF
STANDARDS.—The 
Secretary shall reject a standard submitted to 
the Secretary for approval under subparagraph 
(A)—
‘‘(i) if the standard would signifi-
cantly increase the cost of producing man-
ufactured homes, as determined by the 
Secretary; 
‘‘(ii) if the standard would conflict 
with existing manufactured home construc-
tion and safety standards established by 
the Secretary; or 
‘‘(iii) for any other reason as deter-
mined appropriate by the Secretary.
‘‘(C) RULE OF CONSTRUCTION.—Nothing 
in this subsection may be construed to require 
the Secretary to establish new or revised Fed-
eral manufactured home construction and safe-
ty standards.’’. 
SEC. 302. FHA SMALL-DOLLAR MORTGAGES. 
(a) IN GENERAL.—Not later than 1 year after the 
date of the enactment of this section, the Secretary of 
Housing and Urban Development, acting through the 
Federal Housing Commissioner, may establish a pilot pro-
gram to increase access to small-dollar mortgages for 
mortgagors which may include—
(1) authorizing direct payments to mortgagees 
to incentivize the origination of small-dollar mort-
gages; 
(2) adjusting terms and costs imposed by the 
Federal Housing Administration with respect to 
small-dollar mortgages; 
(3) providing direct grants for mortgagors who 
obtain small-dollar mortgages to cover costs associ-
ated with—
(A) down payments; 
(B) closing costs; 
(C) appraisals; and 
(D) title insurance;
(4) conducting outreach to potential mortgagors 
about the availability of small-dollar mortgages; and 
(5) providing technical assistance for mortga-
gees that originate small-dollar mortgages. 
(b) REPORT.—Beginning not later than 1 year after 
the establishment of the pilot program under subsection 
(a) and ending 1 year after the sunset of the pilot pro-
gram, the Federal Housing Commissioner shall submit to 
the Congress an annual report that—
(1) tracks and evaluates the outcomes of small-
dollar mortgages originated by mortgagees as a re-
sult of support provided under subsection (a); 
(2) analyzes risks of the pilot program to the 
solvency of the Mutual Mortgage Insurance Fund; 
(3) includes data with respect to—
(A) the number of small-dollar mortgages 
originated in the 10-year period preceding the 
date of the enactment of this section, including 
small-dollar mortgages insured or guaranteed 
by the Federal Government and small-dollar 
mortgages not insured by the Federal Govern-
ment; 
(B) the original principal balance of each 
small-dollar mortgage identified under subpara-
graph (A);
(C) demographic information about the 
mortgagors associated with each such small-dol-
lar mortgages; and 
(D) the number and type of mortgagees 
that offer small-dollar mortgages; 
(4) provides a description of the fixed costs that 
are associated with mortgages and the impact of 
such costs on the ability of lenders to earn a market 
rate return on small-dollar mortgages; and 
(5) includes analysis, by regions of the United 
States, including rural regions, that identifies re-
gions with the greatest need for, and the highest 
likelihood of, the origination of small-dollar mort-
gages and regions that could benefit the most from 
increased availability of small-dollar mortgages. 
(c) SUNSET.—The pilot program established under 
subsection (a) shall terminate on the date that is 4 years 
after the date on which the pilot program is established 
under subsection (a). 
(d) EXPIRATION OF AUTHORITY.—After the expira-
tion of the 3-year period beginning on the date of enact-
ment of this section, neither the Federal Housing Commis-
sioner nor the Secretary of Housing and Urban Develop-
ment may newly establish a pilot program to increase ac-
cess to small-dollar mortgages for mortgagors.
(e) SMALL-DOLLAR
MORTGAGE
DEFINED.—The 
term ‘‘small-dollar mortgage’’ means a mortgage that—
(1) has an original principal balance of 
$100,000 or less; and 
(2) is secured by a 1- to 4-unit property that 
is the principal residence of the mortgagor. 
SEC. 303. COMMUNITY INVESTMENT AND PROSPERITY. 
(a) REVISED STATUTES.—The paragraph designated 
as the ‘‘Eleventh’’ of section 5136 of the Revised Statutes 
of the United States (12 U.S.C. 24) is amended, in the 
fifth sentence, by striking ‘‘15’’ each place it appears and 
inserting ‘‘20’’. 
(b) FEDERAL RESERVE ACT.—Section 9(23) of the 
Federal Reserve Act (12 U.S.C. 338a) is amended, in the 
fifth sentence, by striking ‘‘15’’ each place it appears and 
inserting ‘‘20’’. 
(c) STUDY.—Not later than 2 years after the date 
of the enactment of this section, and every 2 years there-
after, the Comptroller of the Currency and the Board of 
Governors of the Federal Reserve System shall each sub-
mit to the Committee on Financial Services of the House 
of Representatives and the Committee on Banking, Hous-
ing, and Urban Affairs of the Senate, a report, after con-
sulting with the other agency in the development of such 
report, about public welfare investments that were made
by associations under section 5136 of the Revised Statutes 
of the United States and State member banks under sec-
tion 9(23) of the Federal Reserve Act in the 2 previous 
calendar years, that—
(1) identifies the number of such investments, 
broken down by—
(A) purpose; 
(B) type; 
(C) amount of assets of the association or 
State member bank that made the investment, 
using not less than 4 categories to describe the 
amount of assets of the associations and banks; 
and 
(D) State, or other location; 
(2) identifies the dollar amounts of such invest-
ments, broken down by—
(A) purpose; 
(B) type; 
(C) amount of assets of the association or 
State member bank that made the investment, 
using not less than 4 categories to describe the 
amount of assets of the associations and banks; 
and 
(D) State or other location; and
100
(3) for each type of public welfare investment 
identified under paragraphs (1) and (2), a descrip-
tion of the substantive and procedural requirements 
that apply to each type of investment made under—
(A) in the case of a report by the Comp-
troller of the Currency, section 5136 of the Re-
vised Statutes of the United States; or 
(B) in the case of a report by the Board 
of Governors, section 9(23) of the Federal Re-
serve Act. 
TITLE 
IV—PROTECTING 
BOR-
ROWERS AND ASSISTED FAMI-
LIES 
SEC. 401. EXCLUSION OF CERTAIN DISABILITY BENEFITS. 
(a) IN GENERAL.—Section 3(b)(4)(B) of the United 
States Housing Act of 1937 (42 U.S.C. 1437a(b)(4)(B)) 
is amended—
(1) by redesignating clauses (iv) and (v) as 
clauses (vi) and (vii), respectively; and 
(2) by inserting after clause (iii) the following: 
‘‘(iv) with respect to the supported 
housing program under section 8(o)(19), 
any disability benefits received under chap-
ter 11 or chapter 15 of title 38, United 
States Code, received by a veteran, except
101
that this exclusion may not apply to the 
definition of adjusted income; 
‘‘(v) with respect to any household re-
ceiving rental assistance under the sup-
ported housing program under section 
8(o)(19) as it relates to eligibility for other 
types of housing assistance, any disability 
benefits received under chapter 11 or chap-
ter 15 of title 38, United States Code, re-
ceived by a veteran, except that this exclu-
sion may not apply to the definition of ad-
justed income;’’. 
(b) TREATMENT
OF CERTAIN DISABILITY BENE-
FITS.—When determining the eligibility of a veteran to 
rent a residential dwelling unit constructed on Depart-
ment property on or after the date of the enactment of 
this Act, for which assistance is provided as part of a 
housing assistance program administered by the Secretary 
of Housing and Urban Development and not yet in exist-
ence at the time of the enactment of this section, the Sec-
retary shall exclude from income any disability benefits re-
ceived under chapter 11 or chapter 15 of title 38, United 
States Code, by such person. 
(c) DEPARTMENT PROPERTY DEFINED.—In this sec-
tion, the term ‘‘Department property’’ has the meaning
102
given the term in section 901 of title 38, United States 
Code. 
SEC. 402. MILITARY SERVICE QUESTION. 
(a) IN GENERAL.—Subpart A of part 2 of the Fed-
eral Housing Enterprises Financial Safety and Soundness 
Act of 1992 (12 U.S.C. 4541 et seq.) is amended by add-
ing at the end the following: 
‘‘SEC. 1329. UNIFORM RESIDENTIAL LOAN APPLICATION. 
‘‘Not later than 6 months after the date of enactment 
of this section, the Director shall, by regulation or order, 
require each enterprise to include a disclosure below the 
military service question which shall be above the signa-
ture line on the form known as the Uniform Residential 
Loan Application stating, ‘If yes, you may qualify for a 
VA Home Loan. Consult your lender regarding eligi-
bility.’.’’. 
(b) GAO STUDY.—Not later than 18 months after 
the date of enactment of this Act, the Comptroller General 
of the United States shall conduct a study and submit to 
the Congress a report on whether or not less than 80-
percent of lenders using the Uniform Residential Loan 
Application have included on that form the disclaimer re-
quired under section 1329 of the Federal Housing Enter-
prises Financial Safety and Soundness Act of 1992, as 
added by subsection (a).
103
SEC. 403. HUD–USDA–VA INTERAGENCY COORDINATION. 
(a) MEMORANDUM OF UNDERSTANDING.—Not later 
than 180 days after the date of enactment of this Act, 
the Secretary of Housing and Urban Development, the 
Secretary of Agriculture, and the Secretary of Veterans 
Affairs shall establish a memorandum of understanding, 
or other appropriate interagency agreement, to share rel-
evant housing-related research and market data that fa-
cilitates evidence-based policymaking. 
(b) INTERAGENCY REPORT.—
(1) REPORT.—Not later than 1 year after the 
date of enactment of this Act, the Secretary of 
Housing and Urban Development, the Secretary of 
Agriculture, and the Secretary of Veterans Affairs 
shall jointly submit to the Committee on Banking, 
Housing, and Urban Affairs, the Committee on Ag-
riculture, Nutrition, and Forestry, and the Com-
mittee on Veterans’ Affairs of the Senate and the 
Committee on Financial Services, the Committee on 
Agriculture, and the Committee on Veterans’ Affairs 
of the House of Representatives a report that de-
scribes opportunities for increased collaboration be-
tween the Secretary of Housing and Urban Develop-
ment, the Secretary of Agriculture, and the Sec-
retary of Veterans Affairs to improve efficiencies in 
housing programs.
104
(2) PUBLICATION.—The report required under 
paragraph (1) shall, prior to submission, be pub-
lished in the Federal Register and open for comment 
for a period of 30 days. 
SEC. 404. FAMILY SELF-SUFFICIENCY ESCROW EXPANSION 
PILOT PROGRAM. 
Title I of the United States Housing Act of 1937 (42 
U.S.C. 1437 et seq.) is amended by adding at the end 
the following: 
‘‘SEC. 39. ESCROW EXPANSION PILOT PROGRAM. 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) COVERED
FAMILY.—The term ‘covered 
family’ means a family that—
‘‘(A) receives assistance under section 8 or 
9 of this Act; 
‘‘(B) is enrolled in the pilot program; and 
‘‘(C) has an adjusted income that does not 
exceed 80-percent of the area-median income at 
the time of enrollment in the pilot program. 
‘‘(2) ELIGIBLE ENTITY.—The term ‘eligible en-
tity’ means an entity described in subsection (c)(2) 
of section 23. 
‘‘(3) PILOT
PROGRAM.—The term ‘pilot pro-
gram’ means the pilot program established under 
this section.
105
‘‘(4) WELFARE
ASSISTANCE.—The term ‘wel-
fare assistance’ has the meaning given the term in 
section 984.103 of title 24, Code of Federal Regula-
tions, or any successor regulation. 
‘‘(b) PROGRAM
ESTABLISHMENT.—The Secretary 
shall, not later than 1 year after the date of the enactment 
of this section, establish a pilot program under which the 
Secretary shall select not more than 25 eligible entities 
to establish and manage escrow accounts for not more 
than a total of 5,000 covered families, in accordance with 
this section. 
‘‘(c) ESCROW ACCOUNTS.—
‘‘(1) IN GENERAL.—An eligible entity selected 
to participate in the pilot program—
‘‘(A) shall establish an interest-bearing es-
crow account and place into the account an 
amount equal to any increase in the amount of 
rent paid by each covered family in accordance 
with the provisions of section 3, 8(o), or 8(y), 
as applicable, that is attributable to increases in 
earned income by the covered family during the 
participation of such covered family in the pilot 
program; and 
‘‘(B) notwithstanding any other provision 
of law, may use existing funds made available
106
to such entity at any time under section 8 or 
9 for the purposes of making the escrow deposit 
for a covered family assisted under, or residing 
in a unit assisted under, section 8 or 9 provided 
that such amounts are offset by the increase in 
the amount of rent paid by the covered family. 
‘‘(2) WITHDRAWALS.—A covered family may 
withdraw funds, including any interest earned, from 
an escrow account established by an eligible entity 
under the pilot program for such covered family—
‘‘(A) after the covered family ceases to re-
ceive welfare assistance; and 
‘‘(B)(i) not earlier than the date that is 5 
years after the date on which the eligible entity 
establishes the escrow account under this sub-
section; 
‘‘(ii) not later than the date that is 7 years 
after the date on which the eligible entity estab-
lishes the escrow account under this subsection, 
if the covered family chooses to continue to par-
ticipate in the pilot program after the date that 
is 5 years after the date on which the eligible 
entity establishes the escrow account; 
‘‘(iii) on the date the covered family ceases 
to receive housing assistance under section 8 or
107
9, if such date is earlier than 5 years after the 
date on which the eligible entity establishes the 
escrow account; 
‘‘(iv) earlier than 5 years after the date on 
which the eligible entity establishes the escrow 
account, if the covered family is using the funds 
to advance a self-sufficiency goal as approved 
by the eligible entity; or 
‘‘(v) under other circumstances for good 
cause as determined by the Secretary. 
‘‘(3) INTERIM RECERTIFICATION.—For the pur-
poses of the pilot program established under this 
section, a covered family shall recertify the income 
of such family not less than once each year. 
‘‘(4) CONTRACT OR PLAN.—An eligible entity 
may not require a covered family to—
‘‘(A) complete a contract that requires the 
participation of the covered family in the pilot 
program established under this section; or 
‘‘(B) participate in any individual training 
or services plan as a condition for participating 
in the pilot program. 
‘‘(d) EFFECT OF INCREASES IN FAMILY INCOME.—
The amount equal to any increase in the earned income 
of a covered family from the date of enrollment of the cov-
108
ered family in the pilot program established under this 
section through the date all funds are withdrawn from the 
escrow account established for such family under this sec-
tion may not be considered as income or a resource for 
purposes of eligibility of the covered family for other bene-
fits, or amount of benefits payable to the family, under 
any program administered by the Secretary. 
‘‘(e) APPLICATION.—
‘‘(1) IN GENERAL.—An eligible entity seeking 
to participate in the pilot program shall submit to 
the Secretary an application—
‘‘(A) at such time, in such manner, and 
containing such information as the Secretary 
may require by notice; and 
‘‘(B) that includes the number of covered 
families to which the eligible entity intends to 
provide escrow accounts under this section. 
‘‘(2) GEOGRAPHIC AND ENTITY VARIETY.—The 
Secretary shall ensure that eligible entities selected 
to participate in the pilot program—
‘‘(A) are located across various States and 
in both urban and rural areas; and 
‘‘(B) vary by size and type, including both 
public housing agencies and private owners of
110
‘‘(1) AWARDS.—Not later than 18 months after 
the date of enactment of this section, the Secretary 
shall select the eligible entities to participate in the 
pilot program. 
‘‘(2) ESTABLISHMENT
AND
TERMS
OF
AC-
COUNTS.—An eligible entity selected to participate 
in the pilot program shall—
‘‘(A) not later than 6 months after selec-
tion, establish escrow accounts under subsection 
(c) for covered families; and 
‘‘(B) maintain those escrow accounts for 
not less than 5 years, or until the date the fam-
ily ceases to receive assistance under section 8 
or 9, and, at the discretion of the covered fam-
ily, not more than 7 years after the date on 
which the escrow account is established. 
‘‘(i) NONPARTICIPATION
AND
HOUSING
ASSIST-
ANCE.—
‘‘(1) IN GENERAL.—A family that elects not to 
participate in the pilot program may not be delayed 
or denied assistance under section 8 or 9 for reason 
of such election. 
‘‘(2) NO
TERMINATION.—Housing assistance 
may not be terminated as a consequence of partici-
111
pating, or not participating, in the pilot program 
under this section for any period of time. 
‘‘(j) STUDY.—Not later than 8 years after the date 
the Secretary selects eligible entities to participate in the 
pilot program under this section, the Secretary shall con-
duct a study and submit to the Committee on Banking, 
Housing, and Urban Affairs of the Senate and the Com-
mittee on Financial Services of the House of Representa-
tives a report on outcomes for covered families that par-
ticipated in the pilot program, which shall evaluate the ef-
fectiveness of the pilot program in assisting families to 
achieve economic independence and self-sufficiency, and 
the impact coaching and supportive services, or the lack 
thereof, had on individual incomes. 
‘‘(k) WAIVERS.—The Secretary may, upon the writ-
ten request of an eligible entity receiving amounts under 
this section, waive requirements under this section that 
relate to the administration of the pilot program for the 
eligible entity that submitted the request if such waiver 
would allow such eligible entity to effectively administer 
the pilot program and make the required escrow account 
deposits under this section. 
‘‘(l) TERMINATION.—The pilot program established 
under this section shall terminate on the date that is 7 
years after the date of enactment of this section.’’.
112
SEC. 405. REFORMS TO HOUSING COUNSELING AND FINAN-
CIAL LITERACY PROGRAMS. 
(a) IN GENERAL.—Section 106 of the Housing and 
Urban Development Act of 1968 (12 U.S.C. 1701x) is 
amended—
(1) in subsection (a)(4)(C), by striking ‘‘ade-
quate distribution’’ and all that follows through 
‘‘foreclosure rates’’ and inserting ‘‘that the recipi-
ents are geographically diverse and include organiza-
tions that serve urban or rural areas’’; 
(2) in subsection (e), by adding at the end the 
following: 
‘‘(6) PERFORMANCE REVIEW.—The Secretary—
‘‘(A) may conduct periodic reviews; and 
‘‘(B) shall conduct performance reviews of 
all organizations receiving assistance under this 
section that—
‘‘(i) consist of a review of the organi-
zation’s or entity’s compliance with all pro-
gram requirements; and 
‘‘(ii) may take into account the orga-
nization’s or entity’s aggregate counselor 
performance under paragraph (7)(B). 
‘‘(7) CONSIDERATIONS.—
‘‘(A) COVERED
MORTGAGE
LOAN
DE-
FINED.—In this paragraph, the term ‘covered
113
mortgage loan’ means any loan which is secured 
by a first or subordinate lien on residential real 
property (including individual units of con-
dominiums and cooperatives) designed prin-
cipally for the occupancy of between 1 and 4 
families that is—
‘‘(i) insured by the Federal Housing 
Administration under title II of the Na-
tional Housing Act (12 U.S.C. 1707 et 
seq.); or 
‘‘(ii) guaranteed under section 184 or 
184A of the Housing and Community De-
velopment Act of 1992 (12 U.S.C. 1715z–
13a, 1715z–13b). 
‘‘(B) COMPARISON.—For each counselor 
employed by an organization receiving assist-
ance under this section for pre-purchase hous-
ing counseling, the Secretary may consider the 
performance of the counselor compared to the 
default rate of all counseled borrowers of a cov-
ered mortgage loan in comparable markets and 
such other factors as the Secretary determines 
appropriate to further the purposes of this sec-
tion.
114
‘‘(8) CERTIFICATION.—If, based on the com-
parison required under paragraph (7)(B), the Sec-
retary determines that a counselor lacks competence 
to provide counseling in the areas described in sub-
section (e)(2) and such action will not create a sig-
nificant loss of capacity for housing counseling serv-
ices in the service area, the Secretary may—
‘‘(A) require continued education coupled 
with successful completion of a probationary pe-
riod; 
‘‘(B) require retesting if the counselor con-
tinues to demonstrate a lack of competence 
under paragraph (7)(B); and 
‘‘(C) suspend an individual certification if 
a counselor fails to demonstrate competence 
after not fewer than 2 retesting opportunities 
under subparagraph (B).’’; 
(3) in subsection (i)—
(A) by redesignating paragraph (3) as 
paragraph (4); and 
(B) by inserting after paragraph (2) the 
following: 
‘‘(3) TERMINATION OF ASSISTANCE.—
‘‘(A) IN
GENERAL.—The Secretary may 
deny renewal of covered assistance to an organi-
115
zation or entity receiving covered assistance if 
the Secretary determines that the organization 
or entity, or the individual through which the 
organization or entity provides counseling, is 
not in compliance with program requirements—
‘‘(i) based on the performance review 
described in subsection (e)(6); and 
‘‘(ii) in accordance with existing regu-
lations issued by the Secretary. 
‘‘(B) NOTICE.—The Secretary shall give 
an organization or entity receiving covered as-
sistance not less than 60 days prior written no-
tice of any denial of renewal under this para-
graph, and the determination of renewal shall 
not be finalized until the end of that notice pe-
riod. 
‘‘(C) INFORMAL
CONFERENCE.—If re-
quested in writing by the organization or entity 
within the notice period described in subpara-
graph (B), the organization or entity shall be 
entitled to an informal conference with the Dep-
uty Assistant Secretary of Housing Counseling 
on behalf of the Secretary at which the organi-
zation or entity may present for consideration 
specific factors that the organization or entity
116
believes were beyond the control of the organi-
zation or entity and that caused the failure to 
comply with program requirements, such as a 
lack of lender or servicer coordination or com-
munication with housing counseling agencies 
and individual counselors.’’; and 
(4) by adding at the end the following: 
‘‘(j) OFFERING FORECLOSURE MITIGATION COUN-
SELING.—
‘‘(1) COVERED MORTGAGE LOAN DEFINED.—In 
this subsection, the term ‘covered mortgage loan’ 
means any loan which is secured by a first or subor-
dinate lien on residential real property (including in-
dividual units of condominiums and housing co-
operatives) or stock or membership in a cooperative 
ownership housing corporation designed principally 
for the occupancy of between 1 and 4 families that 
is—
‘‘(A) insured by the Federal Housing Ad-
ministration under title II of the National 
Housing Act (12 U.S.C. 1707 et seq.); 
‘‘(B) guaranteed under section 184 or 
184A of the Housing and Community Develop-
ment Act of 1992 (12 U.S.C. 1715z–13a, 
1715z–13b);
117
‘‘(C) made, guaranteed, or insured by the 
Department of Veterans Affairs; or 
‘‘(D) made, guaranteed, or insured by the 
Department of Agriculture. 
‘‘(2) OPPORTUNITY FOR BORROWERS.—A bor-
rower with respect to a covered mortgage loan who 
is 30 days or more delinquent on payments for the 
covered mortgage loan shall be given an opportunity 
to participate in available housing counseling. 
‘‘(3) COST.—If the requirements of sections 
202(a)(3) and 205(f) of the National Housing Act 
(12 U.S.C. 1708(a)(3), 1711(f)) are met, the fair 
market rate cost of counseling for delinquent bor-
rowers described in paragraph (2) with respect to a 
covered mortgage loan described in paragraph 
(1)(A) shall be paid for by the Mutual Mortgage In-
surance Fund, as authorized under section 203(r)(4) 
of 
the 
National 
Housing 
Act 
(12 
U.S.C. 
1709(r)(4)).’’. 
SEC. 406. ESTABLISHMENT OF EVICTION HELPLINE. 
(a) IN GENERAL.—The Secretary of Housing and 
Urban Development shall, not later than 1 year after the 
date of the enactment of this Act, establish a program—
(1) to establish a hotline to provide tenants of 
covered federally assisted rental dwelling units with
118
counseling, resources, and referrals to available as-
sistance relating to eviction-related matters; and 
(2) to provide information about such hotline to 
tenants of covered federally assisted rental dwelling 
units by publishing information about such hotline 
in common areas of each federally assisted rental 
dwellings and through other means determined ap-
propriate by the Secretary. 
(b) SUNSET.—The program established under this 
section shall terminate on the date that is 7 years after 
the date of the enactment of this section. 
(c) DEFINITIONS.—In this section: 
(1) 
ASSISTANCE.—The 
term 
‘‘assistance’’ 
means any grant, loan, subsidy, contract, cooperative 
agreement, or other form of financial assistance, but 
such term does not include the insurance or guar-
antee of a loan, mortgage, or pool of loans or mort-
gages. 
(2) COVERED
FEDERALLY
ASSISTED
RENTAL 
DWELLING UNIT.—The term ‘‘covered federally as-
sisted rental dwelling unit’’ means a residential 
dwelling unit—
(A) that is made available for rental; and 
(B)(i) for which assistance is provided, or 
that is part of a housing project for which as-
119
sistance is provided, under any program admin-
istered by the Secretary of Housing and Urban 
Development, including—
(I) the public housing program under 
the United States Housing Act of 1937 
(42 U.S.C. 1437 et seq.); 
(II) the program for rental assistance 
under section 8 of the United States Hous-
ing Act of 1937 (42 U.S.C. 1437f); 
(III) the HOME Investment Partner-
ships program under title II of the Cran-
ston-Gonzalez National Affordable Housing 
Act (42 U.S.C. 12721 et seq.); 
(IV) title IV of the McKinney-Vento 
Homeless Assistance Act (42 U.S.C. 11360 
et seq.); 
(V) the Housing Trust Fund program 
under section 1338 of the Housing and 
Community Development Act of 1992 (12 
U.S.C. 4568); 
(VI) the program for supportive hous-
ing for the elderly under section 202 of the 
Housing Act of 1959 (12 U.S.C. 1701q); 
(VII) the program for supportive 
housing for persons with disabilities under
120
section 811 of the Cranston-Gonzalez Na-
tional Affordable Housing Act (42 U.S.C. 
8013); 
(VIII) the AIDS Housing Opportuni-
ties program under subtitle D of title VIII 
of the Cranston-Gonzalez National Afford-
able Housing Act (42 U.S.C. 12901 et 
seq.); 
(IX) the program for Native American 
housing under the Native American Hous-
ing Assistance and Self-Determination Act 
of 1996 (25 U.S.C. 4101 et seq.); and 
(X) the program for housing assist-
ance for Native Hawaiians under title VIII 
of the Native American Housing Assist-
ance and Self-Determination Act of 1996 
(25 U.S.C. 4221 et seq.); or 
(ii) that is a property, or is on or in a 
property, that has a federally backed mortgage 
loan or federally backed multifamily mortgage 
loan, as such terms are defined in section 
4024(a) of the CARES Act (15 U.S.C. 
9058(a)).
121
SEC. 407. TEMPERATURE SENSOR PILOT PROGRAM. 
(a) IN GENERAL.—The Secretary of Housing and 
Urban Development shall establish a temperature sensor 
pilot program to provide grants to public housing agencies 
and owners of covered federally assisted rental dwelling 
units to acquire, install, and test the efficacy of approved 
temperature sensors in residential dwelling units to ensure 
such units remain in compliance with temperature require-
ments. 
(b) ELIGIBILITY.—
(1) IN
GENERAL.—The Secretary shall, not 
later than 180 days after the date of the enactment 
of this Act, establish eligibility criteria for public 
housing agencies and owners of covered federally as-
sisted rental dwelling units to participate in the pilot 
program established pursuant to subsection (a). 
(2) CRITERIA.—In establishing the eligibility 
criteria described in paragraph (1), the Secretary 
shall ensure—
(A) the pilot program includes a diverse 
range of participants that represent different 
geographic regions, climate regions, unit sizes, 
and types of housing; and 
(B) that the functionality of an approved 
temperature sensor will be installed and tested
122
using amounts awarded under this section, in-
cluding internet connectivity requirements. 
(c) INSTALLATION.—Each public housing agency or 
owner of a covered federally assisted rental dwelling unit 
that acquires 1 or more approved temperature sensors 
under this section shall, after receiving written permission 
from the resident of a dwelling unit, install such tempera-
ture sensor and monitor the data from such temperature 
sensor. 
(d) COLLECTION OF COMPLAINT RECORDS.—
(1) IN GENERAL.—Each public housing agency 
or owner of a covered federally assisted rental dwell-
ing unit that installs 1 or more approved tempera-
ture sensors under this section shall collect and re-
tain information about temperature-related com-
plaints and violations. 
(2) DEFINITIONS.—The Secretary shall, not 
later than 180 days after the date of the enactment 
of this Act, define the terms ‘‘temperature-related 
complaints’’ and ‘‘temperature-related violations’’ for 
the purposes of this section. 
(e) DATA COLLECTION.—
(1) IN
GENERAL.—Data collected from tem-
perature sensors acquired and installed by public 
housing agencies and owners of covered federally as-
123
sisted rental dwelling units under this section shall 
be retained until the Secretary notifies the public 
housing agency or owner that the pilot program and 
the evaluation of the pilot program are complete. 
(2) 
PERSONALLY
IDENTIFIABLE
INFORMA-
TION.—The Secretary shall, not later than 180 days 
after the date of the enactment of this Act, establish 
standards for the protection of personally identifi-
ably information collected during the pilot program 
by public housing agencies, owners of federally as-
sisted rental dwelling units, and the Secretary. 
(f) PILOT PROGRAM EVALUATION.—
(1) INTERIM EVALUATION.—Not later than 12 
months after the establishment of the pilot program 
under this section, the Secretary shall publicly pub-
lish and submit to the Congress a report that—
(A) examines the number of temperature-
related complaints and violations in federally 
assisted rental dwelling units with temperature 
sensors, disaggregated by temperature sensor 
technology and climate region—
(i) that occurred before the installa-
tion of such sensor, if known; and 
(ii) that occurred after the installation 
of such sensor; and
124
(B) identifies any barriers to full utility of 
temperature 
sensor 
capabilities, 
including 
broadband internet access and tenant participa-
tion. 
(2) FINAL
EVALUATION.—Not later than 36 
months after the conclusion of the pilot program es-
tablished by the Secretary under this section, the 
Secretary shall publicly publish and submit to the 
Congress a report that—
(A) examines the number of temperature-
related complaints and violations in federally 
assisted rental dwelling units with temperature 
sensors, disaggregated by temperature sensor 
technology and climate region—
(i) that occurred before the installa-
tion of such sensor; and 
(ii) that occurred after the installation 
of such sensor; 
(B) identifies any barriers to full utility of 
temperature 
sensor 
capabilities, 
including 
broadband internet access and tenant participa-
tion; and 
(C) compares the utility of various tem-
perature sensor technologies based on—
(i) climate zones;
125
(ii) cost; 
(iii) features; and 
(iv) any other factors identified by the 
Secretary. 
(g) SUNSET.—The pilot program established under 
this section shall terminate on the date that is 3 years 
after the date of the enactment of this section. 
(h) DEFINITIONS.—For the purposes of this section: 
(1) APPROVED
TEMPERATURE
SENSOR.—The 
term ‘‘approved temperature sensor’’ means an 
internet capable temperature reporting device able to 
measure ambient air temperature to the tenth de-
gree Fahrenheit and Celsius selected from a list of 
such devices approved in advance by the Secretary. 
(2) 
ASSISTANCE.—The 
term 
‘‘assistance’’ 
means any grant, loan, subsidy, contract, cooperative 
agreement, or other form of financial assistance, but 
such term does not include the insurance or guar-
antee of a loan, mortgage, or pool of loans or mort-
gages. 
(3) COVERED
FEDERALLY
ASSISTED
RENTAL 
DWELLING UNIT.—The term ‘‘covered federally as-
sisted rental dwelling unit’’ means a residential 
dwelling unit that is made available for rental and 
for which assistance is provided, or that is part of
126
a housing project for which assistance is provided, 
under—
(A) the program for project-based rental 
assistance under section 8 of the United States 
Housing Act of 1937 (42 U.S.C. 1437f); 
(B) the public housing program under the 
United States Housing Act of 1937 (42 U.S.C. 
1437 et seq.); 
(C) the program for supportive housing for 
the elderly under section 202 of the Housing 
Act of 1959 (12 U.S.C. 1701q); or 
(D) the program for supportive housing for 
persons with disabilities under section 811 of 
the Cranston-Gonzalez National Affordable 
Housing Act (42 U.S.C. 8013). 
(4) OWNER.—The term ‘‘owner’’ means—
(A) with respect to the program for 
project-based rental assistance under section 8 
of the United States Housing Act of 1937 (42 
U.S.C. 1437f), any private person or entity, in-
cluding a cooperative, an agency of the Federal 
Government, or a public housing agency, having 
the legal right to lease or sublease dwelling 
units;
128
are elderly or disabled, including any potential impacts of 
providing capital advances for—
(1) the program for supportive housing for the 
elderly under section 202 of the Housing Act of 
1959 (12 U.S.C. 1701q); and 
(2) the program for supportive housing for per-
sons with disabilities under section 811 of the Cran-
ston-Gonzalez National Affordable Housing Act (42 
U.S.C. 8013). 
(b) GAO STUDY
TO DETERMINE PROXIMITY
OF 
HOUSING TO SUPERFUND SITES.—Not later than 1 year 
after the date of the enactment of this section, the Comp-
troller General of the United States shall carry out a study 
and submit to the Congress a report that identifies how 
many residential dwelling units, and how many dwelling 
units that are a part of public housing (as such term is 
defined in section 3(b) of the United States Housing Act 
of 1937 (42 U.S.C. 1437a(b))), are located less than 1 
mile from a site that is included on the National Priorities 
List established pursuant to section 105 of the Com-
prehensive Environmental Response, Compensation, and 
Liability Act of 1980 (42 U.S.C. 9605). 
(c) REPORT TO CONGRESS.—Not later than 1 year 
after the date of the enactment of this Act, the Comp-
troller General of the United States shall carry out a study
129
and submit to the Committee on Financial Services of the 
House of Representatives and the Committee on Banking, 
Housing, and Urban Affairs of the Senate a report that—
(1) establishes a comprehensive definition of 
residential heirs property, or family land inherited 
without a will or legal documentation of ownership; 
(2) examines the occurrence of and con-
sequences to owners of residential heirs property, 
and provides an estimate regarding the number of 
current residential heirs properties; 
(3) describes the objectives and requirements of 
the Uniform Partition of Heirs Property Act as ap-
proved by the National Conference of Commissioners 
on Uniform State Laws in 2010; 
(4) details the various resources that may be 
available to the owners of residential heirs prop-
erties, including housing counseling, legal services, 
and financial assistance to resolve residential heirs 
property title issues from the Federal Government, 
nonprofits, and institutes of higher education; and 
(5) makes recommendations with respect to how 
to reduce the number of residential heirs properties, 
including—
(A) by incentivizing States and other juris-
dictions which enact or adopt the Uniform Par-
130
tition of Heirs Property Act or similar such re-
forms; 
(B) by awarding grants to States and 
other jurisdictions to assist residents of such 
States and jurisdictions to establish and docu-
ment property ownership rights or settle a dece-
dent’s estate; 
(C) by awarding grants to entities which 
provide housing counseling, legal assistance, 
and financial assistance to homeowners and 
their heirs relating to title clearing and home 
retention efforts of heirs’ property and which 
target services to low- and moderate-income 
persons or provide services in neighborhoods 
that have a high concentration of low- and mod-
erate-income persons; and 
(D) by conducting other activities that as-
sist individuals to clear title with respect to 
heirs’ property and with general estate plan-
ning.
131
TITLE 
V—ENHANCING 
OVER-
SIGHT 
OF 
HOUSING 
PRO-
VIDERS 
SEC. 501. REQUIREMENT TO TESTIFY. 
Section 7 of the Department of Housing and Urban 
Development Act (42 U.S.C. 3535) is amended by adding 
at the end the following new subsection: 
‘‘(u) ANNUAL TESTIMONY.—The Secretary shall ap-
pear before the Committee on Financial Services of the 
House of Representatives and the Committee on Banking, 
Housing, and Urban Affairs of the Senate at an annual 
hearing and present testimony regarding the operations 
of the Department during the preceding year, including—
‘‘(1) the current programs and operations of 
the Department; 
‘‘(2) the physical condition of all public housing 
and other housing assisted by the Department; 
‘‘(3) the financial health of the mortgage insur-
ance funds of the Federal Housing Agency; 
‘‘(4) oversight by the Department of grantees 
and subgrantees for purposes of preventing waste, 
fraud, and abuse; 
‘‘(5) the progress made by the Federal Govern-
ment in ending the affordable housing and homeless-
ness crises;
132
‘‘(6) the capacity of the Department to deliver 
on its statutory mission; and 
‘‘(7) other ongoing activities of the Department, 
as appropriate.’’. 
SEC. 502. IMPROVING PUBLIC HOUSING AGENCY ACCOUNT-
ABILITY. 
(a) IN GENERAL.—The Secretary shall require each 
covered public housing agency to provide a notice each 
year to the Secretary that—
(1) indicates that if a receiver or Federal mon-
itor remains appointed for the covered public hous-
ing agency as of October 1 of the calendar year to 
which such notice relates; 
(2) provides the date on which the receiver or 
Federal monitor was first appointed and the pro-
jected date, if known, the appointment of the re-
ceiver or Federal monitor will be terminated; and 
(3) identifies the current receiver or Federal 
monitor appointed to oversee the public housing 
agency. 
(b) FEDERAL MONITOR
AND RECEIVER TRANS-
PARENCY.—
(1) Notwithstanding any other provision of law, 
not later than October 1 of each year, each receiver 
or Federal monitor that is currently appointed to
133
oversee a covered public housing agency shall pro-
vide to the Committee on Financial Services of the 
House of Representatives and the Committee on 
Banking, Housing, and Urban Affairs of the Senate 
a written assessment that—
(A) describes the management and over-
sight activities of the receiver or Federal mon-
itor for the covered public housing agency; 
(B) identifies the significant factors that 
led to the appointment of the receiver or Fed-
eral monitor for the covered public housing 
agency; 
(C) identifies the factors that remain unre-
solved at the covered public housing agency that 
have led to the continued oversight of the re-
ceiver or Federal monitor; and 
(D) includes a timeline developed by the 
receiver or Federal monitor that projects when 
the factors identified under subparagraphs (B) 
and (C) will be resolved. 
(2) In addition to the written assessment re-
quired in paragraph (1), upon written request by the 
Committee on Financial Services of the House of 
Representatives or the Committee on Banking, 
Housing, and Urban Affairs of the Senate, each re-
135
(5) The name of the official who solicited the 
contract. 
(d) INSPECTOR GENERAL REVIEW.—Not later than 
180 days after receiving a written request from the Com-
mittee on Financial Services of the House of Representa-
tives or the Committee on Banking, Housing, and Urban 
Affairs of the Senate, the inspector general shall provide 
to the requesting committee an analysis of—
(1) the status of any covered public housing 
agency’s compliance with any agreements entered 
into between the covered public housing agency and 
the Department of Housing and Urban Develop-
ment, including specific areas of deficiency and 
progress toward compliance; 
(2) a review of actions taken by the receiver or 
Federal monitor appointed to oversee a covered pub-
lic housing agency and any private sector housing 
development partners pursuant to such agreement, 
including any gaps in oversight by the receiver or 
Federal monitor; 
(3) an assessment of the physical conditions of 
housing provided by the covered public housing 
agency, including the status of the covered public 
housing agency’s compliance with relevant health 
and safety requirements;
136
(4) an examination of any allegations of waste, 
fraud, abuse or violations of Federal law committed 
by employees or contractors of the covered public 
housing agency; 
(5) any additional pertinent information, as de-
termined necessary and appropriate by the inspector 
general; and 
(6) any recommendations of the inspector gen-
eral that relate to how to improve the compliance of 
the covered public housing agency with any agree-
ments entered into with the Department of Housing 
and Urban Development or enhance the oversight of 
the receiver or Federal monitor over such covered 
public housing agency. 
(e) DEFINITIONS.—
(1) COVERED PUBLIC HOUSING AGENCY.—The 
term ‘‘covered public housing agency’’ means a pub-
lic housing agency (as such term is defined in sec-
tion 3(b) of the United States Housing Act of 1937 
(42 U.S.C. 1437a(b))) for which an administrative 
or judicial receiver or Federal monitor was ap-
pointed. 
(2) INSPECTOR GENERAL.—The term ‘‘inspec-
tor general’’ means the inspector general of the De-
partment of Housing and Urban Development.
137
(3) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Housing and Urban Development. 
TITLE 
VI—STRENGTHENING 
COMMUNITY BANKS’ ROLE IN 
HOUSING 
SEC. 601. COMMUNITY BANK DEPOSIT ACCESS. 
(a) IN GENERAL.—Section 29 of the Federal Deposit 
Insurance Act (12 U.S.C. 1831f) is amended by adding 
at the end the following: 
‘‘(j) LIMITED EXCEPTION FOR CUSTODIAL DEPOS-
ITS.—
‘‘(1) IN GENERAL.—Custodial deposits of an el-
igible institution shall not be considered to be funds 
obtained, directly or indirectly, by or through a de-
posit broker to the extent that the total amount of 
such custodial deposits does not exceed an amount 
equal to 20 percent of the total liabilities of the eligi-
ble institution. 
‘‘(2) DEFINITIONS.—In this subsection: 
‘‘(A) CUSTODIAL
DEPOSIT.—The term 
‘custodial deposit’ means a deposit that is not 
deposited at an insured depository institution in 
return for fees paid by the insured depository 
institution pursuant to an agreement with a 
third party and that would otherwise be consid-
138
ered to be obtained, directly or indirectly, by or 
through a deposit broker, if the deposit is de-
posited at 1 or more insured depository institu-
tions, for the purpose of providing or maintain-
ing deposit insurance for the benefit of a third 
party, by or through any of the following, each 
acting in a formal custodial or fiduciary capac-
ity for the benefit of a third party: 
‘‘(i) An insured depository institution 
serving as agent, trustee, or custodian. 
‘‘(ii) A trust entity controlled by an 
insured depository institution serving as 
agent, trustee, or custodian. 
‘‘(iii) A State-chartered trust company 
serving as agent, trustee, or custodian. 
‘‘(iv) A plan administrator or invest-
ment advisor, acting in a formal custodial 
or fiduciary capacity for the benefit of a 
plan. 
‘‘(B) ELIGIBLE
INSTITUTION.—The term 
‘eligible institution’ means an insured deposi-
tory institution that accepts custodial deposits, 
if the insured depository institution has less 
than $10,000,000,000 in total assets as re-
ported on the consolidated report of condition
139
and income as reported quarterly to the appro-
priate Federal banking agency and—
‘‘(i)(I) when most recently examined 
under section 10(d) was assigned a com-
posite rating of 1, 2, or 3 under the Uni-
form Financial Institutions Rating System 
(or an equivalent rating under a com-
parable rating system); and 
‘‘(II) is well capitalized; or 
‘‘(ii) has obtained a waiver pursuant 
to subsection (c). 
‘‘(C) PLAN.—The term ‘plan’ has the 
meaning given the term in section 3 of the Em-
ployee Retirement Income Security Act of 1974 
(29 U.S.C. 1002). 
‘‘(D) PLAN
ADMINISTRATOR.—The term 
‘plan administrator’ has the meaning given the 
term ‘administrator’ in section 3 of the Em-
ployee Retirement Income Security Act of 1974 
(29 U.S.C. 1002). 
‘‘(E) WELL CAPITALIZED.—The term ‘well 
capitalized’ has the meaning given the term in 
section 38(b).’’. 
(b) INTEREST RATE RESTRICTION.—Section 29 of 
the Federal Deposit Insurance Act (12 U.S.C. 1831f), as
140
amended by subsection (a), is further amended by adding 
at the end the following: 
‘‘(k) RESTRICTION
ON INTEREST RATE PAID
ON 
CERTAIN CUSTODIAL DEPOSITS.—
‘‘(1) DEFINITIONS.—In this subsection—
‘‘(A) the terms ‘custodial deposit’, ‘eligible 
institution’, and ‘well capitalized’ have the 
meanings given those terms in subsection (j); 
and 
‘‘(B) the term ‘covered insured depository 
institution’ means an insured depository institu-
tion that while acting as an eligible institution 
under subsection (j), accepts custodial deposits 
while not well capitalized. 
‘‘(2) PROHIBITION.—A covered insured deposi-
tory institution may not pay a rate of interest on 
custodial deposits that are accepted while not well 
capitalized that, at the time the funds or custodial 
deposits are accepted, significantly exceeds the limit 
set forth in paragraph (3). 
‘‘(3) LIMIT ON INTEREST RATES.—The limit on 
the rate of interest referred to in paragraph (2) shall 
be not greater than—
‘‘(A) the rate paid on deposits of similar 
maturity in the normal market area of the cov-
141
ered insured depository institution for deposits 
accepted in the normal market area of the cov-
ered insured depository institution; or 
‘‘(B) the national rate paid on deposits of 
comparable maturity, as established by the Cor-
poration, for deposits accepted outside the nor-
mal market area of the covered insured deposi-
tory institution.’’. 
SEC. 602. KEEPING DEPOSITS LOCAL. 
(a) AMOUNT OF RECIPROCAL DEPOSITS THAT ARE 
NOT CONSIDERED
TO BE FUNDS OBTAINED
BY
OR 
THROUGH
A DEPOSIT BROKER.—Section 29(i) of the 
Federal Deposit Insurance Act (12 U.S.C. 1831f(i)) is 
amended by striking paragraph (1) and inserting the fol-
lowing: 
‘‘(1) IN GENERAL.—The sum of the following 
amounts of reciprocal deposits of an agent institu-
tion shall not be considered to be funds obtained, di-
rectly or indirectly, by or through a deposit broker: 
‘‘(A) An amount equal to 50 percent of the 
portion of the total liabilities of the agent insti-
tution 
that 
is 
less 
than 
or 
equal 
to 
$1,000,000,000. 
‘‘(B) An amount equal to 40 percent of the 
portion, if any, of the total liabilities of the
142
agent 
institution 
that 
is 
greater 
than 
$1,000,000,000, but less than or equal to 
$10,000,000,000. 
‘‘(C) An amount equal to 30 percent of the 
portion, if any, of the total liabilities of the 
agent 
institution 
that 
is 
greater 
than 
$10,000,000,000, but less than or equal to 
$250,000,000,000.’’. 
(b) DEFINITION OF AGENT INSTITUTION.—Section 
29(i)(2)(A)(i) of the Federal Deposit Insurance Act (12 
U.S.C. 1831f(i)(2)(A)(i)) is amended by striking sub-
clause (I) and inserting the following: 
‘‘(I) when most recently exam-
ined under section 10(d) was assigned 
a CAMELS rating of 1, 2, or 3 under 
the Uniform Financial Institutions 
Rating System (or an equivalent rat-
ing under a comparable rating sys-
tem); and’’. 
(c) RECIPROCAL DEPOSITS STUDY.—
(1) IN GENERAL.—The Federal Deposit Insur-
ance Corporation, in consultation with the Board of 
Governors of the Federal Reserve System, shall 
carry out a study on reciprocal deposits.
143
(2) CONTENTS.—The study required under 
paragraph (1) shall include—
(A) an analysis of how reciprocal deposits 
have performed since 2018, which shall in-
clude—
(i) the use of quantitative and quali-
tative data; 
(ii) a breakdown of the usage of recip-
rocal deposits by size of insured depository 
institution; 
(iii) the usage of reciprocal deposits 
during periods of stress; and 
(iv) an analysis, to the extent prac-
ticable, of end-user depositors, such as mu-
nicipalities, businesses, and non-profit or-
ganizations, that drive demand for recip-
rocal products; 
(B) an analysis, to the extent practicable, 
of how reciprocal deposits compare to other de-
posit arrangements; and 
(C) an analysis of the benefits and poten-
tial risks of reciprocal deposits. 
(3) REPORT.—Not later than 6 months after 
the date of enactment of this Act, the Federal De-
posit Insurance Corporation shall issue a report to
144
the Committee on Financial Services of the House of 
Representatives and the Committee on Banking, 
Housing, and Urban Affairs of the Senate con-
taining all findings and determinations made in car-
rying out the study required under paragraph (1). 
SEC. 603. SUPERVISORY MODIFICATIONS FOR APPRO-
PRIATE RISK-BASED TESTING. 
(a) EXAMINATION RELIEF
FOR CERTAIN WELL 
MANAGED AND WELL CAPITALIZED FINANCIAL INSTITU-
TIONS.—
(1) INSURED DEPOSITORY INSTITUTIONS.—Sec-
tion 10(d) of the Federal Deposit Insurance Act (12 
U.S.C. 1820(d)) is amended by adding at the end 
the following: 
‘‘(11) EXAMINATION
RELIEF
FOR
CERTAIN 
WELL MANAGED AND WELL CAPITALIZED INSURED 
DEPOSITORY INSTITUTIONS.—
‘‘(A) IN
GENERAL.—The following shall 
apply to a well managed and well capitalized in-
sured 
depository 
institution 
with 
$6,000,000,000 or less in consolidated assets: 
‘‘(i) 
ALTERNATING
LIMITED-SCOPE 
EXAMINATIONS.—After an insured deposi-
tory institution receives a full-scope, on-
site examination from the appropriate Fed-
145
eral banking agency, the next examination 
of the insured depository institution by the 
appropriate Federal banking agency shall 
be a limited-scope examination, as deter-
mined by the appropriate Federal banking 
agency. 
‘‘(ii) COMBINED
EXAMINATIONS.—If 
an insured depository institution is other-
wise subject to separate safety and sound-
ness examinations, consumer compliance 
examinations, and information technology 
and cybersecurity examinations, the appro-
priate Federal banking agency shall, upon 
request of the insured depository institu-
tion, combine two or three such examina-
tions, as specified by the insured deposi-
tory institution, and carry them out at the 
same time. 
‘‘(B) 
EXCEPTION.—Subparagraph 
(A) 
shall not apply to an insured depository institu-
tion if—
‘‘(i) the insured depository institution 
is currently subject to a formal enforce-
ment proceeding or order by the Corpora-
146
tion or the appropriate Federal banking 
agency; or 
‘‘(ii) a person acquired control of the 
insured depository institution since the 
most recent full-scope, on-site examination 
of the insured depository institution from 
the appropriate Federal banking agency. 
‘‘(C) RULEMAKING.—Not later than 12 
months after the date of enactment of this 
paragraph, the Federal banking agencies shall 
issue rules to carry out subparagraph (A), in-
cluding, with respect to an insured depository 
institution described under subparagraph (A), 
to—
‘‘(i) establish procedures for the lim-
ited-scope examinations described in sub-
paragraph (A)(i); 
‘‘(ii) establish procedures for review-
ing insured depository institutions that—
‘‘(I) experience material changes 
in financial condition or operational 
risk profile between scheduled exami-
nations; or
147
‘‘(II) have failed to comply with 
Federal or State banking laws and 
regulations; and 
‘‘(iii) balance the goals of streamlining 
the examination cycle for individual in-
sured depository institutions and reducing 
unnecessary 
regulatory 
burdens 
while 
maintaining sufficient oversight to ensure 
the continued safety and soundness of the 
insured depository institutions and compli-
ance with all applicable laws and regula-
tions. 
‘‘(D) RULE OF CONSTRUCTION.—Nothing 
in this paragraph may be construed to limit the 
authority of a Federal banking agency to con-
duct off-site monitoring, targeted reviews, or 
additional full-scope, on-site examinations of an 
insured depository institution if the Federal 
banking agency determines such monitoring, re-
views, or examinations are necessary to ensure 
safety and soundness or compliance with appli-
cable laws. 
‘‘(E) DEFINITIONS.—In this paragraph: 
‘‘(i) CONSUMER
COMPLIANCE
EXAM-
INATION.—The term ‘consumer compliance
148
examination’ means an examination to as-
sess compliance with the requirements of 
Federal consumer financial law (as such 
term is defined in section 1002 of the Con-
sumer Financial Protection Act of 2010). 
‘‘(ii) WELL CAPITALIZED.—The term 
‘well capitalized’ has the meaning given 
that term in section 38(b). 
‘‘(iii) WELL MANAGED.—With respect 
to an insured depository institution, the 
term ‘well managed’ means that, when the 
institution was most recently examined by 
the appropriate Federal banking agency, 
the institution was found to be well man-
aged, and the institution’s composite condi-
tion was found to be satisfactory or out-
standing.’’. 
(2) INSURED CREDIT UNIONS.—Section 204 of 
the Federal Credit Union Act (12 U.S.C. 1784) is 
amended by adding at the end the following: 
‘‘(h) EXAMINATION RELIEF
FOR CERTAIN WELL 
MANAGED
AND WELL CAPITALIZED INSURED CREDIT 
UNIONS.—
‘‘(1) IN GENERAL.—The following shall apply to 
a well managed and well capitalized insured credit
149
union with $6,000,000,000 or less in consolidated 
assets: 
‘‘(A) ALTERNATING
LIMITED-SCOPE
EX-
AMINATIONS.—After an insured credit union re-
ceives a full-scope, on-site examination from the 
National Credit Union Administration, the next 
examination of the insured credit union by the 
National Credit Union Administration shall be 
a limited-scope examination, as determined by 
the National Credit Union Administration. 
‘‘(B) COMBINED
EXAMINATIONS.—If an 
insured credit union is otherwise subject to sep-
arate safety and soundness examinations, con-
sumer compliance examinations, and informa-
tion technology and cybersecurity examinations, 
the National Credit Union Administration shall, 
upon request of the insured credit union, com-
bine two or three such examinations, as speci-
fied by the insured credit union, and carry them 
out at the same time. 
‘‘(2) EXCEPTION.—Paragraph (1) shall not 
apply to an insured credit union if the insured credit 
union is currently subject to a formal enforcement 
proceeding or order by the National Credit Union 
Administration.
150
‘‘(3) RULEMAKING.—Not later than 12 months 
after the date of enactment of this subsection, the 
National Credit Union Administration shall issue 
rules to carry out paragraph (1), including, with re-
spect to an insured credit union described under 
paragraph (1), to—
‘‘(A) establish procedures for the limited-
scope examinations described in paragraph 
(1)(A); 
‘‘(B) establish procedures for reviewing in-
sured credit unions that—
‘‘(i) experience material changes in fi-
nancial condition or operational risk profile 
between scheduled examinations; or 
‘‘(ii) have failed to comply with Fed-
eral or State banking laws and regulations; 
and 
‘‘(C) balance the goals of streamlining the 
examination cycle for individual insured credit 
unions and reducing unnecessary regulatory 
burdens while maintaining sufficient oversight 
to ensure the continued safety and soundness of 
the insured credit unions and compliance with 
all applicable laws and regulations.
151
‘‘(4) RULE
OF
CONSTRUCTION.—Nothing in 
this subsection may be construed to limit the author-
ity of the National Credit Union Administration to 
conduct off-site monitoring, targeted reviews, or ad-
ditional full-scope, on-site examinations of an in-
sured credit union if the National Credit Union Ad-
ministration determines such monitoring, reviews, or 
examinations are necessary to ensure safety and 
soundness or compliance with applicable laws. 
‘‘(5) DEFINITIONS.—In this paragraph: 
‘‘(A) CONSUMER
COMPLIANCE
EXAMINA-
TION.—The term ‘consumer compliance exam-
ination’ means an examination to assess compli-
ance with the requirements of Federal con-
sumer financial law (as such term is defined in 
section 1002 of the Consumer Financial Protec-
tion Act of 2010). 
‘‘(B) WELL CAPITALIZED.—The term ‘well 
capitalized’ has the meaning given that term in 
section 216(c). 
‘‘(C) WELL
MANAGED.—With respect to 
an insured credit union, the term ‘well man-
aged’ means that, when the credit union was 
most recently examined by the National Credit 
Union Administration, the credit union was
152
found to be well managed, and the credit 
union’s composite condition was found to be 
satisfactory or outstanding.’’. 
(b) EXAMINATION PRACTICES.—
(1) INSURED DEPOSITORY INSTITUTIONS.—Sec-
tion 10(d) of the Federal Deposit Insurance Act (12 
U.S.C. 1820(d)), as amended by subsection (a)(1), 
is further amended by adding at the end the fol-
lowing: 
‘‘(12) EXAMINATION PRACTICES.—With respect 
to on-site examination of an insured depository insti-
tution with less than $6,000,000,000 in total assets, 
the appropriate Federal banking agency shall—
‘‘(A) ensure the examination is led by, to 
the maximum extent practicable, an examiner 
with significant experience as an examiner; 
‘‘(B) make every effort, to the maximum 
extent practicable, to minimize the number of 
examiners utilized and the amount of time 
spent at the institution to carry out the exam-
ination; 
‘‘(C) make every effort, to the maximum 
extent practicable, to schedule the examination 
at a time that is convenient for the institution; 
and
153
‘‘(D) to the maximum extent practicable, 
give the institution advance notice of issues ex-
pected to be covered in the examination. 
‘‘(13) REPORT.—In its annual report to Con-
gress, each Federal banking agency shall include—
‘‘(A) information on how the agency is 
complying with paragraphs (11) and (12); and 
‘‘(B) aggregate data summarizing the 
agency’s examination practices with respect to 
insured depository institutions with less than 
$6,000,000,000 in total assets, including—
‘‘(i) the average experience of exam-
iners, including the average number of 
years of examiner experience of those who 
lead on-site examinations; 
‘‘(ii) the average number of examiners 
utilized; and 
‘‘(iii) the average amount of time the 
agency spends visiting such institutions for 
on-site examinations.’’. 
(2) INSURED CREDIT UNIONS.—Section 204 of 
the Federal Credit Union Act (12 U.S.C. 1784), as 
amended by subsection (a)(2), is further amended by 
adding at the end the following:
154
‘‘(i) EXAMINATION PRACTICES.—With respect to on-
site examination of an insured credit union with less than 
$6,000,000,000 in total assets, the National Credit Union 
Administration shall—
‘‘(1) ensure the examination is led by, to the 
maximum extent practicable, an examiner with sig-
nificant experience as an examiner; 
‘‘(2) make every effort, to the maximum extent 
practicable, to minimize the number of examiners 
utilized and the amount of time spent at the credit 
union to carry out the examination; 
‘‘(3) make every effort, to the maximum extent 
practicable, to schedule the examination at a time 
that is convenient for the credit union; and 
‘‘(4) to the maximum extent practicable, give 
the credit union advance notice of issues expected to 
be covered in the examination. 
‘‘(j) REPORT.—In its annual report to Congress, the 
National Credit Union Administration shall include—
‘‘(1) information on how the Administration is 
complying with subsections (h) and (i); and 
‘‘(2) aggregate data summarizing the Adminis-
tration’s examination practices with respect to in-
sured credit unions with less than $6,000,000,000 in 
total assets, including—
155
‘‘(A) the average experience of examiners, 
including the average number of years of exam-
iner experience of those who lead on-site exami-
nations; 
‘‘(B) the average number of examiners uti-
lized; and 
‘‘(C) the average amount of time the Ad-
ministration spends visiting such credit unions 
for on-site examinations.’’. 
SEC. 604. TAILORED REGULATORY UPDATES FOR SUPER-
VISORY TESTING. 
Section 10(d) of the Federal Deposit Insurance Act 
(12 U.S.C. 1820(d)) is amended—
(1) 
in 
paragraph 
(4)(A), 
by 
striking 
‘‘$3,000,000,000’’ and inserting ‘‘$6,000,000,000’’; 
and 
(2) 
in 
paragraph 
(10), 
by 
striking 
‘‘$3,000,000,000’’ and inserting ‘‘$6,000,000,000’’. 
SEC. 605. CREDIT UNION BOARD MODERNIZATION. 
Section 113 of the Federal Credit Union Act (12 
U.S.C. 1761b) is amended—
(1) by striking ‘‘monthly’’ each place such term 
appears;
156
(2) in the matter preceding paragraph (1), by 
striking ‘‘The board of directors’’ and inserting the 
following: 
‘‘(a) IN GENERAL.—The board of directors’’; 
(3) in subsection (a) (as so designated), by 
striking ‘‘shall meet at least once a month and’’; and 
(4) by adding at the end the following: 
‘‘(b) MEETINGS.—The board of directors of a Federal 
credit union shall meet as follows: 
‘‘(1) With respect to a de novo Federal credit 
union, not less frequently than monthly during each 
of the first five years of the existence of such Fed-
eral credit union. 
‘‘(2) Not less than six times annually, with at 
least one meeting held during each fiscal quarter, 
with respect to a Federal credit union—
‘‘(A) with composite rating of either 1 or 
2 under the Uniform Financial Institutions 
Rating System (or an equivalent rating under a 
comparable rating system); and 
‘‘(B) with a capability of management rat-
ing under such composite rating of either 1 or 
2. 
‘‘(3) Not less frequently than once a month, 
with respect to a Federal credit union—
157
‘‘(A) with composite rating of either 3, 4, 
or 5 under the Uniform Financial Institutions 
Rating System (or an equivalent rating under a 
comparable rating system); or 
‘‘(B) with a capability of management rat-
ing under such composite rating of either 3, 4, 
or 5.’’. 
SEC. 606. SYSTEMIC RISK AUTHORITY TRANSPARENCY. 
(a) GAO REVIEW.—Section 13(c)(4)(G)(iv) of the 
Federal 
Deposit 
Insurance 
Act 
(12 
U.S.C. 
1823(c)(4)(G)(iv)) is amended to read as follows: 
‘‘(iv) GAO REVIEW.—
‘‘(I) IN
GENERAL.—The Comp-
troller General of the United States 
shall, not later than 60 days after a 
determination is made under clause 
(i), and again 180 days thereafter, re-
view and report to the Congress on 
the determination under clause (i), in-
cluding—
‘‘(aa) the basis for the deter-
mination; 
‘‘(bb) the purpose for which 
any action was taken pursuant to 
such clause;
158
‘‘(cc) the likely effect of the 
determination and such action on 
the incentives and conduct of in-
sured depository institutions and 
uninsured depositors; 
‘‘(dd) any mismanagement 
by the executives and board of 
the insured depository institution 
that contributed to the failure of 
the insured depository institu-
tion; 
‘‘(ee) a review of the com-
pensation practices of the insured 
depository institution; 
‘‘(ff) any supervisory or reg-
ulatory shortcomings with respect 
to the appropriate Federal bank-
ing agency of the insured deposi-
tory institution; 
‘‘(gg) any actions taken by 
the Federal banking regulators, 
Financial 
Stability 
Oversight 
Council, 
Department 
of 
the 
Treasury, and other relevant fi-
nancial regulators in relation to
159
the failure of the insured deposi-
tory institution; and 
‘‘(hh) any additional rel-
evant entities or activities that 
may have contributed to the fail-
ure of the insured depository in-
stitution, including with respect 
to auditing, accounting, credit 
rating agencies, investment bank 
underwriters, and emergency li-
quidity options such as loans 
from the Federal reserve banks 
or advances through the Federal 
Home Loan Bank system. 
‘‘(II) 
RULE
OF
CONSTRUC-
TION.—Nothing in this clause or a re-
port issued pursuant to this clause 
may be construed to limit the author-
ity of a Federal agency to enforce vio-
lations of Federal statutes, rules, or 
orders.’’. 
(b) APPROPRIATE FEDERAL BANKING AGENCY RE-
PORT.—Section 13(c) of the Federal Deposit Insurance 
Act (12 U.S.C. 1823(c)) is amended by adding at the end 
the following:
160
‘‘(12) APPROPRIATE FEDERAL BANKING AGEN-
CY REPORT.—
‘‘(A) IN GENERAL.—The appropriate Fed-
eral banking agency of an insured depository 
institution about which a determination is made 
under paragraph (4)(G)(i) shall, not later than 
90 days after the date of such determination, 
and again 210 days thereafter, submit a report 
to the Congress that discloses the following: 
‘‘(i) Subject to such redactions as the 
appropriate Federal banking agency deter-
mines appropriate to protect personally 
identifiable information about customers 
and other financial institutions (as such 
term is defined under section 11(e)(9)(D)), 
all—
‘‘(I) reports of examination and 
inspection that relate to the failed in-
sured depository institution in the 
previous 3-year period; 
‘‘(II) formal communications of a 
material 
supervisory 
determination 
conveyed to the failed insured deposi-
tory institution in the previous 3-year 
period; and
161
‘‘(III) any additional exam re-
ports and correspondence that the ap-
propriate Federal banking agency de-
termines may be relevant to the fail-
ure of the insured depository institu-
tion. 
‘‘(ii) An examination of any mis-
management by the executives and board 
of the insured depository institution that 
contributed to the failure of the insured 
depository institution. 
‘‘(iii) Any supervisory or regulatory 
shortcomings by such appropriate Federal 
banking agency with respect to the insured 
depository institution. 
‘‘(iv) Any dynamics that the appro-
priate Federal banking agency determines 
may have contributed to the failure of the 
insured depository institution. 
‘‘(v) Any supervisory, regulatory, or 
legislative recommendations such appro-
priate Federal banking agency may have to 
improve the safety and soundness of simi-
larly situated insured depository institu-
162
tions, the banking system, and financial 
stability. 
‘‘(B) PROTECTION OF SENSITIVE INFOR-
MATION.—
‘‘(i) EFFECT
ON
PRIVILEGE.—The 
provision of any information by a Federal 
banking agency under this paragraph may 
not be construed as—
‘‘(I) waiving, destroying, or oth-
erwise affecting any privilege applica-
ble to the information; or 
‘‘(II) waiving any exemption ap-
plicable to the information under sec-
tion 552 of title 5, United States 
Code (commonly known as the ‘Free-
dom of Information Act’). 
‘‘(ii) TRANSPARENCY.—
‘‘(I) IN
GENERAL.—A Federal 
banking agency shall publish mate-
rials contained in a report required 
under subparagraph (A) to the fullest 
extent possible to promote trans-
parency. 
‘‘(II) CONSULTATION
ON
OMIT-
TING MATERIALS.—If a Federal bank-
163
ing agency determines particular ma-
terials described under subclause (I) 
should not be published, the Federal 
banking agency shall consult with the 
chair and ranking member of the 
Committee on Financial Services of 
the House of Representatives and the 
chair and ranking member of the 
Committee on Banking, Housing, and 
Urban Affairs of the Senate. 
‘‘(III) OMITTING
MATERIALS.—
If, after the consultation required 
under subclause (II), the Federal 
banking agency determines there is a 
substantial public interest in not pub-
lishing such materials, the Federal 
banking agency shall provide those 
materials to the Committee on Finan-
cial Services of the House of Rep-
resentatives and the Committee on 
Banking, Housing, and Urban Affairs 
of the Senate with a written expla-
nation describing the reasons for not 
publishing those materials.
164
‘‘(iii) PRIVILEGE.—For purposes of 
this subparagraph, the term ‘privilege’ in-
cludes any work-product, attorney-client, 
or other privilege recognized under Federal 
or State law. 
‘‘(C) REPORT
EXTENSION.—A Federal 
banking agency may extend a deadline de-
scribed under subparagraph (A) for an addi-
tional 60 days, if the Federal banking agency—
‘‘(i) faces ongoing circumstances that 
require the Federal banking agency to 
prioritize activities to promote stability of 
the U.S. banking system; and 
‘‘(ii) notifies the Congress of such ex-
tension and the reasons for such extension. 
‘‘(D) CONSOLIDATED
REPORTS.—A Fed-
eral banking agency may consolidate multiple 
reports required under this paragraph so long 
as the individual reports being consolidated all 
meet the timing requirements under this para-
graph. 
‘‘(E) RULE OF CONSTRUCTION.—Nothing 
in this paragraph or reports or materials pro-
vided pursuant to this paragraph may be con-
strued to limit the authority of a Federal agen-
165
cy to enforce violations of Federal statutes, 
rules, or orders.’’. 
SEC. 607. LEAST COST EXCEPTION. 
(a) IN GENERAL.—Section 13(c)(4) of the Federal 
Deposit Insurance Act (12 U.S.C. 1823(c)(4)) is amend-
ed—
(1) in subparagraph (A)(ii), by inserting ‘‘ex-
cept as provided in subparagraph (I),’’ before ‘‘the 
total amount’’; 
(2) in subparagraph (E)(i), by inserting ‘‘and 
except as provided in subparagraph (I),’’ after ‘‘ap-
propriate,’’; and 
(3) by adding at the end the following: 
‘‘(I) LEAST
COST
RESOLUTION
EXCEP-
TION.—
‘‘(i) IN GENERAL.—With respect to an 
exercise of authority by the Corporation 
described in subparagraph (A), the Cor-
poration may, at the discretion of the Cor-
poration, select an alternative method of 
exercising such authority that is not the 
least costly to the Deposit Insurance Fund, 
if—
‘‘(I) the Corporation determines 
that the selected alternative complies
166
with the requirements of clause (iii); 
and 
‘‘(II) the Corporation and the 
Board of Governors of the Federal 
Reserve System, after consultation 
with the Secretary of the Treasury, 
determine that the potential addi-
tional risks to the Deposit Insurance 
Fund of the selected alternative are 
outweighed by the reasonably expected 
benefits of limiting further concentra-
tion of the United States banking sys-
tem in global systemically important 
banking organizations. 
‘‘(ii) MAXIMUM COST TO THE DEPOSIT 
INSURANCE FUND.—Not later than 1 year 
after the date of enactment of this sub-
paragraph, the Corporation, by rule, shall 
establish criteria for determining on a 
case-by-case basis the maximum allowable 
cost against the net worth of the Deposit 
Insurance Fund that may be utilized to ac-
count for any determination under clause 
(i).
167
‘‘(iii) REQUIREMENTS
DESCRIBED.—
The requirements for the selected alter-
native described in clause (i) are as fol-
lows: 
‘‘(I) The selected alternative is 
the least costly to the Deposit Insur-
ance Fund of all alternatives that do 
not involve a transaction with a global 
systemically important banking orga-
nization and that do not exceed the 
cost of liquidating the insured deposi-
tory institution. 
‘‘(II) The difference between the 
cost of the selected alternative and the 
cost of a covered alternative is less 
than or equal to the maximum cost to 
the Deposit Insurance Fund specified 
pursuant to the rule adopted under 
clause (ii). 
‘‘(III) In the case of a selected 
alternative that involves another per-
son purchasing assets of the insured 
depository institution or assuming de-
posit liabilities of the insured deposi-
tory institution, such person agrees to
168
pay an assessment to the Corporation 
comprised of payments—
‘‘(aa) made over a period to 
be determined by the Corpora-
tion, but which may not be less 
than 5 years; and 
‘‘(bb) in an amount that 
takes into account, on a case-by-
case basis, criteria the Corpora-
tion, by rule, shall establish, in-
cluding a realistic discount rate, 
the aggregate amount equal to 
the difference calculated in sub-
clause (II), and any bid incon-
sistent with the purposes of this 
Act, with such rule to be estab-
lished by the Corporation not 
later than 1 year after the date 
of enactment of this subpara-
graph. 
‘‘(iv) REPORT
TO
CONGRESS.—Not 
later than 30 days after selecting an alter-
native described in clause (i), the Corpora-
tion shall issue a report to the Committee 
on Financial Services of the House of Rep-
169
resentatives and the Committee on Bank-
ing, Housing, and Urban Affairs of the 
Senate containing an analysis of the eco-
nomic difference between the cost to the 
Deposit Insurance Fund of the selected al-
ternative and the cost to the Deposit In-
surance Fund of the least costly alternative 
that would have been selected absent the 
application of this subparagraph. 
‘‘(v) 
COST
DETERMINATIONS.—All 
cost determinations required under this 
subparagraph shall be made in accordance 
with subparagraphs (B) and (C). 
‘‘(vi) DEFINITIONS.—In this subpara-
graph: 
‘‘(I) COVERED
ALTERNATIVE.—
The term ‘covered alternative’ means 
a method of exercising authority de-
scribed in subparagraph (A) that is 
the least costly to the Deposit Insur-
ance Fund of all such methods that 
involve a sale of all or substantially all 
assets of the insured depository insti-
tution to, and assumption of all or 
substantially all deposit liabilities of
170
the insured depository institution by, 
a global systemically important bank-
ing organization. 
‘‘(II) GLOBAL SYSTEMICALLY IM-
PORTANT BANKING ORGANIZATION.—
The term ‘global systemically impor-
tant banking organization’ means a 
global systemically important BHC 
(as such term is defined in section 
217.402 of title 12, Code of Federal 
Regulations, or any successor thereto) 
and any affiliate thereof.’’. 
(b) RULE OF CONSTRUCTION.—Section 13(c)(4)(H) 
of the Federal Deposit Insurance Act (12 U.S.C. 
1823(c)(4)(H)) does not apply to the amendments made 
by subsection (a). 
SEC. 608. FAILING BANK ACQUISITION FAIRNESS. 
(a) CONCENTRATION
LIMIT
EXCEPTIONS
ONLY 
AVAILABLE TO AVOID SERIOUS ADVERSE ECONOMIC OR 
FINANCIAL EFFECTS.—
(1) CONCENTRATION LIMITS WITH RESPECT TO 
DEPOSITS.—
(A) FEDERAL DEPOSIT INSURANCE ACT.—
The Federal Deposit Insurance Act (12 U.S.C. 
1811 et seq.) is amended—
171
(i) in section 18(c)(13)—
(I) by amending subparagraph 
(B) to read as follows: 
‘‘(B) Subparagraph (A) shall not apply to an inter-
state merger transaction if—
‘‘(i) such interstate merger transaction involves 
1 or more insured depository institutions in default 
or in danger of default and the responsible agency 
determines, based on clear and convincing evidence, 
that consummation of the proposed interstate merg-
er transaction is necessary to prevent significant 
economic disruption or significant adverse effects on 
financial stability, and the Corporation has not re-
ceived any qualified bid from a company that is not 
subject to the prohibition in subparagraph (A); or 
‘‘(ii) the Corporation provides assistance under 
section 13 to facilitate such interstate merger trans-
action and the responsible agency determines, based 
on clear and convincing evidence, that consummation 
of the proposed interstate merger transaction is nec-
essary to prevent significant economic disruption or 
significant adverse effects on financial stability, and 
the Corporation has not received any qualified bid 
from a company that is not subject to the prohibi-
tion in subparagraph (A).’’; and
172
(II) in subparagraph (C)—
(aa) in clause (i), by striking 
‘‘and’’ at the end; 
(bb) in clause (ii), by strik-
ing the period at the end and in-
serting a semicolon; and 
(cc) by adding at the end 
the following: 
‘‘(iii) the term ‘qualified bid’ means an applica-
tion, proposed application, or bid from a company 
where—
‘‘(I) if applicable, the company, any affil-
iate insured depository institution, and any af-
filiate depository institution holding company 
are well capitalized and well managed, as of the 
date of the application, proposed application, or 
bid; and 
‘‘(II) upon consummation of the trans-
action, the resulting insured depository institu-
tion is well capitalized; 
‘‘(iv) the term ‘well capitalized’—
‘‘(I) with respect to an insured depository 
institution, has the meaning given such term in 
section 38(b) (12 U.S.C. 1831o(b));
173
‘‘(II) with respect to a bank holding com-
pany, has the meaning given such term in sec-
tion 2(o)(1)(B) of the Bank Holding Company 
Act of 1956 (12 U.S.C. 1841(o)(1)(B)); 
‘‘(III) with respect to a savings and loan 
holding company, has the meaning given such 
term in section 238.2 of title 12, Code of Fed-
eral Regulations; and 
‘‘(IV) with respect to a company that is 
not an insured depository institution, bank 
holding company, or savings and loan holding 
company, means maintaining equity capital that 
the Corporation determines is commensurate 
with the capital maintained by an insured de-
pository institution that is well capitalized; and 
‘‘(v) the term ‘well managed’ has the meaning 
given such term in section 2(o)(9) of the Bank 
Holding 
Company 
Act 
of 
1956 
(12 
U.S.C. 
1841(o)(9)).’’; and 
(ii) in section 44, by amending sub-
section (e) to read as follows: 
‘‘(e) EXCEPTION FOR BANKS IN DEFAULT OR IN 
DANGER OF DEFAULT.—
‘‘(1) GENERAL
EXCEPTION.—The responsible 
agency may, without regard to paragraph (1), (3),
174
(4), or (5) of subsection (b) or paragraph (2), (4), 
or (5) of subsection (a), approve an application 
under subsection (a)(1) for approval of a merger 
transaction if—
‘‘(A) the merger transaction involves 1 or 
more banks in default or in danger of default; 
or 
‘‘(B) the Corporation provides assistance 
under section 13(c) to facilitate such merger 
transaction. 
‘‘(2) CONCENTRATION LIMIT EXCEPTION.—The 
responsible agency may, without regard to sub-
section (b)(2), approve an application under sub-
section (a)(1) for approval of a merger transaction 
if—
‘‘(A) the merger transaction involves 1 or 
more banks in default or in danger of default 
and the responsible agency determines, based 
on clear and convincing evidence, that con-
summation of the proposed interstate merger 
transaction is necessary to prevent significant 
economic disruption or significant adverse ef-
fects on financial stability, and the Corporation 
has not received any qualified bid from another
175
institution that is not subject to the prohibition 
in subsection (b)(2); or 
‘‘(B) the Corporation provides assistance 
under section 13(c) to facilitate such merger 
transaction and the responsible agency deter-
mines, based on clear and convincing evidence, 
that consummation of the proposed interstate 
merger transaction is necessary to prevent sig-
nificant economic disruption or significant ad-
verse effects on financial stability, and the Cor-
poration has not received any qualified bid from 
another institution that is not subject to the 
prohibition in subsection (b)(2). 
‘‘(3) QUALIFIED BID DEFINED.—In this sub-
section, the term ‘qualified bid’ has the meaning 
given that term in section 18(c)(13)(C).’’. 
(B) BANK
HOLDING
COMPANY
ACT
OF 
1956.—The Bank Holding Company Act of 
1956 (12 U.S.C. 1841 et seq.) is amended—
(i) in section 3(d), by amending para-
graph (5) to read as follows: 
‘‘(5) EXCEPTION FOR BANKS IN DEFAULT OR 
IN DANGER OF DEFAULT.—
‘‘(A) GENERAL
EXCEPTION.—The Board 
may, without regard to subparagraph (B) or
176
(D) of paragraph (1) or paragraph (3), approve 
an application pursuant to paragraph (1)(A) 
if—
‘‘(i) the application is for an acquisi-
tion of 1 or more banks in default or in 
danger of default; or 
‘‘(ii) the application is for an acquisi-
tion with respect to which assistance is 
provided under section 13(c) of the Fed-
eral Deposit Insurance Act. 
‘‘(B) 
CONCENTRATION
LIMIT
EXCEP-
TION.—The Board may, without regard to 
paragraph (2), approve an application pursuant 
to paragraph (1)(A) if—
‘‘(i) the application is for the acquisi-
tion of 1 or more banks in default or in 
danger of default and the Board deter-
mines, based on clear and convincing evi-
dence, that consummation of the proposed 
acquisition is necessary to prevent signifi-
cant economic disruption or significant ad-
verse effects on financial stability, and the 
Corporation has not received any qualified 
bid from another institution that is not
177
subject to the prohibition in paragraph (2); 
or 
‘‘(ii) the application is for an acquisi-
tion with respect to which assistance is 
provided under section 13(c) of the Fed-
eral Deposit Insurance Act and the Board 
determines, based on clear and convincing 
evidence, that consummation of the pro-
posed acquisition is necessary to prevent 
significant economic disruption or signifi-
cant adverse effects on financial stability, 
and the Corporation has not received any 
qualified bid from another institution that 
is not subject to the prohibition in para-
graph (2). 
‘‘(C) QUALIFIED
BID
DEFINED.—In this 
paragraph, the term ‘qualified bid’ has the 
meaning 
given 
that 
term 
in 
section 
18(c)(13)(C) of the Federal Deposit Insurance 
Act.’’; and 
(ii) in section 4(i)(8), by amending 
subparagraph (B) to read as follows: 
‘‘(B) 
EXCEPTION.—Subparagraph 
(A) 
shall not apply to an acquisition if—
178
‘‘(i) such acquisition involves an in-
sured depository institution in default or in 
danger of default and the Board deter-
mines, based on clear and convincing evi-
dence, that consummation of the proposed 
acquisition is necessary to prevent signifi-
cant economic disruption or significant ad-
verse effects on financial stability, and the 
Corporation has not received any qualified 
bid (as defined in section 18(c)(13)(C) of 
the Federal Deposit Insurance Act) from 
another institution that is not subject to 
the prohibition in paragraph (2); or 
‘‘(ii) the Federal Deposit Insurance 
Corporation provides assistance under sec-
tion 13 of the Federal Deposit Insurance 
Act to facilitate such acquisition and the 
Board determines, based on clear and con-
vincing evidence, that consummation of the 
proposed acquisition is necessary to pre-
vent significant economic disruption or sig-
nificant adverse effects on financial sta-
bility, and the Corporation has not received 
any qualified bid (as defined in section 
18(c)(13)(C) of the Federal Deposit Insur-
179
ance Act) from another institution that is 
not subject to the prohibition in paragraph 
(2).’’. 
(2) CONCENTRATION LIMIT WITH RESPECT TO 
CONSOLIDATED LIABILITIES.—Section 14(c) of the 
Bank Holding Company Act of 1956 (12 U.S.C. 
1852(c)) is amended—
(A) by redesignating paragraphs (1), (2), 
and (3) as subparagraphs (A), (B), and (C), re-
spectively; 
(B) by striking ‘‘With the’’ and inserting 
the following: 
‘‘(1) IN GENERAL.—With the’’; and 
(C) by adding at the end the following: 
‘‘(2) LIMITATION.—The Board may provide 
written consent for an acquisition described in para-
graph (1)(A) or in paragraph (1)(B) only if the 
Board determines, based on clear and convincing 
evidence, that consummation of the proposed acqui-
sition is necessary to prevent significant economic 
disruption or significant adverse effects on financial 
stability, and the Corporation has not received any 
qualified bid (as defined in section 18(c)(13)(C) of 
the Federal Deposit Insurance Act) from another in-
180
stitution that is not subject to the prohibition in 
subsection (b).’’. 
(b) CONGRESSIONAL NOTIFICATION AND JUSTIFICA-
TION FOR WAIVERS.—
(1) IN GENERAL.—Whenever the Board of Gov-
ernors of the Federal Reserve System, the Comp-
troller of the Currency, or the Federal Deposit In-
surance Corporation waives a concentration limit 
under section 18(c)(13)(B) or section 44(e) of the 
Federal Deposit Insurance Act or under section 
3(d)(5), section 4(i)(8)(B), or section 14(c)(2) of the 
Bank Holding Company Act of 1956, in connection 
with the acquisition of a bank or insured depository 
institution in default or in danger of default, or in 
connection with an acquisition with respect to which 
the Federal Deposit Insurance Corporation provides 
assistance under section 13 of the Federal Deposit 
Insurance Act, the waiving agency and the Federal 
Deposit Insurance Corporation, jointly, shall, not 
later than 30 days after such waiver, submit a writ-
ten report to the Committee on Financial Services of 
the House of Representatives and the Committee on 
Banking, Housing, and Urban Affairs in the Senate 
containing—
181
(A) a justification for the waiver, including 
an analysis of why it was necessary to prevent 
significant economic disruption or significant 
adverse effects on financial stability; 
(B) a description of alternative bids or out-
comes considered, including efforts to solicit 
and encourage bids from entities that would not 
require a waiver; 
(C) an explanation of why alternative bids 
were not selected, if applicable; and 
(D) any recommendations for legislative or 
regulatory changes to improve competition in 
future insured depository institution resolu-
tions. 
(2) PUBLIC DISCLOSURE.—The waiving agency 
submitting a report under paragraph (1) and the 
Federal Deposit Insurance Corporation shall make 
the report publicly available on their respective 
websites, subject to redactions for confidential super-
visory information and any other information de-
scribed under section 552(b) of title 5, United 
States Code. 
(c) LIMITATION ON CONSIDERING BAD FAITH BIDS 
IN LEAST COST DETERMINATION.—Section 13(c)(4) of 
the 
Federal 
Deposit 
Insurance 
Act 
(12 
U.S.C.
182
1823(c)(4)), as amended by section 607(a)(3), is further 
amended by adding at the end the following: 
‘‘(J) LIMITATION
ON
CONSIDERING
BAD 
FAITH BIDS.—In making a determination under 
this paragraph of whether an exercise of au-
thority is the least costly to the Deposit Insur-
ance Fund, the Corporation may not consider 
any application, proposed application, or bid 
from a company, if such application, proposed 
application, or bid would result in violation of—
‘‘(i) section 18(c)(13) or 44(b)(2); or 
‘‘(ii) section 3(d)(2), 4(i)(8), or 14 of 
the Bank Holding Company Act of 1956.’’. 
SEC. 609. ADVANCING THE MENTOR-PROTE´ GE´
PROGRAM 
FOR SMALL FINANCIAL INSTITUTIONS. 
(a) IN GENERAL.—Section 308 of the Financial In-
stitutions Reform, Recovery, and Enforcement Act of 
1989 (12 U.S.C. 1463 note) is amended by adding at the 
end the following new subsection: 
‘‘(d) FINANCIAL AGENT MENTOR-PROTE´GE´ PRO-
GRAM.—
‘‘(1) IN
GENERAL.—The Secretary of the 
Treasury shall establish a program to be known as 
the ‘Financial Agent Mentor-Prote´ge´ Program’ (in 
this subsection referred to as the ‘Program’) under
183
which a financial agent designated by the Secretary 
or a large financial institution may serve as a men-
tor, under guidance or regulations prescribed by the 
Secretary, to a small financial institution to allow 
such small financial institution—
‘‘(A) to be prepared to perform as a finan-
cial agent; or 
‘‘(B) to improve capacity to provide serv-
ices to the customers of the small financial in-
stitution. 
‘‘(2) OUTREACH.—The Secretary shall hold 
outreach events to promote the participation of fi-
nancial agents, large financial institutions, and small 
financial institutions in the Program at least once a 
year. 
‘‘(3) EXCLUSION.—The Secretary shall issue 
guidance or regulations to establish a process under 
which a financial agent, large financial institution, 
or small financial institution may be excluded from 
participation in the Program. 
‘‘(4) REPORT.—The Secretary shall report to 
Congress information pertaining to the Program, in-
cluding—
184
‘‘(A) the number of financial agents, large 
financial institutions, and small financial insti-
tutions participating in such Program; and 
‘‘(B) the number of outreach events de-
scribed in paragraph (2) held during the year 
covered by such report. 
‘‘(5) DEFINITIONS.—In this subsection: 
‘‘(A) FINANCIAL
AGENT.—The term ‘fi-
nancial agent’ means any national banking as-
sociation designated by the Secretary of the 
Treasury to be employed as a financial agent of 
the Government. 
‘‘(B) LARGE
FINANCIAL
INSTITUTION.—
The term ‘large financial institution’ means any 
entity regulated by the Comptroller of the Cur-
rency, the Board of Governors of the Federal 
Reserve System, the Federal Deposit Insurance 
Corporation, or the National Credit Union Ad-
ministration that has total consolidated assets 
greater than or equal to $50,000,000,000. 
‘‘(C) RURAL DEPOSITORY INSTITUTION.—
The term ‘rural depository institution’ means a 
depository institution (as defined in section 3 of 
the Federal Deposit Insurance Act)—
185
‘‘(i) with total consolidated assets of 
less than $10,000,000,000; and 
‘‘(ii) located in a rural area, as de-
fined under section 1026.35(b)(2)(iv)(A) of 
title 12, Code of Federal Regulations. 
‘‘(D) SMALL
FINANCIAL
INSTITUTION.—
The term ‘small financial institution’ means—
‘‘(i) any entity regulated by the 
Comptroller of the Currency, the Board of 
Governors of the Federal Reserve System, 
the Federal Deposit Insurance Corpora-
tion, or the National Credit Union Admin-
istration that has total consolidated assets 
less than or equal to $2,000,000,000; 
‘‘(ii) a minority depository institution; 
or 
‘‘(iii) a rural depository institution.’’. 
(b) EFFECTIVE DATE.—This section and the amend-
ment made by this section shall take effect 90 days after 
the date of the enactment of this Act. 
SEC. 610. AMERICAN ACCESS TO BANKING. 
(a) STREAMLINING APPLICATION PROCESS AND RE-
VIEW OF CAPITAL RAISING BY DE NOVO REGULATED IN-
STITUTIONS.—
186
(1) IN GENERAL.—Each of the Federal finan-
cial institutions regulatory agencies shall—
(A) for the purpose of streamlining the 
process of applying to become a de novo regu-
lated institution, conduct a review of any appli-
cation forms related to such process; 
(B) to the extent practicable, gather infor-
mation needed from applicants seeking to be-
come a de novo regulated institution from other 
Federal Government agencies or public sources 
to minimize information requests of such appli-
cants; and 
(C) in consultation with the Securities and 
Exchange Commission, review how de novo reg-
ulated institutions raise capital while maintain-
ing investor protections, including the impact 
of—
(i) general capital raising restrictions; 
and 
(ii) capital raising restrictions related 
to individuals who are not accredited inves-
tors. 
(2) REPORT.—Not later than 1 year after the 
date of the enactment of this section, and annually 
for 5 years thereafter, each of the Federal financial
187
institutions regulatory agencies shall submit to the 
Committee on Financial Services of the House of 
Representatives and the Committee on Banking, 
Housing, and Urban Affairs of the Senate and pub-
lish on a public website of such agency a report that 
contains—
(A) a description of the actions taken by 
such agency pursuant to paragraph (1); and 
(B) as appropriate, any administrative or 
legislative recommendations with respect to the 
purpose described in paragraph (1)(C). 
(b) IMPROVING COMMUNICATION WITH DE NOVO 
REGULATED INSTITUTIONS.—
(1) IN GENERAL.—Each of the Federal finan-
cial institutions regulatory agencies shall, at the re-
quest of an applicant to become a de novo regulated 
institution, designate an employee of the agency as 
a caseworker, who may perform such duty in addi-
tion to the other duties of the employee. 
(2) CASEWORKER
DUTIES.—Each caseworker 
described in paragraph (1) shall, to the maximum 
extent practicable—
(A) meet with the lead organizers applying 
to become a de novo regulated institution to
188
provide a tutorial with respect to the applica-
tion process; and 
(B) be the primary point of contact of the 
respective Federal financial institutions regu-
latory agency for such organizers during the ap-
plication process. 
(3) NEW
CASEWORKER.—Each agency de-
scribed in paragraph (1) may designate a new case-
worker, as appropriate, to support continuity based 
on staffing and responsibilities assigned to the cur-
rent caseworker. 
(c) DE NOVO MENTOR-PROTE´GE´ PARTNERSHIPS.—
(1) IN GENERAL.—At the request of an institu-
tion that seeks to become a de novo regulated insti-
tution, each of the Federal financial institutions reg-
ulatory agencies shall, to the maximum extent prac-
ticable, provide a list to such institution of similar 
types of institutions that—
(A) were recently approved to become a de 
novo regulated institution; and 
(B) are interested in volunteering to serve 
as a mentor to provide advice about the de novo 
application process. 
(2) MENTORSHIP
INFORMATION.—Not later 
than 1 year after the date of the enactment of this
189
section, each of the Federal financial institutions 
regulatory agencies shall provide public information 
and directions on how an institution may request a 
mentor or serve as a mentor as described in para-
graph (1). 
(d) 
STATE
AND
STAKEHOLDER
ENGAGEMENT 
PLAN.—
(1) IN GENERAL.—Each of the Federal finan-
cial institutions regulatory agencies shall develop a 
plan to—
(A) regularly consult with State regulators 
to promote cooperation between State and Fed-
eral banking and credit union agencies in the 
creation of de novo regulated institutions, in-
cluding responding to any State regulator that 
requests assistance on how a State-chartered fi-
nancial institution can request Federal insur-
ance; 
(B) regularly consult with stakeholders, in-
cluding applicants to become de novo regulated 
institutions and recently approved regulated in-
stitutions, to inform any reforms that may sup-
port the creation of de novo regulated institu-
tions, including rural institutions, community
190
development financial institutions, and minority 
depository institutions; and 
(C) provide guidance, training material, 
and regular workshops to assist any interested 
parties to understand such agencies’ processes. 
(2) SUBMISSION TO CONGRESS.—
(A) IN GENERAL.—Not later than 2 years 
after the date of the enactment of this section, 
and every 5 years thereafter, each of the Fed-
eral financial institutions regulatory agencies 
shall submit to the Committee on Financial 
Services of the House of Representatives and 
the Committee on Banking, Housing, and 
Urban Affairs of the Senate the respective plan 
of such agency described in paragraph (1). 
(B) PUBLIC COMMENT.—With respect to 
developing the plan described in paragraph (1), 
each of the Federal financial institutions regu-
latory agencies shall—
(i) provide an opportunity for public 
comments; and 
(ii) take such public comments into 
consideration. 
(e) DEFINITIONS.—
(1) IN GENERAL.—In this section:
191
(A) FEDERAL
BANKING
AGENCY.—The 
term ‘‘Federal banking agency’’ has the mean-
ing given the term in section 3 of the Federal 
Deposit Insurance Act (12 U.S.C. 1813). 
(B) FEDERAL
FINANCIAL
INSTITUTIONS 
REGULATORY
AGENCIES.—The term ‘‘Federal 
financial institutions regulatory agencies’’ has 
the meaning given the term in section 1003 of 
the Federal Financial Institutions Examination 
Council Act of 1978 (12 U.S.C. 3302). 
(C) REGULATED INSTITUTION.—The term 
‘‘regulated institution’’ means—
(i) with respect to a Federal banking 
agency, a depository institution (as such 
term is defined in section 3 of the Federal 
Deposit Insurance Act (12 U.S.C. 1813)) 
for which the Federal banking agency is 
the appropriate Federal banking agency 
(as such term is defined in such section 3); 
and 
(ii) with respect to the National Cred-
it Union Administration, an insured credit 
union (as such term is defined in section 
101 of the Federal Credit Union Act (12 
U.S.C. 1752)).
192
(D) STATE.—The term ‘‘State’’ means 
each of the several States, the District of Co-
lumbia, and each territory of the United States. 
(E) STATE REGULATOR.—The term ‘‘State 
regulator’’ means—
(i) with respect to a Federal banking 
agency, a State banking regulator; and 
(ii) with respect to the National Cred-
it Union Administration, the State regu-
latory agency having jurisdiction over a 
State credit union (as such term is defined 
in section 101 of the Federal Credit Union 
Act (12 U.S.C. 1752)). 
(2) RULE OF CONSTRUCTION.—For purposes of 
this section, the process of applying to become a de 
novo regulated institution shall include the process 
of applying for Federal deposit insurance, Federal 
share insurance, or membership in the Federal Re-
serve System. 
SEC. 611. PROMOTING NEW BANK FORMATION. 
(a) PILOT PHASE-IN OF CAPITAL STANDARDS.—The 
Federal banking agencies may issue rules that provide for 
a 2-year phase-in period for a qualifying community bank 
or its depository institution holding company to meet any 
Federal capital requirements that would otherwise be ap-
193
plicable to the qualifying community bank or its depository 
institution holding company, beginning on—
(1) the date on which the qualifying community 
bank became an insured depository institution; or 
(2) in the case of its depository institution hold-
ing company, the date on which the qualifying com-
munity bank of the depository institution holding 
company became an insured depository institution. 
(b) PILOT CHANGES TO BUSINESS PLANS.—
(1) IN GENERAL.—During the 2-year period be-
ginning on the date on which a qualifying commu-
nity bank became an insured depository institution, 
the qualifying community bank or its depository in-
stitution holding company may request to deviate 
from a business plan that has been approved by the 
appropriate Federal banking agency by submitting a 
request to such agency pursuant to this section. 
(2) REVIEW
OF
CHANGES.—The appropriate 
Federal banking agency shall, not later than the end 
of the 90-day period beginning on the receipt of a 
request under paragraph (1)—
(A) approve, conditionally approve, or deny 
such request; and 
(B) notify the applicant of such decision 
and, if the agency denies the request—
194
(i) provide the applicant with the rea-
son for such denial; and 
(ii) suggest changes to the request 
that, if adopted, would allow the agency to 
approve such request. 
(3) RESULT OF FAILURE TO ACT.—If the ap-
propriate Federal banking agency fails to approve or 
deny a request within the 90-day period required 
under paragraph (2), such request shall be deemed 
to be approved. 
(c) PILOT PROGRAM STUDY.—
(1) STUDY.—The Federal banking agencies 
shall, jointly, carry out a study on the impact of the 
pilot program carried out pursuant to subsections 
(a) and (b) of this section on the formation of de 
novo insured depository institutions, including such 
institutions which are rural depository institutions, 
community development financial institutions, and 
minority depository institutions, taking into account 
safety and soundness, promoting competition, and 
expanding access to affordable financial products 
and services to underserved communities. 
(2) REPORT TO CONGRESS.—Not later than De-
cember 31, 2031, the Federal banking agencies 
shall, jointly, issue a report to the Committee on Fi-
195
nancial Services of the House of Representatives and 
the Committee on Banking, Housing, and Urban Af-
fairs of the Senate containing all findings and deter-
minations made in carrying out the study required 
under paragraph (1). 
(d) STUDY ON DE NOVO INSURED DEPOSITORY IN-
STITUTIONS.—
(1) STUDY.—The Federal banking agencies 
shall, jointly, carry out a study on—
(A) the principal causes for the low num-
ber of de novo insured depository institutions in 
the 10-year period ending on the date of enact-
ment of this subsection; 
(B) ways to promote more de novo insured 
depository institutions in areas currently under-
served by insured depository institutions; and 
(C) ways to ensure de novo depository in-
stitutions, including institutions which are rural 
depository institutions, community development 
financial institutions, and minority depository 
institutions, can utilize the Community Bank 
Leverage Ratio. 
(2) REPORT TO CONGRESS.—Not later than the 
end of the 1-year period beginning on the date of en-
actment of this Act, the Federal banking agencies
196
shall, jointly, issue a report to the Committee on Fi-
nancial Services of the House of Representatives and 
the Committee on Banking, Housing, and Urban Af-
fairs of the Senate containing all findings and deter-
minations made in carrying out the study required 
under paragraph (1). 
(e) DEFINITIONS.—In this section: 
(1) APPROPRIATE
FEDERAL
BANKING
AGEN-
CY.—The term ‘‘appropriate Federal banking agen-
cy’’ has the meaning given the term in section 3 of 
the Federal Deposit Insurance Act (12 U.S.C. 
1813). 
(2) DEPOSITORY INSTITUTION.—The term ‘‘de-
pository institution’’ has the meaning given the term 
in section 3 of the Federal Deposit Insurance Act 
(12 U.S.C. 1813). 
(3) DEPOSITORY INSTITUTION HOLDING COM-
PANY.—The term ‘‘depository institution holding 
company’’ has the meaning given the term in section 
3 of the Federal Deposit Insurance Act (12 U.S.C. 
1813). 
(4) FEDERAL
BANKING
AGENCY.—The term 
‘‘Federal banking agency’’ has the meaning given 
the term in section 3 of the Federal Deposit Insur-
ance Act (12 U.S.C. 1813).
197
(5) INSURED DEPOSITORY INSTITUTION.—The 
term ‘‘insured depository institution’’ has the mean-
ing given the term in section 3 of the Federal De-
posit Insurance Act (12 U.S.C. 1813). 
(6) QUALIFYING COMMUNITY BANK.—The term 
‘‘qualifying community bank’’ means a depository in-
stitution that—
(A) including its holding company and all 
of its subsidiaries and affiliates, has total com-
bined assets of less than $10,000,000,000; and 
(B) became an insured depository institu-
tion between January 1, 2026, and December 
31, 2028. 
SEC. 612. RURAL DEPOSITORIES REVITALIZATION STUDY. 
(a) STUDY.—The Federal banking agencies shall, 
jointly, carry out a study—
(1) to identify methods to improve the growth, 
capital adequacy, and profitability of depository in-
stitutions in the United States that primarily serve 
rural areas; and 
(2) to identify Federal statutes (other than ap-
propriations Acts) or regulations of the Federal 
banking agencies that limit—
(A) the methods identified under para-
graph (1); or
199
made in carrying out the study required under subsection 
(c). 
(c) DEFINITIONS.—In this section: 
(1) DEPOSITORY INSTITUTION.—The term ‘‘de-
pository institution’’ has the meaning given that 
term in section 3 of the Federal Deposit Insurance 
Act (12 U.S.C. 1813). 
(2) FEDERAL BANKING AGENCIES.—The term 
‘‘Federal banking agencies’’ means the Board of 
Governors of the Federal Reserve System, the 
Comptroller of the Currency, and the Federal De-
posit Insurance Corporation. 
(3) RURAL.—With respect to an area, the term 
‘‘rural’’ has the meaning given that term in section 
1026.35(b)(2)(iv)(A) of title 12, Code of Federal 
Regulations. 
SEC. 613. DISCRETIONARY SURPLUS FUND. 
(a) IN
GENERAL.—The dollar amount specified 
under section 7(a)(3)(A) of the Federal Reserve Act (12 
U.S.C. 289(a)(3)(A)) is reduced by $115,000,000.
200
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall take effect on September 30, 2035. 
Passed the House of Representatives February 9, 
2026. 
Attest:
Clerk.
119TH CONGRESS 
2D SESSION 
H. R. 6644
AN ACT 
To increase the supply of housing in America, and 
for other purposes.