99 HR 9245 IH: American Housing and Economic Mobility Act of 2024
U.S. House of Representatives
2024-08-02
text/xml
EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
1.Short title; table of contents(a)This Act may be cited as the American Housing and Economic Mobility Act of 2024
.(b)The table of contents for this Act is as follows:Sec. 1. Short title; table of contents.TITLE I—Making housing more affordableSec. 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 negligenceSec. 201. Down payment assistance program for first-time homebuyers.Sec. 202. Formula grant program for communities with an appraisal gap.Sec. 203. Strengthening the Community Reinvestment Act of 1977.Sec. 204. Amendments relating to credit union service to underserved areas.Sec. 205. Raising public welfare caps.Sec. 206. Temporary eligibility of certain direct descendants of certain veterans for housing loans guaranteed by the Secretary of Veterans Affairs.TITLE III—Removing barriers that isolate communitiesSec. 301. Expanding rights under the Fair Housing Act.Sec. 302. Improving outcomes in housing assistance programs.TITLE IV—Estate tax reformSec. 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 transfers to certain persons.Sec. 406. Simplifying gift tax exclusion for annual gifts.Sec. 407. Clarification regarding disallowance of step-up in basis for property held in certain grantor trusts.Sec. 408. Limitation on discounts; valuation rules for certain transfers of nonbusiness assets.Sec. 409. Surcharge on high income estates and trusts.Sec. 410. Modification of rules for value of certain farm, etc., real property.Sec. 411. Modification of estate tax rules with respect to land subject to conservation easements.TITLE V—Accessibility requirementsSec. 501. Accessibility requirements.<enum>I</enum><header>Making housing more affordable</header><section commented="no" id="HE35FC6F7505840D2B7BD7D3F4762744F"><enum>101.</enum><header>Local housing innovation grants</header><subsection commented="no" id="H20752BD79A0C4B798A973CF7021D07F2"><enum>(a)</enum><header>Definitions</header><text>In this section:</text><paragraph commented="no" id="H42BDA2672D8D430EA8408807FD8531D9"><enum>(1)</enum><header>Elementary school; secondary school</header><text>The terms <term>elementary school</term> and <term>secondary school</term> have the meanings given those terms in section 8101 of the Elementary and Secondary Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/7801">20 U.S.C. 7801</external-xref>).</text></paragraph><paragraph commented="no" id="H37DFF498322C4BB28EB828EB7AD5D955"><enum>(2)</enum><header>Eligible entity</header><text>The term <term>eligible entity</term> means—</text><subparagraph commented="no" id="HCD2B8618D1364F0FA0E2D81610928105"><enum>(A)</enum><text>a State;</text></subparagraph><subparagraph commented="no" id="HE7838084D8424DBA994669BC7428F1E7"><enum>(B)</enum><text>a unit of general local government; or</text></subparagraph><subparagraph commented="no" id="H07FBACBFD37E49CBB30672BCFC74D864"><enum>(C)</enum><text>an Indian tribe.</text></subparagraph></paragraph><paragraph commented="no" id="H29253FB9B7E942D29F92E351EAC385F1"><enum>(3)</enum><header>Indian tribe</header><text>The term <term>Indian tribe</term> has the meaning given the term in section 4 of the Native American Housing Assistance and Self-Determination Act of 1996 (<external-xref legal-doc="usc" parsable-cite="usc/25/4103">25 U.S.C. 4103</external-xref>).</text></paragraph><paragraph commented="no" id="HC7807F1C7CF04A6A82249A7C9CC00B9B"><enum>(4)</enum><header>Institution of higher education</header><text>The term <term>institution of higher education</term> has the meaning given the term in section 101 of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1001">20 U.S.C. 1001</external-xref>).</text></paragraph><paragraph commented="no" id="H3760AFF46DBF49A4AD9FABB9F0D86E78"><enum>(5)</enum><header>Metropolitan area; State; unit of general local government</header><text>The terms <term>metropolitan area</term>, <term>State</term>, and <term>unit of general local government</term> have the meanings given those terms in section 102 of the Housing and Community Development Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/42/5302">42 U.S.C. 5302</external-xref>).</text></paragraph><paragraph commented="no" id="HB1BA1C010397494EBD9A9999530515E6"><enum>(6)</enum><header>Secretary</header><text>The term <term>Secretary</term> means the Secretary of Housing and Urban Development.</text></paragraph></subsection><subsection commented="no" id="H6B8E91C73D7F4D2787CAAF51536F8C68"><enum>(b)</enum><header>Establishment</header><text>Not later than 1 year after the date of enactment of this Act, the Secretary shall establish a program to award grants on a competitive basis to eligible entities to— </text><paragraph commented="no" id="H16FD630734DB40CF9C2C1F5BA3D12BD3"><enum>(1)</enum><text>reform local land use restrictions to bring down the costs of producing affordable housing; and</text></paragraph><paragraph commented="no" id="H28D9A17F293247BD9D478929BC619F51"><enum>(2)</enum><text>remove unnecessary barriers to building affordable units in their communities.</text></paragraph></subsection><subsection commented="no" id="HF4B49F7443564109AF05882AC774CE44"><enum>(c)</enum><header>Eligible activities</header><text>An eligible entity receiving a grant under this section may use funds to—</text><paragraph commented="no" id="H363F10F182624DCFBD2E383BB5CF3D5D"><enum>(1)</enum><text>carry out any of the activities described in section 105 of the Housing and Community Development Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/42/5305">42 U.S.C. 5305</external-xref>);</text></paragraph><paragraph commented="no" id="H4F38D2661305416F93193C633A5913FA"><enum>(2)</enum><text>carry out any of the activities permitted under the Local and Regional Project Assistance Program under section 6702 of title 49, United States Code; or</text></paragraph><paragraph commented="no" id="H8F9F45AF6693465DBD27279B6E71BC6E"><enum>(3)</enum><text>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—</text><subparagraph commented="no" id="H04743F6674F94082B1A18671CBBFF122"><enum>(A)</enum><text>promote physical, sensory, and environmental accessibility; and</text></subparagraph><subparagraph commented="no" id="H2D87F5EA1E5E407483AE4F7B7D205781"><enum>(B)</enum><text>are consistent with a recognized green building rating system.</text></subparagraph></paragraph></subsection><subsection commented="no" id="HCFF129F5C3EA4E88B52C0A168A5A37AC"><enum>(d)</enum><header>Application</header><paragraph commented="no" id="H0F947981B4204292873691D694E1D34A"><enum>(1)</enum><header>In general</header><text>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.</text></paragraph><paragraph commented="no" id="H93478569F11A418B845B31FE26003D8E"><enum>(2)</enum><header>Activities</header><text>Initiatives that meet the criteria described in paragraph (1)—</text><subparagraph commented="no" id="H4326D0F4D8BD4D14BBB73E24D21FE141"><enum>(A)</enum><text>include—</text><clause id="H34217B1E11584AAFADAEF6B4849FD3FE"><enum>(i)</enum><text>establishing <quote>by-right</quote> development, which allows jurisdictions to administratively approve new developments that are consistent with their zoning code;</text></clause><clause id="H4183345473CA4039A1D65910271C1ADF"><enum>(ii)</enum><text>revising or eliminating off-street parking requirements to reduce the cost of housing production;</text></clause><clause id="H7E07106A13C4416D95B324E64986EA6C"><enum>(iii)</enum><text>instituting measures that incentivize owners of vacant land to redevelop the space into affordable housing or other productive uses;</text></clause><clause id="H01FAE857BE4A4248AE060032F5B3D846"><enum>(iv)</enum><text>revising minimum lot size requirements and bans or limits on multifamily construction to allow for denser and more affordable development;</text></clause><clause id="H1D7BE3CF3ECE4460A72F51CDA71B48B7"><enum>(v)</enum><text>instituting incentives to promote dense development, such as density bonuses;</text></clause><clause id="H9B1FFA233FE14C1EAEF39FE58C6DEA6D"><enum>(vi)</enum><text>passing inclusionary zoning ordinances that require a portion of newly developed units to be reserved for low- and moderate-income renters or homebuyers;</text></clause><clause id="HCC10D09FD9CD45519EC991D394460647"><enum>(vii)</enum><text>streamlining regulatory requirements and shortening processes, reforming zoning codes, or other initiatives that reduce barriers to housing supply elasticity and affordability;</text></clause><clause id="H1E6EAAB5054249AAB98F81D08414C799"><enum>(viii)</enum><text>allowing accessory dwelling units;</text></clause><clause id="HA2486857D0154498B17239C3F04F293A"><enum>(ix)</enum><text>using local tax incentives to promote development of affordable housing; and</text></clause><clause id="H7AE447DA6D5E4EFC80C3484832FF28FE"><enum>(x)</enum><text>implementing measures that protect tenants from harassment and displacement, including—</text><subclause id="HFCBE7917F8844E3BB866D0876DDE0E4C"><enum>(I)</enum><text>providing access to counsel for tenants facing eviction;</text></subclause><subclause id="HB5519E34825E4925BC9079DFFB9EE1F9"><enum>(II)</enum><text>the prohibition of eviction except for just cause;</text></subclause><subclause id="HB5CD17F30E7148F294A43DD247B17A50"><enum>(III)</enum><text>measures intended to prevent or mitigate sudden increases in rents;</text></subclause><subclause id="H7BE2881C341044999D0B97AF26F10A03"><enum>(IV)</enum><text>the repeal of laws that prevent localities from implementing a measure described in subclause (I), (II), or (III);</text></subclause><subclause id="HE70301E539B843C78ACF585BF60E27C4"><enum>(V)</enum><text>protections against constructive eviction;</text></subclause><subclause id="HE255B6C5A8704FD780B545E10CE395D8"><enum>(VI)</enum><text>tenant right-to-organize laws;</text></subclause><subclause id="H54326BB7B56A45E4B7A3BDDB82875586"><enum>(VII)</enum><text>a cause of action for tenants to sue landlords who threaten or begin an illegal eviction; and</text></subclause><subclause id="HD4D4C5B4B3F748D49C0EB99BA743210F"><enum>(VIII)</enum><text>landlord-tenant mediation or other non-eviction diversion programs; and</text></subclause></clause></subparagraph><subparagraph id="H66B420ACE274405AB164CB4FEAB786F1"><enum>(B)</enum><text>do not include activities that alter ordinances that govern wage and hour laws, family and medical leave laws, health and safety requirements, prevailing wage laws, or protections for workers' health and safety, anti-discrimination, and right to organize.</text></subparagraph></paragraph><paragraph commented="no" id="H2BE7767DB2A644C3A6F8641B3986496F"><enum>(3)</enum><header>Relation to consolidated plan</header><text>An eligible entity shall include in an application submitted under paragraph (1) a description of how the planning and development of eligible activities described in subsection (c) may advance an objective, or an aspect of an objective, included in the comprehensive housing affordability strategy and community development plan of the eligible entity under part 91 of title 24, Code of Federal Regulations, or any successor regulation (commonly referred to as a <quote>consolidated plan</quote>).</text></paragraph></subsection><subsection id="H5375564F5D4B4C72B340BE1FDB064355"><enum>(e)</enum><header>Labor laws</header><paragraph id="HA3A97A3BDB0C4EFF8BED1A93B2683768"><enum>(1)</enum><header>In general</header><text>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 <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/40/31">chapter 31</external-xref> of title 40, United States Code (commonly known as the <quote>Davis-Bacon Act</quote>).</text></paragraph><paragraph id="H44E69FBD0F7E478AA7C3248A83D35581"><enum>(2)</enum><header>Authority and functions</header><text>With respect to the labor standards specified in paragraph (1), the Secretary of Labor shall have the authority and functions set forth in Reorganization Plan Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C. App.) and section 3145 of title 40, United States Code.</text></paragraph></subsection><subsection id="H293FECA75D4A47E18B6C1DE9CF97CA0C"><enum>(f)</enum><header>Authorization of appropriations</header><text>There is authorized to be appropriated to carry out this section $2,000,000,000 for each of fiscal years 2025 through 2029.</text></subsection></section><section commented="no" id="H45AD8DBF957E46C3B9AF31B44CC54F2E"><enum>102.</enum><header>Investing in affordable housing infrastructure</header><subsection commented="no" id="H3B6E414B7A7A4088B2A77113A80C729F"><enum>(a)</enum><header>Housing Trust Fund</header><text>Section 1338(a) of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4568">12 U.S.C. 4568(a)</external-xref>) is amended by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H72013469169C4D58A80755B96F11F827"><paragraph id="H617E46C40E384BBBA2F6EC5CE84A634B"><enum>(3)</enum><header>Authorization of appropriations</header><text>There is authorized to be appropriated to the Housing Trust Fund $44,500,000,000 for each of fiscal years 2025 through 2034.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection commented="no" id="HBE47B7E7FE31447C9A9926981B7A6928"><enum>(b)</enum><header>Capital Magnet Fund</header><text>Section 1339 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4569">12 U.S.C. 4569</external-xref>) is amended by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H11E32C53A96545C984DB4AD0A671A78D"><subsection id="H59F3B80125A44DB3B7F942DDA174DF02"><enum>(k)</enum><header>Authorization of appropriations</header><text>There is authorized to be appropriated to the Capital Magnet Fund $2,500,000,000 for each of fiscal years 2025 through 2034.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection commented="no" id="H0440DAD9AAF94F47A5E1A70B29C546DC"><enum>(c)</enum><header>Public housing capital fund</header><text>Section 9(c)(2)(A) of the United States Housing Act of 1937 (<external-xref legal-doc="usc" parsable-cite="usc/42/1437g">42 U.S.C. 1437g(c)(2)(A)</external-xref>) is amended to read as follows:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H539351AD89F84EBFB16FA727D1F9E96E"><subparagraph id="H5FC27B65B52C473489850C0B8AD92821"><enum>(A)</enum><header>Capital fund</header><text>For allocations of assistance from the Capital Fund, $70,000,000,000 for fiscal year 2025.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection commented="no" id="HE5438BAB5F2746D5A4E3E25F964E9955"><enum>(d)</enum><header>Indian housing block grant program</header><text>Section 108 of the Native American Housing Assistance and Self-Determination Act of 1996 (<external-xref legal-doc="usc" parsable-cite="usc/25/4117">25 U.S.C. 4117</external-xref>) is amended—</text><paragraph commented="no" id="HECB52B7A03AB4A6B93C19DE896B82401"><enum>(1)</enum><text>by striking <quote>such sums as may be necessary for each of fiscal years 2009 through 2013</quote> and inserting <quote>$2,500,000,000 for fiscal year 2025 and such sums as may be necessary for each of fiscal years 2026 through 2034</quote>; and</text></paragraph><paragraph commented="no" id="H427666E8040E4CBE9FBF1BAD95DA43EC"><enum>(2)</enum><text>by striking the second sentence.</text></paragraph></subsection><subsection commented="no" id="H4CA3BE18D1FC420E9976226B8E6CAE7D"><enum>(e)</enum><header>Native Hawaiian housing block grant program</header><text>Section 824 of the Native American Housing Assistance and Self-Determination Act of 1996 (<external-xref legal-doc="usc" parsable-cite="usc/25/4243">25 U.S.C. 4243</external-xref>) is amended by striking <quote>such sums as may be necessary for each of fiscal years 2001, 2002, 2003, 2004, and 2005</quote> and inserting <quote>$50,000,000 for fiscal year 2025 and such sums as may be necessary for each of fiscal years 2026 through 2034</quote>.</text></subsection><subsection commented="no" id="H9A8ED58F22E14D2B9B7455F73BF0728C"><enum>(f)</enum><header>Rural housing programs</header><text>Out of funds in the Treasury not otherwise appropriated, there is appropriated for fiscal year 2025—</text><paragraph id="H89E2E1E5B3AD4CAF880B2A48EA5E6AAB"><enum>(1)</enum><text>to provide direct loans under section 502 of the Housing Act of 1949 (<external-xref legal-doc="usc" parsable-cite="usc/42/1472">42 U.S.C. 1472</external-xref>), $420,000,000;</text></paragraph><paragraph id="H2F1A2E89B8D943EEB5BFFA67CF02F82B"><enum>(2)</enum><text>to provide assistance under section 514 of such Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1484">42 U.S.C. 1484</external-xref>), $54,000,000;</text></paragraph><paragraph id="H256B5A7BB8BC43B6AE81071A04F3F6B3"><enum>(3)</enum><text>to provide assistance under section 515 of such Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1485">42 U.S.C. 1485</external-xref>), $420,000,000;</text></paragraph><paragraph id="HBF7E61B770054F32AE1E42C90A3519E1"><enum>(4)</enum><text>to provide assistance under section 516 of such Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1486">42 U.S.C. 1486</external-xref>), $75,000,000;</text></paragraph><paragraph id="H4CC8B25B53124DED894946C848611A2E"><enum>(5)</enum><text>to provide grants under section 523 of such Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1490c">42 U.S.C. 1490c</external-xref>), $75,000,000; and</text></paragraph><paragraph id="H86372BC1672F482187F8F813D0BB5FC1"><enum>(6)</enum><text>to provide funding to carry out the Multifamily Preservation and Revitalization Demonstration Program of the Rural Housing Service (as authorized under sections 514, 515, and 516 of such Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1484">42 U.S.C. 1484</external-xref>, 1485, 1486)), $240,000,000.</text></paragraph></subsection><subsection commented="no" id="H2561EA132EFA47799A1F1382745159E8"><enum>(g)</enum><header>Middle Class Housing Emergency Fund</header><paragraph commented="no" id="H3898FAD89BB9453BB622B7BD5996ECF7"><enum>(1)</enum><header>Definitions</header><text>In this subsection—</text><subparagraph commented="no" id="HEF4D682D86C04350A0386568905E37C4"><enum>(A)</enum><text>the term <term>affordable rental housing unit</term> means a unit for which monthly rent is 30 percent or less than the monthly area median income; and</text></subparagraph><subparagraph commented="no" id="H31E2595934034737873A49B2780D0FAE"><enum>(B)</enum><text>the term <term>State</term> has the meaning given the term in section 3(b)(7) of the United States Housing Act of 1937 (<external-xref legal-doc="usc" parsable-cite="usc/42/1437a">42 U.S.C. 1437a(b)(7)</external-xref>).</text></subparagraph></paragraph><paragraph commented="no" id="H6A5689B5DE3D462E8C636F0D6EC73600"><enum>(2)</enum><header>Establishment</header><text>The Secretary of Housing and Urban Development shall establish and manage a fund, to be known as the <quote>Middle Class Housing Emergency Fund</quote>, which shall be funded with any amounts as may be appropriated, transferred, or credited to the Fund under any provision law.</text></paragraph><paragraph commented="no" id="H23F416D60A2A4B26ACA3089289D928AA"><enum>(3)</enum><header>Grants</header><text>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—</text><subparagraph commented="no" id="HEBA635BCAE524984AEE4ED8480B54D50"><enum>(A)</enum><text>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 5 years substantially faster than the area median income; or</text></subparagraph><subparagraph commented="no" id="H7F9F8843FAB94C4E9D75924E6B53DA5E"><enum>(B)</enum><text>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 5 years substantially faster than the area median income.</text></subparagraph></paragraph><paragraph commented="no" id="H81043A534B4F4C8A829FBB349D59A310"><enum>(4)</enum><header>Use of funds</header><text>Grants received under this subsection shall be used to fund—</text><subparagraph commented="no" id="H38CADC19AB904AEDAB10C771F9ABE77B"><enum>(A)</enum><text>the construction or acquisition, by nonprofit organizations, State or local agencies, special-purpose units of local government, resident councils organized to acquire housing, and other qualified purchasers (as defined by the Secretary), of rental housing units or units for purchase that are affordable to residents making less than 120 percent of the area median income; and </text></subparagraph><subparagraph commented="no" id="H88E36B04DEEA4447B81845309B270000"><enum>(B)</enum><text>measures to prevent tenant displacement and harassment, including—</text><clause commented="no" id="H500F3F848CC344E3822C727DBA96F6FC"><enum>(i)</enum><text>the provision of legal advice and representation for tenants facing eviction;</text></clause><clause commented="no" id="H99145144767C4975958E57D5A7584805"><enum>(ii)</enum><text>enforcement of anti-harassment laws;</text></clause><clause commented="no" id="H8D7CB48C0A224EDD8BB5C40E9BB64E77"><enum>(iii)</enum><text>emergency rental assistance; and </text></clause><clause commented="no" id="HEEDBB124DEF24084A0E631AE034797A6"><enum>(iv)</enum><text>other measures as specified by the Secretary of Housing and Urban Development.</text></clause></subparagraph></paragraph><paragraph id="H97A85E2564DF4798AE5DC7A294A2528E"><enum>(5)</enum><header>Labor laws</header><subparagraph id="H1E611659EFBC4B54ADB1A1D66B2E61B9"><enum>(A)</enum><header>In general</header><text>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 <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/40/31">chapter 31</external-xref> of title 40, United States Code (commonly known as the <quote>Davis-Bacon Act</quote>).</text></subparagraph><subparagraph id="H4A158F078E8E4097B86D39DD2FDA2E8C"><enum>(B)</enum><header>Authority and functions</header><text>With respect to the labor standards specified in subparagraph (A), the Secretary of Labor shall have the authority and functions set forth in Reorganization Plan Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C. App.) and section 3145 of title 40, United States Code. </text></subparagraph></paragraph><paragraph commented="no" id="HEC7BD4E38D0C4589B8E7B116E94DC4A8"><enum>(6)</enum><header>Regulations</header><text>The Secretary of Housing and Urban Development shall promulgate regulations to carry out this subsection that include—</text><subparagraph commented="no" id="H008AE4E79E7D4582832A7F2E216E93B7"><enum>(A)</enum><text>the metrics that the Secretary will use to determine eligibility for a grant under this subsection;</text></subparagraph><subparagraph id="HE66CD69261E941388697FA76D8E6726B"><enum>(B)</enum><text>a requirement that grantees and subgrantees consult with impacted communities in policymaking and planning for the construction or acquisition of housing units as described in paragraph 4(A); and</text></subparagraph><subparagraph id="HD960F42C82064FD195ADC2BE00511C30"><enum>(C)</enum><text>a requirement that all housing units constructed or acquired using grants awarded under the subsection are affordable to residents making less than 120 percent of the area median income in perpetuity.</text></subparagraph></paragraph><paragraph commented="no" id="H24D87754979C46F1815B76E24EBC6FD9"><enum>(7)</enum><header>Appropriations</header><text>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 2025.</text></paragraph></subsection></section><section commented="no" id="H24D3648C76E748BC95C4C0B363088B12"><enum>103.</enum><header>Conditions for the sale of real estate-owned properties and non-performing loans</header><subsection commented="no" id="HBA807FA9A55C4752835EAE7973674360"><enum>(a)</enum><header>Findings</header><text>Congress finds that—</text><paragraph commented="no" id="H11D7263B89124C72AB571E474263BCA2"><enum>(1)</enum><text>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</text></paragraph><paragraph commented="no" id="H0C19D990221643A5B7555853C4A6AF68"><enum>(2)</enum><text>it is the purpose of this section to—</text><subparagraph commented="no" id="H80A9E96806D54335923A2C89A6263F95"><enum>(A)</enum><text>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</text></subparagraph><subparagraph commented="no" id="H9A0D6DB76ADF4F839397D8B467FF0835"><enum>(B)</enum><text>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.</text></subparagraph></paragraph></subsection><subsection commented="no" id="HDAC936698B6F4FA2A730616C310A5536"><enum>(b)</enum><header>Loans insured by the Federal Housing Administration</header><text display-inline="yes-display-inline">Title II of the National Housing Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1707">12 U.S.C. 1707 et seq.</external-xref>) is amended by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H9D88430046694A518726F585E66AC65F"><section id="HB5A5D84ABC1E4A01AD8187A422A302EC"><enum>259.</enum><header>Sale of real estate-owned properties</header><subsection id="H8B398ED87CAE49B1B7993AABD9FC77B1"><enum>(a)</enum><header>Definitions</header><text>In this section—</text><paragraph id="HAFB12E4AB2394F2499E3FA81F860895A"><enum>(1)</enum><text>the term <term>Claim Without Conveyance of Title program</term> means the program of the Federal Housing Administration carried out under section 203.368 of title 24, Code of Federal Regulations, or any successor regulation; and</text></paragraph><paragraph id="HE1553D5EF10A4FC89B04C2897A79DD11"><enum>(2)</enum><text>the term <term>community partner</term> has the meaning given the term <term>nonprofit organization</term> in section 229 of the Low-Income Housing Preservation and Resident Homeownership Act of 1990 (<external-xref legal-doc="usc" parsable-cite="usc/12/4119">12 U.S.C. 4119</external-xref>).</text></paragraph></subsection><subsection id="HB691A735F6AF411795B8C9548C9FDFFC"><enum>(b)</enum><header>Requirement</header><text>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 conveyed to the Federal Housing Administration after foreclosure or conveyed to third parties under the Claim Without Conveyance of Title program are sold—</text><paragraph id="H790C464C02CD401FB340C5AD81083635"><enum>(1)</enum><text>directly to an owner-occupant; or</text></paragraph><paragraph id="H7A7D0FF82F7343EEBAE6360D962C9C2E"><enum>(2)</enum><text>to community partners that will—</text><subparagraph id="H26283ACB8DE04777B26333B709452C69"><enum>(A)</enum><text>rehabilitate or develop the property; and</text></subparagraph><subparagraph id="HCEE1B94E3A814376A7A63310A9A7D2A6"><enum>(B)</enum><text>sell the property to an owner-occupant.</text></subparagraph></paragraph></subsection><subsection id="H06E7EA9C575A4086A57DA99F4FAD2C76"><enum>(c)</enum><header>Guidelines</header><text>Not later than 1 year after the date of enactment of this section, the Secretary shall develop guidelines for the Claim Without Conveyance of Title program that provide an exclusive listing period during which only eligible Governmental Entities, HUD-approved Nonprofit Organizations, and Owner-Occupant Buyers may submit bids. </text></subsection><subsection id="H76B7BFD794F24777AF8FFB8A616542BE"><enum>(d)</enum><header>Anti-Predatory feature</header><text>Unless the Secretary provides prior approval, the Secretary shall prohibit any purchaser of a real estate-owned property of the Federal Housing Administration from reselling 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.</text></subsection></section><section id="H5644E7759BC94F6CA089AD9CE1B9F9D2"><enum>260.</enum><header>Sale of non-performing loans</header><subsection commented="no" id="HDD6725786F0B435D84356561DE65F7CB"><enum>(a)</enum><header>Definitions</header><text>In this section—</text><paragraph commented="no" display-inline="no-display-inline" id="H589CFC414D644AF1B6851C2D2E4FA6B5"><enum>(1)</enum><text display-inline="yes-display-inline">the term <term>community partner</term> has the meaning given the term in section 259; and</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HC495B3049CFB475C89EA7EBDADDC81B8"><enum>(2)</enum><text>the term <term>covered mortgage</term>—</text><subparagraph id="H8B4E09EE0AE247A1A6BDCFBE61FACB3F"><enum>(A)</enum><text>means any mortgage insured under this title that is secured by a single-family residential property; and</text></subparagraph><subparagraph id="H2F96CA4F64794B7B881088E251008885"><enum>(B)</enum><text>includes the promissory note secured by the mortgage described in subparagraph (A).</text></subparagraph></paragraph></subsection><subsection id="H4F974BBE88C34AE6B118979F6BB7C55E"><enum>(b)</enum><header>Restriction on sale or transfer</header><text>Except as provided in this section, the Secretary may not sell or transfer any covered mortgage.</text></subsection><subsection id="H12F61E0216DB4289A2F8F31EE8BBAE3C"><enum>(c)</enum><header>Conditions for sale or transfer</header><paragraph id="H38C9A7D80D56451E924B44664E10D185"><enum>(1)</enum><header>In general</header><text>The Secretary—</text><subparagraph id="H8D3951D389744A48AA552C1F90F49D26"><enum>(A)</enum><text>may sell or transfer a covered mortgage only if—</text><clause id="H16D379D7FA6C44BDAAC7B3550C7F8B2B"><enum>(i)</enum><text>the capital level of the Fund is substantially below the capital ratio required under section 205(f)(2);</text></clause><clause id="H2B2A9407727B4D4B8CDA07CA2743D0B1"><enum>(ii)</enum><text>the Secretary certifies that other reasonable measures are not available to restore the Fund to that capital ratio; and</text></clause><clause id="H9381A88297FF493E8F1880E70E1C081D"><enum>(iii)</enum><text>the Secretary complies with paragraph (2)(C), if applicable; and</text></clause></subparagraph><subparagraph id="H1719449A4B1A496DB252A8B6FC1859A6"><enum>(B)</enum><text>may sell or transfer only such covered mortgages as are necessary to assist in restoration of that capital ratio.</text></subparagraph></paragraph><paragraph id="HA88F6B7994CA4789BBA055AF6FEC4957"><enum>(2)</enum><header>Requirements for the Secretary</header><subparagraph id="HEF928A8EBF174EE79DEE45062E8B151B"><enum>(A)</enum><header>In general</header><text>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—</text><clause id="HC2D2B19B018248A2B5A8191BCF650262"><enum>(i)</enum><text>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</text></clause><clause id="HCEAF7F9051894970BC292FDBCF7C5A9C"><enum>(ii)</enum><text>includes—</text><subclause id="HCBE04A12988E432DA879A0C6AE54D6A4"><enum>(I)</enum><text>a description of the loss mitigation options of the Federal Housing Administration that are available to borrowers in financial distress and the obligation of servicers to consider borrowers in default for those options;</text></subclause><subclause id="HC5699BDC5D1E431F884300E5C3E081C1"><enum>(II)</enum><text>a description of the actions that the servicer of the loan has taken to review and implement those options for the borrower; and</text></subclause><subclause id="H62BDD12A778D4BF9AD7CF3B5CD797A2C"><enum>(III)</enum><text>a description of the procedures the borrower may use to contest with the Secretary the compliance by the servicer with that obligation.</text></subclause></clause></subparagraph><subparagraph id="HCAFC2F8EB2004A028E04357443A7C8C5"><enum>(B)</enum><header>Judicial review</header><text>The determination of the Secretary to authorize the sale of a mortgage insured under this title shall be reviewable under <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/5/7">chapter 7</external-xref> of title 5, United States Code, for abuse of discretion and arbitrary and capricious agency action.</text></subparagraph><subparagraph id="H9F9BD934A28743D1A76AFD5B95B715C0"><enum>(C)</enum><header>Auctions</header><text>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—</text><clause id="HFC7B1F63B70141D98059334B0CE9157B"><enum>(i)</enum><text>the method of selection of loans for sale;</text></clause><clause id="H5A7D2749837640A9A579003FF0CACE0B"><enum>(ii)</enum><text>notice to borrowers prior to inclusion of the loan in a sale; and</text></clause><clause id="H4668D254E99143E49000C5313979B55A"><enum>(iii)</enum><text>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.</text></clause></subparagraph></paragraph><paragraph id="HDB051098175E4E07A07579E2D21E5BEB"><enum>(3)</enum><header>Certification requirement for lenders and servicers</header><subparagraph id="H3945517CF66E49DD859EB4A254F194D0"><enum>(A)</enum><header>Certification</header><text>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, which certification shall include a description of the actions the lender or servicer has taken, prior to transfer of the loan to the Secretary, to—</text><clause commented="no" display-inline="no-display-inline" id="H30F7B137DCE64050A774096CDB595662"><enum>(i)</enum><text display-inline="yes-display-inline">review the borrower for all available loss mitigation options of the Federal Housing Administration; and</text></clause><clause commented="no" display-inline="no-display-inline" id="H896E6DF7538E4774943E41BA0B9FC625"><enum>(ii)</enum><text display-inline="yes-display-inline">implement the options described in clause (i) that are appropriate to the borrower.</text></clause></subparagraph><subparagraph id="H083B912B80164B859FB3BBA430F8FF79"><enum>(B)</enum><header>False statements</header><clause id="H7BC799848C1C4665B00C520D59DC3D7D"><enum>(i)</enum><header>In general</header><text>Any false statement provided in a certification described in subparagraph (A) shall be a basis for—</text><subclause id="H6384F11D747646F5A8CD91B56CCD17C9"><enum>(I)</enum><text>recovery by the Secretary of any amounts paid under the insurance claim and any other penalties and sanctions authorized under Federal law; and</text></subclause><subclause id="H27B4A66B10724BEC951FC65EC1C50D73"><enum>(II)</enum><text>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.</text></subclause></clause><clause id="HFFBC4C0ECE2D4DC08C07CF4615B99E3E"><enum>(ii)</enum><header>Transfers</header><text>Unless a bona fide purchaser has acquired title to the property as a primary residence—</text><subclause id="HEB352A6F5B3C4F36A9D39C2102260FA2"><enum>(I)</enum><text>a certification described in subparagraph (A) that contains a false statement shall be a basis for revoking the transfer of the property; and</text></subclause><subclause id="H346C4B3D9C304B6782A970EBC88085B2"><enum>(II)</enum><text>the pre-sale lender and servicer of the property shall—</text><item id="H9E4F0837DF24484D9FCD897E748A5F12"><enum>(aa)</enum><text>resume servicing the loan as a loan insured under this title; and</text></item><item id="HB393ADC419E449F1A9A942B2C7F22B3A"><enum>(bb)</enum><text>reimburse the Secretary for any insurance claim paid and all costs related to the sale of the property.</text></item></subclause></clause></subparagraph></paragraph><paragraph id="H325FD79ADE724DD99D625C834E6B989D"><enum>(4)</enum><header>Requirements for purchasers</header><subparagraph id="H71D9635CB0094F41A78A0CDD3B3281BD" commented="no"><enum>(A)</enum><header>In general</header><text>Each purchaser of a covered mortgage shall offer the borrower on the covered mortgage loss mitigation options that allow for payment reduction at least as great as would be available to the borrower if the loan had not been sold.</text></subparagraph><subparagraph id="H9530113B302D4257853164E51817EFDD"><enum>(B)</enum><header>Loss mitigation options</header><text>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.</text></subparagraph></paragraph><paragraph id="H4EEFF0D9CBE64DF5A12EC3E802CC329A"><enum>(5)</enum><header>Requirements for transferees</header><text>With respect to a transferee, including any subsequent transferee, of a covered mortgage that is sold under this title—</text><subparagraph id="H633711F7C6014F9DAF61F65DAB148591"><enum>(A)</enum><text>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;</text></subparagraph><subparagraph id="HA16BACE3029C4795A30E524D80704483"><enum>(B)</enum><text>the transferee shall provide to the Secretary records documenting that the transfers of those properties are in compliance with this section; and</text></subparagraph><subparagraph id="H9E314A3B26C5438BA0A3421F5651BDE7"><enum>(C)</enum><text>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 may 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.</text></subparagraph></paragraph></subsection><subsection id="H072D86875BC04484B14B83018A9BC0F1"><enum>(d)</enum><header>Limitations</header><text>With respect to covered mortgages that are sold under this title and acquired by the buyer through foreclosure sale, not less than 90 percent of the properties that are the subject of the covered mortgages shall be— </text><paragraph id="HE85B86A8E10B4044A4BDB8E5E31EB0AD"><enum>(1)</enum><text>sold to owner-occupants;</text></paragraph><paragraph id="H8A0F02A0873446189447DC98A618DAB2"><enum>(2)</enum><text>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</text></paragraph><paragraph id="H7B89A0B168A44B26A8F8DEC4BF90CF05"><enum>(3)</enum><text>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.</text></paragraph></subsection><subsection id="H92628619278C4321861BF751D8F3ED04"><enum>(e)</enum><header>Prioritization of sales</header><text>The Secretary shall implement policies, procedures, and controls to—</text><paragraph id="H2AF65DB2C9154D369DB1E3536982D92D"><enum>(1)</enum><text>identify and recruit community partners;</text></paragraph><paragraph id="H08144625095C45F78ACE037F81FED000"><enum>(2)</enum><text>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</text></paragraph><paragraph id="HEA74278B0873413491A63393F4531649"><enum>(3)</enum><text>prioritize the sale of pools of single-family mortgages to community partners by—</text><subparagraph id="H8046D29AE31B46EAB99B1B88E4AB5BC2"><enum>(A)</enum><text>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—</text><clause id="HDF60EE63B6194D72A2E9A31C14EB4463"><enum>(i)</enum><text>the current fair market value of the properties; and</text></clause><clause id="HBE9393B559464A18A13F199414114D9C"><enum>(ii)</enum><text>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</text></clause></subparagraph><subparagraph id="H06376F4A64D34C81AD5E72F4DADF2F68"><enum>(B)</enum><text>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.</text></subparagraph></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection commented="no" id="H36E0005FB32346AFA6F73A003E28A60E"><enum>(c)</enum><header>Fannie Mae</header><text>Section 302 of the Federal National Mortgage Association Charter Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1717">12 U.S.C. 1717</external-xref>) is amended by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="HD0297AB86F62482BB3C0F80574FFBBF8"><subsection id="H15B1E5825585494A9C14A2F1283BB1AA"><enum>(d)</enum><paragraph commented="no" display-inline="yes-display-inline" id="HE152294620014184A319D7BE7787207D"><enum>(1)</enum><text>In this subsection, the term <term>covered mortgage</term>—</text><subparagraph commented="no" display-inline="no-display-inline" id="H55A1569D42834309839E54094CDE1012" indent="up1"><enum>(A)</enum><text display-inline="yes-display-inline">means any mortgage that is secured by a single-family residential property; and</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" indent="up1" id="H0A88E5C6E5C44A0C9BE31075F35FE0A3"><enum>(B)</enum><text display-inline="yes-display-inline">includes the promissory note secured by the mortgage described in subparagraph (A). </text></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HE1F767EF0803454E85D1716EC0811997" indent="up1"><enum>(2)</enum><text display-inline="yes-display-inline">The corporation may not sell or transfer any covered mortgage under this section unless the requirements of this subsection are met.</text></paragraph><paragraph commented="no" id="H490A8CFD457C4C5EAFB94C6AC991EDDA" indent="up1"><enum>(3)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="H635CE1C681EA4E9F929EF1DD21582185"><enum>(A)</enum><text>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—</text><clause id="HFA13137BBEC544878C412640CE30BFCE" indent="up1"><enum>(i)</enum><text>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</text></clause><clause id="HE5CB415F26714F83B0A3044CD9FE2EC7" indent="up1"><enum>(ii)</enum><text>includes—</text><subclause id="H3370C51A367C4C4B8D55766D22E1446F"><enum>(I)</enum><text>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;</text></subclause><subclause id="H5E385F3516984D2FA624B2DD78192A67"><enum>(II)</enum><text>a description of the actions that the servicer of the loan has taken to review and implement those options for the borrower; and</text></subclause><subclause id="HDA2D926B595B489A9E97A6AFE4495A0D"><enum>(III)</enum><text>a description of the procedures the borrower may use to contest with the corporation the compliance by the servicer with that obligation.</text></subclause></clause></subparagraph><subparagraph id="H5FF1395280914E898B128B8D59EB9B20" indent="up1"><enum>(B)</enum><text>The Federal Housing Finance Agency, as receiver for the corporation, may not authorize the corporation to sell any covered mortgage through any type of non-performing loan sale auction program until the Director of the Federal Housing Finance Agency 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—</text><clause id="H5A6E4AC3FD9949AE8F72A88E24289E5C"><enum>(i)</enum><text>the method of selection of loans for sale;</text></clause><clause id="HDE8FFF909BA847768911F6CB053AC566"><enum>(ii)</enum><text>notice to borrowers prior to inclusion of the loan in a sale; and</text></clause><clause id="HC57D827213AF46F2A435957F6287AF3E"><enum>(iii)</enum><text>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.</text></clause></subparagraph></paragraph><paragraph commented="no" id="HBC4D2E2446724BA3B3C879B80153129D" indent="up1"><enum>(4)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="H9167E1694D484833B528059A3AA7A757"><enum>(A)</enum><text>Each purchaser of a covered mortgage shall offer the borrower on the covered mortgage loss mitigation options that allow for payment reduction at least as great as would be available to the borrower if the loan had not been sold. </text></subparagraph><subparagraph commented="no" id="HBD2CEFF8CDA84CE3AA8B6D20FC4E8A2C" indent="up1"><enum>(B)</enum><text>The specific formula, calculations, waterfall steps, and other terms for 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.</text></subparagraph></paragraph><paragraph commented="no" id="H1BC13645A02245FC8511E9CE381CF729" indent="up1"><enum>(5)</enum><text>With respect to a transferee, including any subsequent transferee, of a covered mortgage that is sold by the corporation under this section—</text><subparagraph commented="no" id="H31C4EBB509F74F9BA27D62F3483357C9"><enum>(A)</enum><text>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;</text></subparagraph><subparagraph commented="no" id="H78F963B1E82C48C08D8049CD6FEA739A"><enum>(B)</enum><text>the transferee shall provide to the corporation records documenting that the transfers of those properties are in compliance with this subsection; and</text></subparagraph><subparagraph commented="no" id="H9A8DD39F97EB471A964905F834D45019"><enum>(C)</enum><text>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 may 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.</text></subparagraph></paragraph><paragraph commented="no" id="H84F47018ADCA4538BEDFB5E22998B26D" indent="up1"><enum>(6)</enum><text>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—</text><subparagraph commented="no" id="HD07A66C02BF64BC0BE57E8DF64C19A3A"><enum>(A)</enum><text>sold to owner-occupants;</text></subparagraph><subparagraph commented="no" id="HB7A3D832659148208EFFFF1F242C82DC"><enum>(B)</enum><text>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</text></subparagraph><subparagraph commented="no" id="H6A4E18F78A1D4D81B08A93DBABA7C2D3"><enum>(C)</enum><text>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.</text></subparagraph></paragraph><paragraph commented="no" id="HD2A093B5963A49658CD194F43929BC98" indent="up1"><enum>(7)</enum><text>The corporation shall implement policies, procedures, and controls to—</text><subparagraph commented="no" id="HB64CB3A1A0ED4F43A18AF5A92B070042"><enum>(A)</enum><text>identify and recruit community partners;</text></subparagraph><subparagraph commented="no" id="H866EE06684CE4528B3C3753419112323"><enum>(B)</enum><text>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</text></subparagraph><subparagraph commented="no" id="H1DBEA3F6D23142B489717BEF160F9FCC"><enum>(C)</enum><text>prioritize the sale of pools of single-family mortgages to community partners by—</text><clause commented="no" id="H38D80C63379848BB8D19BD3192905B2F"><enum>(i)</enum><text>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—</text><subclause commented="no" id="HE794E09114D34491A326ECBDD5C0C02B"><enum>(I)</enum><text>the current fair market value of the properties; and</text></subclause><subclause commented="no" id="HFD5C273E4024449FBDBD31D55E7689F1"><enum>(II)</enum><text>the potential impact of foreclosures on those properties to the value of other homes in the same census tract; or</text></subclause></clause><clause commented="no" id="HDD7513CA879F479EA8015BDDDE9F3207"><enum>(ii)</enum><text>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.</text></clause></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection commented="no" id="H7BE27FE3E18E4F3AB5050E5E6D29445F"><enum>(d)</enum><header>Freddie Mac</header><text>Section 305 of the Federal Home Loan Mortgage Corporation Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1454">12 U.S.C. 1454</external-xref>) is amended by adding at the end the following:</text><quoted-block id="H1744E234D5CA4E80B87B18FC072B341C" display-inline="no-display-inline" style="OLC"><subsection id="HDA832C93899B42B69FE539DC198E1E8A"><enum>(e)</enum><paragraph commented="no" display-inline="yes-display-inline" id="HAFD6FC7CB58A4426B60E722F6E321315"><enum>(1)</enum><text>In this subsection, the term <term>covered mortgage</term>—</text><subparagraph commented="no" display-inline="no-display-inline" id="H95F6A4835BCA46948E9705B465795466" indent="up1"><enum>(A)</enum><text display-inline="yes-display-inline">means any mortgage that is secured by a single-family residential property; and</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" indent="up1" id="HCC768AB584FF438B8564A46638C65095"><enum>(B)</enum><text display-inline="yes-display-inline">includes the promissory note secured by the mortgage described in subparagraph (A). </text></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H30F82FFD55F9413B86F96DEFC5566137" indent="up1"><enum>(2)</enum><text display-inline="yes-display-inline">The Corporation may not sell or transfer any covered mortgage under this section unless the requirements of this subsection are met.</text></paragraph><paragraph commented="no" id="H11C3DE56036749409BB68A7D8D9C93A7" indent="up1"><enum>(3)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="HB1E9A205AEA7437594213AB28F9F4B65"><enum>(A)</enum><text>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—</text><clause id="HDC17B4431FB843F086BFD77E421D89ED" indent="up1"><enum>(i)</enum><text>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</text></clause><clause id="HB79C923158AB4C58851C1B60B43B6EC4" indent="up1"><enum>(ii)</enum><text>includes—</text><subclause id="H2BD6D30738AF44DA9D5B749E425CE65F"><enum>(I)</enum><text>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;</text></subclause><subclause id="HC615F22475F14383A50E1654E0942AB9"><enum>(II)</enum><text>a description of the actions that the servicer of the loan has taken to review and implement those options for the borrower; and</text></subclause><subclause id="HF9AC72B1D03A43E3A2ECBAAC252CCACE"><enum>(III)</enum><text>a description of the procedures the borrower may use to contest with the Corporation the compliance by the servicer with that obligation.</text></subclause></clause></subparagraph><subparagraph id="H971CCBDD152148FBAB14D570DE54E99E" indent="up1"><enum>(B)</enum><text>The Federal Housing Finance Agency, as receiver for the Corporation, may not sell any covered mortgage through any type of non-performing loan sale auction program until the Director of the Federal Housing Finance Agency 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—</text><clause id="HF885FC141D724C0698DB7C48D720D911"><enum>(i)</enum><text>the method of selection of loans for sale;</text></clause><clause id="H1686F3B2A75C4CD783B4BAB75A680D46"><enum>(ii)</enum><text>notice to borrowers prior to inclusion of the loan in a sale; and</text></clause><clause id="HF08E2DDFC7504978B3F8F5F33DEAD326"><enum>(iii)</enum><text>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.</text></clause></subparagraph></paragraph><paragraph commented="no" id="HA58D9881E6114E6981989518782EAC0A" indent="up1"><enum>(4)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="H294C8CB537A3466DB07C85CA77FB3A6F"><enum>(A)</enum><text>Each purchaser of a covered mortgage shall offer the borrower on the covered mortgage loss mitigation options that allow for payment reduction at least as great as would be available to the borrower if the loan had not been sold. </text></subparagraph><subparagraph commented="no" id="H9B10D43A6F9B4FE4BE411CC5CECEEECB" indent="up1"><enum>(B)</enum><text>The specific formula, calculations, waterfall steps, and other terms for 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.</text></subparagraph></paragraph><paragraph commented="no" id="H88E25CD9285B45C5AE1FB6D3ABD61560" indent="up1"><enum>(5)</enum><text>With respect to a transferee, including any subsequent transferee, of a covered mortgage that is sold by the Corporation under this section—</text><subparagraph commented="no" id="HBB4AC61C4AA94EDF8327B02137D5DD7C"><enum>(A)</enum><text>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;</text></subparagraph><subparagraph commented="no" id="H989CC57E1689448ABCBDF486DE37B85C"><enum>(B)</enum><text>the transferee shall provide to the Corporation records documenting that the transfers of those properties are in compliance with this subsection; and</text></subparagraph><subparagraph commented="no" id="H84D04BC4350344AEAB529E93AF4B25E2"><enum>(C)</enum><text>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 may 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.</text></subparagraph></paragraph><paragraph commented="no" id="H6F94414561D643C3B43AA4CD09F16FE1" indent="up1"><enum>(6)</enum><text>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—</text><subparagraph commented="no" id="HABF0847E9AA040A9A519363B3EABB675"><enum>(A)</enum><text>sold to owner-occupants;</text></subparagraph><subparagraph commented="no" id="H961A289084C548319BEEB8651740C914"><enum>(B)</enum><text>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</text></subparagraph><subparagraph commented="no" id="HF4B9FCE52F824D42A9C0A811CA2FBE40"><enum>(C)</enum><text>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.</text></subparagraph></paragraph><paragraph commented="no" id="H8FECDC19C0D649E09AA75F58927ADF95" indent="up1"><enum>(7)</enum><text>The Corporation shall implement policies, procedures, and controls to—</text><subparagraph commented="no" id="HCC80DA79C83C43BB917C858713258FF4"><enum>(A)</enum><text>identify and recruit community partners;</text></subparagraph><subparagraph commented="no" id="HBFA7D78C71A343AFB8214D610E9B23DE"><enum>(B)</enum><text>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</text></subparagraph><subparagraph commented="no" id="H8300C1D055BD47ED8EC22DA98EC15CE8"><enum>(C)</enum><text>prioritize the sale of pools of single-family mortgages to community partners by—</text><clause commented="no" id="HD28AFDF86DE64099923CDCEDD3442D64"><enum>(i)</enum><text>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—</text><subclause commented="no" id="H077F9060B48E4B4DAF174C6210AC0D98"><enum>(I)</enum><text>the current fair market value of the properties; and</text></subclause><subclause commented="no" id="H7DE3BFDF54E449B78F1E037C6C58227F"><enum>(II)</enum><text>the potential impact of foreclosures on those properties to the value of other homes in the same census tract; or</text></subclause></clause><clause id="H77F0A380E63D44A383491E9C66360E26" commented="no" display-inline="no-display-inline"><enum>(ii)</enum><text>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.</text></clause></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection commented="no" display-inline="no-display-inline" id="HF7CF5B0931214A3A98EF77B5059AE68E"><enum>(e)</enum><header>Sale of re-Performing loans</header><text>The Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4501">12 U.S.C. 4501 et seq.</external-xref>) is amended by inserting after section 1328 (<external-xref legal-doc="usc" parsable-cite="usc/12/4548">12 U.S.C. 4548</external-xref>) the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H5E0997B51DFA44E193D72972E2B93643"><section commented="no" display-inline="no-display-inline" id="H0D3503257B064FC087808C4293DF8687"><enum>1329.</enum><header>Sale of re-performing loans</header><subsection id="H1C04E3592F4848FB9AB001D04DBA605C"><enum>(a)</enum><header>Bulk auction or group sales</header><text>An enterprise may not conduct bulk auctions or other group sales of single family re-performing residential loans unless the following requirements are met:</text><paragraph id="H02D6C47293B14E90A8E7BA025442B0C4"><enum>(1)</enum><text>The enterprise establishes a system that provides priority to Federal, State, local, or Tribal governments or nonprofit organizations that have the capacity and experience required for buying, servicing, and resolving single family mortgage loans in a manner that promotes affordable housing, fair housing, affordable homeownership, provision of housing counseling, or neighborhood stabilization.</text></paragraph><paragraph id="H52A4A566709F41BCADC5C24CF3F2D360"><enum>(2)</enum><text>Clear, written notice is sent by the enterprise or servicer through certified and first-class mail to the borrower and all owners of record, with a copy sent to the enterprise if sent by the servicer, not less than 90 days before the inclusion of the loan in any proposed sale—</text><subparagraph id="HEA95A30E9C224BDB871A715DB74EBC59"><enum>(A)</enum><text>stating that the loan will be included in a bulk auction or group sale of re-performing loans; and</text></subparagraph><subparagraph id="H6A6569250A3D4053A5040F94FAE79D5B"><enum>(B)</enum><text>describing the bulk auction or group sale process, including—</text><clause id="HC47128F4FFED4D19815AC14F26052512"><enum>(i)</enum><text>the loss mitigation or other protections available to the borrower and other owners of record both before and after the auction or sale; and</text></clause><clause id="H8C83C0C44618470F9C0F1514764CC917"><enum>(ii)</enum><text>the obligations of the servicer of the loan before and after the auction or sale, including loss mitigation requirements.</text></clause></subparagraph></paragraph><paragraph id="H98C54A31C2E34A3B8AC6C5D46C27CD65"><enum>(3)</enum><text>The enterprise requires in the terms of the bulk auction or group sale that purchasers take loans subject to the following requirements: </text><subparagraph id="H14B8258F73C64DC18B8C2AB59ABE48CD"><enum>(A)</enum><text>The purchaser is required to offer targeted payment relief options to borrowers that become more than 60 days delinquent on their mortgage after their loan is sold that includes deferral of principal and term extension options that reduce payments to an affordable level.</text></subparagraph><subparagraph id="H1A8EC7937588494E90B60C31F1CBEBF5"><enum>(B)</enum><text>The purchaser is required to offer a deferral program to borrowers that become more than 60 days delinquent on their mortgage after their loan is sold that offers terms and protections at least as favorable as those available under loss mitigation guidelines of the enterprise, including the absence of fees, to borrowers who can afford their pre-hardship mortgage payment.</text></subparagraph><subparagraph id="H3145E42ADA57432893974A53D5790944"><enum>(C)</enum><text>Failure by the purchaser to follow the established loss mitigation guidelines shall serve as a defense to a judicial foreclosure and a basis to enjoin or otherwise stay a non-judicial foreclosure.</text></subparagraph><subparagraph id="HC846AE4DE87E4D8580701BE4F086C678"><enum>(D)</enum><text>Data reporting as provided under subsection (b)(1).</text></subparagraph><subparagraph id="H1E5CE578AA724216AA5418BAF263F571"><enum>(E)</enum><text>If a property becomes vacant, the purchaser shall not release the lien until the property is sold or donated.</text></subparagraph><subparagraph id="HFD358347729C4CF094AFDB2E3EFBA286"><enum>(F)</enum><text>Use of contract for deed, lease to own, or a land installment contract to sell or otherwise transfer any property that is secured by a purchased loan shall be prohibited unless the tenant or purchaser is a nonprofit organization.</text></subparagraph></paragraph></subsection><subsection id="H168DFA70327342189A79E98B23F168BF"><enum>(b)</enum><header>Data and reporting</header><paragraph id="HE62755520F4D4A7DB406644E4CB5FB82"><enum>(1)</enum><header>Purchaser reporting</header><text>During the 4-year period following any auction or sale of single family re-performing residential mortgage loans under subsection (a), the Director shall require the enterprise to collect from each purchaser of such loans, including any subsequent purchaser of a loan, quarterly loan-level data regarding the treatment and outcome of the loan, including—</text><subparagraph id="HF773C7B7263B4D39B0713780D64BF98B"><enum>(A)</enum><text>loan characteristics, including loan type, remaining loan term, loan to value ratio, number of months in arrears, and loan status;</text></subparagraph><subparagraph id="H1CF9688940F741389DAD01C539B14077"><enum>(B)</enum><text>loss mitigation data, including whether loss mitigation was provided by the purchaser, debt-to-income ratio and percent payment reduction for any modified loans, and performance of modified loans;</text></subparagraph><subparagraph id="H6C3123D6F95A4AC693A3451D09CAAD34"><enum>(C)</enum><text>demographic data for each borrower and any co-borrower, including race, national origin, sex, ZIP Code, and census tract, and, if available, disability status and veteran status; and</text></subparagraph><subparagraph id="H846BF43831B4438C82FAB898B176DF20"><enum>(D)</enum><text>other purchaser actions, including charge offs and resales of loans and dates for such actions.</text></subparagraph></paragraph><paragraph id="H60AA6A54E4714AAC9363051A36AFB54A"><enum>(2)</enum><header>Semiannual reports to Congress</header><text>The Director shall submit to Congress, and make publicly available at no cost to the public in a readily accessible format on the website of the Agency, semi-annual reports on—</text><subparagraph id="HF452DC47E7BF40F1A2DE396C8A068177"><enum>(A)</enum><text>loans sold in an auction or sale under subsection (a) by each enterprise, disaggregated by pool, including—</text><clause id="H7D1D337DEF4C410BB782C640835919CC"><enum>(i)</enum><text>the number of loans and types of loans;</text></clause><clause id="HB42C34EF02F54150A3B23EABF3C21551"><enum>(ii)</enum><text>mean and median delinquency and loan to value ratios at the time of the sale;</text></clause><clause id="HF902BFC3D02C4F199F1145121BAF4F22"><enum>(iii)</enum><text>the number and percentage of loans modified prior to auction or sale; and</text></clause><clause id="HE6E464F5D56747BD8FBE38121ED9E343"><enum>(iv)</enum><text>demographic and geographic data, including property locations by census tract or larger geographic location if necessary to protect personally identifiable information;</text></clause></subparagraph><subparagraph id="H2583C0358C8D435D91EAC2A385707F9F"><enum>(B)</enum><text>the performance of loans after an auction or sale under subsection (a), disaggregated by loan pool, including the initial purchaser, current owner, current servicer, data summarizing any alternatives to foreclosure offered and enacted, and data summarizing the data collected under subparagraph (A); and</text></subparagraph><subparagraph id="H926090F11FCD4EAAA09DC52C1D3CE4E2"><enum>(C)</enum><text>the results of a fair lending analysis conducted based on the data in subparagraphs (A) and (B) to identify any discriminatory impacts or outcomes associated with the auctions or sales.</text></subparagraph></paragraph></subsection><subsection id="H5942E2419D0C406080B348AB8C651503"><enum>(c)</enum><header>Penalties for noncompliance</header><text>The enterprises may forcibly retain loans or properties, without providing compensation, from purchasers that do not meet the requirements under subsection (a)(3).</text></subsection><subsection id="H98B7628FA1BF4E009FA0F940E3180C5B"><enum>(d)</enum><header>Regulations</header><text>The Director shall issue regulations defining the terms of permissible auctions or sales in accordance with the requirements in this section.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection></section><enum>II</enum><header>Taking the first steps to reverse the legacy of housing discrimination and government negligence</header><section id="H4DE8F59FBA65463F99C63870B351B3A5"><enum>201.</enum><header>Down payment assistance program for first-time homebuyers</header><subsection id="H7C84FE1482B64DFD8EE1A2893671F169"><enum>(a)</enum><header>Definitions</header><text>In this section:</text><paragraph id="H52DF42A8915443C281A65200E8113936"><enum>(1)</enum><header>Eligible resident</header><text>The term <term>eligible resident</term> means an individual who—</text><subparagraph id="HF63D20BED9094647B339DE8165F19BAF"><enum>(A)</enum><text>is a first-time homebuyer;</text></subparagraph><subparagraph id="H25CC2808D2B64241AEB12EB5148300E0"><enum>(B)</enum><text>is a first-generation homebuyer; and</text></subparagraph><subparagraph id="H441AF14076C04A4CB7B0F7A03C39B3AD"><enum>(C)</enum><text>has an income that is less than—</text><clause commented="no" display-inline="no-display-inline" id="H617B7A6255FC46C08486E17EF36EA616"><enum>(i)</enum><text display-inline="yes-display-inline">120 percent of the area median income; or</text></clause><clause commented="no" display-inline="no-display-inline" id="HB48B8B4B7E8844DAA12F3918B1775F6E"><enum>(ii)</enum><text display-inline="yes-display-inline">in the case of a homebuyer acquiring a property for use as a principal residence that is located in a high-cost area, as determined by the Secretary, 140 percent of the area median income.</text></clause></subparagraph></paragraph><paragraph id="H502BFDC627C34ED2963A7D0804307DB0"><enum>(2)</enum><header>First-generation homebuyer</header><text>The term <term>first-generation homebuyer</term> means a homebuyer who is, as self-attested by the homebuyer, an individual—</text><subparagraph id="H9BF152F669B44856B6C6D06DC3C0057C"><enum>(A)</enum><text>whose parents do not, or did not at the time of their death, to the best of the individual's knowledge, have any present ownership interest in a principal residence in any State, excluding ownership of heir property; and</text></subparagraph><subparagraph id="H371E3359AC3046A9BF2AF42774A734D8"><enum>(B)</enum><text>whose spouse or domestic partner has not, during the 3-year period ending on the date of purchase of a property using a grant under subsection (b), had any present ownership interest in a principal residence in any State, excluding ownership of heir property, without regard to whether the spouse or domestic partner is a co-borrower on a mortgage for the property being purchased.</text></subparagraph></paragraph><paragraph id="H109E464168394B518486F2885F22693A"><enum>(3)</enum><header>First-time homebuyer</header><text>The term <term>first-time homebuyer</term> means a homebuyer who is, as self-attested by the homebuyer, an individual (and if married or in a domestic partnership, the spouse or domestic partner of the individual) who, during the 3-year period ending on the date of purchase of a property using a grant under subsection (b)—</text><subparagraph id="H531BB2874FC6498B930AC8FD4D19F31D"><enum>(A)</enum><text>has had no present ownership in a principal residence in any State, excluding ownership of heir property; or</text></subparagraph><subparagraph id="HFEF7C6AA93DB44A18446B26C7B06A18A"><enum>(B)</enum><text>surrendered any present ownership interest in a principal residence in any State, excluding ownership of heir property, as part of a divorce proceeding.</text></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HACE439B50BDB44F9836008F7C2103E60"><enum>(4)</enum><header>Heir property</header><text>The term <term>heir property</term> means residential property for which title—</text><subparagraph commented="no" display-inline="no-display-inline" id="HD43873683E5C4E119CF112FB53890CB3"><enum>(A)</enum><text display-inline="yes-display-inline">passed by operation of law through intestacy; and</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H22C9E6088B8A4480A5EEA8638097BCD7"><enum>(B)</enum><text display-inline="yes-display-inline">is held by 2 or more heirs as tenants in common.</text></subparagraph></paragraph><paragraph id="H008D5B5AACA94835BED044A284974BAD"><enum>(5)</enum><header>Secretary</header><text>The term <term>Secretary</term> means the Secretary of Housing and Urban Development.</text></paragraph><paragraph id="HD06C38623E5A48A886037244C6C91DB8"><enum>(6)</enum><header>State</header><text>The term <term>State</term> includes the District of Columbia and any territory or possession of the United States.</text></paragraph></subsection><subsection id="H634FD92E2721492CAAF43BD48BCA2BCD"><enum>(b)</enum><header>Establishment</header><text display-inline="yes-display-inline">There is established in the Treasury of the United States a fund that—</text><paragraph id="H8772334D5D5C40F489B6F1017B949CC9"><enum>(1)</enum><text display-inline="yes-display-inline">shall be administered by the Secretary, acting through the Office of Housing of the Department of Housing and Urban Development; and</text></paragraph><paragraph id="H5987542F593B4E5C9B223182DE87B305"><enum>(2)</enum><text display-inline="yes-display-inline">shall be used—</text><subparagraph id="HD67C33C4AFE84587B618623A7A7BA1A7"><enum>(A)</enum><text display-inline="yes-display-inline">to provide grants to eligible residents to purchase a property for use as a principal residence;</text></subparagraph><subparagraph id="H08FA55E89ACE4C0DBD6EADE532AD65C7"><enum>(B)</enum><text display-inline="yes-display-inline">for outreach to financial institutions in targeted areas and eligible residents, including for the administration of that outreach;</text></subparagraph><subparagraph id="H33DBF05D382E4472A705D7AFF23B06DF"><enum>(C)</enum><text display-inline="yes-display-inline">for counseling or financial education administered by counseling agencies approved by the Secretary in order to ensure sustainable homeownership; and</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H336ABEFBF92445A6AE4F2BCD0382759C"><enum>(D)</enum><text display-inline="yes-display-inline">to maintain any records required to implement this section. </text></subparagraph></paragraph></subsection><subsection id="H7D36165F7DAA478E8C10B333F5EA19EF"><enum>(c)</enum><header>Grant amount</header><text>An eligible resident may receive a grant under subsection (b) in an amount equal to—</text><paragraph id="HAB5AF78CADCE4D0FB74CAA8215C64987"><enum>(1)</enum><text>not more than 3.5 percent of the appraised value of the property to be purchased; or</text></paragraph><paragraph id="H6D37641854B043ECB6F063948BF62698"><enum>(2)</enum><text>if the appraised value of the property to be purchased exceeds the principal obligation amount limitation for mortgages insured under title II of the National Housing Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1707">12 U.S.C. 1707 et seq.</external-xref>), 3.5 percent of the maximum principal obligation limitation for the property to be purchased.</text></paragraph></subsection><subsection id="H8C7DDC47C6F74E79BF4B495BF0CD2BC1"><enum>(d)</enum><header>Relation to FHA loan</header><text>An eligible resident shall not be required to obtain a mortgage that is insured under title II of the National Housing Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1707">12 U.S.C. 1707 et seq.</external-xref>) as a condition of receiving a grant under subsection (b).</text></subsection><subsection id="H3439278F99F84248A287C825FF4DA9AF"><enum>(e)</enum><header>Layering of assistance</header><text>Receipt by an eligible recipient of assistance for a down payment from a source other than the fund established under subsection (b), including assistance from the Federal Government, a State or local government, or any other public, private, or nonprofit source, shall not affect the eligibility of the eligible recipient for assistance under subsection (b). </text></subsection><subsection id="H0BB65D213DC6459C9B0CDF5C715EDA7C"><enum>(f)</enum><header>Regulations and database</header><text>Not later than 1 year after the date of enactment of this Act, the Secretary shall—</text><paragraph id="H92100BF2F021403CB1E90AF7577F2741"><enum>(1)</enum><text>in consultation with interested parties, including housing counseling agencies approved by the Secretary and individuals or groups with expertise in fair housing, promulgate regulations relating to the use of the fund established under subsection (b);</text></paragraph><paragraph id="H485FC17E07E54034AF275E53E4D93350"><enum>(2)</enum><text>promulgate regulations relating to the disbursement of funds under this section to ensure that an eligible resident is able to receive funds before the closing date for the home of the eligible resident, which may include creating a program that allows a lender to be reimbursed by the fund established under subsection (b) if the lender—</text><subparagraph id="H59CBCF81F89E49E69334E7CDD5C87268"><enum>(A)</enum><text>provides an eligible resident with funds for the closing; or</text></subparagraph><subparagraph id="HB97E1207923B4428A7F7AAB09F73D0FF"><enum>(B)</enum><text>allows an eligible resident to be preapproved to receive assistance under this section when arranging financing for the home of the eligible resident; and</text></subparagraph></paragraph><paragraph id="H03BD6C5CEB8F482884BBCD3A525F5BBE"><enum>(3)</enum><text>establish methods to verify that an individual is an eligible resident.</text></paragraph></subsection><subsection id="H46CDDB57243E48829E516E995F1B2B93"><enum>(g)</enum><header>Appropriation</header><text display-inline="yes-display-inline">Out of funds in the Treasury not otherwise appropriated, there is appropriated to the fund established under subsection (b) such sums as may be necessary for each of fiscal years 2025 through 2034 to carry out the activities under subsection (b)(2).</text></subsection><subsection id="H83DE90F2120B4566B5E8AE9296E71193"><enum>(h)</enum><header>Inclusion of program in home buying information booklets</header><text>Section 5(b) of the Real Estate Settlement Procedures Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/12/2604">12 U.S.C. 2604(b)</external-xref>) is amended by inserting after paragraph (14) the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="HC6F0700D909A4BB4A12F1846929D9B0A"><paragraph id="HA06D34D2327D4C13A6B5AA69B7FC468C"><enum>(15)</enum><text>Information relating to the down payment assistance program established under section 201 of the <short-title>American Housing and Economic Mobility Act of 2024</short-title>.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection commented="no" display-inline="no-display-inline" id="H181FBFD5240E4B71BF63BB06B76D184B"><enum>(i)</enum><header>Inclusion of program as mortgage product</header><text>Section 203(f)(1) of the National Housing Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1709">12 U.S.C. 1709(f)(1)</external-xref>) is amended by inserting <quote>, including the down payment assistance program established under section 201 of the <short-title>American Housing and Economic Mobility Act of 2024</short-title>,</quote> after <quote>mortgage products</quote>.</text></subsection><subsection id="H6EACAEAC89604E0B828F34DB596039EA"><enum>(j)</enum><header>Reliance on borrower attestations</header><text>No additional documentation beyond the borrower’s attestation shall be required to demonstrate eligibility under paragraphs (2) and (3) of subsection (a), and no creditor shall be subject to liability, including monetary penalties or requirements to indemnify a Federal agency or repurchase a loan that has been sold or securitized, for the provision of down payment assistance under this section to a borrower who does not meet the eligibility requirements under those paragraphs if the creditor does so in good faith reliance on borrower attestations of eligibility required by those paragraphs or any regulation promulgated to carry out those paragraphs.</text></subsection><subsection id="H3CBEA5DD672F46BABF29450F89191DA4"><enum>(k)</enum><header>Repayment of assistance</header><paragraph id="HD9DECEBBFC204E5EBA21798D97AC900B"><enum>(1)</enum><header>Requirement</header><text>An eligible resident who receives a grant under subsection (b) to purchase a property for use as a principal residence and does not occupy the property as a principal residence for 5 years or more shall repay to the Secretary a proportional amount of the grant based on the number of years, if any, for which the eligible resident has occupied the property as a principal residence.</text></paragraph><paragraph id="H76FA1CE6FA244D1BB86C4D8F82EDE351"><enum>(2)</enum><header>Limitation</header><text>Notwithstanding paragraph (1), an eligible resident who receives a grant under subsection (b) to purchase a property for use as a principal residence and does not occupy the property as a principal residence for 5 years or more shall not be liable to the Secretary for repayment under paragraph (1) of this subsection if—</text><subparagraph commented="no" display-inline="no-display-inline" id="H76D764704A674BAA88BCD29EED4D3332"><enum>(A)</enum><text display-inline="yes-display-inline">the failure to occupy the property as a principal residence is due at least in part to a hardship; or</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HAA5D3DCC1D654B81A8B1D5C511B55E2C"><enum>(B)</enum><text display-inline="yes-display-inline">the eligible resident sells the property before the expiration of the 5-year period beginning on the date of acquisition and the capital gains from the sale to a bona fide purchaser in an arm’s length transaction are less than the amount the eligible resident would be required to repay under paragraph (1).</text></subparagraph></paragraph></subsection></section><section id="H5D1C05C5B7A248C09AAAC2E26AC1E64F"><enum>202.</enum><header>Formula grant program for communities with an appraisal gap</header><subsection commented="no" id="HD821EF25161147F0A8642A336584E75C"><enum>(a)</enum><header>Definitions</header><text>In this section—</text><paragraph id="H2BB90141C89D4C2C899719F0A0799006"><enum>(1)</enum><text>the term <term>neighborhood with an appraisal gap</term> means a census tract in which the median sales price of a dwelling unit is lower than the median cost to acquire and rehabilitate, or build, a new dwelling unit;</text></paragraph><paragraph commented="no" id="HF3F68F359E3241AC9AD6E6A4D31C3396"><enum>(2)</enum><text>the term <term>Secretary</term> means the Secretary of Housing and Urban Development; and</text></paragraph><paragraph commented="no" id="H6E410C2E259646478ACFF73905E30513"><enum>(3)</enum><text>the term <term>State</term> has the meaning given the term in section 3(b)(7) of the United States Housing Act of 1937 (<external-xref legal-doc="usc" parsable-cite="usc/42/1437a">42 U.S.C. 1437a(b)(7)</external-xref>).</text></paragraph></subsection><subsection id="HB010C7550CEA48C3A115E408ACA2C3B3"><enum>(b)</enum><header>Establishment</header><text>The Secretary shall establish a formula grant program to provide funding to States to support neighborhoods with an appraisal gap, including borrowers with negative equity in their primary residence in those neighborhoods, through—</text><paragraph id="HAF241DF02BFE4F09963751C7ADC3E1A6"><enum>(1)</enum><text>measures that provide funds to borrowers to—</text><subparagraph id="H00E0CA23BDF8471FAEBE7551D5EAB2C8"><enum>(A)</enum><text>pay down arrears on an otherwise affordable loan;</text></subparagraph><subparagraph id="H38681C41966D4C7389A189B8CA37D8C8"><enum>(B)</enum><text>pay down arrears or principal on a loan in order to qualify for a loan modification that will allow the borrower to keep the home;</text></subparagraph><subparagraph id="HD3B6F41166414D95BE0CD481329877A0"><enum>(C)</enum><text>pay off, or pay down part of, a second mortgage or home equity line of credit;</text></subparagraph><subparagraph id="H9A3344627A894FCA9D7CF591B2DFDB03"><enum>(D)</enum><text>pay off a small-dollar mortgage;</text></subparagraph><subparagraph id="H4847E1B0D66A47E4A7FFD808454821F0"><enum>(E)</enum><text>pay delinquent taxes and tax liens;</text></subparagraph><subparagraph id="H80CCEA39E257420DBABA24D9FB2DC32A"><enum>(F)</enum><text>pay off delinquent water or sewer bills and liens; and</text></subparagraph><subparagraph id="HD1905702F7F1459DAACA78C88B486AF9"><enum>(G)</enum><text>pay for home repairs or maintenance or for modifications to bring the home into compliance with any applicable codes; and</text></subparagraph></paragraph><paragraph id="H70B68FE6B14642449DE368429AD07A39"><enum>(2)</enum><text>programs to purchase or rehabilitate vacant or distressed properties to enhance neighborhood property values.</text></paragraph></subsection><subsection id="H50F966EE4BC0438DBE37B3E88237CE77"><enum>(c)</enum><header>Formula</header><text>The Secretary shall distribute amounts under this section to States based on—</text><paragraph id="HA5680000079C4C898A667D455A0E9400"><enum>(1)</enum><text>the number of borrowers with a primary residence with negative equity in each State; and</text></paragraph><paragraph id="H195E3DC3D03B42DFB6D71B7D7C1662FC"><enum>(2)</enum><text>the share of neighborhoods with an appraisal gap in each State.</text></paragraph></subsection><subsection id="H64A59A961D454EDF967309EB7731119B"><enum>(d)</enum><header>Authorization of appropriations</header><text>There is authorized to be appropriated to carry out this section $5,000,000,000 for fiscal year 2025.</text></subsection></section><section id="H17040F4328C249A488757B6229AA50C0"><enum>203.</enum><header>Strengthening the Community Reinvestment Act of 1977</header><subsection id="H5CAB6ABBBE0240D190FDEC3513EBB088"><enum>(a)</enum><header>Short title</header><text display-inline="yes-display-inline">This section may be cited as the <quote><short-title>Community Reinvestment Reform Act of 2024</short-title></quote>.</text></subsection><subsection id="HCB6C8D29A0D24C8287F8E7A7EB118535"><enum>(b)</enum><header>Amendments to the Community Reinvestment Act of 1977</header><text display-inline="yes-display-inline">The Community Reinvestment Act of 1977 (<external-xref legal-doc="usc" parsable-cite="usc/12/2901">12 U.S.C. 2901 et seq.</external-xref>) is amended—</text><paragraph id="H1DF4C03E534F423C857E19461A7F24F9"><enum>(1)</enum><text>by striking sections 802 and 803 (<external-xref legal-doc="usc" parsable-cite="usc/12/2901">12 U.S.C. 2901</external-xref>, 2902) and inserting the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="HE7624BD5A62C40D0A2139A82446D3483"><section id="H6B005A48126440D6A0A4F8860CDD144A"><enum>802.</enum><header>Findings and purpose</header><subsection id="H7DD2D879551744A5B80A036E691ADCD5"><enum>(a)</enum><header>Findings</header><text>Congress finds that—</text><paragraph id="H5E6AAF7C6B3A49D7A0559CC2A44DF9BA"><enum>(1)</enum><text>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;</text></paragraph><paragraph id="H5772E12A14C54F0888F7AB5883CA3051"><enum>(2)</enum><text>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</text></paragraph><paragraph id="H5BB1D590A7AE453BB30DFAEC5BBCF1C3"><enum>(3)</enum><text>regulated financial institutions have a continuing and affirmative obligation to meet the credit or other financial needs of all the local communities in which they are chartered or do business, including communities in which—</text><subparagraph commented="no" display-inline="no-display-inline" id="H67CD893ACAFE4B5AB28B7107E0226672"><enum>(A)</enum><text display-inline="yes-display-inline">the institutions make loans and do not accept deposits; or</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HD02419A78B364D3CBA20B3B92B935E59"><enum>(B)</enum><text display-inline="yes-display-inline">the institutions accept deposits but do not make loans.</text></subparagraph></paragraph></subsection><subsection id="HAABC08D65DB442E493A4D05BD2328224"><enum>(b)</enum><header>Purpose</header><text>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 and 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.</text></subsection></section><section id="H2AA971A7FF92470CA7D3977AB703EEE0"><enum>803.</enum><header>Definitions</header><text display-inline="no-display-inline">In this title:</text><paragraph id="H26F17637CEB3467CB8C7A0EEFB0EE7EE"><enum>(1)</enum><header>Application for a deposit facility</header><text>The term <term>application for a deposit facility</term> means an application to the appropriate Federal financial supervisory agency otherwise required under Federal law or regulations thereunder for—</text><subparagraph id="H1CE57D679F06433BB40D5311D29482EC"><enum>(A)</enum><text>a charter for a national bank or Federal savings and loan association;</text></subparagraph><subparagraph id="H4D793ECFCD184ED285C07C399B4E08D8"><enum>(B)</enum><text>deposit insurance in connection with a newly chartered State bank, savings bank, savings and loan association, or similar institution;</text></subparagraph><subparagraph id="H528D4CF769744E52A5FB5ACA0CB5A88A"><enum>(C)</enum><text>the establishment of a domestic branch or other facility with the ability to accept deposits of a regulated financial institution;</text></subparagraph><subparagraph id="H41053C4E16F44017A6E90E5C89D3105B"><enum>(D)</enum><text>the relocation of the home office or a branch office of a regulated financial institution;</text></subparagraph><subparagraph id="HD3B71247F11F42E9A2A241D48A305536"><enum>(E)</enum><text>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 (<external-xref legal-doc="usc" parsable-cite="usc/12/1828">12 U.S.C. 1828(c)</external-xref>); or</text></subparagraph><subparagraph id="H8B794F26FEA142D58BF748E5654A9C24"><enum>(F)</enum><text>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 (<external-xref legal-doc="usc" parsable-cite="usc/12/1842">12 U.S.C. 1842</external-xref>).</text></subparagraph></paragraph><paragraph id="HAD3FB5CC1A484FA59BEF67C46CAEC901"><enum>(2)</enum><header>Appropriate Federal banking agency</header><text>The term <term>appropriate Federal banking agency</term> has the meaning given the term in section 3 of the Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1813">12 U.S.C. 1813</external-xref>).</text></paragraph><paragraph id="HB856FFCBF15E489D853F01DF2BCF2285"><enum>(3)</enum><header>Appropriate Federal financial supervisory agency</header><text>The term <term>appropriate Federal financial supervisory agency</term> means—</text><subparagraph id="HE0B9DD19890F480A8155CB5C13C29680"><enum>(A)</enum><text>the appropriate Federal banking agency with respect to depository institutions and depository institution holding companies; and</text></subparagraph><subparagraph id="H190A3F9C724F485AB4FF05886290BEC5"><enum>(B)</enum><text>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 (<external-xref legal-doc="usc" parsable-cite="usc/12/5514">12 U.S.C. 5514</external-xref>).</text></subparagraph></paragraph><paragraph id="HA8268F2513E640EBA9592E512374277F"><enum>(4)</enum><header>Assessment area</header><text>The term <term>assessment area</term> means, with respect to a regulated financial institution, each community, including a State, metropolitan area, or urban or rural county, in which the institution—</text><subparagraph id="H272DE1D9B6D645FEB4C3EB1341CB6EAE"><enum>(A)</enum><text>maintains deposit-taking branches, automated teller machines, or retail offices;</text></subparagraph><subparagraph id="H270676924FAA417F80B3C4F915704983"><enum>(B)</enum><text>is represented by an agent; or</text></subparagraph><subparagraph id="H8A2ADBA80F25491D9FEFE214DB2BCEBD"><enum>(C)</enum><text>issues a significant number of loans or other products relative to the total number of loans or other products made by the institution or relative to the total number of loans or other products offered by the private sector market.</text></subparagraph></paragraph><paragraph id="H76BFFD9F69A64E52A0B567C97FA5EF32"><enum>(5)</enum><header>Climate resiliency and disaster mitigation</header><text>The term <term>climate resiliency and disaster mitigation</term> means activities that—</text><subparagraph commented="no" display-inline="no-display-inline" id="HFA72BB3F9EB34D5E90BD4C220A7DE9DE"><enum>(A)</enum><text display-inline="yes-display-inline">assist individuals and communities to prepare for, adapt to, and withstand climate-related risks, natural disasters, or weather-related disasters; </text></subparagraph><subparagraph id="H36F6A8AE1AD540D5839E0707CAFFD900"><enum>(B)</enum><text>benefit or serve residents of low- to moderate-income census tracts or climate vulnerable communities and do not directly result in forced or involuntary relocation of those residents; and</text></subparagraph><subparagraph id="H48DEE25F972C4E439387C4667524F2AE"><enum>(C)</enum><text>are done in conjunction with—</text><clause commented="no" display-inline="no-display-inline" id="H9038AD8F8AC84CFB95CD04F30C6E4B84"><enum>(i)</enum><text display-inline="yes-display-inline">a plan, program or initiative of a Federal, State, local or Tribal government; or</text></clause><clause commented="no" display-inline="no-display-inline" id="HAF04EC98A62748358A931482B4A627C2"><enum>(ii)</enum><text display-inline="yes-display-inline">a mission-driven nonprofit organization that is focused on benefiting or serving targeted census tracts or climate vulnerable communities.</text></clause></subparagraph></paragraph><paragraph id="H9A3E3513509140F2B4122E3D8B152D73"><enum>(6)</enum><header>Climate vulnerable communities</header><text>The term <term>climate vulnerable communities</term> means communities experiencing heightened risk and increased sensitivity to climate change with less capacity and fewer resources to cope with, adapt to, or recover from climate impacts, as determined by the appropriate Federal financial supervisory agencies using tools developed by Federal agencies that identify census tracts as disadvantaged based in part on environmental factors, including the climate and economic justice screening tool developed by the Council on Environmental Quality. </text></paragraph><paragraph id="H8B02FC43FEAB42899EE3E984C807CB17"><enum>(7)</enum><header>Community benefits plan</header><text>The term <term>community benefits plan</term> 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.</text></paragraph><paragraph id="H98F2F2D79FDA4914AD57CC021EC8C2B0"><enum>(8)</enum><header>Community development</header><text>The term <term>community development</term> includes—</text><subparagraph id="H6F7176C36AF3432295FB1693FFA45237"><enum>(A)</enum><text>affordable housing for low- or moderate-income individuals and avoidance of patterns of lending resulting in the loss of affordable housing units and housing for low- and moderate-income individuals in high-opportunity areas;</text></subparagraph><subparagraph id="HFC7038E0FE04434AADE1D646C16A9A74"><enum>(B)</enum><text>community development services, including counseling and successful mortgage or loan modifications of delinquent loans;</text></subparagraph><subparagraph commented="no" id="H94740B1873F74A359B413B889FB30B4E"><enum>(C)</enum><text>activities that promote integration;</text></subparagraph><subparagraph id="H40967AE6B2DB4A0899B6DB912B259D7D"><enum>(D)</enum><text>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;</text></subparagraph><subparagraph id="HA159A998DBEB46C6880E880015E0A466"><enum>(E)</enum><text>activities that revitalize or stabilize—</text><clause id="HDE06FD3786674BA4B181D5F7850B3191"><enum>(i)</enum><text>low- or moderate-income geographies;</text></clause><clause id="HAD93E80F866F4BDF97AE61D158D2069D"><enum>(ii)</enum><text>designated disaster areas;</text></clause><clause id="H3390E23DECB64193AA54E9A56D691091"><enum>(iii)</enum><text>distressed or underserved nonmetropolitan middle-income geographies designated by the Federal Financial Institutions Examination Council, based on—</text><subclause id="HF3DC34F0A3A94ED38C5479AB1F009376"><enum>(I)</enum><text>rates of poverty, unemployment, and population loss; or</text></subclause><subclause id="H35C098484FBB43EFB706622438443484"><enum>(II)</enum><text>population size, density, and dispersion, if those activities help to meet essential community needs, including the needs of low- and moderate-income individuals; or</text></subclause></clause><clause id="H16E3D188665544AB880C40A090A6026D"><enum>(iv)</enum><text>other distressed or underserved communities;</text></clause></subparagraph><subparagraph id="HB808307FDC3F4281A93D45DA03BE4BC5"><enum>(F)</enum><text>activities that promote physical, environmental, and sensory accessibility in housing stock that is integrated into the community; and</text></subparagraph><subparagraph id="HBFF12B7C570546CDBCF1EDC6F98FCAC9"><enum>(G)</enum><text>other activities that promote the objectives of this title, as determined by the appropriate Federal financial supervisory agencies. </text></subparagraph></paragraph><paragraph id="H8815A349D5344E5092FF8D8E45ECA00E"><enum>(9)</enum><header>Depository institution; depository institution holding company; insured depository institution</header><text>The terms <term>depository institution</term>, <term>depository institution holding company</term>, and <term>insured depository institution</term> have the meanings given those terms in section 3 of the Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1813">12 U.S.C. 1813</external-xref>).</text></paragraph><paragraph commented="no" id="H37E5467F5F5D4A74B3FDB09BC7E33DC2"><enum>(10)</enum><header>Entire community</header><text>The term <term>entire community</term> means—</text><subparagraph commented="no" display-inline="no-display-inline" id="H547BD569AFCC48D3A766187AC00ABBBE"><enum>(A)</enum><text display-inline="yes-display-inline">all of the assessment areas of a regulated financial institution; and</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H001BBCCDFAE74DE3AA87626E7B4D533E"><enum>(B)</enum><text display-inline="yes-display-inline">areas outside of assessment areas described in subparagraph (A) in which a regulated financial institution has made loans or received deposits. </text></subparagraph></paragraph><paragraph commented="no" id="H43588ADDBD0F49E48EEE88CA13EE99DC"><enum>(11)</enum><header>Enumerated consumer laws</header><text>The term <term>enumerated consumer laws</term> has the meaning given the term in section 1002 of the Consumer Financial Protection Act of 2010 (<external-xref legal-doc="usc" parsable-cite="usc/12/5481">12 U.S.C. 5481</external-xref>).</text></paragraph><paragraph id="HDEB66E247037408DA2FB75546F4BE83C"><enum>(12)</enum><header>Fossil fuel</header><text>The term <term>fossil fuel</term> means coal, petroleum, methane gas (often referred to as <term>natural gas</term>), or any derivative of coal, petroleum, or methane gas that is used for fuel directly or indirectly, such as for generating electricity. </text></paragraph><paragraph id="HAF56D2B0DBDC491A9FDBA437B5C59F7B"><enum>(13)</enum><header>Fossil fuel company</header><text>The term <term>fossil fuel company</term> means any company that—</text><subparagraph id="HB4D829DE851E4A45A79DDBE032F489D8"><enum>(A)</enum><text>is among the 200 companies with the largest fossil fuel reserves in the world;</text></subparagraph><subparagraph id="H3948A5D3480D4F808A884EC8C9A90F9B"><enum>(B)</enum><text>is among the 30 largest public company owners in the world of coal-fired power plants;</text></subparagraph><subparagraph id="HA1E117ED2B144DA88F2306F21C68E9D6"><enum>(C)</enum><text>has as its core business—</text><clause commented="no" display-inline="no-display-inline" id="H934F43F370F342409A1EF35F82941022"><enum>(i)</enum><text display-inline="yes-display-inline">the construction or operation of fossil fuel infrastructure; or</text></clause><clause id="H012344A052314B2994260E41463EF153"><enum>(ii)</enum><text>the exploration, extraction, refining, processing or distribution of fossil fuels; or</text></clause></subparagraph><subparagraph id="HD9FAD9F88E2C42DCBC7DEE49A76ABA6B"><enum>(D)</enum><text>receives more than 50 percent of its gross revenue from companies that meet the definition under subparagraph (A), (B), or (C).</text></subparagraph></paragraph><paragraph id="H810CF6D854644664A69EEAE42DB24289" commented="no"><enum>(14)</enum><header>Fossil fuel expansion</header><text>The term <term>fossil fuel expansion</term> means financing for new fossil fuel infrastructure projects, including financing of exploration activities, that would—</text><subparagraph commented="no" display-inline="no-display-inline" id="HDD0B2D8BBCA648B7864D8246159BEB34"><enum>(A)</enum><text display-inline="yes-display-inline">increase greenhouse gas emissions; and</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HC0B68AD6BA2743D7BA7C92AA63418621"><enum>(B)</enum><text display-inline="yes-display-inline">increase the difficulty of achieving Federal, State, or local carbon emission reduction goals.</text></subparagraph></paragraph><paragraph id="HE0A3D7027195482B8DAAAD059648A027"><enum>(15)</enum><header>Fossil fuel infrastructure</header><text>The term <term>fossil fuel infrastructure</term> means oil or gas wells, oil or gas pipelines and refineries, oil, coal or gas-fired power plants, oil and gas storage tanks, fossil fuel export terminals, and any other infrastructure used exclusively for fossil fuels, including facilities with carbon capture, utilization, and storage. </text></paragraph><paragraph id="H680A7F8D771347F9B989D4A06FA3CA54"><enum>(16)</enum><header>Geography</header><text>The term <term>geography</term> means a census tract delineated by the Bureau of the Census in the most recent decennial census.</text></paragraph><paragraph id="H84CC39F4A0BC471E9BFAC8F922CC4312"><enum>(17)</enum><header>Intermediate bank</header><text>The term <term>intermediate bank</term> is a depository institution with assets between $391,000,000 and $1,564,000,000, as adjusted annually for purposes of an examination under section 804.</text></paragraph><paragraph id="H13295F23B7B2442295551EC9F91072A6"><enum>(18)</enum><header>Large bank</header><text> The term <term>large bank</term> is a depository institution with assets of not less than $1,564,000,000, as adjusted annually for purposes of an examination under section 804.</text></paragraph><paragraph id="H24AE4AFBCB2F47EB86FBF922D780061A"><enum>(19)</enum><header>Other distressed or underserved community</header><text>The term <term>other distressed or underserved community</term> means an area or census tract 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 of certain metrics, such as loans per households or small business, is experiencing economic hardship or is underserved by financial institutions.</text></paragraph><paragraph id="H713A9123B48F4B2CA220BB60E2BAD5B8"><enum>(20)</enum><header>Other underserved population</header><text> The term <term>other underserved population</term> means a population that is experiencing ongoing effects of discrimination or is relatively underserved by financial institutions, as measured by loans per households or other similar metrics. </text></paragraph><paragraph id="H53E4BB3421324B9E9878E2FEE061F6BC"><enum>(21)</enum><header>Regulated financial institution</header><text>The term <term>regulated financial institution</term> means—</text><subparagraph id="HD8BCC2F3B7334A629AB0CB364009480C"><enum>(A)</enum><text>an insured depository institution;</text></subparagraph><subparagraph id="HF0B9E49C9FD54780B237B515FCE39B93"><enum>(B)</enum><text>a depository institution holding company; and</text></subparagraph><subparagraph id="H525007CD630240E99AB94A5E59CEB960"><enum>(C)</enum><text>a U.S. nonbank mortgage originator. </text></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H4F13C9540863407786110A15DFEA1DD7"><enum>(22)</enum><header>Small bank</header><text display-inline="yes-display-inline">The term <term>small bank</term> is a depository institution with assets of less than $391,000,000, as adjusted annually to take into account inflation for purposes of determining which institutions are subject to an examination under section 804.</text></paragraph><paragraph commented="no" id="H15C7EAE940E442D59F63012628FDF6D5"><enum>(23)</enum><header>U.S. nonbank mortgage originator</header><text>The term <term>U.S. nonbank mortgage originator</term> means a covered person subject to section 1024 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (<external-xref legal-doc="usc" parsable-cite="usc/12/5514">12 U.S.C. 5514</external-xref>) that offers or provides—</text><subparagraph commented="no" id="H73DA1DA62DBF469FB1F5C157386479E6"><enum>(A)</enum><text>origination of loans secured by real estate for use by consumers primarily for personal, family, or household purposes; or</text></subparagraph><subparagraph commented="no" id="H2B22C127D206465F9653DF1AF7F640C3"><enum>(B)</enum><text>loan modification or foreclosure relief services in connection with a loan described in subparagraph (A).</text></subparagraph></paragraph></section><after-quoted-block>;</after-quoted-block></quoted-block></paragraph><paragraph id="HA0666B3ABA384638B98B77C4BA05AC50"><enum>(2)</enum><text>in section 804 (<external-xref legal-doc="usc" parsable-cite="usc/12/2903">12 U.S.C. 2903</external-xref>)—</text><subparagraph id="H79B0A920BDAF4C908004E04A586A358F"><enum>(A)</enum><text>by redesignating subsections (c) and (d) as subsections (f) and (g), respectively;</text></subparagraph><subparagraph id="H946B2DE5546A4523AB5E51BD868CD8C6"><enum>(B)</enum><text>by striking subsections (a) and (b) and inserting the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H0EC89F2486A0452995C6A946A82C79E9"><subsection id="HB7A14AE4694D4B548E216667876610EE"><enum>(a)</enum><header>Depository institutions and bank holding companies</header><paragraph commented="no" display-inline="no-display-inline" id="H9E8DA0DB365145DAB8AC89F4C365C7B5"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text>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:</text><subparagraph id="H79090C7CDC1E4B0D907D952C5DBB110B"><enum>(A)</enum><text>Assess the record of the institution in meeting the credit and other financial needs of its entire community, in particular low- and moderate-income people and communities, and other distressed or underserved communities, and other underserved populations consistent with the safe and sound operation of the institution.</text></subparagraph><subparagraph id="H1DCF5D1510F940F78618F9DE7B1BD61A"><enum>(B)</enum><text>Assess the effectiveness of the following activities in meeting the credit and other financial needs of the assessment areas of the institution, consistent with the safe and sound operation of the institution:</text><clause id="HFB7FDEE48A444AC48E6FCD985DDE592A"><enum>(i)</enum><text>Retail lending, including home, small business, consumer, automobile, and other lending and financial products, that responds to credit needs or other financial needs.</text></clause><clause id="H4306505602E44E4D8965CB49036C71D1"><enum>(ii)</enum><text>Community development lending and investments, which may include a consideration of—</text><subclause id="H726C061260624F2EA01C363CEB08A0FC"><enum>(I)</enum><text>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</text></subclause><subclause id="H9170535BE6A84624A214D578B542D3CA"><enum>(II)</enum><text>the origination of loans by the institution that result in the construction, rehabilitation, or preservation of affordable housing units.</text></subclause></clause><clause id="H5D6FE86950A2427798D4B6EC73AB16CD"><enum>(iii)</enum><text>Community development finance tests or similar tests developed by the Federal bank agencies shall include separate quantitative measures for community development investments. The evaluation of investments shall positively or negatively affect test scores depending on bank performance, in community development finance tests or similar tests. </text></clause><clause id="H360E36671D02400788AB93A6F512D38A"><enum>(iv)</enum><text>Retail financial services and community development services.</text></clause><clause id="H35866A9EAA724BAD8934DFD86703F89B"><enum>(v)</enum><text>Evaluation of the responsiveness, affordability, and sustainability of retail financial services including credit and deposit products shall positively or negatively affect tests scores, depending on bank performance, in the retail products and service test or similar tests.</text></clause><clause id="H0696AC673F4945B08C5ECAC09B6674BD"><enum>(vi)</enum><text>Retail lending assessment areas, as defined by the regulations in part 25 of title 12, Code of Federal Regulations, or any successor regulations, shall be established for large banks and intermediate banks if not more than 90 percent of the retail loans of the bank are in facility-based assessment areas containing their branches and deposit-taking automated teller machines. Large banks and intermediate bank evaluations shall also examine lending outside of retail lending assessment areas and facility-based assessment areas. Evaluations of these loans shall be considered when assigning an institution level rating to the bank.</text></clause></subparagraph><subparagraph id="H56132C724A8A4D6FA7AA22C5673FE912"><enum>(C)</enum><text>With respect to its evaluation of an application for a deposit facility by the institution—</text><clause id="H46FD8926976D47F0898FB6F19DDCB350"><enum>(i)</enum><text>consider the record described in subparagraph (A), the effectiveness of the activities described in subparagraph (B), the overall rating of the institution under this section, and any improvement plans submitted pursuant to this section;</text></clause><clause id="H59C7276EE9044F2891386C8CE4895820"><enum>(ii)</enum><text>provide an opportunity for public comment for a period of not less than 60 days;</text></clause><clause id="HE996F72F854D462FB79CE7E311D61FCA"><enum>(iii)</enum><text>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</text></clause><clause id="HBC0926D6D2FB4B1E8757C058CB3750AC"><enum>(iv)</enum><text>require—</text><subclause id="H6763513F6ECE47E29C6E0BFCE1E21C61"><enum>(I)</enum><text>a demonstration of public benefit, including a community benefits plan with measurable goals regarding increasing responsible lending and other financial products that is commensurate with the ability of the institution to accomplish those goals;</text></subclause><subclause id="HED0D10504F9D446680C378DCD639DF71"><enum>(II)</enum><text>that the institution consult with community-based organizations and other community stakeholders in developing the community benefits plan; and</text></subclause><subclause id="H6AE1814D2E3947BB8B0A164A1F4425DF"><enum>(III)</enum><text>a public hearing for any institution that has a received a <quote>need-to-improve</quote> or <quote>low satisfactory</quote> grade in any individual assessment area during the most recent examination.</text></subclause></clause></subparagraph></paragraph><paragraph id="H554576D6B53B4DB596304E763FE46007" commented="no"><enum>(2)</enum><header>Consideration of lending in partnership with non-depository lenders</header><subparagraph id="H3098F0B382E34151A2A0C34C1F300FC6" commented="no"><enum>(A)</enum><header>In general</header><text>As part of assessing a financial institution under paragraph (1), the appropriate Federal financial supervisory agency shall evaluate the performance of the financial institution in originating loans for small farms, consumer loans (including residential mortgages, unsecured installment loans, advances, and lines of credit), and loans for small businesses (including unsecured installment loans, advances, and lines of credit) in partnership with 1 or more non-depository lenders.</text></subparagraph><subparagraph id="HBFD5A79760E2444AB232A98C73A5B171" commented="no"><enum>(B)</enum><header>Affordability and sustainability</header><text>In making the evaluation described in subparagraph (A), the appropriate Federal financial supervisory agency shall consider the affordability and sustainability of the loan originations made in partnership with 1 or more non-depository lenders.</text></subparagraph><subparagraph id="HB67C8978A10D46AB8ADD7A9216C8A3E4" commented="no"><enum>(C)</enum><header>Definitions</header><text>In this paragraph:</text><clause id="HB644A87C50434DC38D672EB35A73D55F" commented="no"><enum>(i)</enum><header>Non-depository lender</header><text>The term <term>non-depository lender</term> means a lender that is not an insured depository institution.</text></clause><clause id="HE95658482BA7434BAFABBF69F6D0210E" commented="no"><enum>(ii)</enum><header>Small business; small farm</header><text>The terms <term>small business</term> and <term>small farm</term> have the meanings given those terms under the regulations promulgated by the Bureau implementing the amendments made by section 1071 of the Dodd Frank Wall Street Reform and Consumer Protection Act of 2010 (<external-xref legal-doc="public-law" parsable-cite="pl/111/203">Public Law 111–203</external-xref>; 124 Stat. 2056) under part 1002 of title 12, Code of Federal Regulations, or any successor regulation.</text></clause></subparagraph></paragraph><paragraph id="H9D21E5C3A77A4C3688AF53A89025EC8D" commented="no"><enum>(3)</enum><header>Deductions for fossil expansion</header><subparagraph commented="no" display-inline="no-display-inline" id="H1A7CAE6F08334AE0B8C2AF8062C4FBB2"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text>As part of assessing a financial institution under paragraph (1), the appropriate Federal financial supervisory agency shall—</text><clause commented="no" display-inline="no-display-inline" id="HB85DD273543D4DA19F30B0267B0AE924"><enum>(i)</enum><text display-inline="yes-display-inline">determine the total dollar amount of loans and investments to fossil fuel companies for the purposes of fossil fuel expansion that were originated or held by the financial institution during the period covered by an examination under section 804; and</text></clause><clause commented="no" display-inline="no-display-inline" id="H873BF31CF954447794ECF33B9246EC48"><enum>(ii)</enum><text display-inline="yes-display-inline">deduct not more than that total dollar amount from the reported community development loans and investments of the financial institution, both in the aggregate and at the local market, or assessment area, level. </text></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H5BC7F5E1A85C43A1938AC5C6ECCA2153"><enum>(B)</enum><header>Activities</header><text display-inline="yes-display-inline">The deduction described in subparagraph (A)(ii) may only be offset by financing by the institution of climate resiliency and disaster mitigation activities specifically targeted to underserved communities, such as—</text><clause id="H4E33A26D1E534F31AD8D977FBA40330C" commented="no"><enum>(i)</enum><text>the development of climate resilient affordable housing, schools, and small businesses (as defined in paragraph (2)(C));</text></clause><clause id="H9E705805D13A43C1943D8E6F9D8EC1FE" commented="no"><enum>(ii)</enum><text>clean electricity projects and microgrids;</text></clause><clause id="HE14C2E98AD1E4F67910042C58972C1EC" commented="no"><enum>(iii)</enum><text>nature-based protective infrastructure;</text></clause><clause id="HF905BDCE19624DC483A97211E8F06396" commented="no"><enum>(iv)</enum><text>building decarbonization, which includes holistic home weatherization and health interventions;</text></clause><clause id="HB8687C5BE83140E4B643B598C49B3568" commented="no"><enum>(v)</enum><text>lending to green small businesses and companies with legitimate public decarbonization transition plans, strategies, and targets;</text></clause><clause id="H9AA9C5999E7D4034BFF29D431169667A" commented="no"><enum>(vi)</enum><text>electric public transit and electric vehicle charging infrastructure;</text></clause><clause id="H522630582D5C48118DBD4F62FC82AB0F" commented="no"><enum>(vii)</enum><text>investments in weatherization and climate resilience for local businesses;</text></clause><clause id="H08EC62BECEC44F1AAFB1398844C963DE" commented="no"><enum>(viii)</enum><text>operational and technical support and capacity building for environmental and climate justice organizations, including support for community groups active in environmental testing and training of community members to identify climate or environmental risks and opportunities in their communities; and</text></clause><clause id="H68CCB9688B0643E69B3720363F1B93E8"><enum>(ix)</enum><text>workforce development related to the transition away from fossil fuels, including activities to train workers on skills needed to participate in carbon-pollution-free energy sectors.</text></clause></subparagraph></paragraph><paragraph id="H925F0DC775F44445B5EE81885F9F3513" commented="no"><enum>(4)</enum><header>Penalties for sustained failing performance</header><text>A regulated financial institution other than a U.S. nonbank mortgage originator that receives overall performance ratings under this section of <quote>needs to improve</quote> or <quote>substantial noncompliance</quote> for 2 consecutive examinations shall be subject to the following penalties, as deemed applicable by the appropriate Federal financial supervisory agency:</text><subparagraph id="HF6787A58112F47E192BC8C92DF11DD7C" commented="no"><enum>(A)</enum><text>Restrictions on the institution’s growth (overall or in discrete areas), business activities, or payment of dividends, including restrictions on ability to sell loans originated by the institution to enterprises, as defined in section 1303 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4502">12 U.S.C. 4502</external-xref>).</text></subparagraph><subparagraph id="HFE00CBF3C30846FA96C29F3B2BA6BE09" commented="no"><enum>(B)</enum><text>Recommendations to appropriate State agencies that State mortgage licenses be suspended or revoked with a statement of facts covering the justification for the recommended suspension or revocation.</text></subparagraph><subparagraph id="HC72B4A37C97E43D0A4FC3301EF29B60C" commented="no"><enum>(C)</enum><text>Requiring the institution to simplify or reduce its operations, including that the institution reduce its asset size, divest subsidiaries or business lines, or exit from 1 or more markets of operation.</text></subparagraph><subparagraph id="H293CF991FC4E49C291CA1874820B6092" commented="no"><enum>(D)</enum><text>Recovery, or claw back, of portions of executive compensation received during consecutive evaluation periods under this section of which the institution received an overall performance rating of <quote>needs to improve</quote> or <quote>substantial noncompliance</quote>.</text></subparagraph></paragraph></subsection><subsection id="H4431B2A8D4414635A5D0404CB1CE270C"><enum>(b)</enum><header>U.S. nonbank mortgage originator</header><paragraph commented="no" display-inline="no-display-inline" id="H9B4A254B2A254B2FBFDB7AAF7886B570"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text>In connection with its examination of a U.S. nonbank mortgage originator, the appropriate Federal financial supervisory agency shall perform the following:</text><subparagraph id="H3019B100F7E0475297446C9BC971F82F"><enum>(A)</enum><text>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 and other underserved populations, consistent with the safe and sound operation of the U.S. nonbank mortgage originator.</text></subparagraph><subparagraph id="H49E873CC68024FD6BA1AC568BD4B3457"><enum>(B)</enum><text>Assess, as appropriate, the following activities in the assessment areas of the U.S. nonbank mortgage originator:</text><clause commented="no" display-inline="no-display-inline" id="H9160820F7E564A71A93B85810A614AF6"><enum>(i)</enum><text display-inline="yes-display-inline">Retail lending, including home loans.</text></clause><clause id="H97D75F1073064358ABA313A98D03DF08"><enum>(ii)</enum><text>Community development services.</text></clause><clause id="HC0B0429DEAF2487B93560AAA16491A74"><enum>(iii)</enum><text>Community development lending and investments, which may include a consideration of—</text><subclause id="HF37E8FC066774BBC9AD074126656D3CC"><enum>(I)</enum><text>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;</text></subclause><subclause id="H8AF338833B1D4EB9B639C34C8078EEAB"><enum>(II)</enum><text>the origination of loans by the institution that result in the construction, rehabilitation or preservation of affordable housing units; and</text></subclause><subclause id="H0ABF10A09A3146A5906DCCC03387E810"><enum>(III)</enum><text>investments in, grants to, or loans to community development financial institutions (as defined in section 103 of the Community Development Banking and Financial Institutions Act of 1994 (<external-xref legal-doc="usc" parsable-cite="usc/12/4702">12 U.S.C. 4702</external-xref>)), community development corporations (as defined in section 613 of the Community Economic Development Act of 1981 (<external-xref legal-doc="usc" parsable-cite="usc/42/9802">42 U.S.C. 9802</external-xref>)), and other nonprofit organizations serving the housing and development needs of the community.</text></subclause></clause><clause id="H3C7199A9C0DC45C8A30C272A292D0E72"><enum>(iv)</enum><text>Retail lending assessment areas, as defined by the regulations in part 25 of title 12, Code of Federal Regulations, or any successor regulation, shall be established if not more than 90 percent of the retail loans of the U.S. nonbank originator are in facility-based assessment areas containing offices or agents. The evaluations shall also examine lending outside of retail lending assessment areas and facility-based assessment areas. Evaluations of these loans shall be considered when assigning an institution level rating to the U.S. nonbank mortgage originator.</text></clause></subparagraph><subparagraph id="HA6BC4DB7294B42D085950DE44FA5635D"><enum>(C)</enum><text>With respect to its evaluation of an application for a deposit facility by the U.S. nonbank mortgage originator—</text><clause id="HE12D974211BA4B8FACF5056D1DDF54E2"><enum>(i)</enum><text>consider the record described in subparagraph (A) the overall rating of the U.S. nonbank mortgage originator under this section, and any improvement plans submitted pursuant to this section;</text></clause><clause commented="no" id="HBF0C54CEBD4D413690C8BCE58412B176"><enum>(ii)</enum><text>provide an opportunity for public comment for a period of not less than 60 days;</text></clause><clause id="H0754922372A5493A85CC68024F98BB26"><enum>(iii)</enum><text>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</text></clause><clause id="H2222688CE7AA4CFEBF09B2E7AE21C9E7"><enum>(iv)</enum><text>require—</text><subclause id="HF3E142F148424B2D800DAB334B4E77FC"><enum>(I)</enum><text>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, which shall be commensurate with the ability of the institution to accomplish the plan, by the U.S. nonbank mortgage originator to the appropriate Federal financial supervisory agency;</text></subclause><subclause id="H7D9F4480AECE4E95812AC9068EC8CDBA"><enum>(II)</enum><text>that the U.S. nonbank mortgage originator consult with community-based organizations and other community stakeholders in developing the community benefits plan; and</text></subclause><subclause id="HD7E64EE03024428AB5A760DEEB0005E9"><enum>(III)</enum><text>a public hearing for any U.S. nonbank mortgage originator that has a received a <quote>need-to-improve</quote> or <quote>low satisfactory</quote> grade in any individual assessment area during the most recent examination. </text></subclause></clause></subparagraph></paragraph><paragraph id="HF9366478CA154730999CEAFA7886CA97" commented="no"><enum>(2)</enum><header>Penalties and fees</header><text>The appropriate Federal financial supervisory agency shall have the same authority to assess penalties and fees under subsection (a)(4) for U.S. nonbank mortgage originator as is the case for regulated financial institutions described in subsection (a).</text></paragraph><paragraph id="HE3F89253506745A893B40E564FE7DD80" commented="no"><enum>(3)</enum><header>Authority to adjust examination and supervisory fees</header><text> The appropriate Federal financial supervisory agencies shall have the authority to adjust the dollar amount of examination and supervisory fees, based in part, on the rating of institutions under this section. </text></paragraph></subsection><subsection id="H811862C9B07B4298AB9354AC670D133F"><enum>(c)</enum><header>Requirements</header><paragraph id="H8560DF80ABFD4488A16F68209E82908C"><enum>(1)</enum><header>In general</header><text>In connection with its examination of a regulated financial institution under subsection (a) or (b), the appropriate Federal financial supervisory agency shall—</text><subparagraph id="HE2749112D320444E9AA6873D29F66CAB"><enum>(A)</enum><text>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 hold not less than 1 public hearing to receive comments for large banks with assets of not less than $50,000,000,000; and </text></subparagraph><subparagraph id="HF2BE243F044B436BA98629149202F1A2"><enum>(B)</enum><text>require—</text><clause id="H8F9AF265B0CF474BB5CC89EF992E6B5C"><enum>(i)</enum><text>an improvement plan for an institution that receives a rating of ‘low satisfactory’ or lower on the written evaluation of the institution, or such a rating in any individual assessment area; and</text></clause><clause id="H849870DABA274ED8BF1003D987EF4EDB"><enum>(ii)</enum><text>the improvement plan described in clause (i) to result in the reasonable likelihood that the institution will obtain a rating of at least <quote>high satisfactory</quote> in meeting community credit or other financial needs in the relevant measure on the next examination.</text></clause></subparagraph></paragraph><paragraph id="H8B9EAE1BD8364D878E6BDE0BA6F85B10"><enum>(2)</enum><header>Improvement plan</header><subparagraph id="HBF5EBA2ECB514636B1E7B4DB9DA279A7"><enum>(A)</enum><header>In general</header><text>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.</text></subparagraph><subparagraph id="HA649721E15A94DB09FA7DE18ADEEC5B9"><enum>(B)</enum><header>Public comment</header><text>Upon receipt of an improvement plan of a regulated financial institution required under paragraph (1)(B), the appropriate Federal financial supervisory agency shall—</text><clause id="H0B21AC7E25254210996A23A214224878"><enum>(i)</enum><text>make the plan available to the public for review and comment for a period of not less than 60 days; and</text></clause><clause id="H893DBC811D944412999F5CE5739F900B"><enum>(ii)</enum><text>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.</text></clause></subparagraph></paragraph><paragraph id="HB00BCC048967465A93612C1C8049ABF7"><enum>(3)</enum><header>Examination of certain regulated financial institutions</header><text>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—</text><subparagraph id="HE9411D531DBD48BF96939A04CF0EC0C9"><enum>(A)</enum><text>be evaluated under subsection (a) or (b), as applicable—</text><clause id="HAC66CE2FF88A4C9DA96101FF28CFE2B9"><enum>(i)</enum><text>by considering the effectiveness of the institution in serving customers or borrowers, with a special emphasis on low- and moderate-income individuals and other underserved populations across the country regardless of where the individuals reside; and</text></clause><clause id="H1B6421A0742E4168B3CBDE654D370950"><enum>(ii)</enum><text>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</text></clause></subparagraph><subparagraph id="HF95DF90241164039B39B78A2EE845073"><enum>(B)</enum><text>meet the needs of other distressed or underserved communities.</text></subparagraph></paragraph></subsection><subsection id="H6139F7E394E14D2EB3A4CF076F6070A3"><enum>(d)</enum><header>Consideration</header><text>Remediation of consumers pursuant to an order by a court or administrative body or a settlement with a government agency or a private party may not be considered in an assessment conducted under subsection (a)(2) or (b)(2).</text></subsection><subsection id="HAF3FF97BBCCF49759F6D39ED75C48F56" commented="no" display-inline="no-display-inline"><enum>(e)</enum><header>Rule of construction</header><text>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.</text></subsection><after-quoted-block>;</after-quoted-block></quoted-block></subparagraph><subparagraph id="H8E43068BF46949A996B1F8DC996D2B4A"><enum>(C)</enum><text>in subsection (f), as so redesignated—</text><clause id="H3386686644A24591A12481E78869691B"><enum>(i)</enum><text>by striking paragraph (2);</text></clause><clause id="H85E0A90550444FACBED7E134D21D7490"><enum>(ii)</enum><text>by redesignating paragraph (3) as paragraph (2); and</text></clause><clause id="H9D9F2D1C3AF24587B1D3858BC1D44B22"><enum>(iii)</enum><text>in paragraph (2), as so redesignated, by striking subparagraph (C); and</text></clause></subparagraph><subparagraph id="H4DE8CCC0D3074C98803AFB98F690F084"><enum>(D)</enum><text>in subsection (g), as so redesignated, by striking <quote>subsection (a)</quote> and inserting <quote>subsections (a) and (b)</quote>;</text></subparagraph></paragraph><paragraph id="HF41F3FDCF01A441983E37DD9BF432E94"><enum>(3)</enum><text>in section 807 (<external-xref legal-doc="usc" parsable-cite="usc/12/2906">12 U.S.C. 2906</external-xref>)—</text><subparagraph id="H90CDAB1A51BD498DBFEE704E80725E2E"><enum>(A)</enum><text>in subsection (a)—</text><clause id="HC28275A7D2D44D848EBB9CCEE321BBE0"><enum>(i)</enum><text>by striking <quote>an insured depository institution</quote> and inserting <quote>a regulated financial institution</quote>; and</text></clause><clause id="H861DF7845CBE428A80E83E8E6251C750"><enum>(ii)</enum><text>by inserting <quote>or financial</quote> after <quote>credit</quote>;</text></clause></subparagraph><subparagraph id="H92F73B32926B45769DF512382F5DAE14"><enum>(B)</enum><text>in subsection (b)—</text><clause id="HBA817EF36C754B55B32F2B1DA1191A50"><enum>(i)</enum><text>in paragraph (1)—</text><subclause id="HD275C6C5A41D4AB688B91921F84DC98E"><enum>(I)</enum><text>in subparagraph (A)—</text><item id="HD82E59739B264B7EA3B8C0D7D514956A"><enum>(aa)</enum><text>in clause (ii), by striking <quote>and</quote> at the end;</text></item><item id="HDC77D70143D44BC6979DB95641DC4CDE"><enum>(bb)</enum><text>by redesignating clause (iii) as clause (iv); and</text></item><item id="H367D4C3381134818803DDA0B225BB3EB"><enum>(cc)</enum><text>by inserting after clause (ii) the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="HA8378A217E8348F7BF55DD5604251DF6"><clause id="HD3CC67809E844BF4A93E5348072A0B33" indent="up1"><enum>(iii)</enum><text>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</text></clause><after-quoted-block>; and</after-quoted-block></quoted-block></item></subclause><subclause id="HD0736C4E78BE4A5E8BA31F433FC48B9E"><enum>(II)</enum><text>by striking subparagraph (B) and inserting the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="HA7C6850AC44D4CAEBE4B2766B63F7304"><subparagraph id="HC1D06DE6427649F9BCFBBF27056DB5C5" indent="up1"><enum>(B)</enum><header>Evaluation on an assessment area basis</header><text>The information required under subsections (a) and (b) of section 804 shall be presented separately for each assessment area.</text></subparagraph><subparagraph id="H017718B8DCE64989803DE6F72EC10EB5" indent="up1"><enum>(C)</enum><header>Treatment with respect to violations of enumerated consumer laws</header><text>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.</text></subparagraph><after-quoted-block>;</after-quoted-block></quoted-block></subclause></clause><clause id="H1FA485E271EE4878B1E906B14DE16A38"><enum>(ii)</enum><text>in paragraph (2)—</text><subclause id="HB6378E1F55A74C598345800964D2075E"><enum>(I)</enum><text>by striking subparagraphs (A), (B), (C), and (D) and inserting the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H92057FC11DD1456F9F98A4B3F9E7B351"><subparagraph id="H8FCB6E08E53842219A00016968BB3D85"><enum>(A)</enum><text><quote>Outstanding record of meeting community credit or other financial needs</quote>.</text></subparagraph><subparagraph id="H97AA7AAF05E5449DB797E8F1E81E8076"><enum>(B)</enum><text><quote>High Satisfactory record of meeting community credit or other financial needs</quote>.</text></subparagraph><subparagraph id="HB5FE0F69B23B4797A760230CE3596DAA"><enum>(C)</enum><text><quote>Low Satisfactory record of meeting community credit or other financial needs</quote>.</text></subparagraph><subparagraph id="H2006583348204E35B1F9720508EAF80F"><enum>(D)</enum><text><quote>Needs to improve record of meeting community credit or other financial needs</quote>.</text></subparagraph><subparagraph id="HCD9E0A9094224C19B727F3E8F4F7AEEA"><enum>(E)</enum><text><quote>Substantial noncompliance in meeting community credit or other financial needs</quote>.</text></subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block></subclause></clause><clause id="H64B89D94E70D48F7AA9666187A964958"><enum>(iii)</enum><text>by inserting after the flush text following paragraph (2) the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H228C844271AA454C8C78F3F8C0635EED"><paragraph commented="no" id="H5679319418374E129052ECC5C632B161"><enum>(3)</enum><header>Additional authority</header><text>The appropriate Federal financial supervisory agencies may—</text><subparagraph id="H051939C7BDCC43B6A8ABE20A2E7207C6"><enum>(A)</enum><text>alter the ratings under this subsection to change or include additional ratings for the overall ratings and subtest ratings; and</text></subparagraph><subparagraph commented="no" id="H8F1E0A3A661C43E4A31FB45C8C74B9C7"><enum>(B)</enum><text>develop an accompanying point system that includes ranges for each rating category under paragraph (2).</text></subparagraph></paragraph><after-quoted-block>; </after-quoted-block></quoted-block></clause></subparagraph><subparagraph id="H8AEDD18FEE3D4A39928D8DE60BB30813"><enum>(C)</enum><text>by redesignating subsection (e) as subsection (f); and</text></subparagraph><subparagraph id="HE6F7F392075F4DE88D6F3C1CE01322C1"><enum>(D)</enum><text>by inserting after subsection (d) the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H7811CAC81466464F88C68A848CFF438F"><subsection id="HA0412634E9594FDE920E4CCD5B4C903C"><enum>(e)</enum><header>Appeals of rating</header><text>If a regulated financial institution appeals the assigned rating under this section, the appropriate Federal financial supervisory agency shall—</text><paragraph commented="no" display-inline="no-display-inline" id="H6E7252F0C05B4EFCABF95F2177C34C2D"><enum>(1)</enum><text display-inline="yes-display-inline">post a public notice of the appeal on the part of the website of the appropriate Federal financial supervisory agency that contains information on this title; and</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H1F965B606A694F589330FC4C57B353ED"><enum>(2)</enum><text display-inline="yes-display-inline">provide an opportunity for public comment on the appeal.</text></paragraph></subsection><after-quoted-block>; </after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="H466586C7D7D34B0E93215926323EA00A"><enum>(4)</enum><text>in section 806 (<external-xref legal-doc="usc" parsable-cite="usc/12/2905">12 U.S.C. 2905</external-xref>)—</text><subparagraph id="HF91D88CAA9BD43128E0105A80DDB2E1E"><enum>(A)</enum><text>by striking <quote>Regulations</quote> and inserting the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="HD4B1C6C19EA94C3BB12DCB526967542A"><subsection id="HCCD276E413524C47ABA6C8E57E2BD557"><enum>(a)</enum><header>In general</header><text>Regulations</text></subsection><after-quoted-block>;</after-quoted-block></quoted-block></subparagraph><subparagraph id="H28EA731BA29A4D5C9746747D07EABDE8"><enum>(B)</enum><text>in subsection (a), as so designated, by striking <quote>companies,,</quote> and inserting <quote>companies,</quote>; and</text></subparagraph><subparagraph id="H81925650D33141FB9FF43F00FEA10DE7"><enum>(C)</enum><text>by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H282439C362404A979C7051388A458E1B"><subsection id="HA5B19DEF53B24180AA7E31BAF0694276"><enum>(b)</enum><header>Periodic review</header><text>Not later than 5 years after the date of enactment of this subsection and every 5 years thereafter, the appropriate Federal financial supervisory agencies shall—</text><paragraph id="H3F1BB12419CC47199C05A51D9F25F57D"><enum>(1)</enum><text>review the regulations promulgated to carry out this title; and</text></paragraph><paragraph id="H00093830D1964181856AF3FF872DC221"><enum>(2)</enum><text>report to Congress any recommendations for updates to the regulations and this title, which may include consideration of—</text><subparagraph id="HC05594B069F6424AB62772D3567C750C"><enum>(A)</enum><text>data collection under this title;</text></subparagraph><subparagraph id="HB8DFE43E41ED41E583323221BE8A0380"><enum>(B)</enum><text>the rigor of evaluations under this title;</text></subparagraph><subparagraph id="HC356CC4ADFE34235A6CE5B2945F98CE7"><enum>(C)</enum><text>the assessment area coverage of loans and deposits; and</text></subparagraph><subparagraph id="H7A4EB5548B364AA0B98012883B4EBA66"><enum>(D)</enum><text>the extent to which the provisions of this title are reducing disparities in access to credit and capital by income and race.</text></subparagraph></paragraph></subsection><after-quoted-block>; and</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="H7CC3FC5E48C24DCF96474F86B89116CE"><enum>(5)</enum><text>by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="HBAD0F800782B4951BE9E92287515A216"><section id="H192FA44B57A54E4CBCE600C5BE8923B4"><enum>810.</enum><header>Data collection and reporting requirements</header><subsection id="H265DFDDB1790439DA6BD1614335EF770"><enum>(a)</enum><header>Data collection</header><paragraph id="H8383D06F60464A5CAD547BA14996DCAD"><enum>(1)</enum><header>Consumer loans</header><subparagraph id="H941CB711176F4D87BB9E7E85A45F1215"><enum>(A)</enum><header>In general</header><text>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, lines of credit, 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:</text><clause id="H9E00113EB4F94DE59068E084782E8B6A"><enum>(i)</enum><text>A unique number or alpha-numeric symbol that can be used to identify the relevant loan.</text></clause><clause id="H91F4D307F0F34B35BB13FD50FC30BBF6"><enum>(ii)</enum><text>The loan amount at origination or purchase.</text></clause><clause id="HFFA9A679CA4C48ADA594530612801A99"><enum>(iii)</enum><text>The loan location.</text></clause><clause id="H944F879B58E24EE49FFE072192B20131"><enum>(iv)</enum><text>The gross annual income of the borrower that the regulated financial institution considered in making its credit decision.</text></clause></subparagraph><subparagraph id="HDDE1FB8CA3F74E2D9732F5EEEB110A9B"><enum>(B)</enum><header>Exemptions</header><text>The appropriate Federal financial supervisory agencies may exempt classes of regulated financial institutions from the requirements under subparagraph (A) due to low levels of consumer lending or other factors. </text></subparagraph></paragraph><paragraph id="H9C92089EEAD04851A61DF823CBC3FCB9"><enum>(2)</enum><header>Community development loans and investments</header><subparagraph id="HF57CAFA6FE2740A790680C3D1DCE6D78"><enum>(A)</enum><header>Collection and maintenance of data</header><text>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.</text></subparagraph><subparagraph id="H27A5643E75FB4B2CB35ECD5C5472326E"><enum>(B)</enum><header>Public dissemination</header><text>Each regulated financial institution and the appropriate Federal financial supervisory agencies shall—</text><clause id="H7690038601E049D7B3E54D9E3140E421"><enum>(i)</enum><text>publicly disseminate the data described in subparagraph (A) on a county level and for categories of census tracts including low- and moderate-income census tracts or other distressed and underserved census tracts; and</text></clause><clause id="HCA6CE1930C3B4C189CCD4CAF7049930C"><enum>(ii)</enum><text>consider disseminating the data described in subparagraph (A) by individual census tracts in addition to the categories described in clause (i).</text></clause></subparagraph></paragraph><paragraph id="HB25CA96860104D7B9368A49DD866B827"><enum>(3)</enum><header>Assessment area data</header><subparagraph id="HFA3D0B763D124A779E88883C651C54CC"><enum>(A)</enum><header>In general</header><text>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. </text></subparagraph><subparagraph id="H8E3905B5D0584A7FA920DE4A8A545997"><enum>(B)</enum><header>Publication</header><text>The appropriate Federal financial supervisory agencies shall make the list of assessment areas reported by each regulated financial institution under subparagraph (A) publicly available on the part of the website of the appropriate Federal financial supervisory agency that contains information on this title.</text></subparagraph></paragraph><paragraph id="H932F3BA370314B83BF83C79DB8400662"><enum>(4)</enum><header>Deposits</header><text>The appropriate Federal financial supervisory agencies shall—</text><subparagraph id="H03AFA3A84B904D3C91266494ED12CE59"><enum>(A)</enum><text>collect data from regulated financial institutions that reflects—</text><clause id="H6400D47266C1451C84D30BFB6CAD2FB8"><enum>(i)</enum><text>the number of customers of those institutions that reside in categories of census tracts including low- and moderate-income census tracts or other distressed and underserved census tracts and the dollar amount of deposits of those customers; and</text></clause><clause id="H94A18DA26E354346A5ECFA00CC0437CF"><enum>(ii)</enum><text>the number of small businesses that are located in the census tract categories described in clause (i); and</text></clause></subparagraph><subparagraph id="HBCC6C8894382469C92B21EF675CF2146"><enum>(B)</enum><text>consider the dissemination of the deposit data collected under subparagraph (A) by individual census tracts in addition to the categories described in that subparagraph.</text></subparagraph></paragraph></subsection><subsection id="H44FB8B2FA4DF4B3197050AF7F216EE43"><enum>(b)</enum><header>Aggregate disclosure statements</header><paragraph id="H3C41DB329E0E4F0298A04F5E1C9C2E8A"><enum>(1)</enum><header>In general</header><text>Each appropriate Federal financial supervisory agency shall prepare annually, for each assessment area, a disclosure statement of home, small business, small farm, and consumer lending for each regulated financial institution subject to reporting under this section and an aggregated statement for all reporting institutions combined, which shall indicate, for each assessment area, the number and amount of all small business, small farm, and consumer loans originated or purchased sorted by income level of borrowers, race and ethnicity of borrowers, revenue size of small business and farms, and categories of census tracts.</text></paragraph><paragraph id="H2728E9F8AA774BC29CD281319A5E8AD6"><enum>(2)</enum><header>Deposits and community development loans and investments</header><text>An appropriate Federal financial supervisory agency shall include data on deposits and community development loans and investments in the disclosure statements prepared under paragraph (1).</text></paragraph><paragraph id="HCD86985F4FA24B6E8DB749CC968D121A"><enum>(3)</enum><header>Adjusted form</header><text>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.</text></paragraph></subsection><subsection id="HE1D9B23410154A4091024AF5B8ABF640"><enum>(c)</enum><header>Central data depositories</header><text>The Federal Financial Institutions Examination Council, in consultation with the appropriate Federal financial supervisory agencies, shall implement a system—</text><paragraph id="HE2C4E7EF4B8C4B26BD2976399264B0A8"><enum>(1)</enum><text>to allow the public to access online and in a searchable format the data maintained under paragraphs (1) through (4) of subsection (a); and</text></paragraph><paragraph id="HBA929E970E154A01B61E28C163A47316"><enum>(2)</enum><text>that ensures that personally identifiable financial information is not disclosed to public.</text></paragraph></subsection><subsection id="HC9670412062A4B0AB212BBF042A13283"><enum>(d)</enum><header>Limitation</header><text>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.</text></subsection></section><section id="HC8066EBA5367437FB69EBF9CA54125C7"><enum>811.</enum><header>Community Advisory Committees</header><subsection commented="no" display-inline="no-display-inline" id="HC36CEBA7826D4B269DBA848B99306A99"><enum>(a)</enum><header display-inline="yes-display-inline">Depository institutions</header><text display-inline="yes-display-inline">Each regulated financial institution that is not a U.S. nonbank mortgage originator shall form a separate Community Advisory Committee (which shall be composed of a diverse set of consumer, housing, community development, and other stakeholder groups) in each of the following:</text><paragraph id="HB5112B8FE5A442EAA3AB39F715A68233" commented="no"><enum>(1)</enum><text>With respect to a depository institution with consolidated assets equal to or greater than $2,000,000,000 the branches of which are located in 1 census region, each metropolitan statistical area where the financial institution or any subsidiaries of the financial institution have a branch or other facility (including an automated teller machine) and each metropolitan statistical area where the financial institution has a substantial number of customers who maintain deposit accounts with the financial institution.</text></paragraph><paragraph id="H25BC7D46F01E437DB2A8E118BEC70218" commented="no"><enum>(2)</enum><text>With respect to a depository institution with consolidated assets equal to or greater than $2,000,000,000 the branches of which are located in more than 1 census region, each census division within each of the regions.</text></paragraph><paragraph id="HE83E2BA72B534CB3BFB32C5967545EF0" commented="no"><enum>(3)</enum><text>With respect to a depository institution with consolidated assets of less than $2,000,000,000, each State where the financial institution or any subsidiaries of the financial institution are located.</text></paragraph></subsection><subsection id="H11A8C05AC30A40FDA7ED8E77FE837B85" commented="no"><enum>(b)</enum><header>U.S. nonbank mortgage originators</header><text>Each U.S. nonbank mortgage originator shall form a separate Community Advisory Committee (which shall be composed of a diverse set of consumer, housing, community development, and other stakeholder groups) in each of the following:</text><paragraph id="H95FF47D45BA443E4A02E742E20E7B085" commented="no"><enum>(1)</enum><text>With respect to a U.S. nonbank mortgage originator that is required to make a number of disclosures under the Home Mortgage Disclosure Act of 1975 (<external-xref legal-doc="usc" parsable-cite="usc/12/2801">12 U.S.C. 2801 et seq.</external-xref>) that is less than the national median, each State in which the U.S. nonbank mortgage originator offers loans.</text></paragraph><paragraph id="H6FCC3D1B7B094F14AE356F9992839D99" commented="no"><enum>(2)</enum><text>With respect to a U.S. nonbank mortgage originator that is required to make a number of disclosures under the Home Mortgage Disclosure Act of 1975 (<external-xref legal-doc="usc" parsable-cite="usc/12/2801">12 U.S.C. 2801 et seq.</external-xref>) that is more than the national median, each census division within the census regions in which the U.S. nonbank mortgage originator offers loans.</text></paragraph></subsection><subsection id="H47C1E8F27C3E4D7191153247E457C135" commented="no"><enum>(c)</enum><header>Biannual consultation</header><text>The executives of each regulated financial institution shall meet not less frequently than twice per year with the Community Advisory Committees of the regulated financial institution formed under subsection (a) or (b), as applicable—</text><paragraph id="H92B26A09F111472EAA3AF54548AE8652" commented="no"><enum>(1)</enum><text>to discuss the financial institution’s current work to meet the credit and deposit needs of low- and moderate-income individuals and underserved communities, persons with disabilities, LGBTQ+ communities, and Chinese, Asian Indian, Filipino, Japanese, Korean, Vietnamese, Pakistani, Cambodian, Hmong, Laotian, Thai, Taiwanese, Burmese, Bangladeshi, Nepalese, Indonesian, Malaysian, Hispanic or Latino, Black or African American, American Indian and Alaska Native, Native Hawaiian, Samoan, Chamorro, Tongan, iTaukei, Marshallese, and Other Pacific Islander communities, as applicable to the geographic areas of the financial institution;</text></paragraph><paragraph id="H9BF53C156B464BCEA7FBDC5BF1350086" commented="no"><enum>(2)</enum><text>with respect to an institution described in subsection (a)(2) or a U.S. nonbank mortgage originator described in subsection (b)(2), to assist the executives in developing and updating a plan for how the institution will work to meet the credit needs of the institution’s entire community, including low- and moderate-income neighborhoods; and</text></paragraph><paragraph id="H9FFF6D144B004E86B3126D0DE8709FCC" commented="no"><enum>(3)</enum><text>to discuss the institution’s data (which shall be disaggregated by Chinese, Asian Indian, Filipino, Japanese, Korean, Vietnamese, Pakistani, Cambodian, Hmong, Laotian, Thai, Taiwanese, Burmese, Bangladeshi, Nepalese, Indonesian, Malaysian, Hispanic or Latino, Black or African American, American Indian and Alaska Native, and Native Hawaiian, Samoan, Chamorro, Tongan, iTaukei, Marshallese and Other Pacific Islander communities, as applicable to the institution’s geographic areas) on—</text><subparagraph id="H07D817C4F6544150A78905A0C10F71BA" commented="no"><enum>(A)</enum><text>mortgage lending and lending to small businesses and small farms, as defined in section 804(a)(2)(C);</text></subparagraph><subparagraph id="H144E88A7765F4EBA8C31259A1DE89DB6" commented="no"><enum>(B)</enum><text>retail products and services;</text></subparagraph><subparagraph id="HF43EAD75D08749408652999EF225E6C1" commented="no"><enum>(C)</enum><text>community development services; and</text></subparagraph><subparagraph id="H0B474FAD2B974AD0935534BBDD5D5EAD" commented="no"><enum>(D)</enum><text>community development financing.</text></subparagraph></paragraph></subsection><subsection id="HB237541843274841A01BC269477CCD98" commented="no"><enum>(d)</enum><header>Specific consultations</header><text>In addition to the consultations required under paragraph (2), the executives of a depository institution described in subsection (a)(2) shall meet with the Community Advisory Committee of the institution before—</text><paragraph id="H0474421C7CDD4173BA5535F45042BF1F" commented="no"><enum>(1)</enum><text>the institution applies for a merger or acquisition;</text></paragraph><paragraph id="H8503FCF976924F8AB0BA62592F8E87F6" commented="no"><enum>(2)</enum><text>the institution, or any subsidiary of the institution, applies for deposit insurance;</text></paragraph><paragraph id="H50D0888A44E94E91B2BD6388D213C4B4" commented="no"><enum>(3)</enum><text>the institution applies to open a new branch or to relocate an existing branch; or</text></paragraph><paragraph id="HA6CADA3DEEE4408C9616980240816A3E" commented="no"><enum>(4)</enum><text>the institution provides notice that it would close a branch or other facility.</text></paragraph></subsection></section><section id="H6F91F368F9BA4E74A80FD207065198F3"><enum>812.</enum><header>Study on discrimination and disparities in access to credit</header><subsection id="H21575EA4A4B34C829AB0E34C5DAB8252"><enum>(a)</enum><header>Study</header><text>Not later than the end of the 2-year period beginning on the date of enactment of this section, and every 2 years thereafter, the appropriate Federal financial supervisory agencies shall, jointly, and in consultation with such other Federal or State agencies as the appropriate Federal financial supervisory agencies determine appropriate, complete an interagency statistical study to identify—</text><paragraph commented="no" display-inline="no-display-inline" id="HAFBE5889C0514C90A063D39A2BED45A9"><enum>(1)</enum><text display-inline="yes-display-inline">metropolitan areas and rural counties that either experience ongoing discrimination or exhibit significant racial disparities in access to credit for any racial or ethnic group; and</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H631ECCBAC1E1420D9A27C450E4632B9B"><enum>(2)</enum><text display-inline="yes-display-inline">significant disparities in access to branches by racial or ethnic composition of census tract and disparities in access to community development financing by racial or ethnic composition of census tract.</text></paragraph></subsection><subsection id="H5AD016A2952D45F78C257BD7E0A0B6A4"><enum>(b)</enum><header>Use of data</header><text>In carrying out each study required under subsection (a), the appropriate Federal financial supervisory agencies shall make use of data including—</text><paragraph id="HF13E04849A5D41E6AC536DE123A78458"><enum>(1)</enum><text>data obtained under the Home Mortgage Disclosure Act of 1975 (<external-xref legal-doc="usc" parsable-cite="usc/12/2801">12 U.S.C. 2801 et seq.</external-xref>);</text></paragraph><paragraph id="H8336221B8BAF4D94A4DDD6163D569542"><enum>(2)</enum><text>data obtained under section 704B of the Equal Credit Opportunity Act (<external-xref legal-doc="usc" parsable-cite="usc/15/1691o-2">15 U.S.C. 1691o–2</external-xref>);</text></paragraph><paragraph id="H537E383632824AFCB5CDFF30A654E1A8"><enum>(3)</enum><text>data obtained under this Act;</text></paragraph><paragraph id="HBC26B9F96FA247B5B725992942DF235C"><enum>(4)</enum><text>available State data; and</text></paragraph><paragraph id="HD8871C84AE0E44F6B575852581C11587"><enum>(5)</enum><text>information contained in public litigation against regulated financial institutions for redlining or lending discrimination (including litigation initiated by the Bureau of Consumer Financial Protection, the Department of Housing and Urban Affairs, the Department of Justice, or by private parties).</text></paragraph></subsection><subsection id="H96D43B24284A48E19604453BFE2FE74E"><enum>(c)</enum><header>Report</header><text>Upon the completion of each study required under subsection (a), the appropriate Federal financial supervisory agencies shall jointly submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives a report that includes—</text><paragraph id="H0451D40B504E42B4AF34525769CEDC77"><enum>(1)</enum><text>all findings and determinations made in carrying out the study; and</text></paragraph><paragraph id="H378498E975CD4A84B28B9C8CC4738F12"><enum>(2)</enum><text>policy recommendations to remedy the discrimination and disparities identified in the study.</text></paragraph></subsection></section><section id="H57F672FAF8FD4885B1461CF6171C077B" commented="no" display-inline="no-display-inline" section-type="subsequent-section"><enum>813.</enum><header>Public registries</header><text display-inline="no-display-inline">The appropriate Federal supervisory financial agencies, acting through the Federal Financial Institutions Examination Council, shall—</text><paragraph commented="no" display-inline="no-display-inline" id="H1C84ADC0343C427AA20B97D2FF64D21F"><enum>(1)</enum><text display-inline="yes-display-inline">maintain a list of community-based organizations and other stakeholders who wish to be listed and who have commented on examinations conducted under section 804 and applications regarding community needs and bank performance; and</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HEC52A0DACDAD40D78CAFD8E7D236C96E"><enum>(2)</enum><text display-inline="yes-display-inline">conduct outreach to community groups and strive for geographical diversity, gender and racial diversity, and diversity in terms of various types of needs, including affordable housing and economic development to community facilities.</text></paragraph></section><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="H6DD0C3AC9D434478B9A845EE00D937B1"><enum>(c)</enum><header>Amendment to the Bank Holding Company Act of 1956</header><text display-inline="yes-display-inline">Section 4(k)(6) of the Bank Holding Company Act of 1956 (<external-xref legal-doc="usc" parsable-cite="usc/12/1843">12 U.S.C. 1843(k)(6)</external-xref>) is amended to read as follows:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H28998C714E994E23BAABE9BB68FC5936"><paragraph id="H206B89AB5AEC44FAA4447D5EE7C37F02"><enum>(6)</enum><header>Notice and opportunity for comment required</header><subparagraph id="HEF5E37CFD0F1425194849B18BB2B30C6"><enum>(A)</enum><header>In general</header><text>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—</text><clause id="HC044CF27946E4FDD88CE4113AB5FA85E"><enum>(i)</enum><text>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;</text></clause><clause id="H674AFC732395462DB5ABF7314107C545"><enum>(ii)</enum><text>the Board has provided public notice and opportunity for comment for not less than 60 days; and</text></clause><clause id="H282E74780E1D4013B4EFD2D95893C380"><enum>(iii)</enum><text>the Board has not issued a notice disapproving the proposed acquisition or retention.</text></clause></subparagraph><subparagraph commented="no" id="H0B99B29339974060AAFE3B07D76761F5"><enum>(B)</enum><header>Factors for consideration</header><text>In reviewing any prior notice filed under this paragraph, the Board shall—</text><clause commented="no" id="HFB62850D21384665AF778AAAF6B847B6"><enum>(i)</enum><text>consider the overall rating of the financial holding company under the Community Reinvestment Act of 1977 (<external-xref legal-doc="usc" parsable-cite="usc/12/2901">12 U.S.C. 2901 et seq.</external-xref>) and any improvement plans submitted pursuant to that Act;</text></clause><clause commented="no" id="H7C75303654EC4B22B921C429DF81B56F"><enum>(ii)</enum><text>provide opportunity for public comment for a period of not less than 60 days;</text></clause><clause commented="no" id="H4486593F637948A9B4A9CA1638B2F3C2"><enum>(iii)</enum><text>consider changes in the community reinvestment performance of the financial holding company since the last rating under the Community Reinvestment Act of 1977 (<external-xref legal-doc="usc" parsable-cite="usc/12/2901">12 U.S.C. 2901 et seq.</external-xref>) by the appropriate Federal financial supervisory agency; and</text></clause><clause commented="no" id="H84BC41F413904683BD74880C1DF2EA1B"><enum>(iv)</enum><text>require—</text><subclause commented="no" id="HA0AE5C45186642CC87631BE8FB0FAE89"><enum>(I)</enum><text>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 commensurate with the ability of the institution to carry out that plan;</text></subclause><subclause commented="no" id="HC9FD3696B01C48D499BFA075DF04F2A5"><enum>(II)</enum><text>that the institution consult with community-based organizations and other community stakeholders in developing the community benefits plan; and</text></subclause><subclause commented="no" id="HDDC4C6D37319455F8EE6B28EAA9EAA11"><enum>(III)</enum><text>a public hearing for any bank that has received a <quote>need-to-improve</quote> or <quote>low satisfactory</quote> grade in any assessment area during the last examination under the Community Reinvestment Act of 1977 (<external-xref legal-doc="usc" parsable-cite="usc/12/2901">12 U.S.C. 2901 et seq.</external-xref>).</text></subclause></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H0D304D14AD8C40BCABE8F43CB6D1B0CD" commented="no" display-inline="no-display-inline"><enum>(d)</enum><header>Technical and conforming amendment</header><text>Section 10(c)(2)(H)(i) of the Home Owners' Loan Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1467a">12 U.S.C. 1467a(c)(2)(H)(i)</external-xref>) is amended by striking <quote>section 804(c) of the Community Reinvestment Act of 1977 (<external-xref legal-doc="usc" parsable-cite="usc/12/2903">12 U.S.C. 2903(c)</external-xref>)</quote> and inserting <quote>section 804(f) of the Community Reinvestment Act of 1977 (<external-xref legal-doc="usc" parsable-cite="usc/12/2903">12 U.S.C. 2903(f)</external-xref>)</quote>.</text></subsection></section><section id="HFB56BEBC3ECC45788D1C002CFC3676B3"><enum>204.</enum><header>Amendments relating to credit union service to underserved areas</header><subsection id="H5C1F0BBA86D240FCACCD57BE27B29172"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">The Federal Credit Union Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1751">12 U.S.C. 1751 et seq.</external-xref>) is amended—</text><paragraph id="H634380FE4ABB45D7B22B5BC6A556F1DF"><enum>(1)</enum><text>in section 101 (<external-xref legal-doc="usc" parsable-cite="usc/12/1752">12 U.S.C. 1752</external-xref>)—</text><subparagraph id="HF510DC88FCEB4DA29411E24C9ECB399E"><enum>(A)</enum><text>in paragraph (8), by striking <quote>and</quote> at the end;</text></subparagraph><subparagraph id="HF5EFE2D42DE9448DBB75B7E30A815401"><enum>(B)</enum><text>in paragraph (9), by striking the period at the end and inserting <quote>; and</quote>; and</text></subparagraph><subparagraph id="H8E3CEA9CF4D744B7BF97B6FDB65E2978"><enum>(C)</enum><text>by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H3965C0F4DD9B4240AC3C261E66749701"><paragraph id="HFC7906D52C064C8CBE43E2335B46EAFA"><enum>(10)</enum><text>the term <term>underserved area</term>—</text><subparagraph id="HC6B2CF3D63BC4DDFBC708F39C5EFEC47"><enum>(A)</enum><text>means a local community, neighborhood, or rural district that—</text><clause id="H7858256BAA7C4008B38AF9FE4B87D4CF"><enum>(i)</enum><text>is an investment area, as defined in section 103 of the Community Development Banking and Financial Institutions Act of 1994 (<external-xref legal-doc="usc" parsable-cite="usc/12/4702">12 U.S.C. 4702</external-xref>), that meets such additional requirements that the Board may impose; and</text></clause><clause id="H534DF2F9B0E241019098106FD6E17356"><enum>(ii)</enum><text>is underserved, based on data of the Board and the Federal banking agencies (as defined in section 3 of the Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1813">12 U.S.C. 1813</external-xref>)), by other depository institutions (as defined in section 19(b)(1)(A) of the Federal Reserve Act (<external-xref legal-doc="usc" parsable-cite="usc/12/461">12 U.S.C. 461(b)(1)(A)</external-xref>); and</text></clause></subparagraph><subparagraph id="H5A582E8C2EB54341A1A70F7FBC2A31E1"><enum>(B)</enum><text>notwithstanding subparagraph (A), includes, with respect to any Federal credit union, any geographic area within which the credit union—</text><clause id="H8B11A8B15C24419F96D1BA589BB98FF5"><enum>(i)</enum><text>has received approval to provide service as an underserved area before the date of enactment of this paragraph from the Administration; and</text></clause><clause commented="no" display-inline="no-display-inline" id="H9627912BA06A46A8B3B305DABD3444E5"><enum>(ii)</enum><text>has established a service facility before that date of enactment.</text></clause></subparagraph></paragraph><after-quoted-block>; </after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="H937105561CFC49EBB94C025CD240DD53"><enum>(2)</enum><text>in section 106 (<external-xref legal-doc="usc" parsable-cite="usc/12/1756">12 U.S.C. 1756</external-xref>)—</text><subparagraph commented="no" display-inline="no-display-inline" id="H053224C9878C43F3B46D711911DF0F49"><enum>(A)</enum><text display-inline="yes-display-inline">in the first sentence, by striking <quote>Federal</quote> and inserting <quote>(a) Federal</quote>; and</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H07F92EA0F5474193B4877AA6DC79B4DA"><enum>(B)</enum><text>by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H4C39D6D730874CECA9CDA37A228D7495"><subsection commented="no" display-inline="no-display-inline" id="HE914DB31F9054DC6ACF56D8B697BE5DD"><enum>(b)</enum><text>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.</text></subsection><after-quoted-block>;</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="H79A60D102D2E43D38BC8BC1306112DF2"><enum>(3)</enum><text>in section 109 (<external-xref legal-doc="usc" parsable-cite="usc/12/1759">12 U.S.C. 1759</external-xref>)—</text><subparagraph id="H911598A680324DA08B7412C164D3EB17"><enum>(A)</enum><text>in subsection (c), by amending paragraph (2) to read as follows:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H7114EB84C55F4B30A9AA0C2C42A9FA19"><paragraph id="HDA309C373FA641CFA8161C2D9C971183"><enum>(2)</enum><header>Exception for underserved areas</header><subparagraph id="H4C1AE92EB28F4DA3B8FEBF780F2DE5A9"><enum>(A)</enum><header>In general</header><text>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—</text><clause id="HD99D188AC62E4D3DB21840EB1835E9CF"><enum>(i)</enum><text>the Board determines—</text><subclause id="H5116200630654AFFBA2F8207DC799CD5"><enum>(I)</enum><text>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</text></subclause><subclause id="H62C3C0B839B04AC8A93ECCAD028123F6"><enum>(II)</enum><text>at the time of the approval, that the credit union is well capitalized or adequately capitalized (as defined in section 216(c)(1)); and</text></subclause></clause><clause id="H0B84B4BE02464BC9953591ACF1472B70"><enum>(ii)</enum><text>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.</text></clause></subparagraph><subparagraph id="H23E8D3683F354E31920DC76C189D2396"><enum>(B)</enum><header>Termination of approval</header><clause id="HAB9BC147ED0E4E1F8B25F45C3447E5EA"><enum>(i)</enum><header>In general</header><text>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.</text></clause><clause id="HC51D354F145348CB947B9FC2C34E4AD0"><enum>(ii)</enum><header>Significant unmet needs plan</header><text>The Board may terminate the approval of an application under this paragraph with respect to 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). </text></clause></subparagraph><subparagraph id="H8FDB461BA1B54B15A781B851876A0AD4"><enum>(C)</enum><header>Credit union reporting requirement</header><text>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—</text><clause id="HC2A8E380D5E3416699B1E3D3E3F29C57"><enum>(i)</enum><text>the number of members of the credit union who are members by reason of the application;</text></clause><clause id="H83BEFA2E8E7A45089B283E54BC4F1BB1"><enum>(ii)</enum><text>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</text></clause><clause id="HA97B1E3A448546B883C0F6E8B9A93473"><enum>(iii)</enum><text>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.</text></clause></subparagraph><subparagraph id="H684C2E65B584471AA4EF70DDE613D193"><enum>(D)</enum><header>Publication by administration</header><text>The Administration shall publish an annual report containing—</text><clause id="H780E9C37AFCC46F19EE44667B1947A1B"><enum>(i)</enum><text>a list of all the applications approved under this paragraph before the date on which the report is published;</text></clause><clause id="H84972FA2BAAD48A4848023AFE13C5292"><enum>(ii)</enum><text>the number and locations of the underserved areas taken into account in approving those applications;</text></clause><clause id="HEBA1F21F4DA942DD86F6BEF0EB5A992A"><enum>(iii)</enum><text>the total number of members of credit unions who are members by reason of the approval of those applications; and</text></clause><clause id="H1D13D9088C6C4D02A22C846A8D46D0E1"><enum>(iv)</enum><text>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.</text></clause></subparagraph></paragraph><after-quoted-block>; </after-quoted-block></quoted-block></subparagraph><subparagraph id="H8A83A35B881E4622B56E90F7C76E245D"><enum>(B)</enum><text>in subsection (e)(2), by inserting <quote>subsection (c)(2) and</quote> after <quote>provided in</quote>; and</text></subparagraph><subparagraph id="H5680F1EED7D1460EA5CC4062E6F0A8FA"><enum>(C)</enum><text>by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="HB143A97289E64FA99CD0B820BAE28DFA"><subsection id="H8D181ED3876949F89566579BBFA497E7"><enum>(h)</enum><header>Additional requirements for community credit unions</header><paragraph id="H9CEC85134F4E4D28AECB3BB02FD83FDF"><enum>(1)</enum><header>In general</header><text>A Federal credit union desiring a field of 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—</text><subparagraph id="H4AEABB0CC9A74EA99FC439488D2ADA28"><enum>(A)</enum><text>the unique needs of the various demographic groups in the proposed community; and</text></subparagraph><subparagraph id="HAFF2E9120894488AA2FD463427A0A7B2"><enum>(B)</enum><text>how the credit union will market to each group, particularly underserved groups, to address those needs.</text></subparagraph></paragraph><paragraph id="HD9103F9C211A444A9E7030407B9644A1"><enum>(2)</enum><header>Public comment and hearing</header><text>With respect to a Federal credit union desiring a field of 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—</text><subparagraph id="H1CD66A4F8C2B4B828C9EC918FB5FECCE"><enum>(A)</enum><text>publish a notice in the Federal Register seeking comment from interested parties about the proposed community; and</text></subparagraph><subparagraph id="HBCD02801187A4CE2B08502EA64D3FBE5"><enum>(B)</enum><text>conduct a public hearing regarding the application of the Federal credit union.</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph></subsection><subsection id="H15CC61182C96495BA0751F834C0E2B41" commented="no" display-inline="no-display-inline"><enum>(b)</enum><header>Regulations</header><text>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).</text></subsection></section><section id="HF62BCFEF2EF4409589B8D0C38201F02B" commented="no"><enum>205.</enum><header>Raising public welfare caps</header><subsection id="H8A8237A3AF264C879B15E2D3454CB657" commented="no"><enum>(a)</enum><header>National banks</header><text>The paragraph designated as the <quote>Eleventh.</quote> of section 5136 of the Revised Statutes of the United States (<external-xref legal-doc="usc" parsable-cite="usc/12/24">12 U.S.C. 24</external-xref>) is amended to read as follows: <quote>Eleventh. To make investments directly or indirectly, each of which promotes the public welfare by benefitting primarily low- and moderate-income communities or families (such as by providing housing, services, or jobs). An association shall not make any such investment if the investment would expose the association to unlimited liability. The Comptroller of the Currency shall limit an association's investments in any 1 project and an association’s aggregate investments under this paragraph. Aggregate investments for associations that do not meet the criteria of being well capitalized, as defined in section 24.2(e) of title 12, Code of Federal Regulations, or any successor regulation, under this paragraph shall not exceed an amount equal to the sum of 5 percent of the association’s capital stock actually paid in and unimpaired and 5 percent of the association’s unimpaired surplus fund, unless the Comptroller determines by order that the higher amount will pose no significant risk to the affected deposit insurance fund, and the association is adequately capitalized. In no case shall aggregate investments of an association that do not meet the criteria for being well capitalized under this paragraph exceed an amount equal to the sum of 15 percent of the association’s capital stock actually paid in and unimpaired and 15 percent of the association’s unimpaired surplus fund. Aggregate investments of well capitalized associations, as defined in section 24.2(e) of title 12, Code of Federal Regulations, or any successor regulation, under this paragraph shall not exceed an amount equal to the sum of 15 percent of the association’s capital stock actually paid in and unimpaired and 15 percent of the association’s unimpaired surplus fund, unless the Comptroller determines by order that the higher amount will pose no significant risk to the affected deposit insurance fund. With respect to any association that meets the criteria for being well capitalized, as defined in section 24.2(e) of title 12, Code of Federal Regulations, or any successor regulation, aggregate investments under this paragraph shall not exceed an amount equal to the sum of 25 percent of the association’s capital stock actually paid in and unimpaired and 25 percent of the association’s unimpaired surplus fund. The foregoing standards and limitations apply to investments under this paragraph made by a national bank directly and by its subsidiaries.</quote>.</text></subsection><subsection id="H17D9F41D458545EB8B7E80F2A332D5D1" commented="no"><enum>(b)</enum><header>Conforming amendments for State member banks</header><text>The 23rd undesignated paragraph of section 9 of the Federal Reserve Act (<external-xref legal-doc="usc" parsable-cite="usc/12/338a">12 U.S.C. 338a</external-xref>) is amended to read as follows: </text><quoted-block style="OLC" display-inline="no-display-inline" id="HE93632809A63483E8ABCE8F1E4EC0E51"><quoted-block-continuation-text quoted-block-continuation-text-level="paragraph">A State member bank may make investments directly or indirectly, each of which promotes the public welfare by benefitting primarily low- and moderate-income communities or families (such as by providing housing, services, or jobs), to the extent permissible under State law. A State member bank shall not make any such investment if the investment would expose the State member bank to unlimited liability. Aggregate investments for State member banks that do not meet the criteria of being well capitalized, as defined in section 208.43(b) of title 12, Code of Federal Regulations, or any successor regulation, under this paragraph shall not exceed an amount equal to the sum of 5 percent of the association's capital stock actually paid in and unimpaired and 5 percent of the association’s unimpaired surplus fund, unless the Board determines by order that the higher amount will pose no significant risk to the affected deposit insurance fund, and the association is adequately capitalized. In no case shall aggregate investments of a State member bank that does not meet the criteria for being well capitalized under this paragraph exceed an amount equal to the sum of 15 percent of the association’s capital stock actually paid in and unimpaired and 15 percent of the association’s unimpaired surplus fund. Aggregate investments of well capitalized State member banks, as defined in section 208.43(b) of title 12, Code of Federal Regulations, or any successor regulation, with an examination rating under section 804 of the Community Reinvestment Act of 1977 (<external-xref legal-doc="usc" parsable-cite="usc/12/2903">12 U.S.C. 2903</external-xref>) of <quote>outstanding</quote> or <quote>satisfactory</quote>, under this paragraph shall not exceed an amount equal to the sum of 15 percent of the State member bank’s capital stock actually paid in and unimpaired and 15 percent of the state member Bank’s unimpaired surplus fund, unless the Board determines by order that the higher amount will pose no significant risk to the affected deposit insurance fund. With respect to any State member bank that meets meet the criteria for being well capitalized as defined in section 208.43(b) of title 12, Code of Federal Regulations, or any successor regulation, with an examination rating under section 804 of the Community Reinvestment Act of 1977 (<external-xref legal-doc="usc" parsable-cite="usc/12/2903">12 U.S.C. 2903</external-xref>) of <quote>outstanding</quote> or <quote>satisfactory</quote>, aggregate investments under this paragraph shall not exceed an amount equal to the sum of 25 percent of the State member bank’s capital stock actually paid in and unimpaired and 25 percent of the State member bank’s unimpaired surplus fund. The foregoing standards and limitations apply to investments under this paragraph made by a State member bank directly and by its subsidiaries.</quoted-block-continuation-text><after-quoted-block>.</after-quoted-block></quoted-block></subsection></section><section id="HA67944056E2B43F397C4E294171568A5"><enum>206.</enum><header>Temporary eligibility of certain direct descendants of certain veterans for housing loans guaranteed by the Secretary of Veterans Affairs</header><subsection commented="no" display-inline="no-display-inline" id="HE3B72B46957646CF9D5E27C268DD2BDC"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text>During the period described in subsection (b)—</text><paragraph commented="no" display-inline="no-display-inline" id="H89B39CA831C3465988BF699B0F191CDD"><enum>(1)</enum><text display-inline="yes-display-inline">section 3701(b) of title 38, United States Code, shall be applied and administered by adding at the end the following new paragraph: </text><quoted-block style="USC" id="HD5EFA4831BCE4C0B947D8B7EF3A0290D" act-name=""><paragraph id="H038973C5742F4341BE9DB4921C465067"><enum>(8)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="HFE1D886891BD472F8437291D9AA53BA4"><enum>(A)</enum><text>The term <term>veteran</term> also includes, for purposes of home loans, any direct descendant of a veteran described in subparagraph (B) if the descendant—</text><clause commented="no" display-inline="no-display-inline" id="H6160E1F1113F4241A713E3728A15652E" indent="up1"><enum>(i)</enum><text display-inline="yes-display-inline">is living on the date of the enactment of the <short-title>American Housing and Economic Mobility Act of 2024</short-title>; </text></clause><clause id="HCCDC10EC65C4477984964200120D646C" indent="up1"><enum>(ii)</enum><text>is a first-time homebuyer; and</text></clause><clause id="H571C51ABE04E463DAD08B6E8FD6044D5" indent="up1"><enum>(iii)</enum><text>is a first-generation homebuyer. </text></clause></subparagraph><subparagraph id="HB6B6EB8972B149F4A49FEC3601392A29" indent="up1"><enum>(B)</enum><text>A veteran described in this clause is a veteran who— </text><clause id="HBAB05D383C1344B09D0B1FC70C48910B"><enum>(i)</enum><text>served on active duty at any time during the period between June 22, 1944, and April 11, 1968; </text></clause><clause commented="no" display-inline="no-display-inline" id="H4194E2CD47F44A0F8BA90A380CF78860"><enum>(ii)</enum><text display-inline="yes-display-inline">is deceased; and</text></clause><clause id="H8461BC6DB321427697F132DEA3934EA6"><enum>(iii)</enum><text>did not receive a housing loan benefit under this chapter during his or her lifetime. </text></clause></subparagraph><subparagraph indent="up1" id="H94AE6B0C06724496A01D546C76B680E3"><enum>(C)</enum><text>In this paragraph:</text><clause commented="no" display-inline="no-display-inline" id="HB385F34341C546CE817DCDCB5B8AC19E"><enum>(i)</enum><text display-inline="yes-display-inline">The term <term>direct descendant</term> includes a legally adopted descendant.</text></clause><clause commented="no" display-inline="no-display-inline" id="H79F5694360324192A0FB180B90AD4A21"><enum>(ii)</enum><text display-inline="yes-display-inline">The terms <term>first-generation homebuyer</term> and <term>first-time homebuyer</term> have the meanings given those terms in section 201(a) of the <short-title>American Housing and Economic Mobility Act of 2024</short-title>.</text></clause></subparagraph></paragraph><after-quoted-block>; and </after-quoted-block></quoted-block></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H1F0B32E23FAA4071A960D0DAF779194C"><enum>(2)</enum><text>section 3702(a)(2) of such title shall be applied and administered by adding at the end the following new subparagraph: </text><quoted-block style="USC" id="H6D369F3EB3F444E0BCDD164E92A2AE81" act-name=""><subparagraph id="H1ED0277D6CAE43C7853C87A39F52CE5C" indent="up1"><enum>(H)</enum><text>Each direct descendant described in <external-xref legal-doc="usc" parsable-cite="usc/26/3701">section 3701(b)(8)</external-xref> of this title.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HF1CF2239A26049CB95421E5E71EAB674"><enum>(b)</enum><header display-inline="yes-display-inline">Period described</header><text>The period described in this subsection is the period beginning one year after the date of the enactment of this Act and ending ten years after the date on which the Secretary of Veterans Affairs prescribes the regulations required by subsection (c). </text></subsection><subsection commented="no" display-inline="no-display-inline" id="HF5F5344545BF4E5FBC1CE09C1A17A936"><enum>(c)</enum><header>Regulations</header><paragraph commented="no" display-inline="no-display-inline" id="H058811BEA5184159AF680EAF4B12757A"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Not later than 180 days after the date of the enactment of this Act, the Secretary of Veterans Affairs shall prescribe regulations to carry out this section. </text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H32E214D96C6240BC9B7DBFD2A5E7656A"><enum>(2)</enum><header>Elements</header><text display-inline="yes-display-inline">The regulations required by paragraph (1) shall provide rules and procedures for determining—</text><subparagraph commented="no" display-inline="no-display-inline" id="H3C3D0C872C8E4EAEB6A5464D2A159716"><enum>(A)</enum><text display-inline="yes-display-inline">the eligibility of a direct descendant for housing loan benefits under this section when the records of the Veterans Benefits Administration are incomplete or otherwise inadequate to verify eligibility; and </text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H50DA6968F5C94B55961A35CA5C3F9C8B"><enum>(B)</enum><text>appropriate implementation of this section if more than one direct descendant of a veteran seeks housing loan benefits under this section.</text></subparagraph></paragraph></subsection></section><enum>III</enum><header>Removing barriers that isolate communities</header><section id="H5CA977A9854A4168B46F29371C41D46F"><enum>301.</enum><header>Expanding rights under the Fair Housing Act</header><subsection id="H3A4CDADE8B3A4F82BFBD7556E1495172"><enum>(a)</enum><header>Purposes</header><text>The purposes of the amendments made by this section are—</text><paragraph id="H3A5A6DF333A24D0D823073DE3239F848"><enum>(1)</enum><text>to expand, as well as clarify, confirm, and create greater consistency in, the protections against discrimination on the basis of all covered characteristics; and</text></paragraph><paragraph id="H8F93DF0646B34F1E84F54D8F46DB2591"><enum>(2)</enum><text>to provide guidance and notice to individuals, organizations, corporations, and agencies regarding their obligations under Federal law.</text></paragraph></subsection><subsection id="HE99415168C7D45E692519AC4701D86F1"><enum>(b)</enum><header>Amendments to the Fair Housing Act</header><text>The Fair Housing Act (<external-xref legal-doc="usc" parsable-cite="usc/42/3601">42 U.S.C. 3601 et seq.</external-xref>) is amended—</text><paragraph id="H6F2316BA62EB4D529DB63227B02B632B"><enum>(1)</enum><text>in section 802 (<external-xref legal-doc="usc" parsable-cite="usc/42/3602">42 U.S.C. 3602</external-xref>), by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H9DA2F2F02DE4497D9377305605CAB641"><subsection id="HEE1F35391CE5485EB553EBFDE7E2536C"><enum>(p)</enum><text display-inline="yes-display-inline"><term>Gender identity</term> means the gender-related identity, appearance, or mannerisms or other gender-related characteristics of an individual, regardless of the individual’s designated sex at birth.</text></subsection><subsection id="HB317956F676A40E49F1D361AD659F990"><enum>(q)</enum><text><term>Marital status</term> has the meaning given the term in section 202.2 of title 12, Code of Federal Regulations, or any successor regulation.</text></subsection><subsection id="H5C121C2BE9144350B66A5698B1FD854D"><enum>(r)</enum><text><term>Sexual orientation</term> means homosexuality, heterosexuality, or bisexuality.</text></subsection><subsection id="H111A9D96571445B99FD55BAF7BB02B4F"><enum>(s)</enum><text><term>Source of income</term> includes income for which there is a reasonable expectation that the income will continue from—</text><paragraph id="HF8E06CC0EF4A43118801D3F0DFC38CAA"><enum>(1)</enum><text>a profession, occupation, or job;</text></paragraph><paragraph id="HCF4A61B0BBBA42128EE096B2866BA776"><enum>(2)</enum><text>any government or private assistance, grant, loan, or rental assistance program, including vouchers issued under the United States Housing Act of 1937 (<external-xref legal-doc="usc" parsable-cite="usc/42/1437">42 U.S.C. 1437 et seq.</external-xref>);</text></paragraph><paragraph id="HE736FCA7AC904ABFAC25A9F6182F5949"><enum>(3)</enum><text>a gift, an inheritance, a pension, an annuity, alimony, child support, or other consideration or benefit; or</text></paragraph><paragraph id="HD03021CEBD104FA2AE1D6DD2C144B87B"><enum>(4)</enum><text>the sale or pledge of property or an interest in property.</text></paragraph></subsection><subsection id="H5AB93D94AADB455385ABE105EDBFA1B1"><enum>(t)</enum><text><term>Veteran status</term> means—</text><paragraph id="HF74105D47A2344EA8463C7E479EACB79"><enum>(1)</enum><text>a member of the uniformed services, as defined in section 101 of title 10, United States Code; or</text></paragraph><paragraph id="HE6C89A1FE5EE40EC8C5AD39FD2C87688"><enum>(2)</enum><text>a veteran, as defined in section 101 of title 38, United States Code.</text></paragraph></subsection><after-quoted-block>;</after-quoted-block></quoted-block></paragraph><paragraph display-inline="no-display-inline" id="H95A582C7CEA64732979E9E47721CDC39"><enum>(2)</enum><text>in section 804 (<external-xref legal-doc="usc" parsable-cite="usc/42/3604">42 U.S.C. 3604</external-xref>)—</text><subparagraph display-inline="no-display-inline" id="H726B8D6D9A274BFD876F2767C8FF70DC"><enum>(A)</enum><text>by inserting <quote>actual or perceived</quote> before <quote>race, color</quote> each place that term appears;</text></subparagraph><subparagraph display-inline="no-display-inline" id="HDA542934169E462CA6407BA0AC94A7F9"><enum>(B)</enum><text>by striking <quote>sex,</quote> each place that term appears and inserting <quote>sex (including sexual orientation and gender identity), marital status, source of income, veteran status,</quote>; and</text></subparagraph><subparagraph id="H78D7DBDC1396480BABABE4F1943EE48A"><enum>(C)</enum><text>in subsection (c)—</text><clause id="H74824A3384FA46B1BEE2AAAD8F952CB8"><enum>(i)</enum><text>by inserting <quote>(1)</quote> before <quote>To make</quote>; and</text></clause><clause id="HC0E829F41062408F9DDF30C3FFAF84C8"><enum>(ii)</enum><text>by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H61FD8B312F244C61B5C0BA34D2B4348C"><paragraph id="HF94B45234CF14FE094DBB5D5B2107223" indent="up1"><enum>(2)</enum><text>Nothing in this title shall be construed to—</text><subparagraph id="H534B9BD3CFE9495D8F7997D918F82521"><enum>(A)</enum><text>prohibit a lender from implementing a loan program for veterans or based upon veteran status; or</text></subparagraph><subparagraph id="H13417288B6CA46FAB326FEA1DFA7FA2E"><enum>(B)</enum><text>prohibit an entity from providing housing assistance under—</text><clause id="HAA262810E8FC4248B0AFA54D9F195BB6"><enum>(i)</enum><text>section 8(o)(19) of the United States Housing Act of 1937 (<external-xref legal-doc="usc" parsable-cite="usc/42/1437f">42 U.S.C. 1437f(o)(19)</external-xref>);</text></clause><clause id="H006BA9E3A73D4DAD97FF8A03D0BF78FF"><enum>(ii)</enum><text>the Homeless Providers Grant and Per Diem program of the Department of Veterans Affairs; or</text></clause><clause id="H5B258EFBD73047CE84AAC2C2DAB598E7"><enum>(iii)</enum><text>any other Federal housing assistance program for veterans or based on veteran status.</text></clause></subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block></clause></subparagraph></paragraph><paragraph id="HDC67495BF1DC49FFB3175BF2A257602C"><enum>(3)</enum><text display-inline="yes-display-inline">in section 805 (<external-xref legal-doc="usc" parsable-cite="usc/42/3605">42 U.S.C. 3605</external-xref>)—</text><subparagraph id="H44B4DC36F03F4D6E930EDF02FCE63082"><enum>(A)</enum><text display-inline="yes-display-inline">by inserting <quote>actual or perceived</quote> before <quote>race, color</quote> each place that term appears; and</text></subparagraph><subparagraph id="HC9F30B4D6D6B4A3E802B24FDB89C4679"><enum>(B)</enum><text display-inline="yes-display-inline">by striking <quote>sex,</quote> each place that term appears and inserting <quote>sex (including sexual orientation and gender identity), marital status, source of income, veteran status,</quote>;</text></subparagraph></paragraph><paragraph id="H4C8123B22B7A4002A8E0F4F286075A99"><enum>(4)</enum><text display-inline="yes-display-inline">in section 806 (<external-xref legal-doc="usc" parsable-cite="usc/42/3606">42 U.S.C. 3606</external-xref>)—</text><subparagraph id="H40DD97C8F92249FDAB5F185244F80BFC"><enum>(A)</enum><text display-inline="yes-display-inline">by inserting <quote>actual or perceived</quote> before <quote>race, color</quote>; and</text></subparagraph><subparagraph id="HEA27DF4108CA4F49A1D7BA9808DF187A"><enum>(B)</enum><text display-inline="yes-display-inline">by striking <quote>sex,</quote> each place that term appears and inserting <quote>sex (including sexual orientation and gender identity), marital status, source of income, veteran status,</quote>; and</text></subparagraph></paragraph><paragraph id="H1F9A5388A1104230A2F68997F59AB191"><enum>(5)</enum><text>in section 808(e)(6) (<external-xref legal-doc="usc" parsable-cite="usc/42/3608">42 U.S.C. 3608(e)(6)</external-xref>), by striking <quote>sex,</quote> and inserting <quote>sex (including sexual orientation and gender identity), marital status, source of income, veteran status,</quote>.</text></paragraph></subsection><subsection id="H8D9E54D4E04C4A4DA12FB3E84545E088"><enum>(c)</enum><header>Prevention of intimidation</header><text display-inline="yes-display-inline">Section 901 of the Civil Rights Act of 1968 (<external-xref legal-doc="usc" parsable-cite="usc/42/3631">42 U.S.C. 3631</external-xref>) is amended—</text><paragraph id="H67E3186D29FD435ABE918DC8B2F91F3B"><enum>(1)</enum><text display-inline="yes-display-inline">by inserting <quote>actual or perceived</quote> before <quote>race, color</quote> each place that term appears; and</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H088253C44691453CA4F6A602008672EF"><enum>(2)</enum><text display-inline="yes-display-inline">by striking <quote>sex,</quote> each place that term appears and inserting <quote>sex (including sexual orientation (as such term is defined in section 802 of this Act) and gender identity (as defined in section 802 of this Act)), marital status (as defined in section 802), source of income (as defined in section 802), veteran status (as defined in section 802),</quote>.</text></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H1C6029379A40435F83EA19EC6886BC43"><enum>(d)</enum><header>Rule of construction</header><text>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 Federal law as in effect on the day before the date of enactment of this Act.</text></subsection></section><section commented="no" display-inline="no-display-inline" id="H0425127C10804AD5BF0AF9C808A9F256"><enum>302.</enum><header>Improving outcomes in housing assistance programs</header><subsection id="H2CD68C38BA644FAA85A95D2813DD5EB7"><enum>(a)</enum><header>Indian housing assistance</header><text>Section 502 of the Native American Housing Assistance and Self-Determination Act of 1996 (<external-xref legal-doc="usc" parsable-cite="usc/25/4181">25 U.S.C. 4181</external-xref>) is amended by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H8B254B6B96474699BA178AB8BCD5E4D0"><subsection id="HDC8DD808F57E48D28CB37D84316A6A1E"><enum>(c)</enum><header>Applicability</header><text>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 (<external-xref legal-doc="usc" parsable-cite="usc/42/1437f">42 U.S.C. 1437f(o)</external-xref>).</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="HCAA591E0D64E4E3DB92B5DFA031DCEE4"><enum>(b)</enum><header>Supplemental administrative fee</header><text>Section 8(q)(2)(B) of the United States Housing Act of 1937 (<external-xref legal-doc="usc" parsable-cite="usc/42/1437f">42 U.S.C. 1437f(q)(2)(B)</external-xref>) is amended by inserting <quote>, 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)</quote> after <quote>programs</quote>.</text></subsection><subsection id="HD14D9FCC07A54D82B90DE129A1CB25DE"><enum>(c)</enum><header>Regional planning To increase access to higher opportunity areas</header><text>Section 8(o) of the United States Housing Act of 1937 (<external-xref legal-doc="usc" parsable-cite="usc/42/1437f">42 U.S.C. 1437f(o)</external-xref>) is amended by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H2D8814F67AC44F95983BA5AE93C2E0DB"><paragraph id="H9B589261201D4AC4A00E50D39E09D052"><enum>(22)</enum><header>Increasing access to higher opportunity areas</header><subparagraph id="HCBD66281A88944E4ABB5C56B9CDE0819"><enum>(A)</enum><header>Location analysis</header><clause id="H119A4C00F83849F9A86C96FA5EE7E16A"><enum>(i)</enum><header>In general</header><text>A public housing agency that administers the program under this subsection in a metropolitan area shall—</text><subclause id="H5A37602DDBF1407097D7DD9FCECE13C8"><enum>(I)</enum><text>analyze the locations where the participants in the program of the public housing agency live; and</text></subclause><subclause id="H6C8ED928E4F44100A7147DEBF8DD9BA7"><enum>(II)</enum><text>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.</text></subclause></clause><clause id="H23FE389B59AB41E4824DF99A6EC97CDE"><enum>(ii)</enum><header>Considerations</header><text>The location analysis required under this subparagraph shall—</text><subclause id="HAB97E50E5CEF491F947B9B1D6F1940C0"><enum>(I)</enum><text>consider separately the locations of families with children, households that include a person with disabilities, and other groups protected under the Fair Housing Act (<external-xref legal-doc="usc" parsable-cite="usc/42/3601">42 U.S.C. 3601 et seq.</external-xref>); and</text></subclause><subclause id="H7B7CAF0A2713483F88A54F94BCBB8C16"><enum>(II)</enum><text>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.</text></subclause></clause><clause id="H8E98A6DE88884B0B93135A5379D6E93C"><enum>(iii)</enum><header>Mapping tools</header><text>The Secretary shall—</text><subclause id="HABDA3069D56D4DB8A62B0F6727AF5690"><enum>(I)</enum><text>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;</text></subclause><subclause id="H45C0B4312F5A469CAE84561943FA06B7"><enum>(II)</enum><text>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</text></subclause><subclause id="HA3B50CC4B9D54FCFABE7BCDC764CE79C"><enum>(III)</enum><text>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.</text></subclause></clause><clause id="HD64BD8010C1F42D896C4A5824AC7148B"><enum>(iv)</enum><header>Frequency and availability</header><text>The location analysis required under this subparagraph shall—</text><subclause id="H5F89EC7111764C5DAC4D7B8673F9DC4D"><enum>(I)</enum><text>be performed by each public housing agency described in clause (i) not less frequently than once every 5 years;</text></subclause><subclause id="HC9B2774A879944F993EAFF678BD77F73"><enum>(II)</enum><text>be performed by all public housing agencies in a metropolitan area in the same year, as determined by the Secretary; and</text></subclause><subclause id="H905DA9ED04E544A6AB8DA1D92000403C"><enum>(III)</enum><text>be made available to the public in a manner that protects the privacy of program participants.</text></subclause></clause></subparagraph><subparagraph id="HE447021C38F2462696A2A23BBCE24703"><enum>(B)</enum><header>Regional policies to increase access to higher opportunity neighborhoods</header><text>Each public housing agency described in subparagraph (A)(i) shall—</text><clause id="H6B44C8987E4343D39439E6B416888CE7"><enum>(i)</enum><text>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);</text></clause><clause id="HAF694D8F28A14E8B8F5EF47FE86C65B1"><enum>(ii)</enum><text>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</text></clause><clause id="H7A177E285F9C42DC93D670C57790C320"><enum>(iii)</enum><text>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.</text></clause></subparagraph><subparagraph id="HACED70362F874C4793202DC8C6453430"><enum>(C)</enum><header>Assessment</header><text>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.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H00D2345573A34AEE903713C041AE2B10"><enum>(d)</enum><header>Required regulatory changes to public housing agency consortia</header><paragraph id="HAC9DFEB500FE46B1841785890C20FB6E"><enum>(1)</enum><header>Definitions</header><text>In this subsection:</text><subparagraph id="H511DFD36FE944E2886FFC34318828C41"><enum>(A)</enum><header>Moving to Work demonstration program</header><text>The term <term>Moving to Work demonstration program</term> means the program established under section 204 of the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1996 (<external-xref legal-doc="public-law" parsable-cite="pl/104/134">Public Law 104–134</external-xref>; 110 Stat. 1321–281).</text></subparagraph><subparagraph id="H9F0CA95541604E9AA905DBFBA16ADCFC"><enum>(B)</enum><header>Public housing agency</header><text>The term <term>public housing agency</term> has the meaning given the term in section 3(b)(6) of the United States Housing Act of 1937 (<external-xref legal-doc="usc" parsable-cite="usc/42/1437a">42 U.S.C. 1437a(b)(6)</external-xref>).</text></subparagraph></paragraph><paragraph id="H2B0BF8244CB94E98B8D731A2AACEE19B"><enum>(2)</enum><header>Requirement</header><text>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—</text><subparagraph id="H666D5B563DAE42CD81DB7CEFD4334AB3"><enum>(A)</enum><text>enable public housing agencies that elect to operate in consortia under section 13(a) of the United States Housing Act of 1937 (<external-xref legal-doc="usc" parsable-cite="usc/42/1437k">42 U.S.C. 1437k(a)</external-xref>), excluding public housing agencies participating in the Moving to Work demonstration program—</text><clause id="H91643DB2F97749EBAC91D46B8092744B"><enum>(i)</enum><text>to consolidate their funding contracts for assistance provided under section 8(o) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1437f">42 U.S.C. 1437f(o)</external-xref>) into a single contract;</text></clause><clause id="H36E6812170894C94BF58934E8F7DA9B3"><enum>(ii)</enum><text>to consolidate their funding contracts for assistance provided under subsections (d) and (e) of section 9 of such Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1437g">42 U.S.C. 1437g</external-xref>); or</text></clause><clause id="H91A56F55D22D4B4685D693048DCA92B0"><enum>(iii)</enum><text>to exercise the consolidation options under each of clauses (i) and (ii); and</text></clause></subparagraph><subparagraph id="HC97F67E720DA461AB24DC0143BA6D33A"><enum>(B)</enum><text>enable public housing agencies to form partial consortia under such section 13(a) (<external-xref legal-doc="usc" parsable-cite="usc/42/1437k">42 U.S.C. 1437k(a)</external-xref>) 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.</text></subparagraph></paragraph><paragraph id="H1E0588D549A144C3AA45886C3F5D40E8"><enum>(3)</enum><header>Moving to Work agencies</header><text>Any flexibility or waiver applicable to the Moving to Work demonstration program shall not apply to any activities or funds administered through a partial consortium formed under paragraph (2)(B) by 1 or more public housing agencies participating in the Moving to Work demonstration program.</text></paragraph></subsection></section><enum>IV</enum><header display-inline="yes-display-inline">Estate tax reform</header><section section-type="subsequent-section" id="H128667E6A20E41BC982532DCF758BCCA"><enum>401.</enum><header>Amendment to Internal Revenue Code of 1986</header><text display-inline="no-display-inline">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.</text></section><section section-type="subsequent-section" id="H103F652259A7446E8FB13C6C6F26C06B"><enum>402.</enum><header>Rate adjustment</header><subsection id="H0937DE66679D4238A7DEBD5613ADEA25"><enum>(a)</enum><header>Increase in estate tax rates</header><text>The table contained in <external-xref legal-doc="usc" parsable-cite="usc/26/2001">section 2001(c)</external-xref> is amended to read as follows:</text><table blank-lines-before="1" align-to-level="section" colsep="0" frame="none" line-rules="no-gen" rowsep="0" rule-weights="0.0.0.0.0.4" table-template-name="Tax Rate" table-type="Leaderwork, Tax"><tgroup cols="2" rowsep="0"><colspec coldef="txt" colname="column1" colwidth="162pts" min-data-value="140"></colspec><colspec coldef="txt" colname="column2" colsep="0" colwidth="162pts" min-data-value="140"></colspec><thead><row><entry colname="column1" morerows="0" namest="column1">If the amount with respect to which the tentative tax to be computed is:</entry><entry colname="column2" morerows="0" namest="column2">The tentative tax is:</entry></row></thead><tbody><row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">Not over $13,000,000</entry><entry align="right" colname="column2" rowsep="0">55 percent of such amount.</entry></row><row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">Over $13,000,000 but not over $93,000,000</entry><entry align="right" colname="column2" rowsep="0">$7,150,000, plus 60 percent of the excess of such amount over $13,000,000.</entry></row><row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">Over $93,000,000</entry><entry align="right" colname="column2" rowsep="0">$55,150,000, plus 65 percent of the excess of such amount over $93,000,000.</entry></row></tbody></tgroup></table></subsection><subsection id="H5A3BCCF9CC0B49B7895156882AD15B1D"><enum>(b)</enum><header>Reduction of basic exclusion amount</header><text>Paragraph (3) of <external-xref legal-doc="usc" parsable-cite="usc/26/2010">section 2010(c)</external-xref> is amended to read as follows:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H2CE501E6E59245A781983256D4EB60D8"><paragraph id="H886A02B9D6C94634AD75111FFD630CB9"><enum>(3)</enum><header>Basic exclusion amount</header><text>For purposes of this subsection, the basic exclusion amount is $3,500,000.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H92E19FBEF7BE49279AEDBDB7D4F87A8D"><enum>(c)</enum><header>Surtax on billion dollar estates</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/2001">Section 2001</external-xref> is amended—</text><paragraph id="H74AC78A8990E4BFEA9F79A79F1503380"><enum>(1)</enum><text>in subsection (b), by striking <quote>The tax</quote> and inserting <quote>Subject to subsection (h), the tax</quote>, and</text></paragraph><paragraph id="H9BFCBA060F774F46929B6F0234B55A77"><enum>(2)</enum><text>by adding at the end the following new subsection:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H4B522DAF6AD847B8BB82994591F258BE"><subsection id="HD53B5C5F6E5549C1B04B37860C262014"><enum>(h)</enum><header>Surtax on billion dollar estates</header><paragraph id="H026D713A789245E48FE9C6733DC24A65"><enum>(1)</enum><header>In general</header><text>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.</text></paragraph><paragraph id="HA757A08C3B274152BD3F9FC6E31BDF58"><enum>(2)</enum><header>Applicable amount</header><text>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.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="HC1E9999711684BFF8D4B3D286D4BB56B"><enum>(d)</enum><header>Effective date</header><text>The amendments made by this section shall apply to estates of decedents dying, and generation-skipping transfers and gifts made, after the date of the enactment of this Act.</text></subsection></section><section commented="no" display-inline="no-display-inline" id="H00018A46BCED4292B71C50C23356434A"><enum>403.</enum><header>Required minimum 10-year term, etc., for grantor retained annuity trusts</header><subsection commented="no" id="HAA8AE266878E48D38BB7564ECF18D04F"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Subsection (b) of <external-xref legal-doc="usc" parsable-cite="usc/26/2702">section 2702</external-xref> is amended—</text><paragraph commented="no" id="HA05E43435402407F97FF60520DF08216"><enum>(1)</enum><text>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;</text></paragraph><paragraph commented="no" id="H792BEA6FABC64876BEF5AE62363D70E6"><enum>(2)</enum><text>by striking <quote>For purposes of</quote> and inserting the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="HB1B68D22927A42C899D23278EC6C4B4A"><paragraph commented="no" id="H6F57C0F232294B849DA1D1B86F00901B"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">For purposes of</text></paragraph><after-quoted-block>; </after-quoted-block></quoted-block></paragraph><paragraph commented="no" id="H0E39B5AB80F0410086C83155349866AB"><enum>(3)</enum><text>by striking <quote>paragraph (1) or (2)</quote> in paragraph (1)(C) (as so redesignated) and inserting <quote>subparagraph (A) or (B)</quote>; and</text></paragraph><paragraph commented="no" id="H5F6A0F68859B4AB2B06F113D8DF22024"><enum>(4)</enum><text>by adding at the end the following new paragraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H044EB5EBFED44675B93FD2A0FF6E0ABD"><paragraph commented="no" id="H9D9938591DBB49E5AFC6E5C07D93249B"><enum>(2)</enum><header>Additional requirements with respect to grantor retained annuities</header><text>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—</text><subparagraph commented="no" id="HE7DEC991F7BB46ACA2EB05A1DAC09991"><enum>(A)</enum><text>the right to receive the fixed amounts referred to in such paragraph is for a term of not less than 10 years,</text></subparagraph><subparagraph commented="no" id="H2B829F60DCC142BDADA50C1BC46BFD95"><enum>(B)</enum><text>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</text></subparagraph><subparagraph commented="no" id="H606624F0E07D42118C14C63490CE10D5"><enum>(C)</enum><text>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.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HE7C2F5F2AFBE4C3B94204E47D766AF3F"><enum>(b)</enum><header>Effective date</header><text>The amendments made by this section shall apply to transfers made after the date of the enactment of this Act.</text></subsection></section><section id="H42124C47F78042328794313A816EF16A"><enum>404.</enum><header>Certain transfer tax rules applicable to grantor trusts</header><subsection id="H3DD919B897DA4FA38DBA095E4ECB3F57"><enum>(a)</enum><header>In general</header><text>Subtitle B is amended by adding at the end the following new chapter:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H44E1CCE74DC44D76A42AF84C273C346F"><chapter id="HE6353493AEDB40F0A542031436D9149C"><enum>16</enum><header>Special rules for grantor trusts</header><toc regeneration="no-regeneration"><toc-entry level="section">Sec. 2901. Application of transfer taxes.</toc-entry></toc><section id="HF66EE0FC73264DCC8207512B87B1EF7C"><enum>2901.</enum><header>Application of transfer taxes</header><subsection id="H666846E964ED4BAEA5C022EB3FE55C91"><enum>(a)</enum><header>In general</header><text>In the case of any portion of a trust to which this section applies—</text><paragraph id="H9ED3B67D7F1440A8ABD28E58B8959CD9"><enum>(1)</enum><text>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,</text></paragraph><paragraph id="H294F87327DB04ADB92E4D8A738845B6B"><enum>(2)</enum><text>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</text></paragraph><paragraph id="HB53FBE2875EC4C7BAAB1888F63B993DB"><enum>(3)</enum><text>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.</text></paragraph></subsection><subsection commented="no" id="H6584A147BA0443C7A0574E35848B7A7B"><enum>(b)</enum><header>Portion of trust to which section applies</header><text>This section shall apply to—</text><paragraph commented="no" id="H881CD18A18CD4D2DBFDC041A2F49E296"><enum>(1)</enum><text>the portion of a trust with respect to which the grantor is the deemed owner, and</text></paragraph><paragraph commented="no" id="HE1CE8EDA9C604CF995451DFE7AF946B1"><enum>(2)</enum><text>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.</text></paragraph><continuation-text continuation-text-level="subsection">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.</continuation-text></subsection><subsection id="H8F9D193653874F64A4A4C72FEE3175F6"><enum>(c)</enum><header>Exceptions</header><text>This section shall not apply to—</text><paragraph id="H4EFCF59982194C86B5A5C54CBD4395BB"><enum>(1)</enum><text>any trust that is includible in the gross estate of the deemed owner (without regard to subsection (a)(1)), and</text></paragraph><paragraph id="H2EA71376116A490CAF284BE9AA0099B8"><enum>(2)</enum><text>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.</text></paragraph></subsection><subsection id="H12D05480C98043DEA63831B748460F01"><enum>(d)</enum><header>Deemed owner defined</header><text>For purposes of this section, the term <term>deemed owner</term> 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.</text></subsection><subsection id="H8281532EBCB9420E88BFEED74C5D71E1"><enum>(e)</enum><header>Reduction for taxable gifts to trust made by owner</header><text>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.</text></subsection><subsection id="H321A90B6CF4D48B3887070BAFEEAECF3"><enum>(f)</enum><header>Liability for payment of tax</header><text>Any tax imposed pursuant to subsection (a) shall be a liability of the trust.</text></subsection></section></chapter><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H28AA636537D64F9386490D43AC353EEF"><enum>(b)</enum><header>Clerical amendment</header><text>The table of chapters for subtitle B is amended by adding at the end the following new item:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H7E7530E2D53A414DACFA6213FB820F64"><toc regeneration="no-regeneration"><toc-entry level="chapter">Chapter 16. Special rules for grantor trusts</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H0F2680A9F57E4CE4BB7BADF923598D5D"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply—</text><paragraph id="H0079920C129F4D25A9B0FA2FE402AB0C"><enum>(1)</enum><text>to trusts created on or after the date of the enactment of this Act;</text></paragraph><paragraph id="HEFD5F4BAAA1D4010B8CDD86761DB0588"><enum>(2)</enum><text>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</text></paragraph><paragraph id="HF7300DCDC5A04C1F811346405B1A450D"><enum>(3)</enum><text>to any portion of a trust established before the date of the enactment of this Act to which <external-xref legal-doc="usc" parsable-cite="usc/26/2901">section 2901(a)</external-xref> 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.</text></paragraph></subsection></section><section id="HA2421F4F56E3463CAAF29D544CAD53D3" commented="no"><enum>405.</enum><header>Elimination of generation-skipping transfer tax exemption for transfers to certain persons</header><subsection id="HF82A9C0722A2474D8383DED0B4D3BE89" commented="no"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/2642">Section 2642</external-xref> is amended by adding at the end the following new subsection:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H31E5AA2EA6D44BDF90B04B2E1D27B953"><subsection id="HD1B37E2BEE6C4263860E036AD455DD2B" commented="no"><enum>(h)</enum><header>Elimination of GST exemption for transfers to certain persons</header><paragraph id="HC431D9D6816E43C0B289F93186BCBFFD" commented="no"><enum>(1)</enum><header>In general</header><subparagraph id="H166F92F8A28C4CECA6F22A695452A361" commented="no"><enum>(A)</enum><header>Transfer to non-exempt person</header><text>In the case of any direct skip or taxable distribution made to any person who is not an exempt person, the inclusion ratio shall be 1.</text></subparagraph><subparagraph id="H701F7347CA5C47D68E9B992CD0220A58" commented="no"><enum>(B)</enum><header>Taxable termination</header><text>In the case of any taxable termination which occurs at any time immediately after no exempt person is a beneficiary of the trust, the inclusion ratio shall be 1.</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HF0B4174A6A174D348ED62C81F8F8AFEE"><enum>(C)</enum><header display-inline="yes-display-inline">Exempt person</header><clause commented="no" display-inline="no-display-inline" id="HEBDB15A556B9417F82411CBB5E4E7A37"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">For purposes of this subsection, the term <term>exempt person</term> means—</text><subclause id="H08081A88220F411C9678EBADC9FA3C30" commented="no"><enum>(I)</enum><text>a natural person—</text><item commented="no" display-inline="no-display-inline" id="HC79975AB4C7C442FBA85FD819023EFEE"><enum>(aa)</enum><text display-inline="yes-display-inline">who is assigned to a generation which is 2 or fewer generations below the generation assignment of the transferor, or</text></item><item commented="no" display-inline="no-display-inline" id="H585EF41D360A423FABEE03225E748105"><enum>(bb)</enum><text>whose date of birth precedes the date on which the trust was created, or</text></item></subclause><subclause id="HB945429DBD8F4DD49FC9CD1C9D359544" commented="no"><enum>(II)</enum><text>a trust in which all interests are held by persons described in subclause (I). </text></subclause></clause><clause commented="no" display-inline="no-display-inline" id="H250EC4B4433742C6B84EA8999DB3ABE8"><enum>(ii)</enum><header>Exception</header><text display-inline="yes-display-inline">For purposes of clause (i)(II), any interest which is used primarily to postpone or avoid the application of this subsection shall be disregarded.</text></clause></subparagraph></paragraph><paragraph id="H512C3AE93CBC4310A728798A7D708602" commented="no"><enum>(2)</enum><header>Date of creation</header><subparagraph id="H72B0351553BF4E07A7AC77C671E47E55" commented="no"><enum>(A)</enum><header>In general</header><text>For purposes of determining the date on which a trust was created under paragraph (1)(C)(i)(I)(bb), if the trust was created before January 1, 2024, such trust shall be deemed to have been created on January 1, 2024.</text></subparagraph><subparagraph id="H3E5F8CC6B45D4AC088D63BE6E8CCBCA8" commented="no"><enum>(B)</enum><header>Date of creation of pour-over trusts</header><clause commented="no" display-inline="no-display-inline" id="HCCF9488951A345E880DCE7E47DB31507"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of any generation-skipping transfer of property which involves the transfer of property from one trust to another trust, the date of the creation of the transferee trust shall be treated as being the earlier of—</text><subclause id="H8C19B24D13D74C4B9733933696A7C980" commented="no"><enum>(I)</enum><text>the date of the creation of such transferee trust, or</text></subclause><subclause id="H4A2E3F4D8A804A728DE06BB14F4E4555" commented="no"><enum>(II)</enum><text>the date of the creation of the transferor trust.</text></subclause></clause><clause commented="no" display-inline="no-display-inline" id="HE1F5300552F349E785C541A18DA5D505"><enum>(ii)</enum><header>Multiple transfers</header><text display-inline="yes-display-inline">In the case of multiple transfers to which clause (i) applies—</text><subclause commented="no" display-inline="no-display-inline" id="HEFA431B42F644AF6A73C189EF8E73E7B"><enum>(I)</enum><text display-inline="yes-display-inline">the date of the creation of the transferor trust shall be determined under such clause, and</text></subclause><subclause commented="no" display-inline="no-display-inline" id="HC265D9DD56584948BAE4088AF9B4522C"><enum>(II)</enum><text display-inline="yes-display-inline">subsequent to the determination described in subclause (I), the date of the creation of the transferee trust shall be determined under such clause.</text></subclause></clause></subparagraph></paragraph><paragraph id="HFB15A32F97B147899376BC20BBD638E8" commented="no"><enum>(3)</enum><header>Generation assignment</header><text>For purposes of this subsection, the provisions of section 2653(a) shall not apply. </text></paragraph><paragraph id="HB35CCAA93C7A4E03A8C883F5225D1FF3" commented="no"><enum>(4)</enum><header>Regulations</header><text>The Secretary may prescribe such regulations or other guidance as may be necessary or appropriate to carry out this subsection.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="HC39AD3E661E441499465CED0E0BB42DD" commented="no"><enum>(b)</enum><header>Repeal</header><text>Section 1433(b)(2) of the Tax Reform Act of 1986 (<external-xref legal-doc="public-law" parsable-cite="pl/99/514">Public Law 99–514</external-xref>) is repealed.</text></subsection><subsection commented="no" display-inline="no-display-inline" id="HCBCF0447F5C2417498B1C821A84F7D1D"><enum>(c)</enum><header display-inline="yes-display-inline">Effective dates</header><paragraph commented="no" display-inline="no-display-inline" id="H10E9A58352374BFC89EAF7597D79B13D"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text>The amendment made by subsection (a) shall take effect on the date of the enactment of this Act.</text></paragraph><paragraph id="HFE3EC128D10944BC857F1B5E1C296105" commented="no" display-inline="no-display-inline"><enum>(2)</enum><header display-inline="yes-display-inline">Repeal</header><text>The amendment made by subsection (b) shall apply to generation-skipping transfers (within the meaning of <external-xref legal-doc="usc" parsable-cite="usc/26/2611">section 2611</external-xref> of the Internal Revenue Code of 1986) made after the date of enactment of this Act. </text></paragraph></subsection></section><section id="H42BC8054E3C1442ABDFBC0FC1D81D751"><enum>406.</enum><header>Simplifying gift tax exclusion for annual gifts</header><subsection id="HFDB8922A7772447CAC2ADC92E944B38B"><enum>(a)</enum><header>In general</header><text>Paragraph (1) of <external-xref legal-doc="usc" parsable-cite="usc/26/2503">section 2503(b)</external-xref> is amended to read as follows:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H8FD4944B7A9B4B57B706E5A24EB63877"><paragraph id="H2B2551A7AFF64A5193AF6C7CB660171E"><enum>(1)</enum><header>In general</header><subparagraph id="H0AB85808A151404ABF0E41DF454C98E3"><enum>(A)</enum><header>Limit per donee</header><text>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.</text></subparagraph><subparagraph id="HC7D9987E0E594FF18A431B5A6ACAD136"><enum>(B)</enum><header>Cumulative limit per donor</header><clause id="H3F317B19AF5B40918D7008F8D842AEF2"><enum>(i)</enum><header>In general</header><text>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.</text></clause><clause id="HDDE8DA3398DB45BD943E2FDBEB134144"><enum>(ii)</enum><header>Transfers subject to limitation</header><text>The transfers described in this clause are—</text><subclause id="H05C46399AC2048399AC88652A646F1EB"><enum>(I)</enum><text>a transfer in trust,</text></subclause><subclause id="H10BE1621F9B24AC1BFFD8D68E218A0ED"><enum>(II)</enum><text>a transfer of an interest in a passthrough entity,</text></subclause><subclause id="H2C9CBD5A63E641CA98AABC49851EFBA7"><enum>(III)</enum><text>a transfer of an interest subject to a prohibition on sale, and</text></subclause><subclause id="H386A8196E6794F80B5905E5D1FB7D7F5"><enum>(IV)</enum><text>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.</text></subclause></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="HA302E3CC2BD94346B99EC604008D0F9F"><enum>(b)</enum><header>Conforming amendment</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/2503">Section 2503</external-xref> is amended by striking subsection (c).</text></subsection><subsection id="HF35972FD8FF94FE5AD2FC7971EE26AA2"><enum>(c)</enum><header>Regulations</header><text>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.</text></subsection><subsection id="H2F794250BA644BC88CEE3D8B4BFBE531" commented="no" display-inline="no-display-inline"><enum>(d)</enum><header>Effective date</header><text>The amendments made by this section shall apply to any calendar year beginning after the date of the enactment of this Act.</text></subsection></section><section id="HAD52D2B686134AEC9194FD8E9790D6B5"><enum>407.</enum><header>Clarification regarding disallowance of step-up in basis for property held in certain grantor trusts</header><subsection id="H0A72047E742A4DF4A65E16DA2D25D6D0"><enum>(a)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/1014">Section 1014</external-xref> is amended—</text><paragraph id="H5EDC41E0BE034472805CC198EFD69D8E"><enum>(1)</enum><text>by redesignating subsection (f) as subsection (g), and</text></paragraph><paragraph id="H560024054A5C4EBD8DE977C10117FD75"><enum>(2)</enum><text>by inserting after subsection (e) the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="HF5ECBE74E378466CAB581D4CFC11C33B"><subsection id="HAA874F34307440339CB95F2B436CC3D6"><enum>(f)</enum><header>Property held in certain grantor trusts</header><text>This section shall not apply to property—</text><paragraph id="HC1D400E72B694797BDDE40439059B538"><enum>(1)</enum><text>held in a trust of which the transferor is considered the owner under subpart E of part I of subchapter J, and</text></paragraph><paragraph id="H755E620ACC23410996801D9C56071AA9"><enum>(2)</enum><text>if, after the transfer of such property to the trust, such property is not includible in the gross estate of the transferor for purposes of chapter 11.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="HDDD92FD5D6E740EE90A989954B1FAB6B"><enum>(b)</enum><header>Conforming amendment</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/6662">Section 6662(k)</external-xref> is amended by striking <quote>1014(f)</quote> and inserting <quote>1014(g)</quote>.</text></subsection><subsection id="HBFA501A998914DC18E37A5963A9C3275"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to transfers after the date of the enactment of this Act.</text></subsection><subsection id="H5C0A80D4E6A548059F49A940CFFD15F0" commented="no" display-inline="no-display-inline"><enum>(d)</enum><header>No inference</header><text>No inference may be drawn from the amendments made by this section with respect to the application of <external-xref legal-doc="usc" parsable-cite="usc/26/1014">section 1014</external-xref> of the Internal Revenue Code of 1986 to property described in subsection (f) of such section (as added by subsection (a)) which was transferred on or before the date of enactment of this Act. </text></subsection></section><section commented="no" id="H9D664BDB245F48F5AE766F12EFF35C1C"><enum>408.</enum><header>Limitation on discounts; valuation rules for certain transfers of nonbusiness assets</header><subsection commented="no" id="H3213FFA0043449E092E40F4D08B8F16E"><enum>(a)</enum><header>In general</header><text>Chapter 14 of subtitle B is amended by adding at the end the following new section:</text><quoted-block id="HA6D51DA6077C43059BE4B1E152AD0DAE"><section commented="no" id="H28CBCEFC147849DDA50C25206EAC5DD8"><enum>2705.</enum><header>Limitation on discounts; valuation rules for certain transfers of nonbusiness assets</header><subsection commented="no" id="H6BBD9BF6BDE7433CBF15FE1CD33FD75B"><enum>(a)</enum><header>Limitation on discount by reason of family control</header><paragraph commented="no" display-inline="no-display-inline" id="HFC07891CA47A416B9DA08FE4C961786B"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">For purposes of this subtitle, in the case of the transfer of any interest in an entity other than an interest which is actively traded (within the meaning of section 1092), if the transferor, the transferee, and members of the family of the transferor and transferee have control of such entity immediately before such transfer, no discount shall be allowed—</text><subparagraph commented="no" display-inline="no-display-inline" id="H6F320DC708B24D0490C0B7C14D182D36"><enum>(A)</enum><text display-inline="yes-display-inline">by reason of the fact that the transferor or transferee does not have control of such entity,</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H1DE6481A983E4145A86474A355BB8CD3"><enum>(B)</enum><text display-inline="yes-display-inline">by reason of the lack of marketability of the interest, or </text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H394D6407660E416CB853257F0631E48C"><enum>(C)</enum><text display-inline="yes-display-inline">for any other reason.</text></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H0E673E5BB05E42A2AFAFC59E50B14368"><enum>(2)</enum><header>Definitions</header><text>In this subsection, the terms <term>control</term> and <term>member of the family</term> have the same meanings given such terms in section 2704(c).</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HEAA7C682086149A789121362710B0205"><enum>(3)</enum><header>Attribution</header><text>For purposes of this section, the rule of section 2701(e)(3) shall apply for purposes of determining the interests held by any individual.</text></paragraph></subsection><subsection commented="no" id="HD55A926D16514F3EA0815D196E098817"><enum>(b)</enum><header>Valuation rules for certain transfers of nonbusiness assets</header><paragraph commented="no" display-inline="no-display-inline" id="HFA57703044F3485B81D4FA7BD14802D6"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">For purposes of this subtitle, in the case of the transfer of any interest in an entity other than an interest which is actively traded (within the meaning of section 1092)—</text><subparagraph commented="no" id="H97E3CE177A7048B3B4F00C44D3FA191A"><enum>(A)</enum><text>the value of any nonbusiness assets held by the entity with respect to such interest shall be determined as if the transferor had transferred such assets directly to the transferee (and no valuation discount shall be allowed with respect to such nonbusiness assets), and</text></subparagraph><subparagraph commented="no" id="HD2496C5F3418484A820C84606A9F0DC0"><enum>(B)</enum><text>such nonbusiness assets shall not be taken into account in determining the value of the interest in the entity.</text></subparagraph></paragraph><paragraph commented="no" id="H61D06D55B5BC4245A04E80D2EAA9148B"><enum>(2)</enum><header>Nonbusiness assets</header><text>For purposes of this subsection—</text><subparagraph commented="no" id="HD3F6CDD16B3047248B4F19ED1A47D2A3"><enum>(A)</enum><header>In general</header><text>The term <term>nonbusiness asset</term> means any asset other than an asset which is used in the active conduct of a trade or business.</text></subparagraph><subparagraph commented="no" id="H76C984489738422CA81F5583B61C4165"><enum>(B)</enum><header>Passive assets treated as nonbusiness assets</header><clause commented="no" display-inline="no-display-inline" id="HF3AE6C3B15334B1BB8EF0999D49F22F9"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">For purposes of subparagraph (A), a passive asset shall be treated as a nonbusiness asset unless—</text><subclause commented="no" id="HAEC9A05DF8C840E6834D73A1B27FD870"><enum>(I)</enum><text>the asset is property described in paragraph (1) or (4) of section 1221(a) or is a hedge with respect to such property, or</text></subclause><subclause commented="no" id="H4DFC426926FB42F6B482BAC75A6E2464"><enum>(II)</enum><text>the asset is real property used in the active conduct of 1 or more real property trades or businesses (within the meaning of section 469(c)(7)(C)) in which the transferor materially participates and with respect to which the transferor meets the requirements of section 469(c)(7)(B)(ii).</text></subclause></clause><clause commented="no" display-inline="no-display-inline" id="HC81744DA8D4C46539A2C14827E39BEF4"><enum>(ii)</enum><header>Material participation</header><text>For purposes of clause (i)(II), material participation shall be determined under the rules of section 469(h), except that section 469(h)(3) shall be applied without regard to the limitation to farming activity.</text></clause></subparagraph><subparagraph commented="no" id="H540DD4D3C7DD4BA89BE1D66DBAB8A1D3"><enum>(C)</enum><header>Working capital treated as used in trade or business</header><text>Any asset (including a passive asset) which is held as a part of the reasonably required working capital needs of a trade or business shall be treated as used in the active conduct of a trade or business.</text></subparagraph></paragraph><paragraph commented="no" id="HF190E175530D4550BB53792476022C4E"><enum>(3)</enum><header>Passive asset</header><text>For purposes of this subsection, the term <term>passive asset</term> means any—</text><subparagraph commented="no" id="H579994A9EF684BD89DD18C0100AA5207"><enum>(A)</enum><text>cash or cash equivalents,</text></subparagraph><subparagraph commented="no" id="H912D10D0D9E148AF825A73F3A44CCFD4"><enum>(B)</enum><text>stock in a corporation or any other equity, profits, or capital interest in any entity,</text></subparagraph><subparagraph commented="no" id="H2574C22E12AC4621A72BF52A481387C5"><enum>(C)</enum><text>evidence of indebtedness, option, forward or futures contract, notional principal contract, or derivative,</text></subparagraph><subparagraph commented="no" id="H16E43D6B747B4963B983845406A2822D"><enum>(D)</enum><text>asset described in clause (iii), (iv), or (v) of section 351(e)(1)(B),</text></subparagraph><subparagraph commented="no" id="H10C2C0F171404EC98FB31EF003ADF0F1"><enum>(E)</enum><text>annuity,</text></subparagraph><subparagraph commented="no" id="HE1B4CAD811A245B694931DC85658E98B"><enum>(F)</enum><text>real property used in 1 or more real property trades or businesses (as defined in section 469(c)(7)(C)),</text></subparagraph><subparagraph commented="no" id="H0F62D79A8A994501907285D6F4FB2595"><enum>(G)</enum><text>asset (other than a patent, trademark, or copyright) which produces royalty income,</text></subparagraph><subparagraph commented="no" id="HC13497321AEE46F9822FF546186063EE"><enum>(H)</enum><text>commodity,</text></subparagraph><subparagraph commented="no" id="HAFBF8ACA07CE4236B266AB680EB6C909"><enum>(I)</enum><text>collectible (within the meaning of section 408(m)), or</text></subparagraph><subparagraph commented="no" id="HDF0E193B749D4BDD9C7E045EE1C4B089"><enum>(J)</enum><text>any other asset specified in regulations prescribed by the Secretary.</text></subparagraph></paragraph><paragraph commented="no" id="HFA829EB1BCEC4197981466F2A3D4D97A"><enum>(4)</enum><header>Look-thru rule</header><subparagraph commented="no" id="H2C00C0AB4DA24654990C1FE1A9542B84"><enum>(A)</enum><header>In general</header><text>If a nonbusiness asset of an entity described in paragraph (1) consists of a 10-percent interest in any other entity, this subsection shall be applied by disregarding the 10-percent interest and by treating the entity as holding directly its ratable share of the assets of the other entity.</text></subparagraph><subparagraph commented="no" id="HDADBB3CC90B64CB1B658106ED73189EA"><enum>(B)</enum><header>10-percent interest</header><text>The term <term>10-percent interest</term> means—</text><clause commented="no" id="H3910D905B4684AE6B91E095CB80520F8"><enum>(i)</enum><text>in the case of an interest in a corporation, direct ownership of at least 10 percent (by vote or value) of the stock in such corporation,</text></clause><clause commented="no" id="H7CB0DC957E2A4941A12DEC37D217AA7F"><enum>(ii)</enum><text>in the case of an interest in a partnership, direct ownership of at least 10 percent of the capital or profits interest in the partnership, and</text></clause><clause commented="no" id="H289D2129D82047C9B6C66906CEA74CDD"><enum>(iii)</enum><text>in any other case, direct ownership of at least 10 percent of the beneficial interests in the entity.</text></clause></subparagraph></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection commented="no" display-inline="no-display-inline" id="HC90B25F0BE7B4C30A1A43525D2402012"><enum>(b)</enum><header>Conforming amendments</header><paragraph commented="no" display-inline="no-display-inline" id="H58900AF445B14E029D9D2DAE9F84353B"><enum>(1)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/2031">Section 2031(b)</external-xref> of the Internal Revenue Code of 1986 is amended by inserting <quote>(after application of section 2705(b))</quote> after <quote>shall be determined</quote>.</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H195D6F30269945B98A99425A48641EBB"><enum>(2)</enum><text>The table of sections of chapter 14 of subtitle B of such Code is amended by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H3B4070534B8244B4B9CF456732303191"><toc><toc-entry level="section" bold="off">Sec. 2705. Limitation on discounts; valuation rules for certain transfers of nonbusiness assets.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="HCF9A8502146D4F7A91A744E2F04B4FF2" commented="no" display-inline="no-display-inline"><enum>(c)</enum><header display-inline="yes-display-inline">Effective date</header><text>The amendments made by this section shall apply to transfers after the date of the enactment of this Act.</text></subsection></section><section display-inline="no-display-inline" id="H581B5CECAFAC444C9A9D8573A737F528" commented="no"><enum>409.</enum><header>Surcharge on high income estates and trusts</header><subsection id="HE25DF6CA2E9A4374BB2179912FEE8F8B" commented="no"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> is amended by adding at the end the following new part:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H6C00BBE5C2884C60B45573E5E54D21CF"><part id="H6FA1ADDC28F64DECA3CFA77D7A917754" style="OLC"><enum>VIII</enum><header>Surcharge on high income estates and trusts</header><toc><toc-entry level="section" idref="H5DCBEF51C22D4B8892FFD8E013562F3B">Sec. 59B. Surcharge on high income estates and trusts. </toc-entry></toc><section id="H5DCBEF51C22D4B8892FFD8E013562F3B" commented="no"><enum>59B.</enum><header>Surcharge on high income estates and trusts</header><subsection id="H3B6589CC118548E98AEAC58F38BDB145" commented="no"><enum>(a)</enum><header>General rule</header><text>In the case of an estate or trust, there is hereby imposed (in addition to any other tax imposed by this subtitle) a tax equal to the sum of—</text><paragraph id="H03FDD337FE894B5C894C2D966FB096E0" commented="no"><enum>(1)</enum><text>5 percent of so much of the modified adjusted gross income of the taxpayer as exceeds $200,000, plus</text></paragraph><paragraph id="HD21C7893A4BF41AAB5700234B5B9BA19" commented="no"><enum>(2)</enum><text>3 percent of so much of the modified adjusted gross income of the taxpayer as exceeds $500,000.</text></paragraph></subsection><subsection id="H8935CF631E9A41B4A8CF4C620DA0BABB" commented="no"><enum>(b)</enum><header>Modified adjusted gross income</header><text display-inline="yes-display-inline">For purposes of this section—</text><paragraph commented="no" display-inline="no-display-inline" id="H51E5963DC2DE431F826D9A3E12E372E3"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">The term <term>modified adjusted gross income</term> means adjusted gross income reduced by any deduction (not taken into account in determining adjusted gross income) allowed for investment interest (as defined in section 163(d)) or business interest (as defined in section 163(j)). </text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H74E9EC4825884556A63B1629A37B3BD3"><enum>(2)</enum><header>Adjusted gross income</header><text display-inline="yes-display-inline">Adjusted gross income shall be determined as provided in section 67(e) and reduced by the amount allowed as a deduction under section 642(c).</text></paragraph></subsection><subsection id="H14A237E2FCE5410CA45ED814BBF1D331" commented="no"><enum>(c)</enum><header>Special rules</header><paragraph id="H7539A5F05408446EB3372A1DD98055B6" commented="no"><enum>(1)</enum><header>Charitable trusts</header><text display-inline="yes-display-inline">Subsection (a) shall not apply to a trust all the unexpired interests in which are devoted to one or more of the purposes described in section 170(c)(2)(B).</text></paragraph><paragraph id="H54B4A5EBD3FC49E0B4AE3974F1A2EE5F" commented="no" display-inline="no-display-inline"><enum>(2)</enum><header>Not treated as tax imposed by this chapter for certain purposes</header><text display-inline="yes-display-inline">The tax imposed under this section shall not be treated as tax imposed by this chapter for purposes of determining the amount of any credit under this chapter (other than sections 27 and 901) or for purposes of section 55.</text></paragraph><paragraph id="H020E0C7654404DBFBBB1FE6BDF8FE55A" commented="no"><enum>(3)</enum><header>Electing small business trusts</header><text display-inline="yes-display-inline">For purposes of the determination of adjusted gross income, section 641(c)(1)(A) shall not apply and all portions of any electing small business trust shall be treated as a single trust.</text></paragraph></subsection><subsection id="H78645F29463A4DB895D74BFC16D9F554" commented="no"><enum>(d)</enum><header>Regulations</header><text>The Secretary shall issue such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section, including regulations or other guidance to prevent the avoidance of the purposes of this section.</text></subsection></section></part><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H1690BAB7360C4B6DBE430B79E77FB849" commented="no"><enum>(b)</enum><header>Coordination with certain provisions</header><paragraph id="H73F3E61B3B2E4DD3BFA438CDBC41015E" commented="no"><enum>(1)</enum><header>Interest on certain deferred tax liability</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/453A">Section 453A(c)</external-xref> is amended by redesignating paragraph (6) as paragraph (7) and by inserting after paragraph (5) the following new paragraph:</text><quoted-block style="OLC" id="HC853F7E749144ADFAA95F3CBE49D2943" display-inline="no-display-inline"><paragraph id="H1C59428C92C94F90A938D112076C7222" commented="no"><enum>(6)</enum><header>Surcharge on high income estates and trusts taken into account in determining maximum rate of tax</header><text display-inline="yes-display-inline">For purposes of paragraph (3)(B), in the case of an estate or trust, the maximum rate of tax in effect under section 1 shall be treated as being equal to the sum of such rate and the rates in effect under paragraphs (1) and (2) of section 59B(a).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="HA11744C2912844F9BFE3E245FFD4232C" commented="no"><enum>(2)</enum><header>Limitation on foreign tax credit</header><subparagraph id="H392F8E515AA443248BF197856D782784" commented="no"><enum>(A)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/904">Section 904(b)(3)(E)(i)(I)</external-xref> is amended by inserting <quote>increased, in the case of an estate or trust, by the sum of the rates set forth in paragraphs (1) and (2) of section 1A(a)</quote> after <quote>(whichever applies)</quote>.</text></subparagraph><subparagraph id="H04D80536B3DA4146AE0AFBD8318ECFA3" commented="no"><enum>(B)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/904">Section 904(d)(2)(F)</external-xref> is amended by adding at the end the following: <quote>For purposes of the first sentence of this subparagraph, in the case of an estate or trust, the highest rate of tax specified in section 1 shall be treated as being equal to the sum of such rate and the rates in effect under paragraphs (1) and (2) of section 59B(a).</quote>.</text></subparagraph></paragraph><paragraph id="H5100D09E915D4887B4CAD6D70459FB0F" commented="no"><enum>(3)</enum><header>Election by individuals to be subject to tax at corporate rates</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/962">Section 962(a)(1)</external-xref> is amended by striking <quote>and 55</quote> and inserting <quote>55, and 59B</quote>.</text></paragraph><paragraph id="HED12ECB0AEBC479B8FC747F744465835" commented="no"><enum>(4)</enum><header>Interest on certain tax deferral</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/1291">Section 1291(c)(2)</external-xref> is amended by adding at the end the following: <quote>For purposes of the preceding sentence, in the case of an estate or trust, the highest rate of tax in effect under section 1 shall be treated as being equal to the sum of such rate and the rates in effect under paragraphs (1) and (2) of section 59B(a).</quote>.</text></paragraph><paragraph id="H4E7E1C5512454C399116C02206D08E33" commented="no"><enum>(5)</enum><header>Withholding of tax on foreign partners’ share of effectively connected income</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/1446">Section 1446(b)(2)</external-xref> is amended by adding at the end the following flush sentence:</text><quoted-block style="OLC" id="H20A4DEC26F8A42B79359C1F9075F50DA" display-inline="no-display-inline"><quoted-block-continuation-text commented="no" quoted-block-continuation-text-level="paragraph">For purposes of subparagraph (A), in the case of a partner which is an estate or trust, the highest rate of tax in effect under section 1 shall be treated as being equal to the sum of such rate and the rates in effect under paragraphs (1) and (2) of section 59B(a).</quoted-block-continuation-text><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="H7F7A551199E04E67AD78882D9B205984" commented="no"><enum>(6)</enum><header>Partnership adjustments</header><subparagraph id="HBE542A6B5EC141A3A89D2C0C948F4A18" commented="no"><enum>(A)</enum><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/6225">Section 6225(b)(1)</external-xref> is amended by adding at the end the following flush sentence:</text><quoted-block style="OLC" id="H8BC6F402F8EF431DA197384552A11B5D" display-inline="no-display-inline"><quoted-block-continuation-text commented="no" quoted-block-continuation-text-level="paragraph">For purposes of subparagraph (B), in the case of an estate or trust, the highest rate of tax in effect under section 1 shall be treated as being equal to the sum of such rate and the rates in effect under paragraphs (1) and (2) of section 59B(a).</quoted-block-continuation-text><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph><subparagraph id="H5DC21FDE130E4D9FB24C567492763944" commented="no"><enum>(B)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/6225">Section 6225(c)(4)(A)</external-xref> is amended—</text><clause id="H2FF663CD609F4EA9AF794BE6351A0089" commented="no"><enum>(i)</enum><text>by striking <quote>subsection (b)(1)(A)</quote> and inserting <quote>subsection (b)(1)(B)</quote>, and</text></clause><clause id="H833EA61654364FF49548084C5E9EB7BD" commented="no"><enum>(ii)</enum><text>by striking <quote>or</quote> at the end of clause (i), by adding <quote>or</quote> at the end of clause (ii), and by inserting after clause (ii) the following new clause:</text><quoted-block style="OLC" id="HFD696CD75BDF4704B3E7526E6A307D4B" display-inline="no-display-inline"><clause id="HCF4D4BB023F045598EAAE7CE925AD08A" commented="no"><enum>(iii)</enum><text display-inline="yes-display-inline">is not an estate or trust subject to one or both of the rates of tax in effect under paragraphs (1) and (2) of section 59B(a),</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></clause></subparagraph></paragraph><paragraph id="HC22621ABA78241479F7E3BE2F8C6615E" commented="no"><enum>(7)</enum><header>Required payments for entities electing not to have required taxable year</header><text>The second sentence of <external-xref legal-doc="usc" parsable-cite="usc/26/7519">section 7519(b)</external-xref> is amended by inserting <quote>and, in the case of an estate or trust, increased by the sum of the rates in effect under paragraphs (1) and (2) of section 59B(a)</quote> before the period at the end.</text></paragraph></subsection><subsection id="H428E75588D4A43139C39D81A189864D5" commented="no"><enum>(c)</enum><header>Clerical amendment</header><text display-inline="yes-display-inline">The table of parts for subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> is amended by adding at the end the following new item:</text><quoted-block style="OLC" id="H05237FCA0C17419AB78457EBF728A00A"><toc><toc-entry level="part" idref="H6FA1ADDC28F64DECA3CFA77D7A917754">PART VIII—Surcharge on high income estates and trusts</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H729E39AE86A842AABB031BD2A7DF9F05"><enum>(d)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.</text></subsection></section><section id="H86584EFBCF0947B4A754911A9D2CA247"><enum>410.</enum><header>Modification of rules for value of certain farm, etc., real property</header><subsection id="H0054B0B00A034AA9A964081A4AD965CF"><enum>(a)</enum><header>In general</header><text>Paragraph (2) of <external-xref legal-doc="usc" parsable-cite="usc/26/2032A">section 2032A(a)</external-xref> of the Internal Revenue Code of 1986 is amended by striking <quote>$750,000</quote> and inserting <quote>$3,000,000</quote>.</text></subsection><subsection commented="no" id="HB528800D44294A128FB8CE96A53482A4"><enum>(b)</enum><header>Inflation adjustment</header><text>Paragraph (3) of section 2032A(a) of such Code is amended—</text><paragraph commented="no" id="HE1D005025857446A890350AA91090494"><enum>(1)</enum><text>by striking <quote>1998</quote> and inserting <quote>2025</quote>,</text></paragraph><paragraph commented="no" id="HFBFCDBB9362F4BC696FB848C049484BB"><enum>(2)</enum><text>by striking <quote>$750,000</quote> each place it appears and inserting <quote>$3,000,000</quote>, and</text></paragraph><paragraph commented="no" id="HFD12476A79ED41429423867846883FEE"><enum>(3)</enum><text>by striking <quote>calendar year 1997</quote> and inserting <quote>calendar year 2024</quote> in subparagraph (B).</text></paragraph></subsection><subsection id="H546B8FAC1B164B089949508D83AB410B"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to estates of decedents dying, and gifts made, after December 31, 2024.</text></subsection></section><section id="H5FDB6FEE78724E1586837C018EB81554"><enum>411.</enum><header>Modification of estate tax rules with respect to land subject to conservation easements</header><subsection commented="no" id="H673E8B93405D4D3DB319D5C2A867B447"><enum>(a)</enum><header>Modification of exclusion limitation</header><text>Subparagraph (B) of <external-xref legal-doc="usc" parsable-cite="usc/26/2031">section 2031(c)(1)</external-xref> of the Internal Revenue Code of 1986 is amended by striking <quote>$500,000</quote> and inserting <quote>$2,000,000</quote>.</text></subsection><subsection id="HC74F132FBFF740648917AC1BE7E14FB8"><enum>(b)</enum><header>Modification of applicable percentage</header><text>Paragraph (2) of <external-xref legal-doc="usc" parsable-cite="usc/26/2031">section 2031(c)</external-xref> of the Internal Revenue Code of 1986 is amended by striking <quote>40 percent</quote> and inserting <quote>60 percent</quote>.</text></subsection><subsection id="H4F8830729A994AA9AAF3E066AD2B435F" commented="no" display-inline="no-display-inline"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to estates of decedents dying, and gifts made, after December 31, 2024.</text></subsection></section><enum>V</enum><header>Accessibility requirements</header><section section-type="subsequent-section" id="H34C3F6A6556C430B8006CE0B82F06B48"><enum>501.</enum><header>Accessibility requirements</header><text display-inline="no-display-inline">In the case of housing that is constructed, altered, or otherwise assisted using amounts made available to the Secretary of Housing and Urban Development under this Act or an amendment made by this Act, sections 8.22 and 8.23 of title 24, Code of Federal Regulations (or any successor regulations) shall be applied such that the number of dwelling units required to be accessible under those sections is twice the number that would otherwise be required to be accessible under those sections.</text></section>