Housing Fairness Act of 2021
Bill: S.769 | Sponsor: Sen. Cortez Masto, Catherine (D-NV)
Policy area: Housing and Community Development

Summary:
Housing Fairness Act of 2021
This bill reauthorizes through FY2032 the Fair Housing Initiatives Program and revises program reporting requirements and organization eligibility requirements. The bill also allows the Department of Housing and Urban Development (HUD) to enter into agreements with certain organizations to test and investigate differential treatment and discriminatory housing practices based on race, color, sex, religion, national origin, disability, and familial status. The results of these tests and investigations may be used as the basis for an enforcement action under specified fair housing laws.
Additionally, HUD must establish a grant program for public and private nonprofit organizations to study housing discrimination and implement pilot projects to test solutions.

To authorize funds to prevent housing discrimination through the use of 
nationwide testing, to increase funds for the Fair Housing Initiatives 
                    Program, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Housing Fairness Act of 2021''.

SEC. 2. DEFINITION.

    In this Act, the term ``Secretary'' means the Secretary of Housing 
and Urban Development.

SEC. 3. TESTING FOR DISCRIMINATION.

    (a) Eligible Activity Under FHIP.--
            (1) In general.--Section 561(a) of the Housing and 
        Community Development Act of 1987 (42 U.S.C. 3616a(a)) is 
        amended--
                    (A) by redesignating paragraphs (1) and (2) as 
                subparagraphs (A) and (B), respectively, and adjusting 
                the margins accordingly;
                    (B) in the matter preceding subparagraph (A), as so 
                redesignated--
                            (i) by striking ``The Secretary'' and 
                        inserting the following:
            ``(1) Grants, contracts, and cooperative agreements.--The 
        Secretary''; and
                            (ii) by inserting after ``discriminatory 
                        housing practices'' the following: ``or, in the 
                        case of grants, contracts, or cooperative 
                        agreements for activities under subparagraph 
                        (C), with qualified private, nonprofit fair 
                        housing enforcement organizations that have 
                        demonstrated expertise in managing and 
                        implementing regional or national testing 
                        programs to address systemic fair housing 
                        issues'';
                    (C) in subparagraph (A), as so redesignated, by 
                striking ``and'' at the end;
                    (D) in subparagraph (B), as so redesignated, by 
                striking ``paragraph (1).'' and inserting 
                ``subparagraph (A); and''; and
                    (E) by adding at the end the following:
                    ``(C) programs of regional or national testing and 
                investigations to--
                            ``(i)(I) detect and document differences in 
                        the treatment of persons seeking to rent or 
                        purchase housing or obtain or refinance a home 
                        mortgage loan; and
                            ``(II) measure patterns of differential 
                        treatment because of the status of a renter, 
                        home buyer, or borrower as a member of a 
                        protected class under the Fair Housing Act (42 
                        U.S.C. 3601 et seq.); and
                            ``(ii) measure the prevalence, nature, and 
                        extent of discriminatory practices covered 
                        under the Fair Housing Act (42 U.S.C. 3601 et 
                        seq.).
            ``(2) Enforcement actions.--
                    ``(A) In general.--The results of any testing and 
                investigations under paragraph (1)(C) may be used as 
                the basis for the Secretary, any Federal agency 
                authorized to bring such an enforcement action, or any 
                State or local government or agency, public or private 
                nonprofit organization or institution, or other 
                aggrieved party within the meaning of the Fair Housing 
                Act (42 U.S.C. 3601 et seq.) or other substantially 
                equivalent State or local fair housing law, or other 
                public or private entity with which the Secretary has 
                entered into a contract or cooperative agreement under 
                this section to commence, undertake, or pursue any 
                investigation or enforcement action to remedy any 
                discriminatory housing practice (as defined in section 
                802 of the Fair Housing Act (42 U.S.C. 3602)) uncovered 
                as a result of the testing and investigations.
                    ``(B) Testing.--Testing conducted under paragraph 
                (1)(C) shall not constitute a violation of any 
                provision of criminal law or the Truth in Lending Act 
                (15 U.S.C. 1601 et seq.).''.
            (2) Technical and conforming amendment.--Section 561(f)(2) 
        of the Housing and Community Development Act of 1987 (42 U.S.C. 
        3616a(a)(2)) is amended by striking ``subsection (a)(1)'' and 
        inserting ``subsection (a)(1)(A)''.
    (b) Regulations.--
            (1) In general.--Not later than 180 days after the date of 
        enactment of this Act, the Secretary shall issue regulations 
        that apply the minimum tester training standards required under 
        section 125.107 of title 24, Code of Federal Regulations (or 
        any successor regulation), to organizations conducting testing 
        under paragraph (1)(C) of section 561(a) of the Housing and 
        Community Development Act of 1987 (42 U.S.C. 3616a(a)), as 
        added by subsection (a)(1)(E) of this section.
            (2) Applicability to all testing activities.--On and after 
        the date on which the regulations issued under paragraph (1) 
        take effect, the minimum tester training standards described in 
        that paragraph shall apply to any testing activities conducted 
        under section 561 of the Housing and Community Development Act 
        of 1987 (42 U.S.C. 3616a), as amended by subsection (a)(1) of 
        this section.

SEC. 4. FAIR HOUSING INITIATIVES PROGRAM.

    (a) Amendments to Program.--Section 561 of the Housing and 
Community Development Act of 1987 (42 U.S.C. 3616a) is amended--
            (1) in subsection (b)--
                    (A) in paragraph (1), by striking ``private 
                nonprofit'' and inserting ``qualified''; and
                    (B) in paragraph (2), in the matter preceding 
                subparagraph (A), by striking ``private nonprofit'' and 
                inserting ``qualified'';
            (2) in subsection (c), by adding at the end the following:
            ``(3) Program-earned income.--No restriction on the use of 
        program-earned income received by a qualified fair housing 
        enforcement organization shall apply after the grant period for 
        the organization ends.'';
            (3) in subsection (d)--
                    (A) in paragraph (1)--
                            (i) in subparagraph (C), by striking 
                        ``and'' at the end;
                            (ii) in subparagraph (D), by striking the 
                        period and inserting ``; and''; and
                            (iii) by inserting after subparagraph (D) 
                        the following:
                    ``(E) websites and other media outlets.'';
                    (B) in paragraph (2), by striking ``or other public 
                or private entities'' and inserting ``or other public 
                or private nonprofit entities'';
                    (C) in paragraph (3), by striking ``or other public 
                or private entities'' and inserting ``or other public 
                or private nonprofit entities''; and
                    (D) by adding at the end the following:
            ``(4) Limitation.--Notwithstanding any other provision of 
        this section, a State or local agency certified by the 
        Secretary under section 810(f) of the Fair Housing Act (42 
        U.S.C. 3610(f)) may receive assistance under this subsection 
        only to carry out activities eligible for assistance under this 
        subsection in areas in which no qualified fair housing 
        enforcement organization is available to carry out those 
        activities.
            ``(5) Eligibility.--Notwithstanding any other provision of 
        this section, if an award of funding under subsection (b) for 
        multiple fiscal years has been made to a qualified fair housing 
        enforcement organization, the organization shall be, subject 
        only to the availability of amounts provided in appropriation 
        Acts, eligible to receive funding under this subsection for 
        each fiscal year covered by the award under subsection (b).'';
            (4) in subsection (e)--
                    (A) in paragraph (1)--
                            (i) by inserting ``Congressional 
                        notification.--'' after ``(1)''; and
                            (ii) by striking ``Banking, Finance and 
                        Urban Affairs'' and inserting ``Financial 
                        Services''; and
                    (B) by adding at the end the following:
            ``(2) Priority.--In providing assistance under this section 
        with respect to a metropolitan statistical area for which there 
        are multiple applications for assistance, the Secretary shall 
        give priority to applications submitted by qualified fair 
        housing enforcement organizations that have experience in 
        conducting fair housing enforcement activities.'';
            (5) by striking subsection (g) and inserting the following:
    ``(g) Authorization of Appropriations.--
            ``(1) In general.--There are authorized to be appropriated 
        to carry out this section--
                    ``(A) $58,000,000 for each of fiscal years 2022 
                through 2026, of which--
                            ``(i) $55,000,000 shall be available for 
                        any activities under this section other than 
                        programs under subsection (a)(1)(C), of which--
                                    ``(I) not less than $38,000,000 
                                shall be for private enforcement 
                                initiatives authorized under subsection 
                                (b);
                                    ``(II) not less than $1,500,000 
                                shall be for the fair housing 
                                organizations initiative under 
                                subsection (c);
                                    ``(III) not less than $10,000,000 
                                shall be for the education and outreach 
                                initiative under subsection (d), of 
                                which--
                                            ``(aa) not less than 
                                        $8,000,000 shall be for local 
                                        education and outreach 
                                        activities; and
                                            ``(bb) not less than 
                                        $2,000,000 shall be for 
                                        national media activities; and
                                    ``(IV) any remaining amounts shall 
                                be used for any program activities 
                                authorized under this section; and
                            ``(ii) $3,000,000 shall be available only 
                        for programs under subsection (a)(1)(C); and
                    ``(B) $70,000,000 for each of fiscal years 2027 
                through 2032, of which--
                            ``(i) $65,000,000 shall be available for 
                        any activities under this section other than 
                        programs under subsection (a)(1)(C), of which--
                                    ``(I) not less than $44,000,000 
                                shall be for private enforcement 
                                initiatives authorized under subsection 
                                (b);
                                    ``(II) not less than $1,500,000 
                                shall be for the fair housing 
                                organizations initiative under 
                                subsection (c);
                                    ``(III) not less than $12,500,000 
                                shall be for the education and outreach 
                                initiative under subsection (d), of 
                                which--
                                            ``(aa) not less than 
                                        $10,000,000 shall be for local 
                                        education and outreach 
                                        activities; and
                                            ``(bb) not less than 
                                        $2,500,000 shall be for 
                                        national media activities; and
                                    ``(IV) any remaining amounts shall 
                                be used for any program activities 
                                authorized under this section; and
                            ``(ii) $5,000,000 shall be available only 
                        for programs under subsection (a)(1)(C).
            ``(2) Availability.--Any amount appropriated under this 
        section shall remain available until expended to carry out the 
        provisions of this section.
            ``(3) Award of funding.--
                    ``(A) Notice.--Not later than 90 days after the 
                date of enactment of any Act making amounts available 
                to carry out this section, the Secretary shall issue a 
                Notice of Funding Availability with respect to the 
                amounts.
                    ``(B) Award.--Not later than 180 days after the 
                date of enactment of any Act making amounts available 
                to carry out this section, the Secretary shall award 
                the amounts.'';
            (6) in subsection (h)(1), in the matter following 
        subparagraph (C), by inserting ``and meets the criteria 
        described in subparagraphs (A) and (C)'' before the period at 
        the end; and
            (7) in subsection (j)--
                    (A) in the matter preceding paragraph (1), by 
                inserting ``regarding that fiscal year,'' after 
                ``comprehensive report'';
                    (B) in paragraph (2), by striking ``and the use of 
                such funds during the preceding fiscal year'' and 
                inserting ``, the use of such funds, and outcomes such 
                as the number of housing units made available and 
                accessible to protected classes under the Fair Housing 
                Act (42 U.S.C. 3601 et seq.)'';
                    (C) in paragraph (3), by striking ``during the 
                preceding fiscal year''; and
                    (D) in paragraph (4), by striking ``during the 
                preceding fiscal year''.
    (b) Study.--
            (1) In general.--The Secretary shall conduct a study to 
        determine--
                    (A) the feasibility, efficiency, and effectiveness 
                of converting the Fair Housing Initiatives Program 
                under section 561 of the Housing and Community 
                Development Act of 1987 (42 U.S.C. 3616a), as amended 
                by this Act, into a noncompetitive entitlement program 
                to provide general operating funding to qualified fair 
                housing enforcement organizations, as defined in 
                subsection (h) of that section;
                    (B) the appropriate levels of funding for such a 
                program, taking into consideration the number of such 
                qualified fair housing enforcement organizations; and
                    (C) the factors that should be considered in 
                providing for an equitable distribution to qualified 
                fair housing enforcement organizations.
            (2) Report.--Not later than 1 year after the date of 
        enactment of this Act, the Secretary shall submit a report to 
        Congress setting forth the results of the study conducted under 
        paragraph (1), which shall include any recommendations 
        regarding such conversion of the program.

SEC. 5. SENSE OF CONGRESS.

    It is the sense of Congress that the Secretary should--
            (1) fully comply with the requirements of section 561(d) of 
        the Housing and Community Development Act of 1987 (42 U.S.C. 
        3616a(d)), as amended by this Act, to establish, design, and 
        maintain a national education and outreach program to provide a 
        centralized, coordinated effort for the development and 
        dissemination of--
                    (A) materials and information about the fair 
                housing rights of individuals who seek to rent, 
                purchase, sell, or facilitate the sale of a home; and
                    (B) materials and information about the fair 
                housing responsibilities of industry professionals 
                providing products and services covered under the Fair 
                Housing Act (42 U.S.C. 3601 et seq.);
            (2) expend for the education and outreach programs 
        described in paragraph (1) all amounts appropriated for those 
        programs;
            (3) fully reinstate the regulations promulgated on July 16, 
        2015 (80 Fed. Reg. 42271), regarding the fair housing 
        obligations of each recipient of Federal housing and community 
        development funds to affirmatively further fair housing, as 
        that term is used in the Fair Housing Act (42 U.S.C. 3601 et 
        seq.); and
            (4) fully comply with the requirements of section 810(a) of 
        the Fair Housing Act (42 U.S.C. 3610(a)).

SEC. 6. GRANTS TO PUBLIC AND PRIVATE ENTITIES TO STUDY HOUSING 
              DISCRIMINATION.

    (a) Grant Program.--The Secretary shall carry out a competitive 
matching grant program to assist public and private nonprofit 
organizations in--
            (1) conducting comprehensive studies that examine--
                    (A) the causes of housing discrimination and 
                segregation;
                    (B) the effects of housing discrimination and 
                segregation on education, poverty, economic 
                development, health, and other socioeconomic factors; 
                or
                    (C) the incidences, causes, and effects of housing 
                discrimination based on veteran and military status; 
                and
            (2) implementing pilot projects that test solutions that 
        will help prevent or alleviate housing discrimination and 
        segregation.
    (b) Eligibility.--To be eligible to receive a grant under this 
section, a public or private nonprofit organization shall--
            (1) submit an application to the Secretary that contains--
                    (A) the issues the applicant will address and a 
                justification for the need to address those issues;
                    (B) the applicant's experience in formulating or 
                carrying out programs or activities described in this 
                section;
                    (C) the geographical area and period of time to be 
                studied; and
                    (D) a certification that the applicant has 
                consulted with a qualified fair housing enforcement 
                organization in the design of its proposed area of 
                study; and
            (2) agree to provide matching non-Federal funds for 10 
        percent of the total amount of the grant, which matching funds 
        may include monetary donations and items donated on an in-kind 
        contribution basis.
    (c) Partnerships With Academic Institutions.--A public or private 
nonprofit organization applying for a grant under this section may 
partner with an academic or educational organization or institution for 
the purpose of carrying out activities assisted with the grant amounts.
    (d) Report.--
            (1) In general.--The Secretary shall submit a report to 
        Congress on a biennial basis that provides a detailed summary 
        of the results of the comprehensive studies and pilot projects 
        carried out under subsection (a), together with any 
        recommendations or proposals for legislative or administrative 
        actions to address any issues raised by the studies and pilot 
        projects.
            (2) Concurrent submission.--The Secretary may submit the 
        reports required under paragraph (1) as part of the reports 
        prepared in accordance with paragraphs (2) and (6) of section 
        808(e) of the Fair Housing Act (42 U.S.C. 3608(e)) and section 
        561(j) of the Housing and Community Development Act of 1987 (42 
        U.S.C. 3616a(j)).
    (e) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $5,000,000 for each of fiscal 
years 2021 through 2025.

SEC. 7. LIMITATION ON USE OF FUNDS.

    (a) Definition.--In this section, the term ``lobbying'' means an 
activity the costs of which are unallowable under paragraph 25 of 
attachment B to Circular A-122 of the Office of Management and Budget, 
entitled ``Cost Principles for Non-Profit Organizations''.
    (b) Prohibition.--None of the funds made available under this Act, 
or the amendments made by this Act, may be used for any political 
activities, political advocacy, or lobbying, or for expenses for travel 
to engage in political activities or preparation of or provision of 
advice on tax returns.
                                 <all>