[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 3503 Introduced in Senate (IS)]

<DOC>






115th CONGRESS
  2d Session
                                S. 3503

        To make housing more affordable, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           September 26, 2018

  Ms. Warren introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
        To make housing more affordable, and for other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``American Housing 
and Economic Mobility Act of 2018''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

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

Sec. 101. Local housing innovation grants.
Sec. 102. Investing in affordable housing infrastructure.
TITLE II--REVERSING THE LEGACY OF HOUSING DISCRIMINATION AND GOVERNMENT 
                               NEGLIGENCE

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

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

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

                TITLE I--MAKING HOUSING MORE AFFORDABLE

SEC. 101. LOCAL HOUSING INNOVATION GRANTS.

    (a) Definitions.--In this section:
            (1) Elementary school; secondary school.--The terms 
        ``elementary school'' and ``secondary school'' have the 
        meanings given those terms in section 8101 of the Elementary 
        and Secondary Education Act of 1965 (20 U.S.C. 7801).
            (2) Eligible entity.--The term ``eligible entity'' means--
                    (A) a State;
                    (B) a unit of general local government; or
                    (C) a metropolitan area.
            (3) Institution of higher education.--The term 
        ``institution of higher education'' has the meaning given the 
        term in section 101 of the Higher Education Act of 1965 (20 
        U.S.C. 1001).
            (4) Metropolitan area; state; unit of general local 
        government.--The terms ``metropolitan area'', ``State'', and 
        ``unit of general local government'' have the meanings given 
        those terms in section 102 of the Housing and Community 
        Development Act of 1974 (42 U.S.C. 5302).
            (5) Secretary.--The term ``Secretary'' means the Secretary 
        of Housing and Urban Development.
    (b) Establishment.--Not later than 1 year after the date of 
enactment of this Act, the Secretary shall establish a program to make 
grants to eligible entities that--
            (1) reform local land use restrictions to bring down the 
        costs of producing affordable housing; and
            (2) remove unnecessary barriers to building affordable 
        units in their communities.
    (c) Eligible Activities.--An eligible entity receiving a grant 
under this section may use funds to--
            (1) carry out any of the activities described in section 
        105 of the Housing and Community Development Act of 1974 (42 
        U.S.C. 5305);
            (2) carry out any of the activities permitted under the 
        program for national infrastructure investments (commonly known 
        as the ``Better Utilizing Investments to Leverage Development 
        (BUILD) discretionary grant program'') authorized under title I 
        of division L of the Consolidated Appropriations Act, 2018 
        (Public Law 115-141) or a subsequent appropriations Act; or
            (3) modernize, renovate, or repair facilities used by 
        public elementary schools, public secondary schools, and public 
        institutions of higher education, including modernization, 
        renovation, and repairs that are consistent with a recognized 
        green building rating system.
    (d) Application.--
            (1) In general.--An eligible entity desiring a grant under 
        this section shall submit to the Secretary an application that 
        demonstrates that the eligible entity has carried out, or is in 
        the process of carrying out, initiatives that facilitate the 
        expansion of the supply of well-located affordable housing.
            (2) Activities.--Initiatives that meet the criteria 
        described in paragraph (1)--
                    (A) include--
                            (i) establishing ``by-right'' development, 
                        which allows jurisdictions to administratively 
                        approve new developments that are consistent 
                        their zoning code;
                            (ii) revising or eliminating off-street 
                        parking requirements to reduce the cost of 
                        housing production;
                            (iii) instituting measures that incentivize 
                        owners of vacant land to redevelop the space 
                        into affordable housing or other productive 
                        uses;
                            (iv) revising minimum lot size requirements 
                        and bans or limits on multifamily construction 
                        to allow for denser and more affordable 
                        development;
                            (v) instituting incentives to promote dense 
                        development, such as density bonuses;
                            (vi) passing inclusionary zoning ordinances 
                        that require a portion of newly developed units 
                        to be reserved for low- and moderate-income 
                        renters or homebuyers;
                            (vii) streamlining regulatory requirements 
                        and shortening processes, reforming zoning 
                        codes, or other initiatives that reduce 
                        barriers to housing supply elasticity and 
                        affordability;
                            (viii) allowing accessory dwelling units; 
                        and
                            (ix) using local tax incentives to promote 
                        development of affordable housing; and
                    (B) do not include activities that alter ordinances 
                that govern wage and hour laws, family and medical 
                leave laws, or protections for workers' health and 
                safety, anti-discrimination, and right to organize.
    (e) Labor Laws.--
            (1) In general.--All laborers and mechanics employed by 
        contractors or subcontractors in the performance of 
        construction work financed in whole or in part with a grant 
        received under this section shall be paid wages at rates not 
        less than those prevailing on similar construction in the 
        locality as determined by the Secretary of Labor in accordance 
        with subchapter IV of chapter 31 of title 40, United States 
        Code (commonly known as the ``Davis-Bacon Act'').
            (2) Exception.--Paragraph (1) shall not apply with respect 
        to--
                    (A) the rehabilitation of residential property if 
                the property contains less than 8 units; or
                    (B) construction carried out by employees of the 
                eligible entity receiving the grant under this section.
    (f) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $2,000,000,000 for each of 
fiscal years 2019 through 2023.

SEC. 102. INVESTING IN AFFORDABLE HOUSING INFRASTRUCTURE.

    (a) Housing Trust Fund.--Section 1338(a) of the Federal Housing 
Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 
4568(a)) is amended by adding at the end the following:
            ``(3) Authorization of appropriations.--There is authorized 
        to be appropriated to the Housing Trust Fund $44,500,000,000 
        for each of fiscal years 2019 through 2028.''.
    (b) Capital Magnet Fund.--Section 1339 of the Federal Housing 
Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4569) 
is amended by adding at the end the following:
    ``(k) Authorization of Appropriations.--There is authorized to be 
appropriated to the Capital Magnet Fund $2,500,000,000 for each of 
fiscal years 2019 through 2028.''.
    (c) Indian Housing Block Grant Program.--Section 108 of the Native 
American Housing Assistance and Self-Determination Act of 1996 (25 
U.S.C. 4117) is amended--
            (1) by striking ``such sums as may be necessary for each of 
        fiscal years 2009 through 2013'' and inserting ``$2,500,000,000 
        for fiscal year 2019 and such sums as may be necessary for each 
        of fiscal years 2020 through 2028''; and
            (2) by striking the second sentence.
    (d) Rural Housing Programs.--Out of funds in the Treasury not 
otherwise appropriated, there is appropriated for fiscal year 2019--
            (1) to provide direct loans under section 502 of the 
        Housing Act of 1949 (42 U.S.C. 1472), $140,000,000;
            (2) to provide assistance under section 514 of such Act (42 
        U.S.C. 1484), $28,000,000;
            (3) to provide assistance under section 515 of such Act (42 
        U.S.C. 1485), $180,000,000;
            (4) to provide assistance under section 516 of such Act (42 
        U.S.C. 1486), $100,000,000; and
            (5) to provide direct loans under section 523 of such Act 
        (42 U.S.C. 1490c), $75,000,000.
    (e) Middle Class Housing Emergency Fund.--
            (1) Definition.--In this subsection, the term ``affordable 
        rental housing unit'' means a unit for which monthly rent is 30 
        percent or less than the monthly area median income.
            (2) Establishment.--The Secretary of Housing and Urban 
        Development shall establish and manage a fund, to be known as 
        the ``Middle Class Housing Emergency Fund'', which shall be 
        funded with any amounts as may be appropriated, transferred, or 
        credited to the Fund under any provision law.
            (3) Grants.--From amounts available in the fund established 
        under paragraph (1), the Secretary of Housing and Urban 
        Development shall award grants on a competitive basis to State 
        housing finance agencies located in a State in which--
                    (A) there is a shortage of affordable rental 
                housing units available to individuals with an income 
                that is at or below the area median income and median 
                rents have risen on average over the preceding 3 years 
                substantially faster than the area median income; or
                    (B) there is a shortage of housing units available 
                for sale that are affordable to individuals with an 
                income that is at or below the area median income and 
                median home prices have risen on average over the 
                preceding 3 years substantially faster than the area 
                median income.
            (4) Use of funds.--Grants received under this subsection 
        shall be used to fund the construction of rental housing units 
        that are affordable to residents making less than 120 percent 
        of the area median income.
            (5) Labor laws.--
                    (A) In general.--All laborers and mechanics 
                employed by contractors or subcontractors in the 
                performance of construction work financed in whole or 
                in part with a grant received under this subsection 
                shall be paid wages at rates not less than those 
                prevailing on similar construction in the locality as 
                determined by the Secretary of Labor in accordance with 
                subchapter IV of chapter 31 of title 40, United States 
                Code (commonly known as the ``Davis-Bacon Act'').
                    (B) Exception.--Subparagraph (A) shall not apply 
                with respect to--
                            (i) the rehabilitation of residential 
                        property if the property contains less than 8 
                        units; or
                            (ii) construction carried out by employees 
                        of the eligible entity receiving the grant 
                        under this section.
            (6) Regulations.--The Secretary of Housing and Urban 
        Development shall promulgate regulations to carry out this 
        subsection, including with respect to the metrics the Secretary 
        shall use to determine eligibility for a grant under this 
        subsection.
            (7) Appropriations.--Out of funds in the Treasury not 
        otherwise appropriated, there is appropriated to the fund 
        established under this subsection $4,000,000,000 for fiscal 
        year 2019.

TITLE II--REVERSING THE LEGACY OF HOUSING DISCRIMINATION AND GOVERNMENT 
                               NEGLIGENCE

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

    (a) Definitions.--In this section:
            (1) Eligible resident.--The term ``eligible resident'' 
        means a resident of a geographic area, as defined by the 
        Secretary by regulation under subsection (e), who--
                    (A) is a first-time homebuyer;
                    (B) resided in that geographic area during the 4-
                year period preceding the date of enactment of this 
                Act; and
                    (C) has an income that is less than 120 percent of 
                the area median income.
            (2) First-time homebuyer.--The term ``first-time 
        homebuyer'' means an individual (and if married, the spouse of 
        the individual) who has had no ownership in a principal 
        residence during the 3-year period ending on the date of 
        purchase of the property.
            (3) Secretary.--The term ``Secretary'' means the Secretary 
        of Housing and Urban Development.
    (b) Establishment.--There is established in the Office of Housing 
of the Department of Housing and Urban Development a fund, to be 
administered by the Secretary, that shall be used--
            (1) to provide grants to eligible residents to purchase 
        homes; and
            (2) for outreach to financial institutions in targeted 
        areas and eligible residents.
    (c) Grant Amount.--Eligible residents may receive a grant from the 
fund established under subsection (b) in an amount equal to--
            (1) not more than 3.5 percent of the appraised value of the 
        property to be purchased; or
            (2) if the appraised value is more than the principal 
        obligation amount limitation for mortgages insured under title 
        II of the National Housing Act (12 U.S.C. 1707 et seq.), 3.5 
        percent of the maximum principal obligation limitation for the 
        property to be purchased.
    (d) FHA Loan.--An eligible resident is not required to obtain a 
mortgage that is insured under title II of the National Housing Act (12 
U.S.C. 1707 et seq.) as a condition of receiving a grant under this 
section.
    (e) Regulations and Database.--Not later than 1 year after the date 
of enactment of this Act, the Secretary shall--
            (1) finalize regulations relating to the use of the fund 
        established under subsection (b), including defining the 
        geographic areas in which residents are eligible to receive 
        grants through the fund, which shall include--
                    (A) census tracts graded as ``hazardous'' in maps 
                drawn by the Home Owners' Loan Corporation that are, as 
                of the date of enactment of this Act, low-income 
                communities; and
                    (B) census tracts that were designated for non-
                White citizens in jurisdictions that historically had 
                racially segregated zoning codes and are, as of the 
                date of enactment of this Act, low-income communities;
            (2) finalize regulations relating to the disbursement of 
        funds under this section to ensure that eligible residents are 
        able to receive funds before the closing date for their home, 
        which may include creating a program that allows a lender to be 
        reimbursed by the fund established under subsection (b) if the 
        lender--
                    (A) provides the eligible resident with funds for 
                the closing; or
                    (B) allows eligible residents to be preapproved to 
                receive assistance under this section when arranging 
                financing for their home;
            (3) create a publicly accessible database that allows 
        individuals, real estate professionals, and lenders to 
        determine whether a borrower is eligible for assistance under 
        this section; and
            (4) establish methods to verify that an individual is an 
        eligible resident.
    (f) Appropriations.--Out of funds in the Treasury not otherwise 
appropriated, there are appropriated to the fund established under 
subsection (b) such sums as may be necessary for each of fiscal years 
2019 through 2028 to provide grants under this section and to carry out 
consumer education efforts related to this section.
    (g) Inclusion of Program in Home Buying Information Booklets.--
Section 5(b) of the Real Estate Settlement Procedures Act of 1974 (12 
U.S.C. 2605) is amended by inserting after paragraph (14) the 
following:
            ``(15) Information relating to the down payment assistance 
        program established under section 201 of the American Housing 
        and Economic Mobility Act of 2018.''.
    (h) Inclusion of Program as Mortgage Product.--Section 203(f)(1) of 
the National Housing Act (12 U.S.C. 1709(f)(1)) is amended by inserting 
``, including the down payment assistance program established under 
section 201 of the American Housing and Economic Mobility Act of 2018'' 
after ``mortgage products,''.

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

    (a) Establishment.--The Secretary of Housing and Urban Development 
shall establish a formula grant program to provide funding to States to 
assist borrowers with negative equity in their primary residence 
through--
            (1) loan modifications or loan refinancing programs that 
        provide principal reduction;
            (2) programs to purchase or rehabilitate vacant land and 
        foreclosed homes to enhance neighborhood property values; and
            (3) loan programs to help underwater borrowers rehabilitate 
        or conduct maintenance on their homes.
    (b) Formula.--The Secretary of Housing and Urban Development shall 
distribute amounts under this section based on the number of borrowers 
in the State with a primary residence with negative equity.
    (c) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $2,000,000,000 for fiscal year 
2019.

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

    (a) Short Title.--This section may be cited as the ``Community 
Reinvestment Reform Act of 2018''.
    (b) Amendments to the Community Reinvestment Act of 1977.--The 
Community Reinvestment Act of 1977 (12 U.S.C. 2901 et seq.) is 
amended--
            (1) by amending sections 802 and 803 (12 U.S.C. 2901, 2902) 
        to read as follows:

``SEC. 802. FINDINGS AND PURPOSE.

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

``SEC. 803. DEFINITIONS.

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

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

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

         TITLE III--REMOVING BARRIERS THAT ISOLATE COMMUNITIES

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

    (a) In General.--The Fair Housing Act (42 U.S.C. 3601 et seq.) is 
amended--
            (1) in section 802 (42 U.S.C. 3602), by adding at the end 
        the following:
    ``(p) `Gender identity' means the gender-related identity, 
appearance, or mannerisms or other gender-related characteristics of an 
individual, with or without regard to the individual's designated sex 
at birth.
    ``(q) `Marital status' has the meaning given the term in section 
202.2 of title 12, Code of Federal Regulations, or any successor 
regulation.
    ``(r) `Sexual orientation' means homosexuality, heterosexuality, or 
bisexuality.
    ``(s) `Source of income' includes income for which there is a 
reasonable expectation that the income will continue from--
            ``(1) a profession, occupation or job;
            ``(2) any government or private assistance, grant, loan or 
        rental assistance program, including low-income housing 
        assistance certificates and vouchers issued under the United 
        States Housing Act of 1937 (42 U.S.C. 1437 et seq.);
            ``(3) a gift, an inheritance, a pension, an annuity, 
        alimony, child support, or other consideration or benefit; or
            ``(4) the sale or pledge of property or an interest in 
        property.'';
            (2) in section 804 (42 U.S.C. 3604)--
                    (A) by inserting ``actual or perceived'' before 
                ``race, color'' each place that term appears; and
                    (B) by inserting ``sexual orientation, gender 
                identity, marital status, source of income,'' after 
                ``sex,'' each place that term appears;
            (3) in section 805 (42 U.S.C. 3605)--
                    (A) by inserting ``actual or perceived'' before 
                ``race, color'' each place that term appears; and
                    (B) by inserting ``sexual orientation, gender 
                identity, marital status, source of income,'' after 
                ``sex,'' each place that term appears;
            (4) in section 806 (42 U.S.C. 3606)--
                    (A) by inserting ``actual or perceived'' before 
                ``race, color''; and
                    (B) by inserting ``sexual orientation, gender 
                identity, marital status, source of income,'' after 
                ``sex,''; and
            (5) in section 807 (42 U.S.C. 3607), by adding at the end 
        the following:
    ``(c) Nothing in this title limits the ability of the owner of a 
dwelling owner to determine, in a commercially reasonable and non-
discriminatory manner, the ability of a person to afford to purchase or 
rent the dwelling.''.
    (b) Prevention of Intimidation.--Section 901 of the Civil Rights 
Act of 1968 (42 U.S.C. 3631) is amended--
            (1) by inserting ``actual or perceived'' before ``race, 
        color'' each place that term appears; and
            (2) by inserting ``sexual orientation (as defined in 
        section 802), gender identity (as defined in section 802), 
        marital status (as defined in section 802), source of income 
        (as defined in section 802),'' after ``sex,'' each place that 
        term appears.

SEC. 302. IMPROVING OUTCOMES IN HOUSING ASSISTANCE PROGRAMS.

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

                      TITLE IV--ESTATE TAX REFORM

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

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

SEC. 402. RATE ADJUSTMENT.

    (a) Increase in Maximum Estate Tax Rates.--The table contained in 
section 2001(c) is amended by striking the last row and inserting the 
following:

    Over $1,000,000................
                                        $345,800, plus 55 percent of 
                                                the excess of such 
                                                amount over $1,000,000.
    Over $13,000,000...............
                                        $6,945,800, plus 60 percent of 
                                                the excess of such 
                                                amount over 
                                                $13,000,000.
    Over $93,000,000...............
                                        $54,945,800, plus 65 percent of 
                                                the excess of such 
                                                amount over 
                                                $93,000,000.

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

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

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

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

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

             ``CHAPTER 16--SPECIAL RULES FOR GRANTOR TRUSTS

``Sec. 2901. Application of transfer taxes.

``SEC. 2901. APPLICATION OF TRANSFER TAXES.

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

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

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

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

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

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

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