Title: A bill to make housing more affordable, and for other purposes.
Policy area: Housing and Community Development

Summary:
American Housing and Economic Mobility Act of 2019
This bill addresses housing affordability and availability, makes certain changes to the estate and gift taxes, and contains other related provisions.
The Department of Housing and Urban Development shall provide grants to (1) state and local governments that remove unnecessary barriers to building affordable units, (2) states to assist borrowers who have negative equity in their homes, (3) state housing finance agencies to construct affordable rental housing and prevent tenant displacement and harassment, and (4) eligible individuals (generally, lower income individuals who resided in low-income or historically racially segregated areas) to help them purchase their first homes.
The bill provides funding through FY2029 for the first-time homeowner grant program established by the bill, through FY2020 for the affordable rental housing construction program established by the bill, and through FY2020 for specified existing rural housing programs.
The bill also expands fair housing protections to prohibit discrimination based on sexual orientation, gender identity, marital status, source of income, veteran status, or an individual's perceived membership in a protected class (e.g., an individual's perceived race or sex).
Additionally, the bill modifies the estate tax in various ways, including by reducing the number of brackets to three, increasing the tax rates, and reducing the basic exemption amount. The bill also modifies provisions related to gift taxes and transfer taxes.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 787 Introduced in Senate (IS)]

<DOC>






116th CONGRESS
  1st Session
                                 S. 787

        To make housing more affordable, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 13, 2019

 Ms. Warren (for herself, Mrs. Gillibrand, and Mr. Markey) introduced 
the following bill; which was read twice and referred to the Committee 
                               on Finance

_______________________________________________________________________

                                 A BILL


 
        To make housing more affordable, 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; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``American Housing 
and Economic Mobility Act of 2019''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
                TITLE I--MAKING HOUSING MORE AFFORDABLE

Sec. 101. Local housing innovation grants.
Sec. 102. Investing in affordable housing infrastructure.
Sec. 103. Conditions for the sale of real estate-owned properties and 
                            non-performing loans.
   TITLE II--TAKING THE FIRST STEPS TO REVERSE THE LEGACY OF HOUSING 
                DISCRIMINATION AND GOVERNMENT NEGLIGENCE

Sec. 201. Down payment assistance program for communities formerly 
                            segregated by law.
Sec. 202. Formula grant program for communities that have not recovered 
                            from the financial crisis.
Sec. 203. Strengthening the Community Reinvestment Act of 1977.
Sec. 204. Amendments relating to credit union service to underserved 
                            areas.
         TITLE III--REMOVING BARRIERS THAT ISOLATE COMMUNITIES

Sec. 301. Expanding rights under the Fair Housing Act.
Sec. 302. Improving outcomes in housing assistance programs.
                      TITLE IV--ESTATE TAX REFORM

Sec. 401. Amendment to Internal Revenue Code of 1986.
Sec. 402. Rate adjustment.
Sec. 403. Required minimum 10-year term, etc., for grantor retained 
                            annuity trusts.
Sec. 404. Certain transfer tax rules applicable to grantor trusts.
Sec. 405. Elimination of generation-skipping transfer tax exemption for 
                            certain trusts.
Sec. 406. Simplifying gift tax exclusion for annual gifts.

                TITLE I--MAKING HOUSING MORE AFFORDABLE

SEC. 101. LOCAL HOUSING INNOVATION GRANTS.

    (a) Definitions.--In this section:
            (1) Elementary school; secondary school.--The terms 
        ``elementary school'' and ``secondary school'' have the 
        meanings given those terms in section 8101 of the Elementary 
        and Secondary Education Act of 1965 (20 U.S.C. 7801).
            (2) Eligible entity.--The term ``eligible entity'' means--
                    (A) a State;
                    (B) a unit of general local government; or
                    (C) a metropolitan area.
            (3) Institution of higher education.--The term 
        ``institution of higher education'' has the meaning given the 
        term in section 101 of the Higher Education Act of 1965 (20 
        U.S.C. 1001).
            (4) Metropolitan area; state; unit of general local 
        government.--The terms ``metropolitan area'', ``State'', and 
        ``unit of general local government'' have the meanings given 
        those terms in section 102 of the Housing and Community 
        Development Act of 1974 (42 U.S.C. 5302).
            (5) Secretary.--The term ``Secretary'' means the Secretary 
        of Housing and Urban Development.
    (b) Establishment.--Not later than 1 year after the date of 
enactment of this Act, the Secretary shall establish a program to make 
grants to eligible entities that--
            (1) reform local land use restrictions to bring down the 
        costs of producing affordable housing; and
            (2) remove unnecessary barriers to building affordable 
        units in their communities.
    (c) Eligible Activities.--An eligible entity receiving a grant 
under this section may use funds to--
            (1) carry out any of the activities described in section 
        105 of the Housing and Community Development Act of 1974 (42 
        U.S.C. 5305);
            (2) carry out any of the activities permitted under the 
        program for national infrastructure investments (commonly known 
        as the ``Better Utilizing Investments to Leverage Development 
        (BUILD) discretionary grant program'') authorized under title I 
        of division L of the Consolidated Appropriations Act, 2018 
        (Public Law 115-141) or a subsequent appropriations Act; or
            (3) modernize, renovate, or repair facilities used by 
        public elementary schools, public secondary schools, and public 
        institutions of higher education, including modernization, 
        renovation, and repairs that--
                    (A) promote physical, sensory, and environmental 
                accessibility; and
                    (B) are consistent with a recognized green building 
                rating system.
    (d) Application.--
            (1) In general.--An eligible entity desiring a grant under 
        this section shall submit to the Secretary an application that 
        demonstrates that the eligible entity has carried out, or is in 
        the process of carrying out, initiatives that facilitate the 
        expansion of the supply of well-located affordable housing.
            (2) Activities.--Initiatives that meet the criteria 
        described in paragraph (1)--
                    (A) include--
                            (i) establishing ``by-right'' development, 
                        which allows jurisdictions to administratively 
                        approve new developments that are consistent 
                        with their zoning code;
                            (ii) revising or eliminating off-street 
                        parking requirements to reduce the cost of 
                        housing production;
                            (iii) instituting measures that incentivize 
                        owners of vacant land to redevelop the space 
                        into affordable housing or other productive 
                        uses;
                            (iv) revising minimum lot size requirements 
                        and bans or limits on multifamily construction 
                        to allow for denser and more affordable 
                        development;
                            (v) instituting incentives to promote dense 
                        development, such as density bonuses;
                            (vi) passing inclusionary zoning ordinances 
                        that require a portion of newly developed units 
                        to be reserved for low- and moderate-income 
                        renters or homebuyers;
                            (vii) streamlining regulatory requirements 
                        and shortening processes, reforming zoning 
                        codes, or other initiatives that reduce 
                        barriers to housing supply elasticity and 
                        affordability;
                            (viii) allowing accessory dwelling units;
                            (ix) using local tax incentives to promote 
                        development of affordable housing; and
                            (x) implementing measures that protect 
                        tenants from harassment and displacement, 
                        including access to counsel for tenants facing 
                        eviction, the prohibition of eviction except 
                        for just cause, and measures intended to 
                        prevent or mitigate sudden increases in rents, 
                        or repealing laws that prevent localities from 
                        implementing those measures; and
                    (B) do not include activities that alter ordinances 
                that govern wage and hour laws, family and medical 
                leave laws, or protections for workers' health and 
                safety, anti-discrimination, and right to organize.
    (e) Labor Laws.--
            (1) In general.--All laborers and mechanics employed by 
        contractors or subcontractors in the performance of 
        construction work financed in whole or in part with a grant 
        received under this section shall be paid wages at rates not 
        less than those prevailing on similar construction in the 
        locality, as determined by the Secretary of Labor in accordance 
        with subchapter IV of chapter 31 of title 40, United States 
        Code (commonly known as the ``Davis-Bacon Act'').
            (2) Exception.--Paragraph (1) shall not apply with respect 
        to--
                    (A) the rehabilitation of residential property if 
                the property contains less than 8 units; or
                    (B) construction carried out by employees of the 
                eligible entity receiving the grant under this section.
    (f) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $2,000,000,000 for each of 
fiscal years 2020 through 2024.

SEC. 102. INVESTING IN AFFORDABLE HOUSING INFRASTRUCTURE.

    (a) Housing Trust Fund.--Section 1338(a) of the Federal Housing 
Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 
4568(a)) is amended by adding at the end the following:
            ``(3) Authorization of appropriations.--There is authorized 
        to be appropriated to the Housing Trust Fund $44,500,000,000 
        for each of fiscal years 2020 through 2029.''.
    (b) Capital Magnet Fund.--Section 1339 of the Federal Housing 
Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4569) 
is amended by adding at the end the following:
    ``(k) Authorization of Appropriations.--There is authorized to be 
appropriated to the Capital Magnet Fund $2,500,000,000 for each of 
fiscal years 2020 through 2029.''.
    (c) Public Housing Capital Fund.--Section 9(c)(2)(B) of the United 
States Housing Act of 1937 (42 U.S.C. 1437g(c)(2)(B)) is amended to 
read as follows:
                    ``(B) Capital fund.--For allocations of assistance 
                from the Capital Fund, $3,592,000,000 for fiscal year 
                2020.''.
    (d) Indian Housing Block Grant Program.--Section 108 of the Native 
American Housing Assistance and Self-Determination Act of 1996 (25 
U.S.C. 4117) is amended--
            (1) by striking ``such sums as may be necessary for each of 
        fiscal years 2009 through 2013'' and inserting ``$2,500,000,000 
        for fiscal year 2020 and such sums as may be necessary for each 
        of fiscal years 2021 through 2029''; and
            (2) by striking the second sentence.
    (e) Native Hawaiian Housing Block Grant Program.--Section 824 of 
the Native American Housing Assistance and Self-Determination Act of 
1996 (25 U.S.C. 4243) is amended by striking ``such sums as may be 
necessary for each of fiscal years 2001, 2002, 2003, 2004, and 2005'' 
and inserting ``$8,000,000 for fiscal year 2020''.
    (f) Rural Housing Programs.--Out of funds in the Treasury not 
otherwise appropriated, there is appropriated for fiscal year 2020--
            (1) to provide direct loans under section 502 of the 
        Housing Act of 1949 (42 U.S.C. 1472), $140,000,000;
            (2) to provide assistance under section 514 of such Act (42 
        U.S.C. 1484), $28,000,000;
            (3) to provide assistance under section 515 of such Act (42 
        U.S.C. 1485), $180,000,000;
            (4) to provide assistance under section 516 of such Act (42 
        U.S.C. 1486), $100,000,000; and
            (5) to provide grants under section 523 of such Act (42 
        U.S.C. 1490c), $75,000,000.
    (g) Middle Class Housing Emergency Fund.--
            (1) Definition.--In this subsection, the term ``affordable 
        rental housing unit'' means a unit for which monthly rent is 30 
        percent or less than the monthly area median income.
            (2) Establishment.--The Secretary of Housing and Urban 
        Development shall establish and manage a fund, to be known as 
        the ``Middle Class Housing Emergency Fund'', which shall be 
        funded with any amounts as may be appropriated, transferred, or 
        credited to the Fund under any provision law.
            (3) Grants.--From amounts available in the fund established 
        under paragraph (2), the Secretary of Housing and Urban 
        Development shall award grants on a competitive basis to State 
        housing finance agencies located in a State in which--
                    (A) there is a shortage of affordable rental 
                housing units available to individuals with an income 
                that is at or below the area median income and median 
                rents have risen on average over the preceding 3 years 
                substantially faster than the area median income; or
                    (B) there is a shortage of housing units available 
                for sale that are affordable to individuals with an 
                income that is at or below the area median income and 
                median home prices have risen on average over the 
                preceding 3 years substantially faster than the area 
                median income.
            (4) Use of funds.--Grants received under this subsection 
        shall be used to fund--
                    (A) the construction of rental housing units or 
                units for purchase that are affordable to residents 
                making less than 120 percent of the area median income; 
                and
                    (B) measures to prevent tenant displacement and 
                harassment, including the provision of legal advice and 
                representation for tenants facing eviction, enforcement 
                of anti-harassment laws, emergency rental assistance, 
                and other measures as specified by the Secretary of 
                Housing and Urban Development.
            (5) Labor laws.--
                    (A) In general.--All laborers and mechanics 
                employed by contractors or subcontractors in the 
                performance of construction work financed in whole or 
                in part with a grant received under this subsection 
                shall be paid wages at rates not less than those 
                prevailing on similar construction in the locality as 
                determined by the Secretary of Labor in accordance with 
                subchapter IV of chapter 31 of title 40, United States 
                Code (commonly known as the ``Davis-Bacon Act'').
                    (B) Exception.--Subparagraph (A) shall not apply 
                with respect to--
                            (i) the rehabilitation of residential 
                        property if the property contains less than 8 
                        units; or
                            (ii) construction carried out by employees 
                        of the eligible entity receiving the grant 
                        under this section.
            (6) Regulations.--The Secretary of Housing and Urban 
        Development shall promulgate regulations to carry out this 
        subsection, including with respect to the metrics that the 
        Secretary shall use to determine eligibility for a grant under 
        this subsection.
            (7) Appropriations.--Out of funds in the Treasury not 
        otherwise appropriated, there is appropriated to the fund 
        established under this subsection $4,000,000,000 for fiscal 
        year 2020.

SEC. 103. CONDITIONS FOR THE SALE OF REAL ESTATE-OWNED PROPERTIES AND 
              NON-PERFORMING LOANS.

    (a) Findings.--Congress finds that--
            (1) the Federal Housing Administration, the Federal 
        National Mortgage Association, and the Federal Home Loan 
        Mortgage Corporation provide critical homeownership 
        opportunities that greatly benefit individuals, families and 
        communities; and
            (2) it is the purpose of this section to--
                    (A) preserve owner-occupied homes with mortgages 
                insured by the Federal Housing Administration or 
                purchased by the Federal National Mortgage Association 
                or the Federal Home Loan Mortgage Corporation for 
                continued use as owner-occupied homes; and
                    (B) direct that, upon the sale of those properties 
                or transfer of those mortgages, certain percentages of 
                those properties are sold to low- and moderate-income 
                homeowners.
    (b) Loans Insured by the Federal Housing Administration.--Title II 
of the National Housing Act (12 U.S.C. 1707 et seq.) is amended by 
adding at the end the following:

``SEC. 259. SALE OF REAL ESTATE-OWNED PROPERTIES.

    ``(a) In General.--Not later than 1 year after the date of 
enactment of this section, the Secretary shall develop programs within 
the Federal Housing Administration to ensure that not less than 75 
percent of the single-family residential properties that were acquired 
by the Federal Housing Administration through foreclosure or other 
transfer-related mortgages insured under this title on the properties 
are sold--
            ``(1) directly to an owner-occupant; or
            ``(2) to community partners that will--
                    ``(A) rehabilitate or develop the property; and
                    ``(B) sell the property to an owner-occupant.
    ``(b) Anti-Predatory Feature.--Unless the Secretary provides prior 
approval, the Secretary shall prohibit any purchaser of a real estate-
owned property of the Federal Housing Administration from re-selling 
the property within 15 years of purchase using a land installment 
contract or through any other mechanism that does not transfer title to 
the buyer at the time of sale.

``SEC. 260. SALE OF NON-PERFORMING LOANS.

    ``(a) In General.--Except as provided in this section, the 
Secretary may not sell or transfer any mortgage insured under this 
title that is secured by a single-family residential property (in this 
section referred to as a `covered mortgage').
    ``(b) Conditions for Sale or Transfer.--
            ``(1) In general.--The Secretary--
                    ``(A) may sell or transfer a covered mortgage only 
                if--
                            ``(i) the capital level of the Fund is 
                        substantially below the capital ratio required 
                        under section 205(f)(4);
                            ``(ii) the Secretary certifies that other 
                        reasonable measures are not available to 
                        restore the Fund to that capital ratio; and
                            ``(iii) the Secretary complies with 
                        paragraph (2)(C), if applicable; and
                    ``(B) shall sell or transfer only such covered 
                mortgages as are necessary to assist in restoration of 
                that capital ratio.
            ``(2) Requirements for the secretary.--
                    ``(A) In general.--If the Secretary intends to sell 
                or transfer a covered mortgage, the Secretary shall 
                provide the current borrower and all owners of record 
                of the property securing the covered mortgage, or 
                require that the current borrower and owners of record 
                be provided, a separate written notice of the intent to 
                sell the covered mortgage that--
                            ``(i) is mailed via certified and first 
                        class mail not less than 90 days before the 
                        date on which the loan is included in any 
                        proposed sale; and
                            ``(ii) includes--
                                    ``(I) a description of the loss 
                                mitigation options of the 
                                Administration that are available to 
                                borrowers in financial distress and the 
                                obligation of servicers to consider 
                                borrowers in default for those options;
                                    ``(II) a description of the actions 
                                that the servicer of the loan has taken 
                                to review and implement those options 
                                for the borrower; and
                                    ``(III) a description of the 
                                procedures the borrower may use to 
                                contest with the Secretary the 
                                compliance by the servicer with that 
                                obligation.
                    ``(B) Judicial review.--The determination of the 
                Secretary to authorize the sale of a mortgage insured 
                under this title shall be reviewable under chapter 7 of 
                title 5, United States Code, for abuse of discretion 
                and arbitrary and capricious agency action.
                    ``(C) Auctions.--The Secretary may not sell any 
                covered mortgage through any type of non-performing 
                loan sale auction program until the Secretary issues 
                rules, through the notice and comment rule making 
                procedures under section 553 of title 5, United States 
                Code, that address essential aspects of any non-
                performing loan sale program, including--
                            ``(i) the method of selection of loans for 
                        sale;
                            ``(ii) notice to borrowers prior to 
                        inclusion of the loan in a sale; and
                            ``(iii) review of loss mitigation status 
                        prior to the sale, selection of eligible 
                        bidders, loss mitigation guidelines applicable 
                        to loan purchasers, and reporting requirements 
                        for purchasers.
            ``(3) Certification requirement for lenders and 
        servicers.--
                    ``(A) Certification.--As a condition to payment of 
                an insurance claim under this title in connection with 
                any non-performing loan sale, the lender or servicer of 
                the loan shall provide the Secretary and the borrower 
                with written certification of the loss mitigation 
                review contained in the FHA Single Family Housing 
                Policy Handbook 4000.1, or any successor handbook.
                    ``(B) False statements.--
                            ``(i) In general.--Any false statement 
                        provided in a certification described in 
                        subparagraph (A) shall be a basis for--
                                    ``(I) recovery by the Secretary of 
                                any amounts paid under the insurance 
                                claim and any other penalties and 
                                sanctions authorized under Federal law; 
                                and
                                    ``(II) a private right of action by 
                                the borrower against the lender and 
                                servicer, with remedies to include 
                                compensatory and punitive damages and 
                                an assessment of costs and attorney's 
                                fees.
                            ``(ii) Transfers.--Unless a bona fide 
                        purchaser has acquired title to the property as 
                        a primary residence--
                                    ``(I) a certification described in 
                                subparagraph (A) that contains a false 
                                statement shall be a basis for revoking 
                                the transfer of the property; and
                                    ``(II) the pre-sale lender and 
                                servicer of the property shall--
                                            ``(aa) resume servicing the 
                                        loan as a loan insured under 
                                        this title; and
                                            ``(bb) reimburse the 
                                        Secretary for any insurance 
                                        claim paid and all costs 
                                        related to the sale of the 
                                        property.
            ``(4) Requirements for purchasers.--
                    ``(A) In general.--Each purchaser of a covered 
                mortgage shall offer the borrower on the covered 
                mortgage--
                            ``(i) appropriate loss mitigation options, 
                        including affordable and sustainable loan 
                        modifications; and
                            ``(ii) the opportunity for a short sale or 
                        a deed in lieu of foreclosure.
                    ``(B) Loss mitigation options.--The specific 
                formula, calculations, waterfall steps, and other terms 
                for appropriate loss mitigation options described in 
                subparagraph (A) shall be published by the Secretary, 
                made available to the public, and included in a written 
                notice given to borrowers before any acceleration or 
                foreclosure is initiated after a loan sale.
            ``(5) Requirements for transferees.--With respect to a 
        transferee, including any subsequent transferee, of a covered 
        mortgage that is sold under this title--
                    ``(A) the transferee shall certify in writing to 
                the Secretary that the transferee will comply with the 
                provisions of this section in the marketing and 
                transfer of any property received in the disposition of 
                any transferred loan;
                    ``(B) the transferee shall provide to the Secretary 
                records documenting that the transfers of those 
                properties are in compliance with this section; and
                    ``(C) the failure of the Secretary or the 
                transferee to comply with the requirements under this 
                section for a loan in default shall be a defense to 
                foreclosure, and a transferee shall not execute a 
                foreclosure judgment or order of sale, or conduct a 
                foreclosure sale, until the transferee has complied 
                with all requirements under this section.
    ``(c) Limitations.--With respect to covered mortgages that are sold 
under this title and foreclosed upon by the buyer, not less than 90 
percent of the properties that are the subject of the covered mortgages 
in an auction shall be--
            ``(1) sold to owner-occupants;
            ``(2) operated or transferred to an entity that will 
        operate the property as affordable rental housing for 
        households below 80 percent of the area median income for a 
        period of not less than 15 years; or
            ``(3) transferred or donated to a nonprofit agency that is 
        certified by the Secretary and will redevelop the property for 
        owner occupancy or affordable rental housing.
    ``(d) Prioritization of Sales.--The Secretary shall implement 
policies, procedures, and controls to--
            ``(1) identify and recruit community partners;
            ``(2) engage in consultations with community partners 
        before the sale of a pool of covered mortgages under this title 
        to determine whether that sale can be designed to meet the 
        specific needs of the communities served by the community 
        partners; and
            ``(3) prioritize the sale of pools of single-family 
        mortgages to community partners by--
                    ``(A) designing pools of covered mortgages for 
                direct sale to a community partner, the price of which 
                shall be set by the Secretary based on a pricing model 
                that considers--
                            ``(i) the current fair market value of the 
                        properties; and
                            ``(ii) the potential impact of foreclosures 
                        on those properties to the value of other homes 
                        that secure mortgages insured under this title 
                        in the same census tract; or
                    ``(B) in the case of an auction, if the winning bid 
                is not from a community partner, permitting any 
                community partner that bid during that same auction to 
                have a final opportunity to enter a higher bid on the 
                pool.''.
    (c) Fannie Mae.--Section 302 of the Federal National Mortgage 
Association Charter Act (12 U.S.C. 1717) is amended by adding at the 
end the following:
    ``(d)(1) The corporation may not sell or transfer any mortgage that 
is secured by a single-family residential property (in this section 
referred to as a `covered mortgage') under this section unless the 
requirements of this subsection are met.
    ``(2)(A) If the corporation intends to sell or transfer a covered 
mortgage, the corporation shall provide the current borrower and all 
owners of record of the property securing the covered mortgage, or 
require that the current borrower and owners of record be provided, a 
separate written notice of the intent to sell the covered mortgage 
that--
            ``(i) is mailed via certified and first class mail not less 
        than 90 days before the date on which the loan is included in 
        any proposed sale; and
            ``(ii) includes--
                    ``(I) a description of the loss mitigation options 
                of the corporation that are available to borrowers in 
                financial distress and the obligation of servicers to 
                consider borrowers in default for those options;
                    ``(II) a description of the actions that the 
                servicer of the loan has taken to review and implement 
                those options for the borrower; and
                    ``(III) a description of the procedures the 
                borrower may use to contest with the corporation the 
                compliance by the servicer with that obligation.
    ``(B) The determination of the corporation to authorize the sale of 
a mortgage under this section shall be reviewable under chapter 7 of 
title 5, United States Code, for abuse of discretion and arbitrary and 
capricious agency action.
    ``(C) The corporation may not sell any covered mortgage through any 
type of non-performing loan sale auction program until the corporation 
issues rules, through the notice and comment rule making procedures 
under section 553 of title 5, United States Code, that address 
essential aspects of any non-performing loan sale program, including--
            ``(i) the method of selection of loans for sale;
            ``(ii) notice to borrowers prior to inclusion of the loan 
        in a sale; and
            ``(iii) review of loss mitigation status prior to the sale, 
        selection of eligible bidders, loss mitigation guidelines 
        applicable to loan purchasers, and reporting requirements for 
        purchasers.
    ``(3)(A) Each purchaser of a covered mortgage shall offer the 
borrower on the covered mortgage--
            ``(i) appropriate loss mitigation options, including 
        affordable and sustainable loan modifications; and
            ``(ii) the opportunity for a short sale or a deed in lieu 
        of foreclosure.
    ``(B) The specific formula, calculations, waterfall steps, and 
other terms for appropriate loss mitigation options described in 
subparagraph (A) shall be published by the corporation, made available 
to the public, and included in a written notice given to borrowers 
before any acceleration or foreclosure is initiated after a loan sale.
    ``(4) With respect to a transferee, including any subsequent 
transferee, of a covered mortgage that is sold by the corporation under 
this section--
            ``(A) the transferee shall certify in writing to the 
        corporation that the transferee will comply with the provisions 
        of this subsection in the marketing and transfer of any 
        property received in the disposition of any transferred loan;
            ``(B) the transferee shall provide to the corporation 
        records documenting that the transfers of those properties are 
        in compliance with this subsection; and
            ``(C) the failure of the corporation or the transferee to 
        comply with the requirements under this subsection for a loan 
        in default shall be a defense to foreclosure, and a transferee 
        shall not execute a foreclosure judgment or order of sale, or 
        conduct a foreclosure sale, until the transferee has complied 
        with all requirements under this subsection.
    ``(5) With respect to covered mortgages that are sold by the 
corporation under this section and foreclosed upon by the buyer, not 
less than 90 percent of the properties that are the subject of the 
covered mortgages in an auction shall be--
            ``(A) sold to owner-occupants;
            ``(B) operated or transferred to an entity that will 
        operate the property as affordable rental housing for 
        households below 80 percent of the area median income for a 
        period of not less than 15 years; or
            ``(C) transferred or donated to a nonprofit agency that is 
        certified by the corporation and will redevelop the property 
        for owner occupancy or affordable rental housing.
    ``(6) The corporation shall implement policies, procedures, and 
controls to--
            ``(A) identify and recruit community partners;
            ``(B) engage in consultations with community partners 
        before the sale of a pool of covered mortgages under this 
        section to determine whether that sale can be designed to meet 
        the specific needs of the communities served by the community 
        partners; and
            ``(C) prioritize the sale of pools of single-family 
        mortgages to community partners by--
                    ``(i) designing pools of covered mortgages for 
                direct sale to a community partner, the price of which 
                shall be set by the corporation based on a pricing 
                model that considers--
                            ``(I) the current fair market value of the 
                        properties; and
                            ``(II) the potential impact of foreclosures 
                        on those properties to the value of other homes 
                        in the same census tract; or
                            ``(III) in the case of an auction, if the 
                        winning bid is not from a community partner, 
                        permitting any community partner that bid 
                        during that same auction to have a final 
                        opportunity to enter a higher bid on the 
                        pool.''.
    (d) Freddie Mac.--Section 305 of the Federal Home Loan Mortgage 
Corporation Act (12 U.S.C. 1454) is amended by adding at the end the 
following:
    ``(e)(1) The Corporation may not sell or transfer any mortgage that 
is secured by a single-family residential property (in this section 
referred to as a `covered mortgage') under this section unless the 
requirements of this subsection are met.
    ``(2)(A) If the Corporation intends to sell or transfer a covered 
mortgage, the Corporation shall provide the current borrower and all 
owners of record of the property securing the covered mortgage, or 
require that the current borrower and owners of record be provided, a 
separate written notice of the intent to sell the covered mortgage 
that--
            ``(i) is mailed via certified and first class mail not less 
        than 90 days before the date on which the loan is included in 
        any proposed sale; and
            ``(ii) includes--
                    ``(I) a description of the loss mitigation options 
                of the Corporation that are available to borrowers in 
                financial distress and the obligation of servicers to 
                consider borrowers in default for those options;
                    ``(II) a description of the actions that the 
                servicer of the loan has taken to review and implement 
                those options for the borrower; and
                    ``(III) a description of the procedures the 
                borrower may use to contest with the Corporation the 
                compliance by the servicer with that obligation.
    ``(B) The determination of the Corporation to authorize the sale of 
a mortgage under this section shall be reviewable under chapter 7 of 
title 5, United States Code, for abuse of discretion and arbitrary and 
capricious agency action.
    ``(C) The Corporation may not sell any covered mortgage through any 
type of non-performing loan sale auction program until the Corporation 
issues rules, through the notice and comment rule making procedures 
under section 553 of title 5, United States Code, that address 
essential aspects of any non-performing loan sale program, including--
            ``(i) the method of selection of loans for sale;
            ``(ii) notice to borrowers prior to inclusion of the loan 
        in a sale; and
            ``(iii) review of loss mitigation status prior to the sale, 
        selection of eligible bidders, loss mitigation guidelines 
        applicable to loan purchasers, and reporting requirements for 
        purchasers.
    ``(3)(A) Each purchaser of a covered mortgage shall offer the 
borrower on the covered mortgage--
            ``(i) appropriate loss mitigation options, including 
        affordable and sustainable loan modifications; and
            ``(ii) the opportunity for a short sale or a deed in lieu 
        of foreclosure.
    ``(B) The specific formula, calculations, waterfall steps, and 
other terms for appropriate loss mitigation options described in 
subparagraph (A) shall be published by the Corporation, made available 
to the public, and included in a written notice given to borrowers 
before any acceleration or foreclosure is initiated after a loan sale.
    ``(4) With respect to a transferee, including any subsequent 
transferee, of a covered mortgage that is sold by the Corporation under 
this section--
            ``(A) the transferee shall certify in writing to the 
        Corporation that the transferee will comply with the provisions 
        of this section in the marketing and transfer of any property 
        received in the disposition of any transferred loan;
            ``(B) the transferee shall provide to the Corporation 
        records documenting that the transfers of those properties are 
        in compliance with this subsection; and
            ``(C) the failure of the Corporation or the transferee to 
        comply with the requirements under this subsection for a loan 
        in default shall be a defense to foreclosure, and a transferee 
        shall not execute a foreclosure judgment or order of sale, or 
        conduct a foreclosure sale, until the transferee has complied 
        with all requirements under this subsection.
    ``(5) With respect to covered mortgages that are sold by the 
Corporation under this section and foreclosed upon by the buyer, not 
less than 90 percent of the properties that are the subject of the 
covered mortgages in an auction shall be--
            ``(A) sold to owner-occupants;
            ``(B) operated or transferred to an entity that will 
        operate the property as affordable rental housing for 
        households below 80 percent of the area median income for a 
        period of not less than 15 years; or
            ``(C) transferred or donated to a nonprofit agency that is 
        certified by the Corporation and will redevelop the property 
        for owner occupancy or affordable rental housing.
    ``(6) The Corporation shall implement policies, procedures, and 
controls to--
            ``(A) identify and recruit community partners;
            ``(B) engage in consultations with community partners 
        before the sale of a pool of covered mortgages under this 
        section to determine whether that sale can be designed to meet 
        the specific needs of the communities served by the community 
        partners; and
            ``(C) prioritize the sale of pools of single-family 
        mortgages to community partners by--
                    ``(i) designing pools of covered mortgages for 
                direct sale to a community partner, the price of which 
                shall be set by the Corporation based on a pricing 
                model that considers--
                            ``(I) the current fair market value of the 
                        properties; and
                            ``(II) the potential impact of foreclosures 
                        on those properties to the value of other homes 
                        in the same census tract; or
                            ``(III) in the case of an auction, if the 
                        winning bid is not from a community partner, 
                        permitting any community partner that bid 
                        during that same auction to have a final 
                        opportunity to enter a higher bid on the 
                        pool.''.

   TITLE II--TAKING THE FIRST STEPS TO REVERSE THE LEGACY OF HOUSING 
                DISCRIMINATION AND GOVERNMENT NEGLIGENCE

SEC. 201. DOWN PAYMENT ASSISTANCE PROGRAM FOR COMMUNITIES FORMERLY 
              SEGREGATED BY LAW.

    (a) Findings.--Congress finds the following:
            (1) For generations, buying a home has been the primary way 
        working families build wealth.
            (2) A home is not only a place to live, but also an asset 
        that may appreciate, help fund a new business, finance an 
        education, or cover retirement expenses. A home provides 
        stability and financial predictability, which are important 
        foundations for prosperity and access to opportunity for a 
        family.
            (3) For decades, the Federal Government subsidized 
        homeownership--for White families. Until the 1960s, the Federal 
        Government systematically denied African Americans and other 
        marginalized groups the ability to obtain mortgage credit, buy 
        homes, and build wealth for their families while subsidizing 
        the American dream for White families.
            (4) The Federal Government, through the Home Owners' Loan 
        Corporation and the Federal Housing Administration, 
        standardized and institutionalized discriminatory policies on 
        the basis of race, national origin, and religion that reflected 
        practices in the private sector and became a model for their 
        widespread adoption across the housing industry.
            (5) Racist restrictive covenants and zoning ordinances also 
        robbed families of color of the opportunity to live and build 
        opportunity for their families in the community of their 
        choice.
            (6) In the years before the 2008 financial crisis, lenders 
        targeted borrowers of color with abusive loans while government 
        regulators sat on their hands, further extracting wealth from 
        these same communities.
            (7) The legacy of housing discrimination and regulatory 
        negligence is a contributor to a large and growing gap in 
        wealth and outcomes between Black and White families. The 
        median income White family in the United States has almost 10 
        times the wealth of the median income Black family in the 
        United States. The gap between the White homeownership rate and 
        the Black homeownership rate is bigger today than it was when 
        housing discrimination was legal. Seventy-five percent of 
        formerly redlined communities are still low-income and 66 
        percent are still minority communities.
            (8) The purpose of this section is for the Federal 
        Government to take the first step toward addressing the racial 
        wealth gap that it contributed to creating by helping 
        individuals or descendants of individuals who were harmed by 
        housing discrimination or negligence by the Federal Government.
    (b) Definitions.--In this section:
            (1) Eligible resident.--The term ``eligible resident'' 
        means a resident of a geographic area, as defined by the 
        Secretary by regulation under subsection (g), who--
                    (A) is a first-time homebuyer;
                    (B) has an income that is less than 120 percent of 
                the area median income; and
                    (C)(i) resided in that geographic area during the 
                4-year period preceding the date of enactment of this 
                Act;
                    (ii) resided in that geographic area for a period 
                of 4 years before moving out of the geographic area 
                subsequent to a foreclosure, short sale, or deed in 
                lieu of foreclosure on a home that--
                            (I) was the primary residence of the 
                        resident; and
                            (II) was purchased or refinanced during the 
                        period beginning on January 1, 2001, and ending 
                        on December 30, 2008; or
                    (iii) resided in that geographic area for a period 
                of 4 years before moving out of the geographic area due 
                to a major disaster declared by the President or a 
                State, territorial, or Tribal government.
            (2) First-time homebuyer.--The term ``first-time 
        homebuyer'' means an individual (and if married, the spouse of 
        the individual) who--
                    (A) has had no ownership in a principal residence 
                during the 3-year period ending on the date of purchase 
                of the property; or
                    (B) who surrendered an ownership interest in a 
                principal residence during the 3-year period ending on 
                the date of purchase of the property as part of a 
                divorce proceeding.
            (3) Secretary.--The term ``Secretary'' means the Secretary 
        of Housing and Urban Development.
    (c) Establishment.--There is established in the Office of Housing 
of the Department of Housing and Urban Development a fund, to be 
administered by the Secretary, that shall be used--
            (1) to provide grants to eligible residents to purchase 
        homes;
            (2) for outreach to financial institutions in targeted 
        areas and eligible residents, including for the administration 
        of that outreach;
            (3) for counseling or financial education administered by 
        counseling agencies approved by the Secretary in order to 
        ensure sustainable homeownership;
            (4) to create and maintain the database described in 
        subsection (g)(3); and
            (5) to maintain any records required to implement this 
        section.
    (d) Grant Amount.--Eligible residents may receive a grant from the 
fund established under subsection (c) in an amount equal to--
            (1) not more than 3.5 percent of the appraised value of the 
        property to be purchased; or
            (2) if the appraised value is more than the principal 
        obligation amount limitation for mortgages insured under title 
        II of the National Housing Act (12 U.S.C. 1707 et seq.), 3.5 
        percent of the maximum principal obligation limitation for the 
        property to be purchased.
    (e) FHA Loan.--An eligible resident is not required to obtain a 
mortgage that is insured under title II of the National Housing Act (12 
U.S.C. 1707 et seq.) as a condition of receiving a grant under this 
section.
    (f) Geographic Area.--An eligible resident is not required to 
purchase a home within the geographic area described in subsection 
(b)(1)(C) as a condition of receiving a grant under this section.
    (g) Regulations and Database.--Not later than 1 year after the date 
of enactment of this Act, the Secretary shall--
            (1) in consultation with interested parties, including 
        housing counseling agencies approved by the Secretary and 
        individuals or groups with expertise in fair housing, finalize 
        regulations relating to the use of the fund established under 
        subsection (c), including defining the geographic areas in 
        which residents are eligible to receive grants through the 
        fund, which shall include--
                    (A) census tracts graded as ``hazardous'' or 
                ``definitely declining''in maps drawn by the Home 
                Owners' Loan Corporation that are, as of the date of 
                enactment of this Act, low-income communities;
                    (B) census tracts that were designated for non-
                White citizens in jurisdictions that historically had 
                racially segregated zoning codes and are, as of the 
                date of enactment of this Act, low-income communities; 
                and
                    (C) census tracts that are racially or ethnically 
                concentrated areas of poverty, which shall mean a 
                census tract--
                            (i) with a non-White population of 50 
                        percent or more; and
                            (ii)(I) in which not less than 40 percent 
                        of families living in the census tract have 
                        incomes that are at or below the poverty line; 
                        or
                            (II) in which the average tract poverty 
                        rate is 3 or more times the average tract 
                        poverty tract for the metropolitan or 
                        micropolitan area;
            (2) finalize regulations relating to the disbursement of 
        funds under this section to ensure that eligible residents are 
        able to receive funds before the closing date for their home, 
        which may include creating a program that allows a lender to be 
        reimbursed by the fund established under subsection (c) if the 
        lender--
                    (A) provides the eligible resident with funds for 
                the closing; or
                    (B) allows eligible residents to be preapproved to 
                receive assistance under this section when arranging 
                financing for their home;
            (3) create a publicly accessible database that allows 
        individuals, real estate professionals, and lenders to 
        determine whether a borrower is eligible for assistance under 
        this section; and
            (4) establish methods to verify that an individual is an 
        eligible resident.
    (h) Appropriations.--Out of funds in the Treasury not otherwise 
appropriated, there is appropriated to the fund established under 
subsection (c) such sums as may be necessary for each of fiscal years 
2020 through 2029 to provide grants under this section and to carry out 
consumer education efforts related to this section.
    (i) Inclusion of Program in Home Buying Information Booklets.--
Section 5(b) of the Real Estate Settlement Procedures Act of 1974 (12 
U.S.C. 2604(b)) is amended by inserting after paragraph (14) the 
following:
            ``(15) Information relating to the down payment assistance 
        program established under section 201 of the American Housing 
        and Economic Mobility Act of 2019.''.
    (j) Inclusion of Program as Mortgage Product.--Section 203(f)(1) of 
the National Housing Act (12 U.S.C. 1709(f)(1)) is amended by inserting 
``, including the down payment assistance program established under 
section 201 of the American Housing and Economic Mobility Act of 
2019,'' after ``mortgage products''.

SEC. 202. FORMULA GRANT PROGRAM FOR COMMUNITIES THAT HAVE NOT RECOVERED 
              FROM THE FINANCIAL CRISIS.

    (a) Establishment.--The Secretary of Housing and Urban Development 
shall establish a formula grant program to provide funding to States to 
assist borrowers with negative equity in their primary residence 
through--
            (1) measures that provide funds to borrowers to--
                    (A) pay down arrears on an otherwise affordable 
                loan;
                    (B) pay down arrears or principal on a loan in 
                order to qualify for a loan modification that will 
                allow the borrower to keep their home;
                    (C) pay off the entire or pay down part of a second 
                mortgage or home equity line of credit;
                    (D) pay off a small-dollar mortgage;
                    (E) pay delinquent taxes and tax liens;
                    (F) pay off delinquent water or sewer bills and 
                liens; and
                    (G) pay for home repairs or maintenance or for 
                modifications to bring the home into compliance with 
                any applicable codes; and
            (2) programs to purchase or rehabilitate vacant land and 
        foreclosed homes to enhance neighborhood property values.
    (b) Formula.--The Secretary of Housing and Urban Development shall 
distribute amounts under this section based on the number of borrowers 
in the State with a primary residence with negative equity.
    (c) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $2,000,000,000 for fiscal year 
2020.

SEC. 203. STRENGTHENING THE COMMUNITY REINVESTMENT ACT OF 1977.

    (a) Short Title.--This section may be cited as the ``Community 
Reinvestment Reform Act of 2019''.
    (b) Amendments to the Community Reinvestment Act of 1977.--The 
Community Reinvestment Act of 1977 (12 U.S.C. 2901 et seq.) is 
amended--
            (1) by amending sections 802 and 803 (12 U.S.C. 2901, 2902) 
        to read as follows:

``SEC. 802. FINDINGS AND PURPOSE.

    ``(a) Findings.--Congress finds that--
            ``(1) regulated financial institutions are required by law 
        to demonstrate that they serve the convenience and needs of the 
        communities in which they are chartered or do business, in 
        particular low- and moderate-income communities;
            ``(2) the convenience and needs of communities include the 
        need for credit services, deposit services, transaction 
        services, other financial services, and community development 
        loans and investments; and
            ``(3) regulated financial institutions have a continuing 
        and affirmative obligation to meet the credit or other 
        financial needs of the local communities in which they are 
        chartered or do business.
    ``(b) Purpose.--It is the purpose of this title to require each 
appropriate Federal financial supervisory agency to use its authority 
when examining regulated financial institutions to ensure that those 
institutions meet the credit or other financial needs of the local 
communities in which they are chartered or do business consistent with 
the safe and sound operation of those institutions.

``SEC. 803. DEFINITIONS.

    ``In this title:
            ``(1) Application for a deposit facility.--The term 
        `application for a deposit facility' means an application to 
        the appropriate Federal financial supervisory agency otherwise 
        required under Federal law or regulations thereunder for--
                    ``(A) a charter for a national bank or Federal 
                savings and loan association;
                    ``(B) deposit insurance in connection with a newly 
                chartered State bank, savings bank, savings and loan 
                association, or similar institution;
                    ``(C) the establishment of a domestic branch or 
                other facility with the ability to accept deposits of a 
                regulated financial institution;
                    ``(D) the relocation of the home office or a branch 
                office of a regulated financial institution;
                    ``(E) the merger or consolidation with, the 
                acquisition of the assets of, or the assumption of the 
                liabilities of a regulated financial institution 
                requiring approval under section 18(c) of the Federal 
                Deposit Insurance Act (12 U.S.C. 1828(c)); or
                    ``(F) the acquisition of shares in, or the assets 
                of, a regulated financial institution requiring 
                approval under section 3 of the Bank Holding Company 
                Act of 1956 (12 U.S.C. 1842).
            ``(2) Appropriate federal banking agency.--The term 
        `appropriate Federal banking agency' has the meaning given the 
        term in section 3 of the Federal Deposit Insurance Act (12 
        U.S.C. 1813).
            ``(3) Appropriate federal financial supervisory agency.--
        The term `appropriate Federal financial supervisory agency' 
        means--
                    ``(A) the appropriate Federal banking agency with 
                respect to depository institutions and depository 
                institution holding companies; and
                    ``(B) the Bureau of Consumer Financial Protection 
                with respect to any covered person supervised by the 
                Bureau pursuant to section 1024 of the Dodd-Frank Wall 
                Street Reform and Consumer Protection Act (12 U.S.C. 
                5514).
            ``(4) Assessment area.--The term `assessment area' means, 
        with respect to a regulated financial institution, each 
        community, including a State, metropolitan area, and urban or 
        rural county, in which the institution--
                    ``(A) maintains deposit-taking branches, automated 
                teller machines, or retail offices;
                    ``(B) is represented by an agent;
                    ``(C) issues a significant number of loans or other 
                products relative to the total number of loans or other 
                products made by the institution;
                    ``(D) has issued not less than 75 percent of the 
                loans of the institution; or
                    ``(E) has conducted not less than 75 percent of the 
                business of the institution.
            ``(5) Community benefits plan.--The term `community 
        benefits plan' means a plan that provides measurable goals for 
        future amounts of safe and sound loans, investments, services, 
        and other financial products for low- and moderate-income 
        communities and other distressed or underserved communities.
            ``(6) Community development.--The term `community 
        development' means--
                    ``(A) affordable housing for low- or moderate-
                income individuals and avoidance of patterns of lending 
                resulting in the loss of affordable housing units;
                    ``(B) community development services, including 
                counseling and successful mortgage or loan 
                modifications of delinquent loans;
                    ``(C) activities that promote integration;
                    ``(D) activities that promote economic development 
                by financing small businesses or farms that meet the 
                size eligibility requirements of the development 
                company or small business investment company programs 
                under section 121.301 of title 13, Code of Federal 
                Regulations, or any successor regulation, with an 
                emphasis on small businesses that have gross annual 
                revenues of not more than $1,000,000;
                    ``(E) activities that revitalize or stabilize--
                            ``(i) low- or moderate-income geographies;
                            ``(ii) designated disaster areas;
                            ``(iii) distressed or underserved 
                        nonmetropolitan middle-income geographies 
                        designated by the Federal Financial 
                        Institutions Examination Council, based on--
                                    ``(I) rates of poverty, 
                                unemployment, and population loss; or
                                    ``(II) population size, density, 
                                and dispersion, if those activities 
                                help to meet essential community needs, 
                                including the needs of low- and 
                                moderate-income individuals; or
                            ``(iv) other distressed or underserved 
                        communities; or
                    ``(F) activities that promote physical, 
                environmental, and sensory accessibility in housing 
                stock that is integrated into the community.
            ``(7) Depository institution; depository institution 
        holding company.--The terms `depository institution' and 
        `depository institution holding company' have the meanings 
        given those terms in section 3 of the Federal Deposit Insurance 
        Act (12 U.S.C. 1813).
            ``(8) Entire community.--The term `entire community' means 
        all of the assessment areas of a regulated financial 
        institution.
            ``(9) Enumerated consumer laws.--The term `enumerated 
        consumer laws' has the meaning given the term in section 1002 
        of the Consumer Financial Protection Act of 2010 (12 U.S.C. 
        5481).
            ``(10) Geography.--The term `geography' means a census 
        tract delineated by the Bureau of the Census in the most recent 
        decennial census.
            ``(11) Insured depository institution.--The term `insured 
        depository institution' has the meaning given the term in 
        section 3 of the Federal Deposit Insurance Act (12 U.S.C. 
        1813).
            ``(12) Other distressed or underserved community.--The term 
        `other distressed or underserved community' means an area that, 
        according to a periodic review and data analysis by the 
        appropriate Federal financial supervisory agencies on an 
        interagency basis through the Federal Financial Institutions 
        Examination Council, is experiencing economic hardship or is 
        underserved by financial institutions.
            ``(13) Regulated financial institution.--The term 
        `regulated financial institution' means--
                    ``(A) an insured depository institution;
                    ``(B) a depository institution holding company; and
                    ``(C) a U.S. nonbank mortgage originator.
            ``(14) U.S. nonbank mortgage originator.--The term `U.S. 
        nonbank mortgage originator' means a covered person subject to 
        section 1024 of the Dodd-Frank Wall Street Reform and Consumer 
        Protection Act (12 U.S.C. 5514) that offers or provides--
                    ``(A) origination of loans secured by real estate 
                for use by consumers primarily for personal, family, or 
                household purposes; or
                    ``(B) loan modification or foreclosure relief 
                services in connection with a loan described in 
                subparagraph (A).'';
            (2) in section 804 (12 U.S.C. 2903)--
                    (A) by redesignating subsections (c) and (d) as 
                subsections (f) and (g), respectively;
                    (B) by striking subsections (a) and (b) and 
                inserting the following:
    ``(a) Depository Institutions and Bank Holding Companies.--In 
connection with its examination of a regulated financial institution 
other than a U.S. nonbank mortgage originator, the appropriate Federal 
financial supervisory agency shall perform the following:
            ``(1) Assess the record of the institution in meeting the 
        credit or other financial needs of its entire community, in 
        particular low- and moderate-income people and communities, and 
        other distressed or underserved communities, consistent with 
        the safe and sound operation of the institution.
            ``(2) Assess the effectiveness of the following activities 
        in meeting the credit or other financial needs of the 
        assessment areas of the institution, consistent with the safe 
        and sound operation of the institution:
                    ``(A) Retail lending, including home, small 
                business, consumer, and other lending and financial 
                products, that responds to credit needs or other 
                financial needs.
                    ``(B) Community development lending and 
                investments, which may include a consideration of--
                            ``(i) the origination of loans and other 
                        efforts by the institution to assist existing 
                        low- and moderate-income residents to remain in 
                        affordable housing in their community; and
                            ``(ii) the origination of loans by the 
                        institution that result in the construction, 
                        rehabilitation, or preservation of affordable 
                        housing units.
                    ``(C) Retail financial services and community 
                development services.
            ``(3) With respect to its evaluation of an application for 
        a deposit facility by the institution--
                    ``(A) consider the record described in paragraph 
                (1), the overall rating of the institution under this 
                section, and any improvement plans submitted pursuant 
                to this section;
                    ``(B) provide an opportunity for public comment for 
                a period of not less than 60 days;
                    ``(C) consider changes in the community 
                reinvestment performance of the institution since the 
                most recent rating under this section by the 
                appropriate Federal financial supervisory agency; and
                    ``(D) require--
                            ``(i) a demonstration of public benefit, 
                        including a community benefits plan with 
                        measurable goals regarding increasing 
                        responsible lending and other financial 
                        products;
                            ``(ii) that the institution consult with 
                        community-based organizations and other 
                        community stakeholders in developing the 
                        community benefits plan; and
                            ``(iii) a public hearing for any 
                        institution that has a received a `need-to-
                        improve' or `sufficient' grade in any 
                        individual assessment area during the most 
                        recent examination.
    ``(b) U.S. Nonbank Mortgage Originator.--In connection with its 
examination of a U.S. nonbank mortgage originator, the appropriate 
Federal financial supervisory agency shall perform the following:
            ``(1) Assess the record of the U.S. nonbank mortgage 
        originator in meeting the credit or other financial needs of 
        its entire community, in particular low-income and moderate-
        income people and communities and other distressed or 
        underserved communities, consistent with the safe and sound 
        operation of the U.S. nonbank mortgage originator.
            ``(2) Assess, as appropriate, the following activities in 
        the assessment areas of the U.S. nonbank mortgage originator:
                    ``(A) Retail lending, including home loans.
                    ``(B) Community development services.
                    ``(C) Community development lending and 
                investments, which may include a consideration of--
                            ``(i) the origination of loans and other 
                        efforts by the institution to assist existing 
                        low- and moderate-income residents to remain in 
                        affordable housing in their community;
                            ``(ii) the origination of loans by the 
                        institution that result in the construction, 
                        rehabilitation or preservation of affordable 
                        housing units; and
                            ``(iii) investments in or loans to 
                        community development financial institutions 
                        (as defined in section 103 of the Community 
                        Development Banking and Financial Institutions 
                        Act of 1994 (12 U.S.C. 4702)), community 
                        development corporations (as defined in section 
                        613 of the Community Economic Development Act 
                        of 1981 (42 U.S.C. 9802)), and other nonprofit 
                        organizations serving the housing and 
                        development needs of the community.
            ``(3) With respect to its evaluation of an application for 
        a deposit facility by the U.S. nonbank mortgage originator--
                    ``(A) consider the record described in paragraph 
                (1), the overall rating of the U.S. nonbank mortgage 
                originator under this section, and any improvement 
                plans submitted pursuant to this section;
                    ``(B) provide an opportunity for public comment for 
                a period of not less than 60 days;
                    ``(C) consider changes in the community 
                reinvestment performance of the U.S. nonbank mortgage 
                originator since the most recent rating under this 
                section by the appropriate Federal financial 
                supervisory agency; and
                    ``(D) require--
                            ``(i) a demonstration that granting the 
                        application for a deposit facility is in the 
                        public interest, which shall include a 
                        submission of a community benefits plan by the 
                        U.S. nonbank mortgage originator to the 
                        appropriate Federal financial supervisory 
                        agency;
                            ``(ii) that the U.S. nonbank mortgage 
                        originator consult with community-based 
                        organizations and other community stakeholders 
                        in developing the community benefits plan; and
                            ``(iii) a public hearing for any U.S. 
                        nonbank mortgage originator that has a received 
                        a `need-to-improve' or `sufficient' grade in 
                        any individual assessment area during the most 
                        recent examination.
    ``(c) Requirements.--
            ``(1) In general.--In connection with its examination of a 
        regulated financial institution under subsection (a) or (b), 
        the appropriate Federal financial supervisory agency shall--
                    ``(A) consider public comments received by the 
                appropriate Federal financial supervisory agency 
                regarding the record of the institution in meeting the 
                credit or other financial needs of its entire 
                community, including low- and moderate-income 
                communities; and
                    ``(B) require an improvement plan for an 
                institution that receives a rating of `sufficient' or 
                lower on the written evaluation of the institution, or 
                such a rating in any individual assessment area, and 
                require the improvement plan to result in the 
                reasonable likelihood that the institution will obtain 
                a rating of at least `satisfactory record of meeting 
                community credit or other financial needs' in the 
                relevant measure on the next examination.
            ``(2) Improvement plan.--
                    ``(A) In general.--A regulated financial 
                institution that is required to submit an improvement 
                plan required under paragraph (1)(B) shall submit the 
                plan in writing to the appropriate Federal financial 
                supervisory agency not later than 90 days after 
                receiving notice that the regulated financial 
                institution is required to submit the plan.
                    ``(B) Public comment.--Upon receipt of an 
                improvement plan of a regulated financial institution 
                required under paragraph (1)(B), the appropriate 
                Federal financial supervisory agency shall--
                            ``(i) make the plan available to the public 
                        for review and comment for a period of not less 
                        than 60 days; and
                            ``(ii) require the regulated financial 
                        institution to revise, as appropriate, the 
                        improvement plan in response to the public 
                        comments received under the public review and 
                        comment period described in clause (i) and 
                        submit the plan to the appropriate Federal 
                        financial supervisory agency not later than 60 
                        days after the end of that period.
            ``(3) Examination of certain regulated financial 
        institutions.--In the case of a regulated financial institution 
        whose lending or other business is not clustered in 
        geographical areas and is thinly dispersed across the country, 
        the institution shall--
                    ``(A) be evaluated under subsection (a) or (b), as 
                applicable--
                            ``(i) by considering the effectiveness of 
                        the institution in serving customers or 
                        borrowers, with a special emphasis on low- and 
                        moderate-income individuals across the country 
                        regardless of where the individuals reside; and
                            ``(ii) based on objective thresholds 
                        developed by the appropriate Federal financial 
                        supervisory agencies to clarify when lending or 
                        other business is dispersed across the country 
                        and not clustered in distinct geographical 
                        areas, which may include low levels of lending 
                        or other financial products across States or 
                        other areas; and
                    ``(B) meet the needs of other distressed or 
                underserved communities.
    ``(d) Consideration.--Remediation of consumers pursuant to an order 
by an court or administrative body or a settlement with a government 
agency or a private party shall not be considered in an assessment 
conducted under subsection (a)(2) or (b)(2).
    ``(e) Rule of Construction.--An evaluation of a bank holding 
company under this section shall incorporate evaluations of subsidiary 
regulated financial institutions made by the appropriate Federal 
financial supervisory agency of each subsidiary, if applicable.'';
                    (C) in subsection (f), as so redesignated--
                            (i) by striking paragraph (2);
                            (ii) by redesignating paragraph (3) as 
                        paragraph (2); and
                            (iii) in paragraph (2), as so redesignated, 
                        by striking subparagraph (C); and
                    (D) in subsection (g), as so redesignated, by 
                striking ``subsection (a)'' and inserting ``subsections 
                (a) and (b)'';
            (3) in section 807 (12 U.S.C. 2906)--
                    (A) in subsection (a)--
                            (i) by striking ``an insured depository 
                        institution'' and inserting ``a regulated 
                        financial institution''; and
                            (ii) by inserting ``or financial'' after 
                        ``credit'';
                    (B) in subsection (b)--
                            (i) in paragraph (1)--
                                    (I) in subparagraph (A)--
                                            (aa) in clause (ii), by 
                                        striking ``and'' at the end;
                                            (bb) by redesignating 
                                        clause (iii) as clause (iv); 
                                        and
                                            (cc) by inserting after 
                                        clause (ii) the following:
                    ``(iii) disclose whether the institution engaged in 
                acts or practices that the Bureau of Consumer Financial 
                Protection has determined, and has publicly disclosed, 
                violate the enumerated consumer laws; and''; and
                                    (II) by striking subparagraph (B) 
                                and inserting the following:
            ``(B) Metropolitan area distinctions.--The information 
        required under clauses (i) and (ii) of subparagraph (A) shall 
        be presented separately for each assessment area.
            ``(C) Treatment with respect to violations of enumerated 
        consumer laws.--If a regulated financial institution has 
        engaged in acts or practices that the appropriate Federal 
        financial supervisory agency has determined to be unfair, 
        deceptive, or abusive or acts or practices that violate 
        enumerated consumer laws intended to ensure the fair, 
        equitable, and nondiscriminatory access to credit for 
        individuals and communities that are enforced by the Bureau of 
        Consumer Financial Protection or other Federal or State 
        agencies, the written evaluation shall be negatively influenced 
        in a manner commensurate with the extent of the harm suffered 
        by those individuals and communities.'';
                            (ii) in paragraph (2)--
                                    (I) by striking subparagraphs (A), 
                                (B), (C), and (D) and inserting the 
                                following:
                    ``(A) `Outstanding record of meeting community 
                credit or other financial needs'.
                    ``(B) `Satisfactory record of meeting community 
                credit or other financial needs'.
                    ``(C) `Sufficient record of meeting community 
                credit or other financial needs'.
                    ``(D) `Needs to improve record of meeting community 
                credit or other financial needs'.
                    ``(E) `Substantial noncompliance in meeting 
                community credit or other financial needs'.''; and
                            (iii) by inserting after the flush text 
                        following paragraph (2) the following:
            ``(3) Additional authority.--The appropriate Federal 
        financial supervisory agencies may--
                    ``(A) alter the ratings under this subsection to 
                change or include additional ratings; and
                    ``(B) develop an accompanying point system that 
                includes ranges for each rating category under 
                paragraph (2).'';
                    (C) by redesignating subsection (e) as subsection 
                (f); and
                    (D) by inserting after subsection (d) the 
                following:
    ``(e) Appeals of Rating.--If a regulated financial institution 
appeals the assigned rating under this section, the appropriate Federal 
financial supervisory agency shall post a public notice of the appeal 
on the website of the appropriate Federal financial supervisory 
agency.''; and
            (4) by adding at the end the following:

``SEC. 810. DATA COLLECTION AND REPORTING REQUIREMENTS.

    ``(a) Data Collection.--
            ``(1) Small business and small farm loans.--Each regulated 
        financial institution shall collect and maintain in machine 
        readable form, as prescribed by the appropriate Federal 
        financial supervisory agency, until the completion of the next 
        examination under this title, the following data for each small 
        business or small farm loan originated or purchased by the 
        regulated financial institution:
                    ``(A) A unique number or alpha-numeric symbol that 
                can be used to identify the relevant loan.
                    ``(B) The loan amount at origination.
                    ``(C) The loan location.
                    ``(D) An indicator whether the loan was to a 
                business or farm with gross annual revenues of 
                $1,000,000 or less.
            ``(2) Consumer loans.--Each regulated financial institution 
        shall collect and maintain in machine readable form, as 
        prescribed by the appropriate Federal financial supervisory 
        agency, data for consumer loans originated or purchased by the 
        regulated financial institution, including motor vehicle loans, 
        credit cards, home equity loans, and other secured or unsecured 
        loans. The regulated financial institution shall maintain data 
        separately for each category of consumer loan, including the 
        following for each loan:
                    ``(A) A unique number or alpha-numeric symbol that 
                can be used to identify the relevant loan.
                    ``(B) The loan amount at origination or purchase.
                    ``(C) The loan location.
                    ``(D) The gross annual income of the borrower that 
                the regulated financial institution considered in 
                making its credit decision.
            ``(3) Community development loans and investments.--Each 
        regulated financial institution shall collect and maintain in 
        machine readable form, as prescribed by the appropriate Federal 
        financial supervisory agency, data on the categories of 
        community development lending and investments, including data 
        regarding financing affordable housing, small business 
        development, and economic development.
            ``(4) Assessment area data.--Each regulated financial 
        institution shall collect and report to the appropriate Federal 
        financial supervisory agency by March 1 of each year a list for 
        each assessment area showing the geographies within the area.
            ``(5) Deposits.--The appropriate Federal Supervisory agency 
        shall collect data from regulated financial institutions that 
        reflects how many of the customers of those institutions are 
        low- and moderate-income customers and the services that are 
        used by those customers.
    ``(b) CRA Small Business Disclosure Statement.--The appropriate 
Federal financial supervisory agency shall prepare annually for each 
regulated financial institution that reports data pursuant to this 
section a statement to be known as the `CRA Small Business Disclosure 
Statement' that contains, on a State-by-State basis, the following:
            ``(1) For each county (and for each assessment area smaller 
        than a county) with a population of 500,000 persons or fewer in 
        which the regulated financial institution reported a small 
        business or small farm loan:
                    ``(A) The number and amount of small business and 
                small farm loans reported as originated or purchased 
                located in low-, moderate-, middle-, and upper-income 
                geographies.
                    ``(B) A list grouping each geography according to 
                whether the geography is low-, moderate-, middle-, or 
                upper-income.
                    ``(C) A list showing each geography in which the 
                regulated financial institution reported a small 
                business or small farm loan.
                    ``(D) The number and amount of small business and 
                small farm loans to businesses and farms with gross 
                annual revenues of $1,000,000 or less.
            ``(2) For each county (and for each assessment area smaller 
        than a county) with a population in excess of 500,000 in which 
        the regulated financial institution reported a small business 
        or small farm loan:
                    ``(A) The number and amount of small business and 
                small farm loans reported as originated or purchased 
                located in geographies with median income relative to 
                the area median income of less than 10 percent, 10 or 
                more but less than 20 percent, 20 or more but less than 
                30 percent, 30 or more but less than 40 percent, 40 or 
                more but less than 50 percent, 50 or more but less than 
                60 percent, 60 or more but less than 70 percent, 70 or 
                more but less than 80 percent, 80 or more but less than 
                90 percent, 90 or more but less than 100 percent, 100 
                or more but less than 110 percent, 110 or more but less 
                than 120 percent, and 120 percent or more.
                    ``(B) A list grouping each geography in the county 
                or assessment area according to whether the median 
                income in the geography relative to the area median 
                income is less than 10 percent, 10 or more but less 
                than 20 percent, 20 or more but less than 30 percent, 
                30 or more but less than 40 percent, 40 or more but 
                less than 50 percent, 50 or more but less than 60 
                percent, 60 or more but less than 70 percent, 70 or 
                more but less than 80 percent, 80 or more but less than 
                90 percent, 90 or more but less than 100 percent, 100 
                or more but less than 110 percent, 110 or more but less 
                than 120 percent, and 120 percent or more.
                    ``(C) A list showing each geography in which the 
                regulated financial institution reported a small 
                business or small farm loan.
                    ``(D) The number and amount of small business and 
                small farm loans to businesses and farms with gross 
                annual revenues of $1,000,000 or less.
            ``(3) The number and amount of small business and small 
        farm loans located inside each assessment area reported by the 
        regulated financial institution and the number and amount of 
        small business and small farm loans located outside the 
        assessment areas reported by the regulated financial 
        institution.
            ``(4) The number and amount of community development loans 
        reported as originated or purchased.
    ``(c) Aggregate Disclosure Statements.--
            ``(1) In general.--Each appropriate Federal financial 
        supervisory agency shall prepare annually, for each county and 
        for each assessment area smaller than a county, an aggregate 
        disclosure statement of small business, small farm, and 
        consumer lending by all regulated financial institutions 
        subject to reporting under this section, which shall indicate, 
        for each geography, the number and amount of all small 
        business, small farm, and consumer loans originated or 
        purchased by reporting regulated financial institutions.
            ``(2) Adjusted form.--An appropriate Federal financial 
        supervisory agency may adjust the form of the disclosure 
        statement prepared under paragraph (1) if necessary, because of 
        special circumstances, to protect the privacy of a borrower or 
        the competitive position of a regulated financial institution.
    ``(d) Central Data Depositories.--The Federal Financial 
Institutions Examination Council, in consultation with the appropriate 
Federal financial supervisory agencies, shall implement a system--
            ``(1) to allow the public to access online and in a 
        searchable format the data maintained under paragraphs (1) 
        through (4) of subsection (a); and
            ``(2) that ensures that personally identifiable financial 
        information is not disclosed to public.
    ``(e) Limitation.--An appropriate Federal financial supervisory 
agency may not use the authorities of the appropriate Federal financial 
supervisory agency under this section to obtain a record from a 
regulated financial institution for the purpose of gathering or 
analyzing the personally identifiable financial information of a 
consumer.''.
    (c) Amendment to the Bank Holding Company Act of 1956.--Section 
4(k)(6) of the Bank Holding Company Act of 1956 (12 U.S.C. 1843(k)(6)) 
is amended to read as follows:
            ``(6) Notice and opportunity for comment required.--
                    ``(A) In general.--No financial holding company 
                shall directly or indirectly acquire, and no company 
                that becomes a financial holding company shall directly 
                or indirectly acquire control of, any company in the 
                United States, including through merger, consolidation, 
                or other type of business combination, that is engaged 
                in activities permitted under this subsection or 
                subsection (n) or (o), unless--
                            ``(i) the holding company has provided 
                        notice to the Board, not later than 60 days 
                        prior to the proposed acquisition or prior to 
                        becoming a financial holding company, and 
                        during that time period, or such longer time 
                        period not exceeding an additional 60 days, as 
                        established by the Board;
                            ``(ii) the Board has provided public notice 
                        and opportunity for comment for not less than 
                        60 days; and
                            ``(iii) the Board has not issued a notice 
                        disapproving the proposed acquisition or 
                        retention.
                    ``(B) Factors for consideration.--In reviewing any 
                prior notice filed under this paragraph, the Board 
                shall--
                            ``(i) consider the overall rating of the 
                        financial holding company under the Community 
                        Reinvestment Act of 1977 (12 U.S.C. 2901 et 
                        seq.) and any improvement plans submitted 
                        pursuant to that Act;
                            ``(ii) provide opportunity for public 
                        comment for a period of not less than 60 days;
                            ``(iii) consider changes in the community 
                        reinvestment performance of the financial 
                        holding company since the last rating under the 
                        Community Reinvestment Act of 1977 (12 U.S.C. 
                        2901 et seq.) by the appropriate Federal 
                        financial supervisory agency; and
                            ``(iv) require--
                                    ``(I) a demonstration that granting 
                                the application for a deposit facility 
                                is in the public interest, which shall 
                                include submission to the appropriate 
                                Federal financial supervisory agency of 
                                a community benefits plan;
                                    ``(II) that the institution consult 
                                with community-based organizations and 
                                other community stakeholders in 
                                developing the community benefits plan; 
                                and
                                    ``(III) a public hearing for any 
                                bank that has received a `need-to-
                                improve' or `sufficient' grade in any 
                                assessment area during the last 
                                examination under the Community 
                                Reinvestment Act of 1977 (12 U.S.C. 
                                2901 et seq.).''.
    (d) Technical and Conforming Amendment.--Section 10(c)(2)(H)(i) of 
the Home Owners' Loan Act (12 U.S.C. 1467a(c)(2)(H)(i)) is amended by 
striking ``section 804(c) of the Community Reinvestment Act of 1977 (12 
U.S.C. 2903(c))'' and inserting ``section 804(f) of the Community 
Reinvestment Act of 1977 (12 U.S.C. 2903(f))''.

SEC. 204. AMENDMENTS RELATING TO CREDIT UNION SERVICE TO UNDERSERVED 
              AREAS.

    (a) In General.--The Federal Credit Union Act (12 U.S.C. 1751 et 
seq.) is amended--
            (1) in section 101 (12 U.S.C. 1752)--
                    (A) in paragraph (8), by striking ``and'' at the 
                end;
                    (B) in paragraph (9), by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(10) the term `underserved area'--
                    ``(A) means a local community, neighborhood, or 
                rural district that--
                            ``(i) is an investment area, as defined in 
                        section 103 of the Community Development 
                        Banking and Financial Institutions Act of 1994 
                        (12 U.S.C. 4702), that meets such additional 
                        requirements that the Board may impose; and
                            ``(ii) is underserved, based on data of the 
                        Board and the Federal banking agencies (as 
                        defined in section 3 of the Federal Deposit 
                        Insurance Act (12 U.S.C. 1813)), by other 
                        depository institutions (as defined in section 
                        19(b)(1)(A) of the Federal Reserve Act (12 
                        U.S.C. 461(b)(1)(A)); and
                    ``(B) notwithstanding subparagraph (A), includes, 
                with respect to any Federal credit union, any 
                geographic area within which the credit union--
                            ``(i) has received approval to provide 
                        service before the date of enactment of this 
                        paragraph from the Administration; and
                            ``(ii) has established a service facility 
                        before that date of enactment.'';
            (2) in section 106 (12 U.S.C. 1756), by adding at the end 
        the following: ``The Board shall monitor adherence by a Federal 
        credit union to a significant unmet needs plan submitted under 
        section 109(h) by that Federal credit union that describes how 
        the Federal credit union will serve the deposit and other 
        financial needs of the community.''; and
            (3) in section 109 (12 U.S.C. 1759)--
                    (A) in subsection (c), by amending paragraph (2) to 
                read as follows:
            ``(2) Exception for underserved areas.--
                    ``(A) In general.--Notwithstanding subsection (b), 
                the Board may approve an application by a Federal 
                credit union to allow the membership of the credit 
                union to include any person or organization whose 
                principal residence or place of business is located 
                within a local community, neighborhood, or rural 
                district if--
                            ``(i) the Board determines--
                                    ``(I) at any time after August 7, 
                                1998, that the local community, 
                                neighborhood, or rural district taken 
                                into account for purposes of this 
                                paragraph is an underserved area; and
                                    ``(II) at the time of the approval, 
                                that the credit union is well 
                                capitalized or adequately capitalized 
                                (as defined in section 216(c)(1)); and
                            ``(ii) before the end of the 24-month 
                        period beginning on the date of the approval, 
                        the credit union has established and maintains 
                        an ongoing method to provide services in the 
                        local community, neighborhood, or rural 
                        district.
                    ``(B) Termination of approval.--
                            ``(i) In general.--Any failure of a Federal 
                        credit union to meet the requirement of clause 
                        (ii) of subparagraph (A) by the end of the 24-
                        month period referred to in that clause shall 
                        constitute a termination, as a matter of law, 
                        of any approval of an application under this 
                        paragraph by the Board with respect to the 
                        membership of the credit union.
                            ``(ii) Significant unmet needs plan.--The 
                        Board may terminate the membership of a Federal 
                        credit union upon a finding that the credit 
                        union is not meeting the terms of the 
                        significant unmet needs plan of the credit 
                        union submitted under subsection (h)(1).
                    ``(C) Credit union reporting requirement.--Any 
                Federal credit union that has an application approved 
                under this paragraph shall, as part of the ordinary 
                course of the examination cycle and supervision 
                process, submit a report to the Administration that 
                includes--
                            ``(i) the number of members of the credit 
                        union who are members by reason of the 
                        application;
                            ``(ii) the number of offices or facilities 
                        maintained by the credit union in the local 
                        community, neighborhood, or rural district 
                        taken into account by the Board in approving 
                        the application; and
                            ``(iii) evidence, as specified by the Board 
                        by regulation, demonstrating compliance by the 
                        credit union with the significant unmet needs 
                        plan submitted by the credit union under 
                        subsection (h)(1), as specified by the 
                        Administration.
                    ``(D) Publication by administration.--The 
                Administration shall publish an annual report 
                containing--
                            ``(i) a list of all the applications 
                        approved under this paragraph before the date 
                        on which the report is published;
                            ``(ii) the number and locations of the 
                        underserved areas taken into account in 
                        approving those applications;
                            ``(iii) the total number of members of 
                        credit unions who are members by reason of the 
                        approval of those applications; and
                            ``(iv) evidence demonstrating compliance by 
                        credit unions with significant unmet needs 
                        plans submitted by the credit unions under 
                        subsection (h)(1), as specified by the 
                        Administration.'';
                    (B) in subsection (e)(2), by inserting ``subsection 
                (c)(2) and'' after ``provided in''; and
                    (C) by adding at the end the following:
    ``(h) Additional Requirements for Community Credit Unions.--
            ``(1) In general.--A Federal credit union desiring 
        membership as a credit union described in subsection (b)(3) 
        shall submit to the Board a business plan, which shall include, 
        among other issues, a marketing plan that identifies--
                    ``(A) the unique needs of the various demographic 
                groups in the proposed community; and
                    ``(B) how the credit union will market to each 
                group, particularly underserved groups, to address 
                those needs.
            ``(2) Public comment and hearing.--With respect to a 
        Federal credit union desiring membership as a credit union 
        described in subsection (b)(3) for an area with multiple 
        political jurisdictions with a population of not less than 
        2,500,000, the Administration shall--
                    ``(A) publish a notice in the Federal Register 
                seeking comment from interested parties about the 
                proposed community; and
                    ``(B) conduct a public hearing regarding the 
                application of the Federal credit union.''.
    (b) Regulations.--Not later than 1 year after the date of enactment 
of this Act, the National Credit Union Administration Board shall issue 
final regulations to implement the amendments made by subsection (a).

         TITLE III--REMOVING BARRIERS THAT ISOLATE COMMUNITIES

SEC. 301. EXPANDING RIGHTS UNDER THE FAIR HOUSING ACT.

    (a) Purposes.--The purposes of the amendments made under this 
section are--
            (1) to expand, as well as clarify, confirm, and create 
        greater consistency in, the protections against discrimination 
        on the basis of all covered characteristics; and
            (2) to provide guidance and notice to individuals, 
        organizations, corporations, and agencies regarding their 
        obligations under Federal law.
    (b) Amendments to the Fair Housing Act.--The Fair Housing Act (42 
U.S.C. 3601 et seq.) is amended--
            (1) in section 802 (42 U.S.C. 3602), by adding at the end 
        the following:
    ``(p) `Gender identity' means the gender-related identity, 
appearance, or mannerisms or other gender-related characteristics of an 
individual, with or without regard to the individual's designated sex 
at birth.
    ``(q) `Marital status' has the meaning given the term in section 
202.2 of title 12, Code of Federal Regulations, or any successor 
regulation.
    ``(r) `Sexual orientation' means homosexuality, heterosexuality, or 
bisexuality.
    ``(s) `Source of income' includes income for which there is a 
reasonable expectation that the income will continue from--
            ``(1) a profession, occupation or job;
            ``(2) any government or private assistance, grant, loan or 
        rental assistance program, including low-income housing 
        assistance certificates and vouchers issued under the United 
        States Housing Act of 1937 (42 U.S.C. 1437 et seq.);
            ``(3) a gift, an inheritance, a pension, an annuity, 
        alimony, child support, or other consideration or benefit; or
            ``(4) the sale or pledge of property or an interest in 
        property.
    ``(t) `Veteran status' means--
            ``(1) a member of the uniformed services, as defined in 
        section 101 of title 10, United States Code; or
            ``(2) a veteran, as defined in section 101 of title 38, 
        United States Code.'';
            (2) in section 804 (42 U.S.C. 3604)--
                    (A) by inserting ``actual or perceived'' before 
                ``race, color'' each place that term appears;
                    (B) by inserting ``sexual orientation, gender 
                identity, marital status, source of income, veteran 
                status,'' after ``sex,'' each place that term appears; 
                and
                    (C) in subsection (c)--
                            (i) by inserting ``(1)'' before ``To 
                        make''; and
                            (ii) by adding at the end the following:
    ``(2) Nothing in this title shall be construed to--
            ``(A) prohibit a lender from implementing a loan program 
        for veterans or based upon veteran status; or
            ``(B) prohibit an entity from providing housing assistance 
        under section 8(o)(19) of the United States Housing Act of 1937 
        (42 U.S.C. 1437f(o)(19)), the Homeless Providers Grant and Per 
        Diem program of the Department of Veterans Affairs, or any 
        other Federal housing assistance program for veterans or based 
        upon veterans status.'';
            (3) in section 805 (42 U.S.C. 3605)--
                    (A) by inserting ``actual or perceived'' before 
                ``race, color'' each place that term appears; and
                    (B) by inserting ``sexual orientation, gender 
                identity, marital status, source of income, veteran 
                status,'' after ``sex,'' each place that term appears;
            (4) in section 806 (42 U.S.C. 3606)--
                    (A) by inserting ``actual or perceived'' before 
                ``race, color''; and
                    (B) by inserting ``sexual orientation, gender 
                identity, marital status, source of income, veteran 
                status,'' after ``sex,''; and
            (5) in section 807 (42 U.S.C. 3607), by adding at the end 
        the following:
    ``(c) Nothing in this title limits the ability of the owner of a 
dwelling owner to determine, in a commercially reasonable and non-
discriminatory manner, the ability of a person to afford to purchase or 
rent the dwelling.''.
    (c) Prevention of Intimidation.--Section 901 of the Civil Rights 
Act of 1968 (42 U.S.C. 3631) is amended--
            (1) by inserting ``actual or perceived'' before ``race, 
        color'' each place that term appears; and
            (2) by inserting ``sexual orientation (as defined in 
        section 802), gender identity (as defined in section 802), 
        marital status (as defined in section 802), source of income 
        (as defined in section 802), veteran status (as defined in 
        section 802),'' after ``sex,'' each place that term appears.
    (d) Rule of Construction.--Nothing in the amendments made by this 
section shall be construed to mean that a particular class of 
individuals was not protected against discrimination under existing 
Federal law.

SEC. 302. IMPROVING OUTCOMES IN HOUSING ASSISTANCE PROGRAMS.

    (a) Indian Housing Assistance.--Section 502 of the Native American 
Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 4181) 
is amended by adding at the end the following:
    ``(c) Applicability.--Subsections (a) and (b) shall not apply with 
respect to tenant-based assistance provided under section 8(o) of the 
United States Housing Act of 1937 (42 U.S.C. 1437f(o)).''.
    (b) Supplemental Administrative Fee.--Section 8(q)(2)(B) of the 
United States Housing Act of 1937 (42 U.S.C. 1437f(q)(2)(B)) is amended 
by inserting ``, including the cost of assisting families with children 
or families with a member with a disability that move to lower poverty, 
higher opportunity neighborhoods (as determined by the Secretary based 
on objective, evidence-based criteria)'' after ``programs''.
    (c) Regional Planning To Increase Access to Higher Opportunity 
Areas.--Section 8(o) of the United States Housing Act of 1937 (42 
U.S.C. 1437f(o)) is amended by adding at the end the following:
            ``(21) Increase access to higher opportunity areas.--
                    ``(A) Location analysis.--
                            ``(i) In general.--A public housing agency 
                        that administers the program under this 
                        subsection in a metropolitan area shall--
                                    ``(I) analyze the locations where 
                                the participants of the program of the 
                                public housing agency live; and
                                    ``(II) based on the analysis 
                                described in subclause (I), establish 
                                policies and practices to reduce 
                                disparities and barriers to access to 
                                locations throughout the metropolitan 
                                area that evidence indicates are more 
                                likely to improve outcomes for children 
                                or adults.
                            ``(ii) Considerations.--The location 
                        analysis required under this subparagraph 
                        shall--
                                    ``(I) consider separately the 
                                locations of families with children, 
                                households that include a person with 
                                disabilities, and other groups 
                                protected under the Fair Housing Act 
                                (42 U.S.C. 3601 et seq.); and
                                    ``(II) include an analysis of the 
                                locations in relation to dwelling units 
                                with rents that are potentially 
                                affordable to voucher holders and the 
                                likely impact of key neighborhood 
                                attributes on their well-being and 
                                long-term success, based on Federal and 
                                available local data.
                            ``(iii) Mapping tools.--The Secretary 
                        shall--
                                    ``(I) provide mapping tools and 
                                other information necessary for a 
                                public housing agency to perform the 
                                location analysis under this 
                                subparagraph using the demographic data 
                                on participating families submitted to 
                                the Secretary under part 908 of title 
                                24, Code of Federal Regulations, or any 
                                successor regulation;
                                    ``(II) publish a notice in the 
                                Federal Register, subject to public 
                                comment, that specifies the data 
                                sources and definitions that will be 
                                incorporated in each mapping tool 
                                required under subclause (I); and
                                    ``(III) update the notice required 
                                under subclause (II) as needed based on 
                                changes in the availability of relevant 
                                data or evidence of neighborhood 
                                attributes likely to impact the well-
                                being and long-term success of 
                                participants in the program under this 
                                subsection.
                            ``(iv) Frequency and availability.--The 
                        location analysis required under this 
                        subparagraph shall--
                                    ``(I) be performed by each public 
                                housing agency described in clause (i) 
                                not less frequently than once every 5 
                                years;
                                    ``(II) be performed by all public 
                                housing agencies in a metropolitan area 
                                in the same year, as determined by the 
                                Secretary; and
                                    ``(III) be made available to the 
                                public in a manner that protects the 
                                privacy of program participants.
                    ``(B) Regional policies to increase access to 
                higher opportunity neighborhoods.--Each public housing 
                agency described in subparagraph (A)(i) shall--
                            ``(i) consult with other such public 
                        housing agencies in the same metropolitan area, 
                        or smaller regional area approved by the 
                        Secretary, about the possible barriers and 
                        other reasons for the disparities identified in 
                        the location analysis required under 
                        subparagraph (A);
                            ``(ii) identify policies or practices that 
                        those public housing agencies could adopt 
                        individually or in collaboration, or other 
                        strategies that recipients of grants or other 
                        funding from the Secretary could adopt, to 
                        reduce the barriers and disparities and 
                        increase the share of families with children 
                        and other demographic groups using vouchers in 
                        higher-opportunity neighborhoods in the 
                        metropolitan area or region; and
                            ``(iii) include in the administrative plan 
                        required under section 982.54 of title 24, Code 
                        of Federal Regulations, or any successor 
                        regulation, the policies that the public 
                        housing agency has adopted under this 
                        paragraph.
                    ``(C) Assessment.--The Secretary shall include 
                public housing agency performance in achieving the goal 
                described in subparagraph (A)(i)(II) in the periodic 
                assessment of agency performance in managing the 
                program under this subsection required under part 985 
                of title 24, Code of Federal Regulations, or any 
                successor regulation.''.
    (d) Required Regulatory Changes to Public Housing Agency 
Consortia.--
            (1) Definitions.--In this subsection:
                    (A) Moving to work demonstration program.--The term 
                ``Moving to Work demonstration program'' means the 
                program established under section 204 of the 
                Departments of Veterans Affairs and Housing and Urban 
                Development, and Independent Agencies Appropriations 
                Act, 1996 (Public Law 104-134; 110 Stat. 1321-281).
                    (B) Public housing agency.--The term ``public 
                housing agency'' has the meaning given the term in 
                section 3(b)(6) of the United States Housing Act of 
                1937 (42 U.S.C. 1437a(b)(6)).
            (2) Requirement.--Not later than 1 year after the date of 
        enactment of this Act, the Secretary of Housing and Urban 
        Development shall establish policies and procedures that--
                    (A) enable public housing agencies that elect to 
                operate in consortia under section 13(a) of the United 
                States Housing Act of 1937 (42 U.S.C. 1437k(a)), 
                excluding public housing agencies participating in the 
                Moving to Work demonstration program--
                            (i) to consolidate their funding contracts 
                        for assistance provided under section 8(o) of 
                        such Act (42 U.S.C. 1437f(o)) into a single 
                        contract;
                            (ii) to consolidate their funding contracts 
                        for assistance provided under subsections (d) 
                        and (e) of section 9 of such Act (42 U.S.C. 
                        1437g); or
                            (iii) to exercise the consolidation options 
                        under each of clauses (i) and (ii); and
                    (B) enable public housing agencies to form partial 
                consortia under such section 13(a) (42 U.S.C. 1437k(a)) 
                that consolidate the administration of certain aspects 
                of their housing programs to increase access to higher-
                opportunity areas or for other purposes, subject to 
                such requirements as the Secretary may establish.
            (3) Moving to work agencies.--Any flexibility or waiver 
        applicable to the Moving to Work demonstration program shall 
        not apply to any activities or funds administered through a 
        partial consortia formed under paragraph (2)(B) by 1 or more 
        public housing agencies participating in the Moving to Work 
        demonstration program.

                      TITLE IV--ESTATE TAX REFORM

SEC. 401. AMENDMENT TO INTERNAL REVENUE CODE OF 1986.

    Except as otherwise expressly provided, whenever in this title an 
amendment or repeal is expressed in terms of an amendment to, or repeal 
of, a section or other provision, the reference shall be considered to 
be made to a section or other provision of the Internal Revenue Code of 
1986.

SEC. 402. RATE ADJUSTMENT.

    (a) Increase in Estate Tax Rates.--The table contained in section 
2001(c) is amended to read as follows:

If the amount with respect to which The tentative tax is:
        the tentative tax to be 
        computed is:
    Not over $13,000,000...........
                                        55 percent of such amount.
    Over $13,000,000 but not over 
        $93,000,000.
                                        $7,150,000, plus 60 percent of 
                                                the excess of such 
                                                amount over 
                                                $13,000,000.
    Over $93,000,000...............
                                        $55,150,000, plus 65 percent of 
                                                the excess of such 
                                                amount over 
                                                $93,000,000.

    (b) Reduction of Basic Exclusion Amount.--Paragraph (3) of section 
2010(c) is amended to read as follows:
            ``(3) Basic exclusion amount.--For purposes of this 
        subsection, the basic exclusion amount is $3,500,000.''.
    (c) Surtax on Billion Dollar Estates.--Section 2001 is amended--
            (1) in subsection (b), by striking ``The tax'' and 
        inserting ``Subject to subsection (h), the tax'', and
            (2) by adding at the end the following new subsection:
    ``(h) Surtax on Billion Dollar Estates.--
            ``(1) In general.--In the case of a taxable estate for 
        which the applicable amount is in excess of $1,000,000,000, the 
        tax determined under subsection (b) shall be increased by an 
        amount equal to 10 percent of such applicable amount.
            ``(2) Applicable amount.--For purposes of this subsection, 
        the applicable amount shall be equal to the sum of the amounts 
        under subparagraphs (A) and (B) of paragraph (1) of subsection 
        (b) for the taxable estate.''.

SEC. 403. REQUIRED MINIMUM 10-YEAR TERM, ETC., FOR GRANTOR RETAINED 
              ANNUITY TRUSTS.

    (a) In General.--Subsection (b) of section 2702 is amended--
            (1) by redesignating paragraphs (1), (2), and (3) as 
        subparagraphs (A), (B), and (C), respectively, and by moving 
        such subparagraphs (as so redesignated) 2 ems to the right;
            (2) by striking ``For purposes of'' and inserting the 
        following:
            ``(1) In general.--For purposes of'';
            (3) by striking ``paragraph (1) or (2)'' in paragraph 
        (1)(C) (as so redesignated) and inserting ``subparagraph (A) or 
        (B)''; and
            (4) by adding at the end the following new paragraph:
            ``(2) Additional requirements with respect to grantor 
        retained annuities.--For purposes of subsection (a), in the 
        case of an interest described in paragraph (1)(A) (determined 
        without regard to this paragraph) which is retained by the 
        transferor, such interest shall be treated as described in such 
        paragraph only if--
                    ``(A) the right to receive the fixed amounts 
                referred to in such paragraph is for a term of not less 
                than 10 years,
                    ``(B) such fixed amounts, when determined on an 
                annual basis, do not decrease relative to any prior 
                year during the first 10 years of the term referred to 
                in subparagraph (A), and
                    ``(C) the remainder interest has a value equal to 
                or greater than 10 percent of the value of the assets 
                transferred to the trust, determined as of the time of 
                the transfer.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to transfers made after the date of the enactment of this Act.

SEC. 404. CERTAIN TRANSFER TAX RULES APPLICABLE TO GRANTOR TRUSTS.

    (a) In General.--Subtitle B is amended by adding at the end the 
following new chapter:

             ``CHAPTER 16--SPECIAL RULES FOR GRANTOR TRUSTS

``Sec. 2901. Application of transfer taxes.

``SEC. 2901. APPLICATION OF TRANSFER TAXES.

    ``(a) In General.--In the case of any portion of a trust to which 
this section applies--
            ``(1) the value of the gross estate of the deceased deemed 
        owner of such portion shall include all assets attributable to 
        that portion at the time of the death of such owner,
            ``(2) any distribution from such portion to one or more 
        beneficiaries during the life of the deemed owner of such 
        portion shall be treated as a transfer by gift for purposes of 
        chapter 12, and
            ``(3) if at any time during the life of the deemed owner of 
        such portion, such owner ceases to be treated as the owner of 
        such portion under subpart E of part 1 of subchapter J of 
        chapter 1, all assets attributable to such portion at such time 
        shall be treated for purposes of chapter 12 as a transfer by 
        gift made by the deemed owner.
    ``(b) Portion of Trust to Which Section Applies.--This section 
shall apply to--
            ``(1) the portion of a trust with respect to which the 
        grantor is the deemed owner, and
            ``(2) the portion of the trust to which a person who is not 
        the grantor is a deemed owner by reason of the rules of subpart 
        E of part 1 of subchapter J of chapter 1, and such deemed owner 
        engages in a sale, exchange, or comparable transaction with the 
        trust that is disregarded for purposes of subtitle A.
For purposes of paragraph (2), the portion of the trust described with 
respect to a transaction is the portion of the trust attributable to 
the property received by the trust in such transaction, including all 
retained income therefrom, appreciation thereon, and reinvestments 
thereof, net of the amount of consideration received by the deemed 
owner in such transaction.
    ``(c) Exceptions.--This section shall not apply to--
            ``(1) any trust that is includible in the gross estate of 
        the deemed owner (without regard to subsection (a)(1)), and
            ``(2) any other type of trust that the Secretary determines 
        by regulations or other guidance does not have as a significant 
        purpose the avoidance of transfer taxes.
    ``(d) Deemed Owner Defined.--For purposes of this section, the term 
`deemed owner' means any person who is treated as the owner of a 
portion of a trust under subpart E of part 1 of subchapter J of chapter 
1.
    ``(e) Reduction for Taxable Gifts to Trust Made by Owner.--The 
amount to which subsection (a) applies shall be reduced by the value of 
any transfer by gift by the deemed owner to the trust previously taken 
into account by the deemed owner under chapter 12.
    ``(f) Liability for Payment of Tax.--Any tax imposed pursuant to 
subsection (a) shall be a liability of the trust.''.
    (b) Clerical Amendment.--The table of chapters for subtitle B is 
amended by adding at the end the following new item:

           ``Chapter 16. Special Rules for Grantor Trusts''.

    (c) Effective Date.--The amendments made by this section shall 
apply--
            (1) to trusts created on or after the date of the enactment 
        of this Act;
            (2) to any portion of a trust established before the date 
        of the enactment of this Act which is attributable to a 
        contribution made on or after such date; and
            (3) to any portion of a trust established before the date 
        of the enactment of this Act to which section 2901(a) of the 
        Internal Revenue Code of 1986 (as added by subsection (a)) 
        applies by reason of a transaction described in section 
        2901(b)(2) of such Code on or after such date.

SEC. 405. ELIMINATION OF GENERATION-SKIPPING TRANSFER TAX EXEMPTION FOR 
              CERTAIN TRUSTS.

    (a) In General.--Section 2642 is amended by adding at the end the 
following new subsection:
    ``(h) Elimination of GST Exemption for Certain Trusts.--
            ``(1) In general.--
                    ``(A) Transfers from non-qualifying trusts.--In the 
                case of any generation-skipping transfer made from a 
                trust that is not a qualifying trust, the inclusion 
                ratio with respect to any property transferred in such 
                transfer shall be 1.
                    ``(B) Qualifying trust.--For purposes of this 
                subsection, the term `qualifying trust' means a trust 
                for which the date of termination of such trust is not 
                greater than 50 years after the date on which such 
                trust is created.
            ``(2) Trusts created before date of enactment.--In the case 
        of any trust created before the date of the enactment of this 
        subsection, such trust shall be deemed to be a qualifying trust 
        for a period of 50 years after the date of the enactment of 
        this subsection.
            ``(3) Date of creation of certain deemed separate trusts.--
        In the case of any portion of a trust which is treated as a 
        separate trust under section 2654(b)(1), such separate trust 
        shall be treated as created on the date of the first transfer 
        described in such section with respect to such separate trust.
            ``(4) Date of creation of pour-over trusts.--In the case of 
        any generation-skipping transfer of property which involves the 
        transfer of property from 1 trust to another trust, the date of 
        the creation of the transferee trust shall be treated as being 
        the earlier of--
                    ``(A) the date of the creation of such transferee 
                trust, or
                    ``(B) the date of the creation of the transferor 
                trust.
        In the case of multiple transfers to which the preceding 
        sentence applies, the date of the creation of the transferor 
        trust shall be determined under the preceding sentence before 
        the application of the preceding sentence to determine the date 
        of the creation of the transferee trust.
            ``(5) Regulations.--The Secretary may prescribe such 
        regulations or other guidance as may be necessary or 
        appropriate to carry out this subsection.''.
    (b) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.

SEC. 406. SIMPLIFYING GIFT TAX EXCLUSION FOR ANNUAL GIFTS.

    (a) In General.--Paragraph (1) of section 2503(b) is amended to 
read as follows:
            ``(1) In general.--
                    ``(A) Limit per donee.--In the case of gifts made 
                to any person by the donor during the calendar year, 
                the first $10,000 of such gifts to such person shall 
                not, for purposes of subsection (a), be included in the 
                total amount of gifts made during such year.
                    ``(B) Cumulative limit per donor.--
                            ``(i) In general.--The aggregate amount 
                        excluded under subparagraph (A) with respect to 
                        all transfers described in clause (ii) made by 
                        the donor during the calendar year shall not 
                        exceed twice the dollar amount in effect under 
                        such subparagraph for such calendar year.
                            ``(ii) Transfers subject to limitation.--
                        The transfers described in this clause are--
                                    ``(I) a transfer in trust,
                                    ``(II) a transfer of an interest in 
                                a passthrough entity,
                                    ``(III) a transfer of an interest 
                                subject to a prohibition on sale, and
                                    ``(IV) any other transfer of 
                                property that, without regard to 
                                withdrawal, put, or other such rights 
                                in the donee, cannot immediately be 
                                liquidated by the donee.''.
    (b) Conforming Amendment.--Section 2503 is amended by striking 
subsection (c).
    (c) Regulations.--The Secretary of the Treasury, or the Secretary 
of the Treasury's delegate, may prescribe such regulations or other 
guidance as may be necessary or appropriate to carry out the amendments 
made by this section.
    (d) Effective Date.--The amendments made by this section shall 
apply to any calendar year beginning after the date of the enactment of 
this Act.
                                 <all>