In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.

SECTION 1. SHORT TITLE.

This Act may be cited as ''Clarifying Commercial Real Estate
Loans''.

SEC. 2. CAPITAL REQUIREMENTS FOR CERTAIN ACQUISITION, DEVELOPMENT, OR
CONSTRUCTION LOANS.

The Federal Deposit Insurance Act is amended by adding at the end
the following new section:

''SEC. 51. CAPITAL REQUIREMENTS FOR CERTAIN ACQUISITION, DEVELOPMENT,
OR CONSTRUCTION LOANS.

''(a) In General.--The appropriate Federal banking agencies may
only subject a depository institution to higher capital standards with
respect to a high volatility commercial real estate (HVCRE) exposure
(as such term is defined under section 324.2 of title 12, Code of
Federal Regulations, as of October 11, 2017, or if a successor
regulation is in effect as of the date of the enactment of this
section, such term or any successor term contained in such successor
regulation) if such exposure is an HVCRE ADC loan.
''(b) HVCRE ADC Loan Defined.--For purposes of this section and
with respect to a depository institution, the term 'HVCRE ADC loan'--
''(1) means a credit facility secured by land or improved
real property that, prior to being reclassified by the
depository institution as a Non-HVCRE ADC loan pursuant to
subsection (d)--
''(A) primarily finances, has financed, or
refinances the acquisition, development, or
construction of real property;
''(B) has the purpose of providing financing to
acquire, develop, or improve such real property into
income-producing real property; and
''(C) is dependent upon future income or sales
proceeds from, or refinancing of, such real property
for the repayment of such credit facility;
''(2) does not include a credit facility financing--
''(A) the acquisition, development, or construction
of properties that are--
''(i) one- to four-family residential
properties;
''(ii) real property that would qualify as
an investment in community development; or
''(iii) agricultural land;
''(B) the acquisition or refinance of existing
income-producing real property secured by a mortgage on
such property, if the cash flow being generated by the
real property is sufficient to support the debt service
and expenses of the real property, as determined by the
depository institution, in accordance with the
institution's applicable loan underwriting criteria for
permanent financings;
''(C) improvements to existing income-producing
improved real property secured by a mortgage on such
property, if the cash flow being generated by the real
property is sufficient to support the debt service and
expenses of the real property, as determined by the
depository institution, in accordance with the
institution's applicable loan underwriting criteria for
permanent financings; or
''(D) commercial real property projects in which--
''(i) the loan-to-value ratio is less than
or equal to the applicable maximum supervisory
loan-to-value ratio as determined by the
appropriate Federal banking agency; and
''(ii) the borrower has contributed capital
of at least 15 percent of the real property's
appraised, 'as completed' value to the project
in the form of--
''(I) cash;
''(II) unencumbered readily
marketable assets;
''(III) paid development expenses
out-of-pocket; or
''(IV) contributed real property or
improvements; and
''(iii) the borrower contributed the
minimum amount of capital described under
clause (ii) before the depository institution
advances funds under the credit facility, and
such minimum amount of capital contributed by
the borrower is contractually required to
remain in the project until the credit facility
has been reclassified by the depository
institution as a Non-HVCRE ADC loan under
subsection (d);
''(3) does not include any loan made prior to January 1,
2015; and
''(4) does not include a credit facility reclassified as a
Non-HVCRE ADC loan under subsection (d).
''(c) Value of Contributed Real Property.--For purposes of this
section, the value of any real property contributed by a borrower as a
capital contribution shall be the appraised value of the property as
determined under standards prescribed pursuant to section 1110 of the
Financial Institutions Reform, Recovery, and Enforcement Act of 1989
(12 U.S.C. 3339), in connection with the extension of the credit
facility or loan to such borrower.
''(d) Reclassification as a Non-HVCRE ADC Loan.--For purposes of
this section and with respect to a credit facility and a depository
institution, upon--
''(1) the completion of the development or construction of
the real property being financed by the credit facility; and
''(2) cash flow being generated by the real property being
sufficient to support the debt service and expenses of the real
property,
in either case to the satisfaction of the depository institution, in
accordance with the institution's applicable loan underwriting criteria
for permanent financings, the credit facility may be reclassified by
the depository institution as a Non-HVCRE ADC loan.''.
Clarifying Commercial Real Estate Loans This bill amends the Federal Deposit Insurance Act to specify that a federal banking agency may not subject a depository institution to higher capital standards with respect to a high-volatility commercial real-estate (HVCRE) exposure unless the exposure is an HVCRE acquisition, development, or construction (ADC) loan. An HVCRE ADC loan is aone that: (1) issecured by land or improved real property; (2) has the purpose of providing financing to acquire, develop, or improve the real property such that the property becomes income-producing; and (3) is dependent upon future income or sales proceeds from, or refinancing of, the real property for the repayment of the loan. An HVCRE ADC loan does not include financing for aone- to four-family residential property, agricultural land, real property that would qualify as an investment in community development,existing income-producing real property secured by a mortgage, or certain commercial real-property projects.Furthermore, such a loan does not include any loan made prior to January 1, 2015. A depository institution may reclassify a loan as a non-HVCRE ADC loan if the depository institution is satisfied that: (1) the acquisition, development, orimprovement of real property being financed by the loan is complete; and (2) the cash flow being generated by the real property is sufficient to support the debt service and expenses of the real property.