[Congressional Record Volume 172, Number 27 (Monday, February 9, 2026)]
[House]
[Pages H2050-H2074]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
HOUSING FOR THE 21ST CENTURY ACT
Mr. HILL of Arkansas. Mr. Speaker, I move to suspend the rules and
pass the bill (H.R. 6644) a bill to increase the supply of housing in
America, and for other purposes, as amended.
The Clerk read the title of the bill.
The text of the bill is as follows:
H.R. 6644
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 ``Housing
for the 21st Century Act''.
(b) Table of Contents.--The table of contents for this Act
is as follows:
Sec. 1. Short title; table of contents.
TITLE I--BUILDING SMARTER FOR THE 21ST CENTURY
Sec. 101. Housing Supply Frameworks.
Sec. 102. Accelerating home building grant program.
Sec. 103. Federal guidelines for point-access block buildings.
Sec. 104. Unlocking Housing Supply Through Streamlined and Modernized
Reviews.
Sec. 105. Federal Housing Agency Application of Environmental Reviews.
Sec. 106. Multifamily loan limits.
Sec. 107. GAO study on workforce housing.
TITLE II--MODERNIZING LOCAL DEVELOPMENT AND RURAL HOUSING PROGRAMS
Sec. 201. HOME Reform.
Sec. 202. Community Development Fund Amendments.
Sec. 203. Grants for planning and implementation associated with
affordable housing.
Sec. 204. Rural housing service program improvements.
Sec. 205. Choice in Affordable Housing.
TITLE III--EXPANDING MANUFACTURED AND AFFORDABLE HOUSING FINANCE
OPPORTUNITIES
Sec. 301. Manufactured Housing Innovations.
Sec. 302. FHA small-dollar mortgages.
Sec. 303. Community investment and prosperity.
TITLE IV--PROTECTING BORROWERS AND ASSISTED FAMILIES
Sec. 401. Exclusion of certain disability benefits.
Sec. 402. Military service question.
Sec. 403. HUD-USDA-VA Interagency Coordination.
Sec. 404. Family self-sufficiency escrow expansion pilot program.
Sec. 405. Reforms to housing counseling and financial literacy
programs.
Sec. 406. Establishment of eviction helpline.
Sec. 407. Temperature Sensor pilot program.
Sec. 408. GAO studies.
TITLE V--ENHANCING OVERSIGHT OF HOUSING PROVIDERS
Sec. 501. Requirement to testify.
Sec. 502. Improving public housing agency accountability.
TITLE VI--STRENGTHENING COMMUNITY BANKS' ROLE IN HOUSING
Sec. 601. Community Bank Deposit Access.
Sec. 602. Keeping Deposits Local.
Sec. 603. Supervisory Modifications for Appropriate Risk-based Testing.
Sec. 604. Tailored Regulatory Updates for Supervisory Testing.
Sec. 605. Credit Union Board Modernization.
Sec. 606. Systemic Risk Authority Transparency.
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Sec. 607. Least cost exception.
Sec. 608. Failing Bank Acquisition Fairness.
Sec. 609. Advancing the Mentor-Protege Program for Small Financial
Institutions.
Sec. 610. American Access to Banking.
Sec. 611. Promoting New Bank Formation.
Sec. 612. Rural Depositories Revitalization Study.
Sec. 613. Discretionary Surplus Fund.
TITLE I--BUILDING SMARTER FOR THE 21ST CENTURY
SEC. 101. HOUSING SUPPLY FRAMEWORKS.
(a) Definitions.--In this section:
(1) Affordable housing.--The term ``affordable housing''
means housing for which the monthly payment is not more than
30-percent of the monthly income of the household.
(2) Assistant secretary.--The term ``Assistant Secretary''
means the Assistant Secretary for Policy Development and
Research of the Department of Housing and Urban Development.
(3) Local zoning framework.--The term ``local zoning
framework'' means the local zoning codes and other
ordinances, procedures, and policies governing zoning and
land-use at the local level.
(4) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
(5) State zoning framework.--The term ``State zoning
framework'' means the State legislation or State agency and
department procedures, or such legislation or procedures in
an insular area of the United States, enabling local planning
and zoning authorities and establishing and guiding related
policies and programs.
(b) Guidelines on State and Local Zoning Frameworks.--
(1) In general.--Not later than 3 years after the date of
enactment of this Act, the Assistant Secretary shall publish
documents outlining guidelines and best practices to support
production of adequate housing to meet the needs of
communities and provide housing opportunities for individuals
at every income level across communities with respect to--
(A) State zoning frameworks; and
(B) local zoning frameworks.
(2) Consultation; public comment.--During the 2-year period
beginning on the date of enactment of this Act, in developing
the guidelines and best practices required under paragraph
(1), the Assistant Secretary shall--
(A) publish draft guidelines and best practices in the
Federal Register for public comment; and
(B) establish a task force for the purpose of providing
consultation to draft the guidelines and best practices
published under subparagraph (A), the members of which shall
include--
(i) urban planners and architects;
(ii) housing developers, including affordable and market-
rate housing developers, manufactured housing developers,
cooperative housing developers, and other business interests;
(iii) community engagement experts and community members
impacted by zoning decisions;
(iv) public housing agencies and transit authorities;
(v) members of local zoning and planning boards and local
and regional transportation planning organizations;
(vi) State officials responsible for housing or land use,
including members of State zoning boards of appeals;
(vii) academic researchers; and
(viii) home builders.
(3) Contents.--The guidelines and best practices required
under paragraph (1) shall--
(A) with respect to State zoning frameworks, outline
potential models for updated State enabling legislation or
State agency and department procedures;
(B) include recommendations regarding--
(i) the reduction or elimination of parking minimums;
(ii) the increase in maximum floor area ratio requirements
and maximum building heights and the reduction in minimum lot
sizes and set-back requirements;
(iii) the elimination of restrictions against accessory
dwelling units;
(iv) increasing by-right uses, including duplex, triplex,
or quadplex buildings, across cities or metropolitan areas;
(v) mechanisms, including proximity to transit, to
determine the appropriate scope for rezoning and ensure
development that does not disproportionately burden residents
of economically distressed areas;
(vi) provisions regarding review of by-right development
proposals to streamline review and reduce uncertainty,
including--
(I) nondiscretionary, ministerial review; and
(II) entitlement and design review processes;
(vii) the reduction of obstacles, regulatory or otherwise,
to a range of housing types at all levels of affordability,
including manufactured and modular housing;
(viii) State model zoning regulations for directing local
reforms, including mechanisms to encourage adoption;
(ix) provisions to encourage transit-oriented development,
including increased permissible units per structure and
reduced minimum lot sizes near existing or planned public
transit stations;
(x) potential reforms to strengthen the public engagement
process;
(xi) reforms to protest petition statutes;
(xii) the standardization, reduction, or elimination of
impact fees;
(xiii) cost-effective and appropriate building codes;
(xiv) models for community benefit agreements;
(xv) mechanisms to preserve affordability, limit disruption
of low-income communities, and prevent displacement of
existing residents;
(xvi) with respect to State zoning frameworks--
(I) State model codes for directing local reforms,
including mechanisms to encourage adoption;
(II) a model for a State zoning appeals process, which
would--
(aa) create a process for developers or builders requesting
a variance, conditional use, special permit, zoning district
change, similar discretionary permit, or otherwise
petitioning a local zoning or planning board for a project
including a State-defined amount of affordable housing to
appeal a rejection to a State body or regional body empowered
by the State; and
(bb) establish qualifications for communities to be
exempted from the appeals process based on their available
stock of affordable housing; and
(III) streamlining of State environmental review policies;
(xvii) with respect to local zoning frameworks--
(I) the simplification and standardization of existing
zoning codes;
(II) maximum review timelines;
(III) best practices for the disposition of land owned by
local governments for affordable housing development;
(IV) differentiations between best practices for rural,
suburban, and urban communities, and communities with
different levels of density or population distribution; and
(V) streamlining of local environmental review policies;
and
(xviii) other land use measures that promote access to new
housing opportunities identified by the Secretary; and
(C) consider--
(i) the effects of adopting any recommendation on
eligibility for Federal discretionary grants and tax credits
for the purpose of housing or community development;
(ii) coordination between infrastructure investments and
housing planning;
(iii) local housing needs, including ways to set and
measure housing goals and targets;
(iv) a range of affordability for rental units, with a
prioritization of units attainable to extremely low-, low-,
and moderate-income residents;
(v) a range of affordability for homeownership;
(vi) accountability measures;
(vii) the long-term cost to residents and businesses if
more housing is not constructed;
(viii) barriers to individuals seeking to access affordable
housing in growing communities and communities with economic
opportunity;
(ix) with respect to State zoning frameworks--
(I) distinctions between States providing constitutional or
statutory home rule authority to municipalities and States
operating under the Dillon Rule, as articulated in Hunter v.
Pittsburgh, 207 U.S. 161 (1907); and
(II) Statewide mechanisms to preserve existing
affordability over the long term, including support for land
banks and community land trusts;
(x) public comments elicited under paragraph (2)(A); and
(xi) other considerations, as identified by the Assistant
Secretary.
(c) Abolishment of the Regulatory Barriers Clearinghouse.--
(1) In general.--The Regulatory Barriers Clearinghouse
established pursuant to section 1205 of the Housing and
Community Development Act of 1992 (42 U.S.C. 12705d) is
abolished.
(2) Repeal.--Section 1205 of the Housing and Community
Development Act of 1992 (42 U.S.C. 12705d) is repealed.
(d) Reporting.--Not later than 5 years after the date on
which the Assistant Secretary publishes the final guidelines
and best practices for State and local zoning frameworks
under this section, the Assistant Secretary shall submit to
the Congress a report describing--
(1) the States that have adopted recommendations from the
guidelines and best practices, pursuant to section 4 of this
Act;
(2) a summary of the localities that have adopted
recommendations from the guidelines and best practices,
pursuant to section 4 of this Act;
(3) a list of States that adopted a State zoning framework;
(4) a summary of the modifications that each State has made
in their State zoning framework;
(5) a general summary of the types of updates localities
have made to their local zoning framework;
(6) with respect to the States that have adopted a State
zoning framework or recommendations from the guidelines and
best practices, the effect of such adoptions; and
(7) a summary of any recommendations that were routinely
not adopted by States or by localities.
(e) Rule of Construction.--Nothing in this section may be
construed to permit the Department of Housing and Urban
Development to take an adverse action against or
[[Page H2052]]
fail to provide otherwise offered actions or services for any
State or locality if the State or locality declines to adopt
a guideline or best practice under subsection (c).
SEC. 102. ACCELERATING HOME BUILDING GRANT PROGRAM.
(a) In General.--The Secretary may establish a pilot
program to award grants to eligible entities to review
designs of covered structures of mixed-income housing and
designate such reviewed designs to be included in pattern
books for use in the jurisdiction of the eligible entity.
(b) Restriction.--Amounts awarded under this section may
not be used for construction, alteration, or repair work.
(c) Considerations.--In reviewing applications submitted by
eligible entities for a grant under this section, the
Secretary shall consider--
(1) the need for affordable housing in the eligible entity;
(2) the presence of high opportunity areas in the eligible
entity;
(3) coordination between the eligible entity and a State
agency; and
(4) coordination between the eligible entity and State,
local, and regional transportation planning authorities.
(d) Set-aside for Rural Areas.--Of the amounts made
available in each fiscal year for grants under this section,
the Secretary shall ensure that not less than 10-percent
shall be used for grants to eligible entities that are
located in rural areas.
(e) Report Requirement.--Not later than 3 years after being
awarded a grant under this section, an eligible entity shall
submit to the Secretary a report that--
(1) describes the impacts of the activities carried out
using the amounts provided under this section on improving
the production and supply of affordable housing;
(2) includes a list of any pattern books the eligible
entity has established using amounts provided under this
section, including a description of the designs such pattern
book includes;
(3) identifies the number of permits issued by the eligible
entity for housing development using designs from such
pattern book; and
(4) identifies the number of housing units produced in
developments of the eligible entity using a design from such
pattern book.
(f) Availability of Information.--The Secretary shall--
(1) to the extent possible, encourage eligible entities
awarded grants under this section to make any pattern books
established by such entity, and designs in such pattern book,
publicly available through a website; and
(2) collect, identify, and disseminate best practices
relating to pattern books and make such information publicly
available on a website of the Department of Housing and Urban
Development.
(g) Repayment of Awarded Amounts.--The Secretary may
require an eligible entity to return, to the Secretary, grant
amounts awarded under this section if the Secretary
determines that the eligible entity has not approved a
sufficient number of building permits that use designs
included in a pattern book established by the eligible
entity, during the 5-year period following receipt of the
grant by the eligible entity, unless such period is extended
by the Secretary.
(h) Sunset.--The pilot program established under this
section shall terminate on the date that is 7 years after the
date of the enactment of this section.
(i) Definitions.--In this section:
(1) Affordable housing.--The term ``affordable housing''
means housing for which the total monthly housing cost
payment is not more than 30-percent of the monthly household
income for a household earning not more than 80-percent of
the area-median income.
(2) Covered structure.--The term ``covered structure''
means a low-rise or mid-rise structure with not more than 25
dwelling units that may include--
(A) an accessory dwelling unit;
(B) infill development;
(C) a duplex;
(D) a triplex;
(E) a fourplex;
(F) a cottage court;
(G) a courtyard building;
(H) a townhouse;
(I) a multiplex; and
(J) any other structure with not less than 2 dwelling units
that the Secretary has determined in advance to be
appropriate.
(3) Eligible entity.--The term ``eligible entity'' means--
(A) a unit of general local government, as defined in
section 102(a) of the Housing and Community Development Act
of 1974 (42 U.S.C. 5302(a)); and
(B) an Indian Tribe, as defined in section 102(a) of the
Housing and Community Development Act of 1974 (42 U.S.C.
5302(a)).
(4) High opportunity area.--The term ``high opportunity
area'' has the meaning given the term in section 1282.1 of
title 12, Code of Federal Regulations, or any successor
regulation.
(5) Infill development.--The term ``infill development''
means a residential housing development on small parcels in
previously established areas for replacement by new or
refurbished housing that utilizes existing utilities and
infrastructure.
(6) Mixed-income housing.--The term ``mixed-income
housing'' means a housing development that is comprised of
housing units that promote differing levels of affordability
in the community.
(7) Pattern book.--The term ``pattern book'' means a set of
pre-reviewed, designated designs or construction plans that
are assessed and approved as by-right development by
localities for compliance with local building and permitting
standards to streamline and expedite approval pathways for
housing construction.
(8) Rural area.--The term ``rural area'' means any area
other than a city or town that has a population of less than
50,000 inhabitants.
(9) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
SEC. 103. FEDERAL GUIDELINES FOR POINT-ACCESS BLOCK
BUILDINGS.
(a) In General.--Not later than 18 months after the date of
enactment of this section, the Secretary of Housing and Urban
Development shall issue guidelines to provide States,
territories, Tribes, and localities with model code language,
best practices, and technical guidance that could be used to
facilitate the permitting of point-access block residential
buildings.
(b) Contents.--When developing the guidelines under
subsection (a), the Secretary shall consider--
(1) fire safety considerations, including sprinkler
coverage, smoke detection, ventilation, and building egress
performance;
(2) construction costs and potential impacts on housing
affordability, including the potential for increasing housing
supply in high-cost jurisdictions;
(3) flexibility for diverse consumer needs, including
family sizes, unit configurations, and accessibility;
(4) examples of single-stair codes adopted or considered by
States and cities in the United States;
(5) examples single-stair codes used in relevant
international standards;
(6) research and model language relating to single-stair
codes produced by organizations that focus on point-access
block building design and building-code reform;
(7) consulting with experts, including developers,
architects, fire marshals, researchers, economists, housing
authorities, and officials in States that have enacted or
piloted single-stair codes; and
(8) alternative methods of safety compliance, including
options that utilize additional passive or active safety
features.
(c) Coordination With the International Code Council.--The
Secretary shall coordinate with the International Code
Council to encourage the International Code Council to
incorporate provisions about point-access block buildings
into the International Building Code.
(d) Grants.--
(1) In general.--The Secretary may establish a program to
award competitive grants to eligible entities to implement
pilot projects that evaluate, demonstrate, or validate the
safety, feasibility, or cost-effectiveness of point-access
block residential buildings.
(2) Sunset.--The program established under paragraph (1)
shall terminate on the date that is 7 years after the date of
the enactment of this subsection.
(e) Rule of Construction.--Nothing in this section may be
construed to preempt a State or local building code.
(f) Definitions.--In this section:
(1) Eligible entity.--The term ``eligible entity'' means a
State, unit of local government, Tribal Government, public
housing agency, nonprofit housing organization, community
development organization, private developer, construction
firm, qualified design firm, engineering firm, academic
institution, research institution, or any partnership or
consortium comprised of 2 or more such types of entities.
(2) Point-access block building.--The term ``point-access
block building'' means a Group R-2 occupancy residential
structure, as such term is defined by the International
Building Code, in which a single internal stairway provides
access and egress for all dwelling units in a building that
is not greater than 6 stories in height.
SEC. 104. UNLOCKING HOUSING SUPPLY THROUGH STREAMLINED AND
MODERNIZED REVIEWS.
(a) NEPA Streamlining for HUD Housing-related Activities.--
(1) In general.--The Secretary of Housing and Urban
Development shall, in accordance with section 553 of title 5,
United States Code, expand and reclassify housing-related
activities under the necessary administrative regulations as
follows:
(A) The following housing-related activities shall be
subject to regulations equivalent or substantially similar to
the regulations entitled ``exempt activities'' as set forth
in section 58.34 of title 24, Code of Federal Regulations, as
in effect on January 1, 2025:
(i) Tenant-based rental assistance, as defined in section
8(o) of the United States Housing Act of 1937 (42 U.S.C.
1437f(o)).
(ii) Supportive services, including health care, housing
services, permanent housing placement, day care, nutritional
services, short-term payment for rent, mortgage, or utility
costs, and assistance in gaining access to Federal Government
and State and local government benefits and services.
(iii) Operating costs, including maintenance, security,
operation, utilities, furnishings, equipment, supplies, staff
training, and recruitment and other incidental costs.
[[Page H2053]]
(iv) Economic development activities, including equipment
purchases, inventory financing, interest subsidies, operating
expenses, and similar costs not associated with construction
or expansion of existing operations.
(v) Activities to assist homebuyers to purchase existing
dwelling units or dwelling units under construction,
including closing costs and down payment assistance, interest
rate buydowns, and similar activities that result in the
transfer of title.
(vi) Affordable housing predevelopment costs related to
obtaining site options, project financing, administrative
costs and fees for loan commitment, zoning approvals, and
other related activities that do not have a physical impact.
(vii) Approval of supplemental assistance, including
insurance or guarantee, to a project previously approved by
the Secretary.
(viii) Emergency homeowner or renter assistance for HVAC,
hot water heaters, and other necessary uses of existing
utilities required under applicable law.
(B) The following housing-related activities shall be
subject to regulations equivalent or substantially similar to
the regulations entitled--
(i) ``categorical exclusions not subject to section 58.5'';
and
(ii) ``categorical exclusions not subject to the Federal
laws and authorities cited in sections 50.4'' in section
58.35(b) and section 50.19, respectively of title 24, Code of
Federal Regulations, as in effect on January 1, 2025, if such
activities do not materially alter environmental conditions
and do not materially exceed the original scope of the
project:
(I) Acquisition, repair, improvement, reconstruction, or
rehabilitation of public facilities and improvements (other
than buildings) if the facilities and improvements are in
place and will be retained in the same use without change in
size or capacity of more than 20-percent, including
replacement of water or sewer lines, reconstruction of curbs
and sidewalks, and repaving of streets.
(II) Rehabilitation of 1-to-4 unit residential buildings,
and existing housing-related infrastructure, such as repairs
or rehabilitation of existing wells, septics, or utility
lines that connect to that housing.
(III) New construction, development, demolition,
acquisition, or disposition on up to 4 scattered site
existing dwelling units where there is a maximum of 4 units
on any 1 site.
(IV) Acquisitions (including leasing) or disposition of, or
equity loans on an existing structure, or acquisition
(including leasing) of vacant land if the structure or land
acquired, financed, or disposed of will be retained for the
same use.
(C) The following housing-related activities shall be
subject to regulations equivalent or substantially similar to
the regulations entitled--
(i) ``categorical exclusions subject to section 58.5''; and
(ii) ``categorical exclusions subject to the Federal laws
and authorities cited in sections 50.4'' in section 58.35(a)
and section 50.20, respectively, of title 24, Code of Federal
Regulations, as in effect on January 1, 2025, if such
activities do not materially alter environmental conditions
and do not materially exceed the original scope of the
project:
(I) Acquisitions of open space or residential property,
where such property will be retained for the same use or will
be converted to open space to help residents relocate out of
an area designated as a high-risk area by the Secretary.
(II) Conversion of existing office buildings into
residential development, subject to--
(aa) a maximum number of units to be determined by the
Secretary; and
(bb) a limitation on the change in building size to not
more than 20-percent.
(III) New construction, development, demolition,
acquisition, or disposition on 5 to 15 dwelling units where
there is a maximum of 15 units on any 1 site. The units can
be 15 1-unit buildings or 1 15-unit building, or any
combination in between.
(IV) New construction, development, demolition,
acquisition, or disposition on 15 or more housing units
developed on scattered sites when there are not more than 15
housing units on any 1 site, and the sites are more than a
set number of feet apart as determined by the Secretary.
(V) Rehabilitation of buildings and improvements in the
case of a building for residential use with 5 to 15 units, if
the density is not increased beyond 15 units and the land use
is not changed.
(VI) Infill projects consisting of new construction,
rehabilitation, or development of residential housing units.
(VII) Buyouts, defined as the voluntary acquisition of
properties located in--
(aa) a floodway;
(bb) a floodplain; or
(cc) an other area, clearly delineated by the grantee, that
has been impacted by a predictable environmental threat to
the safety and wellbeing of program beneficiaries caused or
exacerbated by a federally declared disaster.
(2) Report.--The Secretary shall submit to the Committee on
Banking, Housing, and Urban Affairs of the Senate and the
Committee on Financial Services of the House of
Representatives annual reports during the 5-year period
beginning on the date that is 2 years after the date of
enactment of this Act that provide a summary of findings of
reductions in review times and administrative cost reduction,
with a particular focus on the affordable housing sector, as
a result of the actions set forth in this subsection, and any
recommendations of the Secretary for future congressional
action with respect to revising categorical exclusions or
exemptions under title 24, Code of Federal Regulations.
(b) Better Use of Intergovernmental and Local Development
for Housing.--
(1) Designation of environmental review procedure.--The
Department of Housing and Urban Development Act (42 U.S.C.
3531 et seq.) is amended by inserting after section 12 (42
U.S.C. 3537a) the following:
``SEC. 13. DESIGNATION OF ENVIRONMENTAL REVIEW PROCEDURE.
``(a) In General.--Except as provided in subsection (b),
the Secretary may, for purposes of environmental review,
decision-making, and action pursuant to the National
Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.),
and other provisions of law that further the purposes of such
Act, designate the treatment of assistance administered by
the Secretary as funds for a special project for purposes of
section 305(c) of the Multifamily Housing Property
Disposition Reform Act of 1994 (42 U.S.C. 3547).
``(b) Exception.--The designation described in subsection
(a) shall not apply to assistance for which a procedure for
carrying out the responsibilities of the Secretary under the
National Environmental Policy Act of 1969 (42 U.S.C. 4321 et
seq.), and other provisions of law that further the purposes
of such Act, is otherwise specified in law.''.
(2) Tribal assumption of environmental review
obligations.--Section 305(c) of the Multifamily Housing
Property Disposition Reform Act of 1994 (42 U.S.C. 3547) is
amended--
(A) by striking ``State or unit of general local
government'' each place it appears and inserting ``State,
Indian Tribe, or unit of general local government'';
(B) in paragraph (1)(C), in the heading, by striking
``state or unit of general local government'' and inserting
``state, indian tribe, or unit of general local government'';
and
(C) by adding at the end the following:
``(5) Definition of indian tribe.--For purposes of this
subsection, the term `Indian Tribe' means a federally
recognized Tribe, as defined in section 4(13)(B) of the
Native American Housing Assistance and Self-Determination Act
of 1996 (25 U.S.C. 4103(13)(B)).''.
(c) Applicability.--Any activity generated under
subsections (a) or (b) would be subject to an authorization
of appropriations.
(d) Infill Project Defined.--In this section, the term
``infill project'' means a project that--
(1) occurs within the geographic limits of a municipality;
(2) is adequately served by existing utilities and public
services as required under applicable law;
(3) is located on a site of previously disturbed land of
not more than 5 acres and substantially surrounded by
residential or commercial development;
(4) will repurpose a vacant or underutilized parcel of
land, or a dilapidated or abandoned structure; and
(5) will serve a residential or commercial purpose.
SEC. 105. FEDERAL HOUSING AGENCY APPLICATION OF ENVIRONMENTAL
REVIEWS.
(a) Memorandum of Understanding.--
(1) In general.--Not later than 180 days after the date of
enactment of this Act, the Secretary of Housing and Urban
Development and the Secretary of Agriculture shall enter into
a memorandum of understanding to--
(A) evaluate the use of categorical exclusions (as defined
in section 111 of the National Environmental Policy Act of
1969 (42 U.S.C. 4336e)) for housing projects funded by
amounts from the Department of the Housing and Urban
Development and the Department of Agriculture;
(B) develop a process to designate a lead agency among the
Department of Housing and Urban Development and the
Department of Agriculture to streamline the adoption of
environmental impact statements and environmental assessments
approved by the other agency to construct housing projects
funded by amounts from both agencies;
(C) maintain compliance with environmental regulations
under part 58 of title 24, Code of Federal Regulations, as in
effect on January 1, 2025; and
(D) evaluate the feasibility of a joint physical inspection
process for housing projects funded by amounts from the
Department of the Housing and Urban Development and the
Department of Agriculture.
(2) Report.--Not later than 1 year after the date of
enactment of this Act, the Secretary of Housing and Urban
Development and the Secretary of Agriculture shall 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 recommendations for
legislative, regulatory, or administrative actions--
(A) to improve the efficiency and effectiveness of housing
projects funded by amounts from the Department of the Housing
and Urban Development and the Department of Agriculture; and
(B) that do not materially, with respect to residents of
housing projects described in subparagraph (A)--
(i) reduce the safety of those residents;
(ii) shift long-term costs onto those residents; or
[[Page H2054]]
(iii) undermine the environmental standards of those
residents.
(b) Study and Review.--
(1) Exemption.--In providing assistance under section 501,
502, 504, 515, 533, or 538 of the Housing Act of 1949 (42
U.S.C. 1471, 1472, 1474, 1485, 1490m, or 1490p-2) for the
construction or modification of residential housing located
on an infill site, the Secretary of Agriculture shall not be
required to carry out any study or report on the
environmental effects of such assistance.
(2) Report.--Not later than the date that is 5 years after
the date of enactment of this section, the Secretary of
Agriculture shall submit, to the Committee on Financial
Services of the House of Representatives and the Committee on
Banking, Housing, and Urban Affairs of the Senate, a report
that--
(A) determines whether the implementation of this section--
(i) reduced the amount of time it takes to review an
application for assistance under the sections of the Housing
Act of 1949 identified in paragraph (1); and
(ii) reduced the administrative cost of providing such
assistance;
(B) describes how the implementation of this section
affects the affordable housing sector in rural America; and
(C) includes any legislative recommendations from the
Secretary of Agriculture.
(2) Definitions.--In this section:
(A) Greenfield.--The term ``greenfield'' means a site that
has not been developed, including a woodland, farmland, and
an open field.
(B) Infill site.--The term ``infill site''--
(i) means a site that is served by existing infrastructure,
including water lines, sewer lines, and roads; and
(ii) does not include--
(I) a site that is served by existing infrastructure that
only consists of a road;
(II) a site within a census tract designated as very high
or relatively high risk for wildfire, coastal flooding, and
riverine flooding under the National Risk Index of the
Federal Emergency Management Agency pursuant to section 206
of the Robert T. Stafford Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5136); and
(III) a greenfield.
SEC. 106. MULTIFAMILY LOAN LIMITS.
(a) In General.--Title II of the National Housing Act (12
U.S.C. 1707 et seq.) is amended--
(1) in section 206A (12 U.S.C. 1712a)--
(A) in subsection (a), in the matter following paragraph
(7), by striking ``(commencing in 2004'' and all that follows
through the period at the end and inserting the following:
``, commencing on January 1, 2026. The adjustment of the
Dollar Amounts shall be calculated by the Secretary using the
percentage change in the Price Deflator Index of Multifamily
Residential Units Under Construction released by the Bureau
of the Census from March of the previous year to March of the
year in which the adjustment is made, or calculated by the
Secretary using an alternative indicator after publishing
information about such alternative indicator in the Federal
Register for public comment if the Price Deflator Index of
Multifamily Residential Units Under Construction is not
available or published.''; and
(B) by striking subsection (b) and inserting the following:
``(b) Rounding.--The dollar amount of any adjustment
described in subsection (a) shall be rounded to the next
lower dollar.
``(c) Publication.--The Secretary shall publish in the
Federal Register any adjustments made to the Dollar
Amounts.'';
(2) in section 207(c)(3)(A) (12 U.S.C. 1713(c)(3)(A))--
(A) by striking ``$38,025'' and inserting ``$167,310'';
(B) by striking ``$42,120'' and inserting ``$185,328'';
(C) by striking ``$50,310'' and inserting ``$221,364'';
(D) by striking ``$62,010'' and inserting ``$272,844'';
(E) by striking ``$70,200'' and inserting ``$308,880'';
(F) by striking ``, or not to exceed $17,460 per space'';
(G) by striking ``$43,875'' and inserting ``$193,050'';
(H) by striking ``$49,140'' and inserting ``$216,216'';
(I) by striking ``$60,255'' and inserting ``$265,122'';
(J) by striking ``$75,465'' and inserting ``$332,046''; and
(K) by striking ``$85,328'' and inserting ``$375,443'';
(3) in section 213(b)(2) (12 U.S.C. 1715e(b)(2))--
(A) by striking ``$41,207'' and inserting ``$181,311'';
(B) by striking ``$47,511'' and inserting ``$209,048'';
(C) by striking ``$57,300'' and inserting ``$252,120'';
(D) by striking ``$73,343'' and inserting ``$322,709'';
(E) by striking ``$81,708'' and inserting ``$359,515'';
(F) by striking ``$43,875'' and inserting ``$193,050'';
(G) by striking ``$49,710'' and inserting ``$218,724'';
(H) by striking ``$60,446'' and inserting ``$265,962'';
(I) by striking ``$78,197'' and inserting ``$344,067''; and
(J) by striking ``$85,836'' and inserting ``$377,678'';
(4) in section 220(d)(3)(B)(iii)(I) (12 U.S.C.
1715k(d)(3)(B)(iii)(I))--
(A) by striking ``$38,025'' and inserting ``$167,310'';
(B) by striking ``$42,120'' and inserting ``$185,328'';
(C) by striking ``$50,310'' and inserting ``$221,364'';
(D) by striking ``$62,010'' and inserting ``$272,844'';
(E) by striking ``$70,200'' and inserting ``$308,880'';
(F) by striking ``$43,875'' and inserting ``$193,050'';
(G) by striking ``$49,140'' and inserting ``$216,216'';
(H) by striking ``$60,255'' and inserting ``$265,122'';
(I) by striking ``$75,465'' and inserting ``$332,046''; and
(J) by striking ``$85,328'' and inserting ``$375,443'';
(5) in section 221(d)(4)(ii)(I) (12 U.S.C.
1715l(d)(4)(ii)(I))--
(A) by striking ``$37,843'' and inserting ``$166,509'';
(B) by striking ``$42,954'' and inserting ``$188,997'';
(C) by striking ``$51,920'' and inserting ``$228,448'';
(D) by striking ``$65,169'' and inserting ``$286,744'';
(E) by striking ``$73,846'' and inserting ``$324,922'';
(F) by striking ``$40,876'' and inserting ``$179,854'';
(G) by striking ``$46,859'' and inserting ``$206,180'';
(H) by striking ``$56,979'' and inserting ``$250,708'';
(I) by striking ``$73,710'' and inserting ``$324,324''; and
(J) by striking ``$80,913'' and inserting ``$356,017'';
(6) in section 231(c)(2)(A) (12 U.S.C. 1715v(c)(2)(A))--
(A) by striking ``$35,978'' and inserting ``$166,509'';
(B) by striking ``$40,220'' and inserting ``$188,997'';
(C) by striking ``$48,029'' and inserting ``$228,448'';
(D) by striking ``$57,798'' and inserting ``$286,744'';
(E) by striking ``$67,950'' and inserting ``$324,922'';
(F) by striking ``$40,876'' and inserting ``$179,854'';
(G) by striking ``$46,859'' and inserting ``$206,180'';
(H) by striking ``$56,979'' and inserting ``$250,708'';
(I) by striking ``$73,710'' and inserting ``$324,324''; and
(J) by striking ``$80,913'' and inserting ``$356,017''; and
(7) in section 234(e)(3)(A) (12 U.S.C. 1715y(e)(3)(A))--
(A) by striking ``$42,048'' and inserting ``$185,011'';
(B) by striking ``$48,481'' and inserting ``$213,316'';
(C) by striking ``$58,469'' and inserting ``$257,263'';
(D) by striking ``$74,840'' and inserting ``$329,296'';
(E) by striking ``$83,375'' and inserting ``$366,850'';
(F) by striking ``$44,250'' and inserting ``$194,700'';
(G) by striking ``$50,724'' and inserting ``$223,186'';
(H) by striking ``$61,680'' and inserting ``$271,392'';
(I) by striking ``$79,793'' and inserting ``$351,089''; and
(J) by striking ``$87,588'' and inserting ``$385,387''.
(b) Rule of Construction.--Nothing in this section or the
amendments made by this section may be construed to limit the
authority of the Secretary of Housing and Urban Development
to revise the statutory exceptions for high-cost percentage
and high-cost areas annual indexing.
SEC. 107. GAO STUDY ON WORKFORCE HOUSING.
(a) In General.--Not later than 1 year after the date of
the enactment of this section, the Comptroller General of the
United States shall conduct a study and submit to the
Congress a report that--
(1) identifies obstacles middle-income households face when
looking to secure affordable housing;
(2) identifies geographic areas where housing is the most
unaffordable and unavailable for middle-income households;
(3) includes a list of Federal housing programs, including
Federal tax credits, grants, and loan programs, that are not
available to middle-income households due to their income
status, including Federal housing programs designed to
promote affordability;
(4) recommends income and other parameters to establish a
clear and consistent Federal definition for the term
``workforce housing'' for use when describing the segment of
housing that could be made available to such middle-income
households in Federal housing programs if funding
commensurate with the additional eligibility were to be made
available; and
(5) analyzes how to modify or newly develop new Federal
housing programs and incentives to include ``workforce
housing'' if funding commensurate with the additional
eligibility were to be made available.
(b) Middle-income Household Defined.--In this section, the
term ``middle income
[[Page H2055]]
household'' means a household with an income above 80-percent
but that does not exceed 120-percent of the median family
income of the area, as determined by the Secretary with
adjustments for smaller and larger families.
TITLE II--MODERNIZING LOCAL DEVELOPMENT AND RURAL HOUSING PROGRAMS
SEC. 201. HOME REFORM.
(a) In General.--Section 104 of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12704) is
amended--
(1) in paragraph (6)(B), by striking ``significant''; and
(2) by adding at end the following new paragraph:
``(26) The term `infill housing project' means a
residential housing project that--
``(A) is located within the geographic limits of a
municipality;
``(B) is adequately served by existing utilities and public
services as required under applicable law;
``(C) is located on a site of previously disturbed land of
not more than 5 acres; and
``(D) is substantially surrounded by residential or
commercial development, as determined by the Secretary.''.
(b) Assistance for Low-Income Families.--Title II of the
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C.
12721 et seq.) is amended--
(1) in section 214(2), by striking ``households that
qualify as low-income families'' and inserting ``families
with a household income that does not exceed 100-percent of
the median-family income of the area, as determined by the
Secretary'';
(2) in section 215--
(A) in subsection (b)(2), by striking ``whose family
qualifies as a low-income family'' and inserting ``with a
family income that does not exceed 100-percent of the median-
family income of the area as determined by the Secretary with
adjustments for smaller and larger families''; and
(B) in subsection (b)(3)(A)(ii), by striking ``low-income
homebuyers'' and inserting ``homebuyers with a household
income that does not exceed 100-percent of the median-family
income of the area, as determined by the Secretary with
adjustments for smaller and larger families''; and
(3) in section 271(c)--
(A) in paragraph (1)(B), by striking ``low-income'' and
inserting ``families with a household income that does not
exceed 100-percent of the median-family income of the area as
determined by the Secretary with adjustments for smaller and
larger families''; and
(B) in paragraph (2)(A), by striking ``low-income
families'' and inserting ``families with a household income
that does not exceed 100-percent of the median-family income
of the area as determined by the Secretary with adjustments
for smaller and larger families''.
(c) Choices Made by Participating Jurisdictions.--Section
212(a)(2) of the Cranston-Gonzalez National Affordable
Housing Act (42 U.S.C. 12742) is amended to read as follows:
``(2) Limitation.--The Secretary may not restrict a
participating jurisdiction's choice of rehabilitation,
substantial rehabilitation, new construction, reconstruction,
acquisition, or other eligible housing uses authorized in
paragraph (1) unless such restriction is explicitly
authorized under section 223(2).''.
(d) Use of Amounts by Certain Jurisdictions for
Infrastructure Improvements.--
(1) In general.--Section 212(a) of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12742(a)) is
amended by inserting after paragraph (3) the following:
``(4) Infrastructure improvements in nonentitlement
areas.--
``(A) In general.--A participating jurisdiction may use
funds provided under this subtitle for infrastructure
improvements, including the installation or repair of water
and sewer lines, sidewalks, roads, and utility connections
if--
``(i) such participating jurisdiction does not receive
assistance under title I of the Housing and Community
Development Act of 1974; and
``(ii) such improvements are directly related to, and
located within or immediately adjacent to--
``(I) housing assisted under this subtitle; or
``(II) housing assisted under section 42 of the Internal
Revenue Code of 1986.
``(B) Application of labor standards.--The labor standards
and requirements set forth in section 110 of the Housing and
Community Development Act of 1974 (42 U.S.C. 5310) shall
apply to any infrastructure improvement conducted using funds
provided under this subtitle.
``(C) Rule of construction.--Nothing in this paragraph may
be construed to impose any requirements of the HOME
Investment Partnerships program on housing that benefits from
an infrastructure improvement conducted using funds provided
under this subtitle but was not otherwise assisted under the
HOME Investment Partnerships program.''.
(2) Rulemaking.--Not later than 1 year after the date of
the enactment of this section, the Secretary shall issue
rules to carry out the amendment made by paragraph (1).
(e) Per Unit Investment Limitations.--Section 212(e)(1) of
the Cranston-Gonzalez National Affordable Housing Act (42
U.S.C. 12742(e)(1)) is amended by striking the second
sentence.
(f) Affordable Rental Housing Qualifications.--Section
215(a) of the Cranston-Gonzalez National Affordable Housing
Act (42 U.S.C. 12745(a)) is amended by adding at the end the
following:
``(7) Qualification exception.--Notwithstanding paragraph
(1)(A), a rental unit shall be considered to qualify as
affordable housing under this title if--
``(A) the unit is occupied by a tenant receiving tenant-
based rental assistance under section 8 of the United States
Housing Act of 1937 (42 U.S.C. 1437f);
``(B) the tenant's contribution toward rent does not exceed
the amount permitted under such section 8 assistance; and
``(C) the total rent for the unit does not exceed the
amount approved by the public housing agency administering
the assistance under that program.''.
(g) Affordable Homeownership Housing Qualifications.--
Section 215 of the Cranston-Gonzalez National Affordable
Housing Act (42 U.S.C. 12745(b)) is amended--
(1) in subsection (b)--
(A) in paragraph (1), by striking ``95 percent'' and
inserting ``110 percent'';
(B) in paragraph (3)--
(i) in subparagraph (A)(ii), by striking ``or'' at the end;
(ii) in subparagraph (B), by striking ``and'' at the end
and inserting ``or''; and
(iii) by adding at the end the following new subparagraph:
``(C) maintain long-term affordability through a shared
equity ownership model, a community land trust, a limited
equity cooperative, a community development corporation, or
other mechanism approved by the Secretary, that preserves
affordability for future eligible homebuyers and ensures
compliance with the purposes of this title, including through
the use of purchase options, rights of first refusal or other
preemptive rights to purchase housing; and''; and
(2) by adding at the end the following:
``(c) Qualification Exceptions for Homeownership.--
``(1) Military members.--A participating jurisdiction, in
accordance with terms established by the Secretary, may
suspend or waive the income qualifications described in
subsection (b)(2) with respect to housing that otherwise
meets the criteria described in subsection (b) if the owner
of the housing--
``(A) is a member of a regular component of the armed
forces or a member of the National Guard on full-time
National Guard duty, active Guard and Reserve duty, or
inactive-duty training (as those terms are defined in section
101(d) of title 10, United States Code); and
``(B) has received--
``(i) temporary duty orders to deploy with a military unit
or military orders to deploy as an individual acting in
support of a military operation, to a location that is not
within a reasonable distance from the housing, as determined
by the Secretary, for a period of not less than 90 days; or
``(ii) orders for a permanent change of station.
``(2) Heirs and beneficiaries of deceased owners.--Housing
that meets the criteria described in subsection (b)(3) prior
to the death of an owner of such housing shall continue to
qualify as affordable housing under this title if--
``(A) the housing is the principal residence of an heir or
beneficiary of the deceased owner, as defined by the
Secretary; and
``(B) the heir or beneficiary, in accordance with terms
established by the Secretary, assumes the duties and
obligations of the deceased owner with respect to funds
provided under this title.''.
(h) Elimination of Expiration of Right to Draw Home
Investment Trust Funds.--Section 218 of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12748) is
amended--
(1) by striking subsection (g); and
(2) by redesignating subsection (h) as subsection (g).
(i) Adjusted Recapture and Reuse of Set-aside for Community
Housing Developmental Organizations.--Section 231(b) of the
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C.
12771(b)) is amended to read as follows:
``(b) Recapture and Reuse.--If any funds reserved under
subsection (a) remain uninvested for a period of 24 months,
the Secretary shall make such funds available to the
participating jurisdiction for any eligible activities under
title II of this Act without regard to whether a community
housing development organization materially participates in
the use of such funds.''.
(j) Asset Recycling Information Dissemination Expansion.--
Section 245(b)(2) of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 12785(b)(2)) is amended by
striking ``95 percent'' and inserting ``110 percent''.
(k) Environmental Review Requirements.--
(1) In general.--Section 288 of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12838) is amended
by adding at the end the following:
``(e) Categorical Exemptions.--The following categories of
activities carried out under this title shall be statutorily
exempt from environmental review under the National
Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.),
and shall not require further review under such Act--
``(1) new construction infill housing projects;
``(2) acquisition of real property for affordable housing
purposes;
``(3) rehabilitation projects carried out pursuant to
section 212(a)(1); and
[[Page H2056]]
``(4) new construction projects of 15 units or less.
``(f) Removing Duplicative Reviews.--
``(1) In general.--To the extent practicable and permitted
by law, the Secretary shall ensure that a project that has
undergone an environmental review under this section shall
not be subject to a duplicative environmental review solely
due to the addition, substitution, or reallocation of other
sources of Federal assistance, if the scope, scale, and
location of the project remain substantially unchanged.
``(2) Coordination of environmental review
responsibilities.--The Secretary shall, by regulation,
provide for coordination of environmental review
responsibilities with other Federal agencies to streamline
inter-agency compliance and avoid unnecessary duplication of
effort under the National Environmental Policy Act of 1969
(42 U.S.C. 4321 et seq.) and other applicable laws.
``(3) Recognition of prior reviews by responsible
entities.--A project may not be subject to an environmental
review under this section if a substantially similar review
has already been completed by an entity designated under
section 104(g)(1) of the Housing and Community Development
Act of 1974 (42 U.S.C. 5304(g)(1)) or by another entity the
Secretary determines to have equivalent authority, if the
scope, scale, and location of the project remain
substantially unchanged.''.
(2) Rulemaking.--Not later than 1 year after the date of
the enactment of this Act, the Secretary shall issue such
rules as the Secretary determines necessary to carry out the
amendment made by this subsection.
(3) Applicability.--Any activity generated under this
subsection would be subject to an authorization of
appropriations.
(l) Application of Build America, Buy America Requirements
for HOME Investment Partnerships Program.--
(1) In general.--Not later than 180 days after the date of
the enactment of this section, the Secretary of Housing and
Urban Development shall complete a review of the
implementation of the Build America, Buy America Act (title
IV of division G of Public Law 117-58; 42 U.S.C. 8301 note)
with respect to the activities assisted under title II of the
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C.
12721 et seq.).
(2) Updated guidance.--Not later than 90 days after the
review described in subsection (a) is completed, the
Secretary shall issue updated guidance to clarify the
application of the Build America, Buy America Act (title IV
of division G of Public Law 117-58; 42 U.S.C. 8301 note) with
respect to the activities assisted under title II of the
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C.
12721 et seq.).
(3) Report.--Not later than 270 days after the date of the
enactment of this section, the Secretary shall submit to the
Committee on Financial Services of the House of
Representatives and the Committee on Banking, Housing, and
Urban Affairs of the Senate a report that describes--
(A) the results of the review required under subsection
(a); and
(B) the guidance issued as described in subsection (b).
(m) Application of Other Specified Statutory
Requirements.--Title II of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 12721 et seq.) is amended
by adding at the end the following new section (and by
conforming the table of sections in section 1(b),
accordingly):
``SEC. 291. NONAPPLICABILITY OF CERTAIN REQUIREMENTS FOR
SMALL PROJECTS.
``Notwithstanding any other provision of law, the
requirements of section 3 of the Housing and Urban
Development Act of 1968 (12 U.S.C. 1701u), and any
implementing regulations or guidance, shall not apply to an
activity assisted under this title that involves
rehabilitation, construction, or other development of housing
if--
``(1) the recipient of assistance under this title is--
``(A) a State recipient pursuant to section 216; or
``(B) a participating jurisdiction that received a total
allocation of less than $3,000,000 in the most recent fiscal
year pursuant to section 216; and
``(2) the total number of dwelling units assisted as a part
of such activity is 50 or fewer.''.
(n) Technical Amendments.--The Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 12701 et seq.) is amended--
(1) by striking ``Stewart B. McKinney Homeless Assistance
Act'' each place it appears and inserting ``McKinney-Vento
Homeless Assistance Act''; and
(2) by striking ``Committee on Banking, Finance and Urban
Affairs'' each place it appears and inserting ``Committee on
Financial Services''.
(o) Reallocation Not Available for Certain Jurisdictions.--
Section 217(d) of the Cranston-Gonzalez National Affordable
Housing Act (42 U.S.C. 12747(d)) is amended--
(1) in paragraph (1), by striking the second sentence and
inserting the following: ``Subject to paragraph (4),
jurisdictions eligible for such reallocations shall include
participating jurisdictions and jurisdictions meeting the
requirements of this title, including the requirements in
paragraphs (3), (4), and (5) of section 216.''; and
(2) by adding at the end the following:
``(4) Reallocation not available for certain
jurisdictions.--The Secretary may decline to make a
reallocation available to a jurisdiction eligible for such
reallocation if such jurisdiction has failed to meet or
comply with any requirement under this title.''.
(p) Amendments to Qualification as Affordable Housing.--
Section 215(a) of the Cranston-Gonzalez National Affordable
Housing Act (42 U.S.C. 12745(a)) is amended--
(1) in paragraph (1)(E), by striking ``except upon a
foreclosure by a lender (or upon other transfer in lieu of
foreclosure) if such action (i) recognizes any contractual or
legal rights of public agencies, nonprofit sponsors, or
others to take actions that would avoid termination of low-
income affordability in the case of foreclosure or transfer
in lieu of foreclosure, and (ii) is not for the purpose of
avoiding low income affordability restrictions, as determined
by the Secretary; and'' and inserting the following:
``except--
``(i) upon a foreclosure by a lender (or upon other
transfer in lieu of foreclosure) if such action--
``(I) recognizes any contractual or legal rights of public
agencies, nonprofit sponsors, or others to take actions that
would avoid termination of low-income affordability in the
case of foreclosure or transfer in lieu of foreclosure; and
``(II) is not for the purpose of avoiding low-income
affordability restrictions, as determined by the Secretary;
or
``(ii) where existing affordable housing is no longer
financially viable due to unforeseen acts or occurrences
beyond the reasonable contemplation or control of the
participating jurisdiction in which the affordable housing is
located or the owner of the affordable housing that
significantly impact the financial or physical condition of
the affordable housing, as determined by the Secretary;
and''; and
(2) by adding at the end the following:
``(8) Small-scale housing.--
``(A) In general.--Small-scale housing shall qualify as
affordable housing under this title if--
``(i) each dwelling unit in such housing bears rent in an
amount that complies with the requirements described in
paragraph (1)(A);
``(ii) each dwelling unit in such housing is occupied by a
low-income family;
``(iii) no dwelling unit in such housing is refused for
leasing to a holder of a voucher under section 8 of the
United States Housing Act of 1937 (42 U.S.C. 1437f) because
of the status of the prospective tenant as a holder of such
voucher;
``(iv) such housing complies with the requirement described
in paragraph (1)(E); and
``(v) the participating jurisdiction in which such small-
scale housing is located monitors the compliance of such
housing with the requirements of this title in a manner
consistent with the purposes of section 226(b), as determined
by the Secretary.
``(B) Small-scale housing defined.--In this paragraph, the
term `small-scale housing' means housing with not more than 4
dwelling units each of which is made available for rental.''.
(q) Tenant and Participant Protections for Small-scale
Affordable Housing.--Section 225 of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12755) is amended
by adding at the end the following:
``(e) Exception.--Paragraphs (2), (3), and (4) shall not
apply to small-scale housing, as such term is defined in
section 215(a)(7).''.
(r) Revision of Definition of Community Land Trust.--
Section 104 of the Cranston-Gonzalez National Affordable
Housing Act (42 U.S.C. 12704) is amended by adding at the end
the following:
``(27) The term `community land trust' means a nonprofit
entity, a State, a unit of local government or
instrumentality of a State or unit of local government that--
``(A) is not managed by, or an affiliate of, a for-profit
organization;
``(B) has as a primary purpose of acquiring, developing, or
holding land to provide housing that is permanently
affordable to low- and moderate-income persons;
``(C) monitors properties to ensure affordability is
preserved;
``(D) provides housing that is permanently affordable to
low- and moderate-income persons using a ground lease, deed
covenant, or other similar legally enforceable measure,
determined acceptable by the Secretary, that--
``(i) keeps housing affordable to low- and moderate-income
persons for not less than 30 years; and
``(ii) enables low- and moderate-income persons to rent or
purchase the housing for homeownership; and
``(E) maintains preemptive purchase options to purchase the
property if such purchase would allow the housing to remain
affordable to low-and moderate-income persons.''.
(s) Conforming Amendments.--The Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 12701 et seq.) is amended--
(1) in section 233 by striking subsection (f); and
(2) in section 233(b)(6), by striking ``to community land
trusts (as such term is defined in subsection (f))'' and
inserting ``to community land trusts (as such term is defined
in section 104)''.
(t) Minimum Allocations.--Section 217(b) of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C. 12747
(b)) is amended--
(1) in paragraph (2), by striking ``$500,000'' each place
that term appears and inserting ``$750,000'';
[[Page H2057]]
(2) in paragraph (3)--
(A) by striking ``jurisdictions that are allocated an
amount of $500,000 or more'' and inserting ``jurisdictions
that are allocated an amount of $750,000 or more'';
(B) by striking ``that are allocated an amount less than
$500,000'' and inserting ``that are allocated an amount less
than $750,000''; and
(C) by striking ``, except as provided in paragraph (4)'';
and
(3) by striking paragraph (4).
(u) Additional Technical Corrections.--The Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C. 12701 et
seq.) is amended--
(1) in section 108(a)(1), by striking ``section
105(b)(15)'' and inserting ``section 105(b)(18)''; and
(2) in section 217(b)(1)(F), by striking ``Subcommittee on
Housing and Community Development'' and inserting
``Subcommittee on Housing, Transportation, and Community
Development''.
SEC. 202. COMMUNITY DEVELOPMENT FUND AMENDMENTS.
(a) Identifying Regulatory Barriers to Housing Supply.--
Section 104 of the Housing and Community Development Act of
1974 (42 U.S.C. 5304) is amended by adding at the end the
following:
``(n) Plan to Track and Reduce Overly Burdensome Land Use
Policies.--
``(1) In general.--Beginning 1 year after the date of the
enactment of this subsection, prior to receipt in any fiscal
year of a grant from the Secretary under subsection (b),
(d)(1), or (d)(2)(B) of section 106, each recipient shall
have prepared and submitted, not less frequently than once
during the preceding 5-year period, a description of--
``(A) whether the jurisdiction served by the recipient has
adopted any of the types of land use policies described in
paragraph (2) during the preceding 5-year period;
``(B) the plans the jurisdiction served by the recipient
has to adopt and implement any of the types of land use
policies described in paragraph (2); and
``(C) any ways in which the jurisdiction served by the
recipient expects the planned adoption of any of the types of
land use policies described in paragraph (2) would benefit
the jurisdiction.
``(2) Types of land use policies.--The types of policies to
be considered for the purposes of the submission of
information required under paragraph (1) include the
following:
``(A) Expanding by-right multifamily zoned areas.
``(B) Allowing duplexes, triplexes, or fourplexes in areas
zoned primarily for single-family residential homes.
``(C) Allowing manufactured homes in areas zoned primarily
for single-family residential homes.
``(D) Allowing multifamily development in retail, office,
and light manufacturing zones.
``(E) Allowing single-room occupancy development wherever
multifamily housing is allowed.
``(F) Reducing minimum lot size.
``(G) Ensuring historic preservation requirements and other
land use policies or requirements are coordinated to
encourage creation of housing in historic buildings and
historic districts.
``(H) Increasing the allowable floor area ratio by allowing
a higher ratio of total floor area in a building in
comparison to its lot size.
``(I) Creating transit-oriented development zones.
``(J) Streamlining or shortening permitting processes and
timelines, including through one-stop and parallel-process
permitting.
``(K) Eliminating or reducing off-street parking
requirements.
``(L) Ensuring impact and utility investment fees
accurately reflect required infrastructure needs and related
impacts on housing affordability are otherwise mitigated.
``(M) Allowing off-site construction, including
prefabricated construction.
``(N) Reducing or eliminating minimum unit square footage
requirements.
``(O) Allowing the conversion of office units to
apartments.
``(P) Allowing the subdivision of single-family homes into
duplexes.
``(Q) Allowing accessory dwelling units, including detached
accessory dwelling units, on all lots with single-family
homes.
``(R) Establishing density bonuses.
``(S) Eliminating or relaxing residential property height
limitations.
``(T) Using property tax abatements to enable higher
density and mixed-income communities.
``(U) Donating vacant land for affordable housing
development.
``(V) Enacting other relevant high-density, single-family,
and multifamily zoning policies that the recipient chooses to
report.
``(3) Effect of submission.--A submission under this
subsection shall not be binding with respect to the use or
distribution of amounts received under section 106.
``(4) Acceptance or nonacceptance of plan.--The acceptance
or nonacceptance of any plan submitted under this subsection
in which the information required under this subsection is
provided may not be considered an endorsement or approval of
the plan, policies, or methodologies, or lack thereof.
``(5) Prohibition on use of information for enforcement.--
Information provided by a recipient to the Secretary under
this subsection may not be used as the basis for any
enforcement action.''.
(b) Addition of Affordable Housing Construction as an
Eligible Activity.--
(1) Eligible activity.--Section 105(a) of the Housing and
Community Development Act of 1974 (42 U.S.C. 5305(a)) is
amended--
(A) in paragraph (25)(D), by striking ``and'' at the end;
(B) in paragraph (26), by striking the period at the end
and inserting ``; and''; and
(C) by adding at the end the following new paragraph:
``(27) the new construction of affordable housing, within
the meaning given such term under section 215 of the
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C.
12745), and which shall not exceed 20-percent of the amounts
allocated to the recipient.''.
(2) Low- and moderate-income requirement.--Section
105(c)(3) of the Housing and Community Development Act of
1974 (42 U.S.C. 5305(c)(3)) is amended by striking ``or
rehabilitation'' and inserting ``, rehabilitation, or new
construction''.
(3) Applicability.--The amendments made by this subsection
shall apply with respect only to amounts appropriated after
the date of the enactment of this Act.
(c) Databases of Publicly Owned Land.--
(1) In general.--Section 104(b) of the Housing and
Community Development Act of 1974 (42 U.S.C. 5304(b)) is
amended--
(A) in paragraph (5), by striking ``and'' at the end;
(B) in paragraph (6), by striking the period at the end and
inserting ``; and''; and
(C) by adding at the end the following:
``(7) the grantee maintains, on a publicly accessible
website, a searchable database that identifies all parcels of
undeveloped land owned by the grantee.''.
(2) Effective date.--The amendments made by this subsection
shall take effect on October 1, 2026.
SEC. 203. GRANTS FOR PLANNING AND IMPLEMENTATION ASSOCIATED
WITH AFFORDABLE HOUSING.
(a) In General.--The Secretary of Housing and Urban
Development shall, not later than 1 year after the date of
the enactment of this section, establish a pilot program to
award grants on a competitive basis to eligible entities to
assist planning and implementation activities associated with
affordable housing.
(b) Use of Amounts.--
(1) By regional planning agencies.--If an eligible entity
that receives amounts under this section is a regional
planning agency or consortia of regional planning agencies,
such eligible entity shall use such amounts to assist
planning activities with respect to affordable housing,
including--
(A) the development of housing plans;
(B) the substantial improvement of State or local housing
strategies;
(C) the development of new regulatory requirements and
processes;
(D) updating zoning codes;
(E) increasing the capacity to conduct housing inspections;
(F) increasing the capacity to reduce barriers to housing
supply elasticity and housing affordability;
(G) the development of local or regional plans for
community development; and
(H) the substantial improvement of community development
strategies, including strategies designed to--
(i) increase the availability of affordable housing and
access to affordable housing;
(ii) increase access to public transportation; and
(iii) advance sustainable or location-efficient community
development goals.
(2) By states, insular areas, metropolitan cities, and
urban counties.--If an eligible entity that receives amounts
under this section is a State, insular area, metropolitan
city, or urban county, such eligible entity shall use such
amounts to--
(A) implement and administer housing strategies and housing
plans;
(B) implement and administer any plans to increase housing
choice, address disparities in housing needs, and provide
greater access to opportunity;
(C) fund any community investments that support goals
identified in a housing strategy or housing plan;
(D) implement and administer regulatory requirements and
processes with respect to reformed zoning codes;
(E) increase the capacity to conduct housing inspections;
(F) increase the capacity to reduce barriers to housing
supply elasticity and housing affordability;
(G) implement and administer local or regional plans for
community development; and
(H) fund any planning to increase--
(i) the availability of affordable housing and access to
affordable housing;
(ii) access to public transportation; and
(iii) any location-efficient community development goals.
(3) Use for administrative costs.--A eligible entity that
receives amounts under this section may not use more than 10-
percent of such amounts for administrative costs.
(c) Coordination.--To the extent practicable, the Secretary
shall coordinate with the Federal Transit Administrator in
carrying out this section.
(d) Additional Uses of Amounts.--
(1) Housing construction.--Expenditures on new construction
of housing shall be an eligible expense under this section.
(2) Buildings for general conduct of government.--
Expenditures on building for
[[Page H2058]]
the general conduct of government, other than the Federal
Government, shall be eligible under this section when
necessary and appropriate as a part of a natural hazard
mitigation project.
(e) Expiration of Authority.--After the expiration of the
5-year period beginning on the date of the enactment of this
section, the Secretary may not newly establish a pilot
program as described in this section.
(f) Sunset.--The pilot program established under this
section shall terminate on the date that is 5 years after the
date of the enactment of this section.
(g) Definitions.--In this subsection:
(1) Eligible entity.--The term ``eligible entity'' means--
(A) a State, insular area, metropolitan city, or urban
county, as such terms are defined in section 102 of the
Housing and Community Development Act of 1974; or
(B) a regional planning agency or consortia of regional
planning agencies.
(2) Housing plan.--The term ``housing plan'' means a plan
to, with respect to an area within the jurisdiction of an
eligible entity--
(A) increase the amount of available housing to meet the
demand for such housing and any projected increase in the
demand for such housing;
(B) increase the affordability of housing;
(C) increase the accessibility of housing for people with
disabilities, including location-efficient housing;
(D) preserve or improve the quality of housing;
(E) reduce barriers to housing development; and
(F) coordinate with transportation-related agencies.
(3) Housing strategy.--The term ``housing strategy'' means
a housing strategy required under section 105 of the
Cranston-Gonzalez National Affordable Housing Act.
SEC. 204. RURAL HOUSING SERVICE PROGRAM IMPROVEMENTS.
(a) In General.--Section 504(a) of the Housing Act of 1949
(42 U.S.C. 1474(a)) is amended--
(1) in the first sentence, by inserting ``and may make a
loan to an eligible low-income applicant'' after
``applicant''; and
(2) by striking ``$7,500'' and inserting ``$15,000''.
(b) Annual Report on Rural Housing Programs.--Title V of
the Housing Act of 1949 (42 U.S.C. 1471 et seq.), as amended
by this section, is amended by adding at the end the
following:
``SEC. 545. ANNUAL REPORT.
``(a) In General.--The Secretary shall submit to the
Committee on Financial Services of the House of
Representatives and the Committee on Banking, Housing, and
Urban Affairs of the Senate and publish on a website of the
Department of Agriculture an annual report on the rural
housing programs carried out under this title.
``(b) Contents.--The report required under subsection (a)
shall include significant details on the information about
the health of the programs carried out by the Rural Housing
Service, including--
``(1) raw data about loan performance that can be sorted by
program and region;
``(2) a description of the housing stock of such programs;
``(3) information about why properties end participation in
such programs, including maturation prepayment, foreclosure,
or other servicing issues; and
``(4) risk ratings for properties assisted under such
programs.
``(c) Protection of Information.--Data included in a report
required under subsection (a) may be aggregated or anonymized
to protect the financial information and personal information
of program participants.''.
(c) Application Review.--
(1) Sense of congress.--It is the sense of the Congress,
not later than 90 days after the date on which the Secretary
of Agriculture receives an application for a loan, grant or
combined loan and grant under section 502 or 504 of the
Housing Act of 1949 (42 U.S.C. 1472, 1474), the Secretary of
Agriculture should--
(A) review the application;
(B) complete the underwriting;
(C) make a determination of eligibility with respect to the
application; and
(D) notify the applicant of determination.
(2) Report.--
(A) In general.--Not later than 90 days after the date of
enactment of this Act, and annually thereafter until the date
described in subparagraph (B), the Secretary of Agriculture
shall 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--
(i) details the timeliness of eligibility determinations
and final determinations with respect to applications under
section 502 and 504 of the Housing Act of 1949 (42 U.S.C.
1472, 1474), including justifications for any eligibility
determinations taking longer than 90 days; and
(ii) includes recommendations to shorten the timeline for
notifications of eligibility determinations described in
subparagraph (A) to not more than 90 days.
(B) Date described.--The date described in this paragraph
is the date on which, during the preceding 5-year period, the
Secretary of Agriculture provides each eligibility
determination described in subparagraph (A) during the 90-day
period beginning on the date on which each application is
received.
(d) GAO Report on Rural Housing Service Technology.--Not
later than 1 year after the date of enactment of this Act,
the Comptroller General of the United States shall submit to
the Congress a report that includes--
(1) an analysis of how the outdated technology used by the
Rural Housing Service impacts participants in the programs of
the Rural Housing Service;
(2) an estimate of the amount of funding that is needed to
modernize the technology used by the Rural Housing Service;
and
(3) an estimate of the number and type of new employees the
Rural Housing Service needs to modernize the technology used
by the Rural Housing Service.
SEC. 205. CHOICE IN AFFORDABLE HOUSING.
(a) Preapproval of Units.--Section 8(o)(8)(A) of the United
States Housing Act of 1937 (42 U.S.C. 1437f(o)(8)(A)) is
amended by adding at the end the following:
``(iv) Initial inspection prior to lease agreement.--
``(I) Definition.--In this clause, the term `new landlord'
means an owner of a dwelling unit who has not previously
entered into a housing assistance payment contract with a
public housing agency under this subsection for any dwelling
unit.
``(II) Early inspection.--Upon the request of a new
landlord, a public housing agency may inspect the dwelling
unit owned by the new landlord to determine whether the unit
meets the housing quality standards under subparagraph (B)
before the unit is selected by a family assisted under this
subsection.
``(III) Effect.--An inspection conducted under subclause
(II) that determines that the dwelling unit meets the housing
quality standards under subparagraph (B) shall satisfy the
requirements in this subparagraph and subparagraph (C) if the
new landlord enters into a lease agreement with a family
assisted under this subsection not later than 60 days after
the date of the inspection.
``(IV) Information when family is selected.--When a public
housing agency selects a family to participate in the tenant-
based assistance program under this subsection, the public
housing agency shall include in the information provided to
the family a list of dwelling units that have been inspected
under subclause (II) and determined to meet the housing
quality standards under subparagraph (B).''.
(b) Satisfaction of Inspection Requirements Through
Participation in Other Housing Programs.--Section 8(o)(8) of
the United States Housing Act of 1937 (42 U.S.C. 1437f(o)(8))
is amended by adding at the end the following:
``(I) Satisfaction of inspection requirements through
participation in other housing programs.--
``(i) Low-income housing tax credit-financed buildings.--A
dwelling unit shall be deemed to meet the inspection
requirements under this paragraph if--
``(I) the dwelling unit is in a building, the acquisition,
rehabilitation, or construction of which was financed by a
person who received a low-income housing tax credit under
section 42 of the Internal Revenue Code of 1986 in exchange
for that financing;
``(II) the dwelling unit was physically inspected and
passed inspection as part of the low-income housing tax
credit program described in subclause (I) during the
preceding 12-month period; and
``(III) the applicable public housing agency is able to
obtain the results of the inspection described in subclause
(II).
``(ii) Home investment partnerships program.--A dwelling
shall be deemed to meet the inspection requirements under
this paragraph if--
``(I) the dwelling unit is assisted under the HOME
Investment Partnerships Program under title II of the
Cranston-Gonzalez National Affordable Housing Act;
``(II) the dwelling unit was physically inspected and
passed inspection as part of the program described in
subclause (I) during the preceding 12-month period; and
``(III) the applicable public housing agency is able to
obtain the results of the inspection described in subclause
(II).
``(iii) Rural housing service.--A dwelling unit shall be
deemed to meet the inspection requirements under this
paragraph if--
``(I) the dwelling unit is assisted by the Rural Housing
Service of the Department of Agriculture;
``(II) the dwelling unit was physically inspected and
passed inspection in connection with the assistance described
in subclause (I) during the preceding 12-month period; and
``(III) the applicable public housing agency is able to
obtain the results of the inspection described in subclause
(II).
``(iv) Remote or video inspections.--When complying with
inspection requirements for a housing unit located in a rural
or small area using assistance under this subtitle, the
Secretary may allow a grantee to conduct a remote or video
inspection of a unit provided that the remote or video
inspection--
``(I) covers a substantially similar review of the relevant
aspects of the unit compared to an in-person inspection;
``(II) does not misrepresent the condition of the unit; and
``(III) provides the information necessary to fully and
accurately evaluate the conditions of the unit to ensure that
the unit meets the applicable standards.
``(v) Rule of construction.--Nothing in clause (i), (ii),
(iii), or (iv) may be construed to affect the operation of a
housing program described in, or authorized under a provision
of law described in, that clause.''.
[[Page H2059]]
TITLE III--EXPANDING MANUFACTURED AND AFFORDABLE HOUSING FINANCE
OPPORTUNITIES
SEC. 301. MANUFACTURED HOUSING INNOVATIONS.
(a) In General.--Section 603(6) of the National
Manufactured Housing Construction and Safety Standards Act of
1974 (42 U.S.C. 5402(6)) is amended by striking ``on a
permanent chassis'' and inserting ``with or without a
permanent chassis''.
(b) Standards for Manufactured Homes Built Without a
Permanent Chassis.--Section 604(a) of the National
Manufactured Housing Construction and Safety Standards Act of
1974 (42 U.S.C. 5403) is amended by adding at the end the
following:
``(7) Standards for manufactured homes built without a
permanent chassis.--
``(A) In general.--The Secretary shall issue revised
standards for manufactured homes built without a permanent
chassis and shall consult with the consensus committee in the
development of such revised standards, using the process
described in paragraph (4).
``(B) Creating final standards.--The Secretary shall, after
consulting and conferring with the consensus committee,
establish standards to ensure manufactured homes without a
permanent chassis have--
``(i) a distinct label to be issued by the Secretary
distinguishing manufactured homes built without a permanent
chassis from manufactured homes built on a permanent chassis;
``(ii) a data plate, as described in section 3280.5 of
title 24, Code of Federal Regulations, distinguishing
manufactured homes built without a permanent chassis from
manufactured homes built on a permanent chassis; and
``(iii) a notation on any invoice produced by the
manufacturer of a manufactured home that is distinguishable
from the invoice for a manufactured home constructed with a
permanent chassis.''.
(c) Manufactured Home Standards and Certifications.--
Section 604 of the National Manufactured Housing Construction
and Safety Standards Act of 1974 (42 U.S.C. 5403) is amended
by adding at the end the following:
``(i) Manufactured Home Standards and Certifications.--
``(1) In general.--
``(A) Initial certification.--Subject to subparagraph (B),
not later than 1 year after the date of enactment of this
subsection, a State shall submit to the Secretary an initial
certification that the laws and regulations of the State--
``(i) treat a manufactured home without a chassis in parity
with a manufactured home (as defined and regulated by the
State); and
``(ii) subject a manufactured home without a permanent
chassis to the same laws and regulations of the State as a
manufactured home built on a permanent chassis with respect
to financing, title, insurance, manufacture, sale, taxes,
transportation, installation, and other areas as the
Secretary determines, after consultation with and approval by
the consensus committee, are necessary to give effect to the
purpose of this section.
``(B) State plan submission.--Any State plan submitted
under section 623(c) of the National Manufactured Housing
Construction and Safety Standards Act of 1974 (42 U.S.C.
5422(c)) shall contain the required State certification under
subparagraph (A) or paragraph (3) and, if contained therein,
no additional or State certification under subparagraph (A)
or paragraph (3).
``(C) Extended deadline.--With respect to a State with a
legislature that meets biennially, the deadline for the
submission of the initial certification required under
subparagraph (A) shall be 2 years after the date of enactment
of this subsection.
``(D) Late certification.--
``(i) No waiver.--The Secretary may not waive the
prohibition described in paragraph (5)(B) with respect to a
certification submitted after the deadline under subparagraph
(A) or paragraph (3) unless the Secretary approves the late
certification.
``(ii) Rule of construction.--Nothing in this subsection
shall be construed to prevent a State from submitting the
initial certification required under subparagraph (A) after
the required deadline under that subparagraph.
``(2) Form of state certification not presented in a state
plan.--The initial certification required under paragraph
(1)(A), if not submitted with a State plan under paragraph
(1)(B), shall contain, in a form prescribed by the Secretary,
an attestation by an official that the State has taken the
steps necessary to ensure the veracity of the certification
required under paragraph (1)(A), including, as necessary,
by--
``(A) amending the definition of `manufactured home' in the
laws and regulations of the State; and
``(B) directing State agencies to amend the definition of
`manufactured home' in regulations.
``(3) Annual recertification.--Not later than a date to be
determined by the Secretary each year, a State shall submit
to the Secretary an additional certification that--
``(A) confirms the accuracy of the initial certification
submitted under subparagraph (A) or (B) of paragraph (1); and
``(B) certifies that any new laws or regulations enacted or
adopted by the State since the date of the previous
certification do not change the veracity of the initial
certification submitted under paragraph (1)(A).
``(4) List.--The Secretary shall publish and maintain in
the Federal Register and on the website of the Department of
Housing and Urban Development a list of States that are up-
to-date with the submission of initial and subsequent
certifications required under this subsection.
``(5) Prohibition.--
``(A) Definition.--In this paragraph, the term `covered
manufactured home' means a home that is--
``(i) not considered a manufactured home under the laws and
regulations of a State because the home is constructed
without a permanent chassis;
``(ii) considered a manufactured home under the definition
of the term in section 603; and
``(iii) constructed after the date of enactment of this
subsection.
``(B) Building, installation, and sale.--If a State does
not submit a certification under paragraph (1)(A) or
paragraph (3) by the date on which those certifications are
required to be submitted--
``(i) with respect to a State in which the State
administers the installation of manufactured homes, the State
shall prohibit the manufacture, installation, or sale of a
covered manufactured home within the State; and
``(ii) with respect to a State in which the Secretary
administers the installation of manufactured homes, the State
and the Secretary shall prohibit the manufacture,
installation, or sale of a covered manufactured home within
the State.''.
(d) Other Federal Laws Regulating Manufactured Homes.--The
Secretary of Housing and Urban Development may coordinate
with the heads of other Federal agencies to ensure that
Federal agencies treat a manufactured home (that is defined
in Federal laws and regulations other than section 603 of the
National Manufactured Housing Construction and Safety
Standards Act of 1974 (42 U.S.C. 5402)) in the same manner as
a manufactured home (that is defined in section 603 of the
National Manufactured Housing Construction and Safety
Standards Act of 1974 (42 U.S.C. 5402)), as amended by this
Act.
(e) Assistance to States.--Section 609 of the National
Manufactured Housing Construction and Safety Standards Act of
1974 (42 U.S.C. 5408) is amended--
(1) in paragraph (1), by striking ``and'' at the end;
(2) in paragraph (2), by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following:
``(3) model guidance to support the submission of the
certification required under section 604(i).''.
(f) Preemption.--Nothing in this section or the amendments
made by this section may be construed as limiting the scope
of Federal preemption under section 604(d) of the National
Manufactured Housing Construction and Safety Standards Act of
1974 (42 U.S.C. 5403(d)).
(g) Primary Authority to Establish Manufactured Home
Construction and Safety Standards.--The National Manufactured
Housing Construction and Safety Standards Act of 1974 (42
U.S.C. 5401 et seq.) is further amended--
(1) in section 603(7), by inserting ``energy efficiency,''
after ``design,''; and
(2) in section 604, by adding at the end the following:
``(j) Primary Authority to Establish Standards.--
``(1) In general.--The Secretary shall have the primary
authority to establish Federal manufactured home construction
and safety standards.
``(2) Approval from secretary.--
``(A) In general.--The head of any Federal agency that
seeks to establish a manufactured home construction and
safety standard on or after the date of the enactment of this
subsection--
``(i) shall submit to the Secretary a proposal describing
such standard; and
``(ii) may not establish such standard without approval
from the Secretary.
``(B) Rejection of standards.--The Secretary shall reject a
standard submitted to the Secretary for approval under
subparagraph (A)--
``(i) if the standard would significantly increase the cost
of producing manufactured homes, as determined by the
Secretary;
``(ii) if the standard would conflict with existing
manufactured home construction and safety standards
established by the Secretary; or
``(iii) for any other reason as determined appropriate by
the Secretary.
``(C) Rule of construction.--Nothing in this subsection may
be construed to require the Secretary to establish new or
revised Federal manufactured home construction and safety
standards.''.
SEC. 302. FHA SMALL-DOLLAR MORTGAGES.
(a) In General.--Not later than 1 year after the date of
the enactment of this section, the Secretary of Housing and
Urban Development, acting through the Federal Housing
Commissioner, may establish a pilot program to increase
access to small-dollar mortgages for mortgagors which may
include--
(1) authorizing direct payments to mortgagees to
incentivize the origination of small-dollar mortgages;
(2) adjusting terms and costs imposed by the Federal
Housing Administration with respect to small-dollar
mortgages;
[[Page H2060]]
(3) providing direct grants for mortgagors who obtain
small-dollar mortgages to cover costs associated with--
(A) down payments;
(B) closing costs;
(C) appraisals; and
(D) title insurance;
(4) conducting outreach to potential mortgagors about the
availability of small-dollar mortgages; and
(5) providing technical assistance for mortgagees that
originate small-dollar mortgages.
(b) Report.--Beginning not later than 1 year after the
establishment of the pilot program under subsection (a) and
ending 1 year after the sunset of the pilot program, the
Federal Housing Commissioner shall submit to the Congress an
annual report that--
(1) tracks and evaluates the outcomes of small-dollar
mortgages originated by mortgagees as a result of support
provided under subsection (a);
(2) analyzes risks of the pilot program to the solvency of
the Mutual Mortgage Insurance Fund;
(3) includes data with respect to--
(A) the number of small-dollar mortgages originated in the
10-year period preceding the date of the enactment of this
section, including small-dollar mortgages insured or
guaranteed by the Federal Government and small-dollar
mortgages not insured by the Federal Government;
(B) the original principal balance of each small-dollar
mortgage identified under subparagraph (A);
(C) demographic information about the mortgagors associated
with each such small-dollar mortgages; and
(D) the number and type of mortgagees that offer small-
dollar mortgages;
(4) provides a description of the fixed costs that are
associated with mortgages and the impact of such costs on the
ability of lenders to earn a market rate return on small-
dollar mortgages; and
(5) includes analysis, by regions of the United States,
including rural regions, that identifies regions with the
greatest need for, and the highest likelihood of, the
origination of small-dollar mortgages and regions that could
benefit the most from increased availability of small-dollar
mortgages.
(c) Sunset.--The pilot program established under subsection
(a) shall terminate on the date that is 4 years after the
date on which the pilot program is established under
subsection (a).
(d) Expiration of Authority.--After the expiration of the
3-year period beginning on the date of enactment of this
section, neither the Federal Housing Commissioner nor the
Secretary of Housing and Urban Development may newly
establish a pilot program to increase access to small-dollar
mortgages for mortgagors.
(e) Small-dollar Mortgage Defined.--The term ``small-dollar
mortgage'' means a mortgage that--
(1) has an original principal balance of $100,000 or less;
and
(2) is secured by a 1- to 4-unit property that is the
principal residence of the mortgagor.
SEC. 303. COMMUNITY INVESTMENT AND PROSPERITY.
(a) Revised Statutes.--The paragraph designated as the
``Eleventh'' of section 5136 of the Revised Statutes of the
United States (12 U.S.C. 24) is amended, in the fifth
sentence, by striking ``15'' each place it appears and
inserting ``20''.
(b) Federal Reserve Act.--Section 9(23) of the Federal
Reserve Act (12 U.S.C. 338a) is amended, in the fifth
sentence, by striking ``15'' each place it appears and
inserting ``20''.
(c) Study.--Not later than 2 years after the date of the
enactment of this section, and every 2 years thereafter, the
Comptroller of the Currency and the Board of Governors of the
Federal Reserve System shall each submit to the Committee on
Financial Services of the House of Representatives and the
Committee on Banking, Housing, and Urban Affairs of the
Senate, a report, after consulting with the other agency in
the development of such report, about public welfare
investments that were made by associations under section 5136
of the Revised Statutes of the United States and State member
banks under section 9(23) of the Federal Reserve Act in the 2
previous calendar years, that--
(1) identifies the number of such investments, broken down
by--
(A) purpose;
(B) type;
(C) amount of assets of the association or State member
bank that made the investment, using not less than 4
categories to describe the amount of assets of the
associations and banks; and
(D) State, or other location;
(2) identifies the dollar amounts of such investments,
broken down by--
(A) purpose;
(B) type;
(C) amount of assets of the association or State member
bank that made the investment, using not less than 4
categories to describe the amount of assets of the
associations and banks; and
(D) State or other location; and
(3) for each type of public welfare investment identified
under paragraphs (1) and (2), a description of the
substantive and procedural requirements that apply to each
type of investment made under--
(A) in the case of a report by the Comptroller of the
Currency, section 5136 of the Revised Statutes of the United
States; or
(B) in the case of a report by the Board of Governors,
section 9(23) of the Federal Reserve Act.
TITLE IV--PROTECTING BORROWERS AND ASSISTED FAMILIES
SEC. 401. EXCLUSION OF CERTAIN DISABILITY BENEFITS.
(a) In General.--Section 3(b)(4)(B) of the United States
Housing Act of 1937 (42 U.S.C. 1437a(b)(4)(B)) is amended--
(1) by redesignating clauses (iv) and (v) as clauses (vi)
and (vii), respectively; and
(2) by inserting after clause (iii) the following:
``(iv) with respect to the supported housing program under
section 8(o)(19), any disability benefits received under
chapter 11 or chapter 15 of title 38, United States Code,
received by a veteran, except that this exclusion may not
apply to the definition of adjusted income;
``(v) with respect to any household receiving rental
assistance under the supported housing program under section
8(o)(19) as it relates to eligibility for other types of
housing assistance, any disability benefits received under
chapter 11 or chapter 15 of title 38, United States Code,
received by a veteran, except that this exclusion may not
apply to the definition of adjusted income;''.
(b) Treatment of Certain Disability Benefits.--When
determining the eligibility of a veteran to rent a
residential dwelling unit constructed on Department property
on or after the date of the enactment of this Act, for which
assistance is provided as part of a housing assistance
program administered by the Secretary of Housing and Urban
Development and not yet in existence at the time of the
enactment of this section, the Secretary shall exclude from
income any disability benefits received under chapter 11 or
chapter 15 of title 38, United States Code, by such person.
(c) Department Property Defined.--In this section, the term
``Department property'' has the meaning given the term in
section 901 of title 38, United States Code.
SEC. 402. MILITARY SERVICE QUESTION.
(a) In General.--Subpart A of part 2 of the Federal Housing
Enterprises Financial Safety and Soundness Act of 1992 (12
U.S.C. 4541 et seq.) is amended by adding at the end the
following:
``SEC. 1329. UNIFORM RESIDENTIAL LOAN APPLICATION.
``Not later than 6 months after the date of enactment of
this section, the Director shall, by regulation or order,
require each enterprise to include a disclosure below the
military service question which shall be above the signature
line on the form known as the Uniform Residential Loan
Application stating, `If yes, you may qualify for a VA Home
Loan. Consult your lender regarding eligibility.'.''.
(b) GAO Study.--Not later than 18 months after the date of
enactment of this Act, the Comptroller General of the United
States shall conduct a study and submit to the Congress a
report on whether or not less than 80-percent of lenders
using the Uniform Residential Loan Application have included
on that form the disclaimer required under section 1329 of
the Federal Housing Enterprises Financial Safety and
Soundness Act of 1992, as added by subsection (a).
SEC. 403. HUD-USDA-VA INTERAGENCY COORDINATION.
(a) Memorandum of Understanding.--Not later than 180 days
after the date of enactment of this Act, the Secretary of
Housing and Urban Development, the Secretary of Agriculture,
and the Secretary of Veterans Affairs shall establish a
memorandum of understanding, or other appropriate interagency
agreement, to share relevant housing-related research and
market data that facilitates evidence-based policymaking.
(b) Interagency Report.--
(1) Report.--Not later than 1 year after the date of
enactment of this Act, the Secretary of Housing and Urban
Development, the Secretary of Agriculture, and the Secretary
of Veterans Affairs shall jointly submit to the Committee on
Banking, Housing, and Urban Affairs, the Committee on
Agriculture, Nutrition, and Forestry, and the Committee on
Veterans' Affairs of the Senate and the Committee on
Financial Services, the Committee on Agriculture, and the
Committee on Veterans' Affairs of the House of
Representatives a report that describes opportunities for
increased collaboration between the Secretary of Housing and
Urban Development, the Secretary of Agriculture, and the
Secretary of Veterans Affairs to improve efficiencies in
housing programs.
(2) Publication.--The report required under paragraph (1)
shall, prior to submission, be published in the Federal
Register and open for comment for a period of 30 days.
SEC. 404. FAMILY SELF-SUFFICIENCY ESCROW EXPANSION PILOT
PROGRAM.
Title I of the United States Housing Act of 1937 (42 U.S.C.
1437 et seq.) is amended by adding at the end the following:
``SEC. 39. ESCROW EXPANSION PILOT PROGRAM.
``(a) Definitions.--In this section:
``(1) Covered family.--The term `covered family' means a
family that--
``(A) receives assistance under section 8 or 9 of this Act;
``(B) is enrolled in the pilot program; and
``(C) has an adjusted income that does not exceed 80-
percent of the area-median income at the time of enrollment
in the pilot program.
``(2) Eligible entity.--The term `eligible entity' means an
entity described in subsection (c)(2) of section 23.
``(3) Pilot program.--The term `pilot program' means the
pilot program established under this section.
[[Page H2061]]
``(4) Welfare assistance.--The term `welfare assistance'
has the meaning given the term in section 984.103 of title
24, Code of Federal Regulations, or any successor regulation.
``(b) Program Establishment.--The Secretary shall, not
later than 1 year after the date of the enactment of this
section, establish a pilot program under which the Secretary
shall select not more than 25 eligible entities to establish
and manage escrow accounts for not more than a total of 5,000
covered families, in accordance with this section.
``(c) Escrow Accounts.--
``(1) In general.--An eligible entity selected to
participate in the pilot program--
``(A) shall establish an interest-bearing escrow account
and place into the account an amount equal to any increase in
the amount of rent paid by each covered family in accordance
with the provisions of section 3, 8(o), or 8(y), as
applicable, that is attributable to increases in earned
income by the covered family during the participation of such
covered family in the pilot program; and
``(B) notwithstanding any other provision of law, may use
existing funds made available to such entity at any time
under section 8 or 9 for the purposes of making the escrow
deposit for a covered family assisted under, or residing in a
unit assisted under, section 8 or 9 provided that such
amounts are offset by the increase in the amount of rent paid
by the covered family.
``(2) Withdrawals.--A covered family may withdraw funds,
including any interest earned, from an escrow account
established by an eligible entity under the pilot program for
such covered family--
``(A) after the covered family ceases to receive welfare
assistance; and
``(B)(i) not earlier than the date that is 5 years after
the date on which the eligible entity establishes the escrow
account under this subsection;
``(ii) not later than the date that is 7 years after the
date on which the eligible entity establishes the escrow
account under this subsection, if the covered family chooses
to continue to participate in the pilot program after the
date that is 5 years after the date on which the eligible
entity establishes the escrow account;
``(iii) on the date the covered family ceases to receive
housing assistance under section 8 or 9, if such date is
earlier than 5 years after the date on which the eligible
entity establishes the escrow account;
``(iv) earlier than 5 years after the date on which the
eligible entity establishes the escrow account, if the
covered family is using the funds to advance a self-
sufficiency goal as approved by the eligible entity; or
``(v) under other circumstances for good cause as
determined by the Secretary.
``(3) Interim recertification.--For the purposes of the
pilot program established under this section, a covered
family shall recertify the income of such family not less
than once each year.
``(4) Contract or plan.--An eligible entity may not require
a covered family to--
``(A) complete a contract that requires the participation
of the covered family in the pilot program established under
this section; or
``(B) participate in any individual training or services
plan as a condition for participating in the pilot program.
``(d) Effect of Increases in Family Income.--The amount
equal to any increase in the earned income of a covered
family from the date of enrollment of the covered family in
the pilot program established under this section through the
date all funds are withdrawn from the escrow account
established for such family under this section may not be
considered as income or a resource for purposes of
eligibility of the covered family for other benefits, or
amount of benefits payable to the family, under any program
administered by the Secretary.
``(e) Application.--
``(1) In general.--An eligible entity seeking to
participate in the pilot program shall submit to the
Secretary an application--
``(A) at such time, in such manner, and containing such
information as the Secretary may require by notice; and
``(B) that includes the number of covered families to which
the eligible entity intends to provide escrow accounts under
this section.
``(2) Geographic and entity variety.--The Secretary shall
ensure that eligible entities selected to participate in the
pilot program--
``(A) are located across various States and in both urban
and rural areas; and
``(B) vary by size and type, including both public housing
agencies and private owners of projects receiving project-
based rental assistance under section 8.
``(f) Notification and Opt-out.--An eligible entity
participating in the pilot program shall--
``(1) notify each covered family of their enrollment in the
pilot program;
``(2) provide each covered family with a detailed
description of the pilot program, including how the pilot
program will impact their rent and finances;
``(3) inform each covered family that the family may not
simultaneously participate in the pilot program and the
Family Self-Sufficiency program under this section; and
``(4) provide each covered family with the ability to elect
not to participate in the pilot program--
``(A) not less than 2 weeks before the date on which the
escrow account is established under subsection (c); and
``(B) at any point during the duration of the pilot
program.
``(g) Maximum Rents.--During the term of participation by a
covered family in the pilot program, the amount of rent paid
by the covered family shall be calculated under the section 3
or 8(o), as applicable.
``(h) Pilot Program Timeline.--
``(1) Awards.--Not later than 18 months after the date of
enactment of this section, the Secretary shall select the
eligible entities to participate in the pilot program.
``(2) Establishment and terms of accounts.--An eligible
entity selected to participate in the pilot program shall--
``(A) not later than 6 months after selection, establish
escrow accounts under subsection (c) for covered families;
and
``(B) maintain those escrow accounts for not less than 5
years, or until the date the family ceases to receive
assistance under section 8 or 9, and, at the discretion of
the covered family, not more than 7 years after the date on
which the escrow account is established.
``(i) Nonparticipation and Housing Assistance.--
``(1) In general.--A family that elects not to participate
in the pilot program may not be delayed or denied assistance
under section 8 or 9 for reason of such election.
``(2) No termination.--Housing assistance may not be
terminated as a consequence of participating, or not
participating, in the pilot program under this section for
any period of time.
``(j) Study.--Not later than 8 years after the date the
Secretary selects eligible entities to participate in the
pilot program under this section, the Secretary shall conduct
a study and 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 on outcomes
for covered families that participated in the pilot program,
which shall evaluate the effectiveness of the pilot program
in assisting families to achieve economic independence and
self-sufficiency, and the impact coaching and supportive
services, or the lack thereof, had on individual incomes.
``(k) Waivers.--The Secretary may, upon the written request
of an eligible entity receiving amounts under this section,
waive requirements under this section that relate to the
administration of the pilot program for the eligible entity
that submitted the request if such waiver would allow such
eligible entity to effectively administer the pilot program
and make the required escrow account deposits under this
section.
``(l) Termination.--The pilot program established under
this section shall terminate on the date that is 7 years
after the date of enactment of this section.''.
SEC. 405. REFORMS TO HOUSING COUNSELING AND FINANCIAL
LITERACY PROGRAMS.
(a) In General.--Section 106 of the Housing and Urban
Development Act of 1968 (12 U.S.C. 1701x) is amended--
(1) in subsection (a)(4)(C), by striking ``adequate
distribution'' and all that follows through ``foreclosure
rates'' and inserting ``that the recipients are
geographically diverse and include organizations that serve
urban or rural areas'';
(2) in subsection (e), by adding at the end the following:
``(6) Performance review.--The Secretary--
``(A) may conduct periodic reviews; and
``(B) shall conduct performance reviews of all
organizations receiving assistance under this section that--
``(i) consist of a review of the organization's or entity's
compliance with all program requirements; and
``(ii) may take into account the organization's or entity's
aggregate counselor performance under paragraph (7)(B).
``(7) Considerations.--
``(A) Covered mortgage loan defined.--In this paragraph,
the term `covered mortgage loan' means any loan which is
secured by a first or subordinate lien on residential real
property (including individual units of condominiums and
cooperatives) designed principally for the occupancy of
between 1 and 4 families that is--
``(i) insured by the Federal Housing Administration under
title II of the National Housing Act (12 U.S.C. 1707 et
seq.); or
``(ii) guaranteed under section 184 or 184A of the Housing
and Community Development Act of 1992 (12 U.S.C. 1715z-13a,
1715z-13b).
``(B) Comparison.--For each counselor employed by an
organization receiving assistance under this section for pre-
purchase housing counseling, the Secretary may consider the
performance of the counselor compared to the default rate of
all counseled borrowers of a covered mortgage loan in
comparable markets and such other factors as the Secretary
determines appropriate to further the purposes of this
section.
``(8) Certification.--If, based on the comparison required
under paragraph (7)(B), the Secretary determines that a
counselor lacks competence to provide counseling in the areas
described in subsection (e)(2) and such action will not
create a significant loss of capacity for housing counseling
services in the service area, the Secretary may--
``(A) require continued education coupled with successful
completion of a probationary period;
[[Page H2062]]
``(B) require retesting if the counselor continues to
demonstrate a lack of competence under paragraph (7)(B); and
``(C) suspend an individual certification if a counselor
fails to demonstrate competence after not fewer than 2
retesting opportunities under subparagraph (B).'';
(3) in subsection (i)--
(A) by redesignating paragraph (3) as paragraph (4); and
(B) by inserting after paragraph (2) the following:
``(3) Termination of assistance.--
``(A) In general.--The Secretary may deny renewal of
covered assistance to an organization or entity receiving
covered assistance if the Secretary determines that the
organization or entity, or the individual through which the
organization or entity provides counseling, is not in
compliance with program requirements--
``(i) based on the performance review described in
subsection (e)(6); and
``(ii) in accordance with existing regulations issued by
the Secretary.
``(B) Notice.--The Secretary shall give an organization or
entity receiving covered assistance not less than 60 days
prior written notice of any denial of renewal under this
paragraph, and the determination of renewal shall not be
finalized until the end of that notice period.
``(C) Informal conference.--If requested in writing by the
organization or entity within the notice period described in
subparagraph (B), the organization or entity shall be
entitled to an informal conference with the Deputy Assistant
Secretary of Housing Counseling on behalf of the Secretary at
which the organization or entity may present for
consideration specific factors that the organization or
entity believes were beyond the control of the organization
or entity and that caused the failure to comply with program
requirements, such as a lack of lender or servicer
coordination or communication with housing counseling
agencies and individual counselors.''; and
(4) by adding at the end the following:
``(j) Offering Foreclosure Mitigation Counseling.--
``(1) Covered mortgage loan defined.--In this subsection,
the term `covered mortgage loan' means any loan which is
secured by a first or subordinate lien on residential real
property (including individual units of condominiums and
housing cooperatives) or stock or membership in a cooperative
ownership housing corporation designed principally for the
occupancy of between 1 and 4 families that is--
``(A) insured by the Federal Housing Administration under
title II of the National Housing Act (12 U.S.C. 1707 et
seq.);
``(B) guaranteed under section 184 or 184A of the Housing
and Community Development Act of 1992 (12 U.S.C. 1715z-13a,
1715z-13b);
``(C) made, guaranteed, or insured by the Department of
Veterans Affairs; or
``(D) made, guaranteed, or insured by the Department of
Agriculture.
``(2) Opportunity for borrowers.--A borrower with respect
to a covered mortgage loan who is 30 days or more delinquent
on payments for the covered mortgage loan shall be given an
opportunity to participate in available housing counseling.
``(3) Cost.--If the requirements of sections 202(a)(3) and
205(f) of the National Housing Act (12 U.S.C. 1708(a)(3),
1711(f)) are met, the fair market rate cost of counseling for
delinquent borrowers described in paragraph (2) with respect
to a covered mortgage loan described in paragraph (1)(A)
shall be paid for by the Mutual Mortgage Insurance Fund, as
authorized under section 203(r)(4) of the National Housing
Act (12 U.S.C. 1709(r)(4)).''.
SEC. 406. ESTABLISHMENT OF EVICTION HELPLINE.
(a) In General.--The Secretary of Housing and Urban
Development shall, not later than 1 year after the date of
the enactment of this Act, establish a program--
(1) to establish a hotline to provide tenants of covered
federally assisted rental dwelling units with counseling,
resources, and referrals to available assistance relating to
eviction-related matters; and
(2) to provide information about such hotline to tenants of
covered federally assisted rental dwelling units by
publishing information about such hotline in common areas of
each federally assisted rental dwellings and through other
means determined appropriate by the Secretary.
(b) Sunset.--The program established under this section
shall terminate on the date that is 7 years after the date of
the enactment of this section.
(c) Definitions.--In this section:
(1) Assistance.--The term ``assistance'' means any grant,
loan, subsidy, contract, cooperative agreement, or other form
of financial assistance, but such term does not include the
insurance or guarantee of a loan, mortgage, or pool of loans
or mortgages.
(2) Covered federally assisted rental dwelling unit.--The
term ``covered federally assisted rental dwelling unit''
means a residential dwelling unit--
(A) that is made available for rental; and
(B)(i) for which assistance is provided, or that is part of
a housing project for which assistance is provided, under any
program administered by the Secretary of Housing and Urban
Development, including--
(I) the public housing program under the United States
Housing Act of 1937 (42 U.S.C. 1437 et seq.);
(II) the program for rental assistance under section 8 of
the United States Housing Act of 1937 (42 U.S.C. 1437f);
(III) the HOME Investment Partnerships program under title
II of the Cranston-Gonzalez National Affordable Housing Act
(42 U.S.C. 12721 et seq.);
(IV) title IV of the McKinney-Vento Homeless Assistance Act
(42 U.S.C. 11360 et seq.);
(V) the Housing Trust Fund program under section 1338 of
the Housing and Community Development Act of 1992 (12 U.S.C.
4568);
(VI) the program for supportive housing for the elderly
under section 202 of the Housing Act of 1959 (12 U.S.C.
1701q);
(VII) the program for supportive housing for persons with
disabilities under section 811 of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 8013);
(VIII) the AIDS Housing Opportunities program under
subtitle D of title VIII of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 12901 et seq.);
(IX) the program for Native American housing under the
Native American Housing Assistance and Self-Determination Act
of 1996 (25 U.S.C. 4101 et seq.); and
(X) the program for housing assistance for Native Hawaiians
under title VIII of the Native American Housing Assistance
and Self-Determination Act of 1996 (25 U.S.C. 4221 et seq.);
or
(ii) that is a property, or is on or in a property, that
has a federally backed mortgage loan or federally backed
multifamily mortgage loan, as such terms are defined in
section 4024(a) of the CARES Act (15 U.S.C. 9058(a)).
SEC. 407. TEMPERATURE SENSOR PILOT PROGRAM.
(a) In General.--The Secretary of Housing and Urban
Development shall establish a temperature sensor pilot
program to provide grants to public housing agencies and
owners of covered federally assisted rental dwelling units to
acquire, install, and test the efficacy of approved
temperature sensors in residential dwelling units to ensure
such units remain in compliance with temperature
requirements.
(b) Eligibility.--
(1) In general.--The Secretary shall, not later than 180
days after the date of the enactment of this Act, establish
eligibility criteria for public housing agencies and owners
of covered federally assisted rental dwelling units to
participate in the pilot program established pursuant to
subsection (a).
(2) Criteria.--In establishing the eligibility criteria
described in paragraph (1), the Secretary shall ensure--
(A) the pilot program includes a diverse range of
participants that represent different geographic regions,
climate regions, unit sizes, and types of housing; and
(B) that the functionality of an approved temperature
sensor will be installed and tested using amounts awarded
under this section, including internet connectivity
requirements.
(c) Installation.--Each public housing agency or owner of a
covered federally assisted rental dwelling unit that acquires
1 or more approved temperature sensors under this section
shall, after receiving written permission from the resident
of a dwelling unit, install such temperature sensor and
monitor the data from such temperature sensor.
(d) Collection of Complaint Records.--
(1) In general.--Each public housing agency or owner of a
covered federally assisted rental dwelling unit that installs
1 or more approved temperature sensors under this section
shall collect and retain information about temperature-
related complaints and violations.
(2) Definitions.--The Secretary shall, not later than 180
days after the date of the enactment of this Act, define the
terms ``temperature-related complaints'' and ``temperature-
related violations'' for the purposes of this section.
(e) Data Collection.--
(1) In general.--Data collected from temperature sensors
acquired and installed by public housing agencies and owners
of covered federally assisted rental dwelling units under
this section shall be retained until the Secretary notifies
the public housing agency or owner that the pilot program and
the evaluation of the pilot program are complete.
(2) Personally identifiable information.--The Secretary
shall, not later than 180 days after the date of the
enactment of this Act, establish standards for the protection
of personally identifiably information collected during the
pilot program by public housing agencies, owners of federally
assisted rental dwelling units, and the Secretary.
(f) Pilot Program Evaluation.--
(1) Interim evaluation.--Not later than 12 months after the
establishment of the pilot program under this section, the
Secretary shall publicly publish and submit to the Congress a
report that--
(A) examines the number of temperature-related complaints
and violations in federally assisted rental dwelling units
with temperature sensors, disaggregated by temperature sensor
technology and climate region--
(i) that occurred before the installation of such sensor,
if known; and
(ii) that occurred after the installation of such sensor;
and
(B) identifies any barriers to full utility of temperature
sensor capabilities, including broadband internet access and
tenant participation.
(2) Final evaluation.--Not later than 36 months after the
conclusion of the pilot program established by the Secretary
under this
[[Page H2063]]
section, the Secretary shall publicly publish and submit to
the Congress a report that--
(A) examines the number of temperature-related complaints
and violations in federally assisted rental dwelling units
with temperature sensors, disaggregated by temperature sensor
technology and climate region--
(i) that occurred before the installation of such sensor;
and
(ii) that occurred after the installation of such sensor;
(B) identifies any barriers to full utility of temperature
sensor capabilities, including broadband internet access and
tenant participation; and
(C) compares the utility of various temperature sensor
technologies based on--
(i) climate zones;
(ii) cost;
(iii) features; and
(iv) any other factors identified by the Secretary.
(g) Sunset.--The pilot program established under this
section shall terminate on the date that is 3 years after the
date of the enactment of this section.
(h) Definitions.--For the purposes of this section:
(1) Approved temperature sensor.--The term ``approved
temperature sensor'' means an internet capable temperature
reporting device able to measure ambient air temperature to
the tenth degree Fahrenheit and Celsius selected from a list
of such devices approved in advance by the Secretary.
(2) Assistance.--The term ``assistance'' means any grant,
loan, subsidy, contract, cooperative agreement, or other form
of financial assistance, but such term does not include the
insurance or guarantee of a loan, mortgage, or pool of loans
or mortgages.
(3) Covered federally assisted rental dwelling unit.--The
term ``covered federally assisted rental dwelling unit''
means a residential dwelling unit that is made available for
rental and for which assistance is provided, or that is part
of a housing project for which assistance is provided,
under--
(A) the program for project-based rental assistance under
section 8 of the United States Housing Act of 1937 (42 U.S.C.
1437f);
(B) the public housing program under the United States
Housing Act of 1937 (42 U.S.C. 1437 et seq.);
(C) the program for supportive housing for the elderly
under section 202 of the Housing Act of 1959 (12 U.S.C.
1701q); or
(D) the program for supportive housing for persons with
disabilities under section 811 of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 8013).
(4) Owner.--The term ``owner'' means--
(A) with respect to the program for project-based rental
assistance under section 8 of the United States Housing Act
of 1937 (42 U.S.C. 1437f), any private person or entity,
including a cooperative, an agency of the Federal Government,
or a public housing agency, having the legal right to lease
or sublease dwelling units;
(B) with respect to the public housing program under the
United States Housing Act of 1937 (42 U.S.C. 1437 et seq.), a
public housing agency or an owner entity of public housing
units as defined in section 905.108 of title 24, Code of
Federal Regulations;
(C) with respect to the program for supportive housing for
the elderly under section 202 of the Housing Act of 1959 (12
U.S.C. 1701q), a private nonprofit organization as defined
under section 202(k)(4) of the Housing Act of 1959; and
(D) with respect to the program for supportive housing for
persons with disabilities under section 811 of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C. 8013), a
private nonprofit organization as defined under section
811(k)(5) of the Cranston-Gonzalez National Affordable
Housing Act.
SEC. 408. GAO STUDIES.
(a) Report to Congress.--Not later than 1 year after the
date of the enactment of this Act, the Comptroller General of
the United States shall carry out a study and submit to the
Congress a report that identifies options to remove barriers
and improve housing for persons who are elderly or disabled,
including any potential impacts of providing capital advances
for--
(1) the program for supportive housing for the elderly
under section 202 of the Housing Act of 1959 (12 U.S.C.
1701q); and
(2) the program for supportive housing for persons with
disabilities under section 811 of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 8013).
(b) GAO Study to Determine Proximity of Housing to
Superfund Sites.--Not later than 1 year after the date of the
enactment of this section, the Comptroller General of the
United States shall carry out a study and submit to the
Congress a report that identifies how many residential
dwelling units, and how many dwelling units that are a part
of public housing (as such term is defined in section 3(b) of
the United States Housing Act of 1937 (42 U.S.C. 1437a(b))),
are located less than 1 mile from a site that is included on
the National Priorities List established pursuant to section
105 of the Comprehensive Environmental Response,
Compensation, and Liability Act of 1980 (42 U.S.C. 9605).
(c) Report to Congress.--Not later than 1 year after the
date of the enactment of this Act, the Comptroller General of
the United States shall carry out a study and submit to the
Committee on Financial Services of the House of
Representatives and the Committee on Banking, Housing, and
Urban Affairs of the Senate a report that--
(1) establishes a comprehensive definition of residential
heirs property, or family land inherited without a will or
legal documentation of ownership;
(2) examines the occurrence of and consequences to owners
of residential heirs property, and provides an estimate
regarding the number of current residential heirs properties;
(3) describes the objectives and requirements of the
Uniform Partition of Heirs Property Act as approved by the
National Conference of Commissioners on Uniform State Laws in
2010;
(4) details the various resources that may be available to
the owners of residential heirs properties, including housing
counseling, legal services, and financial assistance to
resolve residential heirs property title issues from the
Federal Government, nonprofits, and institutes of higher
education; and
(5) makes recommendations with respect to how to reduce the
number of residential heirs properties, including--
(A) by incentivizing States and other jurisdictions which
enact or adopt the Uniform Partition of Heirs Property Act or
similar such reforms;
(B) by awarding grants to States and other jurisdictions to
assist residents of such States and jurisdictions to
establish and document property ownership rights or settle a
decedent's estate;
(C) by awarding grants to entities which provide housing
counseling, legal assistance, and financial assistance to
homeowners and their heirs relating to title clearing and
home retention efforts of heirs' property and which target
services to low- and moderate-income persons or provide
services in neighborhoods that have a high concentration of
low- and moderate-income persons; and
(D) by conducting other activities that assist individuals
to clear title with respect to heirs' property and with
general estate planning.
TITLE V--ENHANCING OVERSIGHT OF HOUSING PROVIDERS
SEC. 501. REQUIREMENT TO TESTIFY.
Section 7 of the Department of Housing and Urban
Development Act (42 U.S.C. 3535) is amended by adding at the
end the following new subsection:
``(u) Annual Testimony.--The Secretary shall appear before
the Committee on Financial Services of the House of
Representatives and the Committee on Banking, Housing, and
Urban Affairs of the Senate at an annual hearing and present
testimony regarding the operations of the Department during
the preceding year, including--
``(1) the current programs and operations of the
Department;
``(2) the physical condition of all public housing and
other housing assisted by the Department;
``(3) the financial health of the mortgage insurance funds
of the Federal Housing Agency;
``(4) oversight by the Department of grantees and
subgrantees for purposes of preventing waste, fraud, and
abuse;
``(5) the progress made by the Federal Government in ending
the affordable housing and homelessness crises;
``(6) the capacity of the Department to deliver on its
statutory mission; and
``(7) other ongoing activities of the Department, as
appropriate.''.
SEC. 502. IMPROVING PUBLIC HOUSING AGENCY ACCOUNTABILITY.
(a) In General.--The Secretary shall require each covered
public housing agency to provide a notice each year to the
Secretary that--
(1) indicates that if a receiver or Federal monitor remains
appointed for the covered public housing agency as of October
1 of the calendar year to which such notice relates;
(2) provides the date on which the receiver or Federal
monitor was first appointed and the projected date, if known,
the appointment of the receiver or Federal monitor will be
terminated; and
(3) identifies the current receiver or Federal monitor
appointed to oversee the public housing agency.
(b) Federal Monitor and Receiver Transparency.--
(1) Notwithstanding any other provision of law, not later
than October 1 of each year, each receiver or Federal monitor
that is currently appointed to oversee a covered public
housing agency shall provide to the Committee on Financial
Services of the House of Representatives and the Committee on
Banking, Housing, and Urban Affairs of the Senate a written
assessment that--
(A) describes the management and oversight activities of
the receiver or Federal monitor for the covered public
housing agency;
(B) identifies the significant factors that led to the
appointment of the receiver or Federal monitor for the
covered public housing agency;
(C) identifies the factors that remain unresolved at the
covered public housing agency that have led to the continued
oversight of the receiver or Federal monitor; and
(D) includes a timeline developed by the receiver or
Federal monitor that projects when the factors identified
under subparagraphs (B) and (C) will be resolved.
(2) In addition to the written assessment required in
paragraph (1), upon written request by the Committee on
Financial Services of the House of Representatives or the
Committee on Banking, Housing, and Urban Affairs of the
Senate, each receiver or Federal monitor appointed to oversee
a covered
[[Page H2064]]
public housing agency shall promptly furnish additional or
supplemental information requested by the Committee on
Financial Services of the House of Representatives or the
Committee on Banking, Housing, and Urban Affairs of the
Senate with respect to the covered public housing agency
which such receiver or Federal monitor is appointed to
oversee, including presenting testimony upon request.
(c) Disclosure Required.--The Secretary shall, not later
than 1 year after the date of the enactment of this section,
require each covered public housing agency to publicly
disclose, on the website of the covered public housing
agency, with respect to each contract entered into by such
covered public housing agency in the preceding year, the
following information:
(1) All material information about the contract, including
the goods and service provided.
(2) The identity of the vendor selected to receive the
contract.
(3) The date of the solicitation of the contract.
(4) The relevant information pertaining to the bids and
quotes solicited for the contract.
(5) The name of the official who solicited the contract.
(d) Inspector General Review.--Not later than 180 days
after receiving a written request from the Committee on
Financial Services of the House of Representatives or the
Committee on Banking, Housing, and Urban Affairs of the
Senate, the inspector general shall provide to the requesting
committee an analysis of--
(1) the status of any covered public housing agency's
compliance with any agreements entered into between the
covered public housing agency and the Department of Housing
and Urban Development, including specific areas of deficiency
and progress toward compliance;
(2) a review of actions taken by the receiver or Federal
monitor appointed to oversee a covered public housing agency
and any private sector housing development partners pursuant
to such agreement, including any gaps in oversight by the
receiver or Federal monitor;
(3) an assessment of the physical conditions of housing
provided by the covered public housing agency, including the
status of the covered public housing agency's compliance with
relevant health and safety requirements;
(4) an examination of any allegations of waste, fraud,
abuse or violations of Federal law committed by employees or
contractors of the covered public housing agency;
(5) any additional pertinent information, as determined
necessary and appropriate by the inspector general; and
(6) any recommendations of the inspector general that
relate to how to improve the compliance of the covered public
housing agency with any agreements entered into with the
Department of Housing and Urban Development or enhance the
oversight of the receiver or Federal monitor over such
covered public housing agency.
(e) Definitions.--
(1) Covered public housing agency.--The term ``covered
public housing agency'' means a public housing agency (as
such term is defined in section 3(b) of the United States
Housing Act of 1937 (42 U.S.C. 1437a(b))) for which an
administrative or judicial receiver or Federal monitor was
appointed.
(2) Inspector general.--The term ``inspector general''
means the inspector general of the Department of Housing and
Urban Development.
(3) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
TITLE VI--STRENGTHENING COMMUNITY BANKS' ROLE IN HOUSING
SEC. 601. COMMUNITY BANK DEPOSIT ACCESS.
(a) In General.--Section 29 of the Federal Deposit
Insurance Act (12 U.S.C. 1831f) is amended by adding at the
end the following:
``(j) Limited Exception for Custodial Deposits.--
``(1) In general.--Custodial deposits of an eligible
institution shall not be considered to be funds obtained,
directly or indirectly, by or through a deposit broker to the
extent that the total amount of such custodial deposits does
not exceed an amount equal to 20 percent of the total
liabilities of the eligible institution.
``(2) Definitions.--In this subsection:
``(A) Custodial deposit.--The term `custodial deposit'
means a deposit that is not deposited at an insured
depository institution in return for fees paid by the insured
depository institution pursuant to an agreement with a third
party and that would otherwise be considered to be obtained,
directly or indirectly, by or through a deposit broker, if
the deposit is deposited at 1 or more insured depository
institutions, for the purpose of providing or maintaining
deposit insurance for the benefit of a third party, by or
through any of the following, each acting in a formal
custodial or fiduciary capacity for the benefit of a third
party:
``(i) An insured depository institution serving as agent,
trustee, or custodian.
``(ii) A trust entity controlled by an insured depository
institution serving as agent, trustee, or custodian.
``(iii) A State-chartered trust company serving as agent,
trustee, or custodian.
``(iv) A plan administrator or investment advisor, acting
in a formal custodial or fiduciary capacity for the benefit
of a plan.
``(B) Eligible institution.--The term `eligible
institution' means an insured depository institution that
accepts custodial deposits, if the insured depository
institution has less than $10,000,000,000 in total assets as
reported on the consolidated report of condition and income
as reported quarterly to the appropriate Federal banking
agency and--
``(i)(I) when most recently examined under section 10(d)
was assigned a composite rating of 1, 2, or 3 under the
Uniform Financial Institutions Rating System (or an
equivalent rating under a comparable rating system); and
``(II) is well capitalized; or
``(ii) has obtained a waiver pursuant to subsection (c).
``(C) Plan.--The term `plan' has the meaning given the term
in section 3 of the Employee Retirement Income Security Act
of 1974 (29 U.S.C. 1002).
``(D) Plan administrator.--The term `plan administrator'
has the meaning given the term `administrator' in section 3
of the Employee Retirement Income Security Act of 1974 (29
U.S.C. 1002).
``(E) Well capitalized.--The term `well capitalized' has
the meaning given the term in section 38(b).''.
(b) Interest Rate Restriction.--Section 29 of the Federal
Deposit Insurance Act (12 U.S.C. 1831f), as amended by
subsection (a), is further amended by adding at the end the
following:
``(k) Restriction on Interest Rate Paid on Certain
Custodial Deposits.--
``(1) Definitions.--In this subsection--
``(A) the terms `custodial deposit', `eligible
institution', and `well capitalized' have the meanings given
those terms in subsection (j); and
``(B) the term `covered insured depository institution'
means an insured depository institution that while acting as
an eligible institution under subsection (j), accepts
custodial deposits while not well capitalized.
``(2) Prohibition.--A covered insured depository
institution may not pay a rate of interest on custodial
deposits that are accepted while not well capitalized that,
at the time the funds or custodial deposits are accepted,
significantly exceeds the limit set forth in paragraph (3).
``(3) Limit on interest rates.--The limit on the rate of
interest referred to in paragraph (2) shall be not greater
than--
``(A) the rate paid on deposits of similar maturity in the
normal market area of the covered insured depository
institution for deposits accepted in the normal market area
of the covered insured depository institution; or
``(B) the national rate paid on deposits of comparable
maturity, as established by the Corporation, for deposits
accepted outside the normal market area of the covered
insured depository institution.''.
SEC. 602. KEEPING DEPOSITS LOCAL.
(a) Amount of Reciprocal Deposits That Are Not Considered
to Be Funds Obtained by or Through a Deposit Broker.--Section
29(i) of the Federal Deposit Insurance Act (12 U.S.C.
1831f(i)) is amended by striking paragraph (1) and inserting
the following:
``(1) In general.--The sum of the following amounts of
reciprocal deposits of an agent institution shall not be
considered to be funds obtained, directly or indirectly, by
or through a deposit broker:
``(A) An amount equal to 50 percent of the portion of the
total liabilities of the agent institution that is less than
or equal to $1,000,000,000.
``(B) An amount equal to 40 percent of the portion, if any,
of the total liabilities of the agent institution that is
greater than $1,000,000,000, but less than or equal to
$10,000,000,000.
``(C) An amount equal to 30 percent of the portion, if any,
of the total liabilities of the agent institution that is
greater than $10,000,000,000, but less than or equal to
$250,000,000,000.''.
(b) Definition of Agent Institution.--Section
29(i)(2)(A)(i) of the Federal Deposit Insurance Act (12
U.S.C. 1831f(i)(2)(A)(i)) is amended by striking subclause
(I) and inserting the following:
``(I) when most recently examined under section 10(d) was
assigned a CAMELS rating of 1, 2, or 3 under the Uniform
Financial Institutions Rating System (or an equivalent rating
under a comparable rating system); and''.
(c) Reciprocal Deposits Study.--
(1) In general.--The Federal Deposit Insurance Corporation,
in consultation with the Board of Governors of the Federal
Reserve System, shall carry out a study on reciprocal
deposits.
(2) Contents.--The study required under paragraph (1) shall
include--
(A) an analysis of how reciprocal deposits have performed
since 2018, which shall include--
(i) the use of quantitative and qualitative data;
(ii) a breakdown of the usage of reciprocal deposits by
size of insured depository institution;
(iii) the usage of reciprocal deposits during periods of
stress; and
(iv) an analysis, to the extent practicable, of end-user
depositors, such as municipalities, businesses, and non-
profit organizations, that drive demand for reciprocal
products;
(B) an analysis, to the extent practicable, of how
reciprocal deposits compare to other deposit arrangements;
and
[[Page H2065]]
(C) an analysis of the benefits and potential risks of
reciprocal deposits.
(3) Report.--Not later than 6 months after the date of
enactment of this Act, the Federal Deposit Insurance
Corporation shall issue a report to the Committee on
Financial Services of the House of Representatives and the
Committee on Banking, Housing, and Urban Affairs of the
Senate containing all findings and determinations made in
carrying out the study required under paragraph (1).
SEC. 603. SUPERVISORY MODIFICATIONS FOR APPROPRIATE RISK-
BASED TESTING.
(a) Examination Relief for Certain Well Managed and Well
Capitalized Financial Institutions.--
(1) Insured depository institutions.--Section 10(d) of the
Federal Deposit Insurance Act (12 U.S.C. 1820(d)) is amended
by adding at the end the following:
``(11) Examination relief for certain well managed and well
capitalized insured depository institutions.--
``(A) In general.--The following shall apply to a well
managed and well capitalized insured depository institution
with $6,000,000,000 or less in consolidated assets:
``(i) Alternating limited-scope examinations.--After an
insured depository institution receives a full-scope, on-site
examination from the appropriate Federal banking agency, the
next examination of the insured depository institution by the
appropriate Federal banking agency shall be a limited-scope
examination, as determined by the appropriate Federal banking
agency.
``(ii) Combined examinations.--If an insured depository
institution is otherwise subject to separate safety and
soundness examinations, consumer compliance examinations, and
information technology and cybersecurity examinations, the
appropriate Federal banking agency shall, upon request of the
insured depository institution, combine two or three such
examinations, as specified by the insured depository
institution, and carry them out at the same time.
``(B) Exception.--Subparagraph (A) shall not apply to an
insured depository institution if--
``(i) the insured depository institution is currently
subject to a formal enforcement proceeding or order by the
Corporation or the appropriate Federal banking agency; or
``(ii) a person acquired control of the insured depository
institution since the most recent full-scope, on-site
examination of the insured depository institution from the
appropriate Federal banking agency.
``(C) Rulemaking.--Not later than 12 months after the date
of enactment of this paragraph, the Federal banking agencies
shall issue rules to carry out subparagraph (A), including,
with respect to an insured depository institution described
under subparagraph (A), to--
``(i) establish procedures for the limited-scope
examinations described in subparagraph (A)(i);
``(ii) establish procedures for reviewing insured
depository institutions that--
``(I) experience material changes in financial condition or
operational risk profile between scheduled examinations; or
``(II) have failed to comply with Federal or State banking
laws and regulations; and
``(iii) balance the goals of streamlining the examination
cycle for individual insured depository institutions and
reducing unnecessary regulatory burdens while maintaining
sufficient oversight to ensure the continued safety and
soundness of the insured depository institutions and
compliance with all applicable laws and regulations.
``(D) Rule of construction.--Nothing in this paragraph may
be construed to limit the authority of a Federal banking
agency to conduct off-site monitoring, targeted reviews, or
additional full-scope, on-site examinations of an insured
depository institution if the Federal banking agency
determines such monitoring, reviews, or examinations are
necessary to ensure safety and soundness or compliance with
applicable laws.
``(E) Definitions.--In this paragraph:
``(i) Consumer compliance examination.--The term `consumer
compliance examination' means an examination to assess
compliance with the requirements of Federal consumer
financial law (as such term is defined in section 1002 of the
Consumer Financial Protection Act of 2010).
``(ii) Well capitalized.--The term `well capitalized' has
the meaning given that term in section 38(b).
``(iii) Well managed.--With respect to an insured
depository institution, the term `well managed' means that,
when the institution was most recently examined by the
appropriate Federal banking agency, the institution was found
to be well managed, and the institution's composite condition
was found to be satisfactory or outstanding.''.
(2) Insured credit unions.--Section 204 of the Federal
Credit Union Act (12 U.S.C. 1784) is amended by adding at the
end the following:
``(h) Examination Relief for Certain Well Managed and Well
Capitalized Insured Credit Unions.--
``(1) In general.--The following shall apply to a well
managed and well capitalized insured credit union with
$6,000,000,000 or less in consolidated assets:
``(A) Alternating limited-scope examinations.--After an
insured credit union receives a full-scope, on-site
examination from the National Credit Union Administration,
the next examination of the insured credit union by the
National Credit Union Administration shall be a limited-scope
examination, as determined by the National Credit Union
Administration.
``(B) Combined examinations.--If an insured credit union is
otherwise subject to separate safety and soundness
examinations, consumer compliance examinations, and
information technology and cybersecurity examinations, the
National Credit Union Administration shall, upon request of
the insured credit union, combine two or three such
examinations, as specified by the insured credit union, and
carry them out at the same time.
``(2) Exception.--Paragraph (1) shall not apply to an
insured credit union if the insured credit union is currently
subject to a formal enforcement proceeding or order by the
National Credit Union Administration.
``(3) Rulemaking.--Not later than 12 months after the date
of enactment of this subsection, the National Credit Union
Administration shall issue rules to carry out paragraph (1),
including, with respect to an insured credit union described
under paragraph (1), to--
``(A) establish procedures for the limited-scope
examinations described in paragraph (1)(A);
``(B) establish procedures for reviewing insured credit
unions that--
``(i) experience material changes in financial condition or
operational risk profile between scheduled examinations; or
``(ii) have failed to comply with Federal or State banking
laws and regulations; and
``(C) balance the goals of streamlining the examination
cycle for individual insured credit unions and reducing
unnecessary regulatory burdens while maintaining sufficient
oversight to ensure the continued safety and soundness of the
insured credit unions and compliance with all applicable laws
and regulations.
``(4) Rule of construction.--Nothing in this subsection may
be construed to limit the authority of the National Credit
Union Administration to conduct off-site monitoring, targeted
reviews, or additional full-scope, on-site examinations of an
insured credit union if the National Credit Union
Administration determines such monitoring, reviews, or
examinations are necessary to ensure safety and soundness or
compliance with applicable laws.
``(5) Definitions.--In this paragraph:
``(A) Consumer compliance examination.--The term `consumer
compliance examination' means an examination to assess
compliance with the requirements of Federal consumer
financial law (as such term is defined in section 1002 of the
Consumer Financial Protection Act of 2010).
``(B) Well capitalized.--The term `well capitalized' has
the meaning given that term in section 216(c).
``(C) Well managed.--With respect to an insured credit
union, the term `well managed' means that, when the credit
union was most recently examined by the National Credit Union
Administration, the credit union was found to be well
managed, and the credit union's composite condition was found
to be satisfactory or outstanding.''.
(b) Examination Practices.--
(1) Insured depository institutions.--Section 10(d) of the
Federal Deposit Insurance Act (12 U.S.C. 1820(d)), as amended
by subsection (a)(1), is further amended by adding at the end
the following:
``(12) Examination practices.--With respect to on-site
examination of an insured depository institution with less
than $6,000,000,000 in total assets, the appropriate Federal
banking agency shall--
``(A) ensure the examination is led by, to the maximum
extent practicable, an examiner with significant experience
as an examiner;
``(B) make every effort, to the maximum extent practicable,
to minimize the number of examiners utilized and the amount
of time spent at the institution to carry out the
examination;
``(C) make every effort, to the maximum extent practicable,
to schedule the examination at a time that is convenient for
the institution; and
``(D) to the maximum extent practicable, give the
institution advance notice of issues expected to be covered
in the examination.
``(13) Report.--In its annual report to Congress, each
Federal banking agency shall include--
``(A) information on how the agency is complying with
paragraphs (11) and (12); and
``(B) aggregate data summarizing the agency's examination
practices with respect to insured depository institutions
with less than $6,000,000,000 in total assets, including--
``(i) the average experience of examiners, including the
average number of years of examiner experience of those who
lead on-site examinations;
``(ii) the average number of examiners utilized; and
``(iii) the average amount of time the agency spends
visiting such institutions for on-site examinations.''.
(2) Insured credit unions.--Section 204 of the Federal
Credit Union Act (12 U.S.C. 1784), as amended by subsection
(a)(2), is further amended by adding at the end the
following:
``(i) Examination Practices.--With respect to on-site
examination of an insured credit union with less than
$6,000,000,000 in total assets, the National Credit Union
Administration shall--
``(1) ensure the examination is led by, to the maximum
extent practicable, an examiner with significant experience
as an examiner;
[[Page H2066]]
``(2) make every effort, to the maximum extent practicable,
to minimize the number of examiners utilized and the amount
of time spent at the credit union to carry out the
examination;
``(3) make every effort, to the maximum extent practicable,
to schedule the examination at a time that is convenient for
the credit union; and
``(4) to the maximum extent practicable, give the credit
union advance notice of issues expected to be covered in the
examination.
``(j) Report.--In its annual report to Congress, the
National Credit Union Administration shall include--
``(1) information on how the Administration is complying
with subsections (h) and (i); and
``(2) aggregate data summarizing the Administration's
examination practices with respect to insured credit unions
with less than $6,000,000,000 in total assets, including--
``(A) the average experience of examiners, including the
average number of years of examiner experience of those who
lead on-site examinations;
``(B) the average number of examiners utilized; and
``(C) the average amount of time the Administration spends
visiting such credit unions for on-site examinations.''.
SEC. 604. TAILORED REGULATORY UPDATES FOR SUPERVISORY
TESTING.
Section 10(d) of the Federal Deposit Insurance Act (12
U.S.C. 1820(d)) is amended--
(1) in paragraph (4)(A), by striking ``$3,000,000,000'' and
inserting ``$6,000,000,000''; and
(2) in paragraph (10), by striking ``$3,000,000,000'' and
inserting ``$6,000,000,000''.
SEC. 605. CREDIT UNION BOARD MODERNIZATION.
Section 113 of the Federal Credit Union Act (12 U.S.C.
1761b) is amended--
(1) by striking ``monthly'' each place such term appears;
(2) in the matter preceding paragraph (1), by striking
``The board of directors'' and inserting the following:
``(a) In General.--The board of directors'';
(3) in subsection (a) (as so designated), by striking
``shall meet at least once a month and''; and
(4) by adding at the end the following:
``(b) Meetings.--The board of directors of a Federal credit
union shall meet as follows:
``(1) With respect to a de novo Federal credit union, not
less frequently than monthly during each of the first five
years of the existence of such Federal credit union.
``(2) Not less than six times annually, with at least one
meeting held during each fiscal quarter, with respect to a
Federal credit union--
``(A) with composite rating of either 1 or 2 under the
Uniform Financial Institutions Rating System (or an
equivalent rating under a comparable rating system); and
``(B) with a capability of management rating under such
composite rating of either 1 or 2.
``(3) Not less frequently than once a month, with respect
to a Federal credit union--
``(A) with composite rating of either 3, 4, or 5 under the
Uniform Financial Institutions Rating System (or an
equivalent rating under a comparable rating system); or
``(B) with a capability of management rating under such
composite rating of either 3, 4, or 5.''.
SEC. 606. SYSTEMIC RISK AUTHORITY TRANSPARENCY.
(a) GAO Review.--Section 13(c)(4)(G)(iv) of the Federal
Deposit Insurance Act (12 U.S.C. 1823(c)(4)(G)(iv)) is
amended to read as follows:
``(iv) GAO review.--
``(I) In general.--The Comptroller General of the United
States shall, not later than 60 days after a determination is
made under clause (i), and again 180 days thereafter, review
and report to the Congress on the determination under clause
(i), including--
``(aa) the basis for the determination;
``(bb) the purpose for which any action was taken pursuant
to such clause;
``(cc) the likely effect of the determination and such
action on the incentives and conduct of insured depository
institutions and uninsured depositors;
``(dd) any mismanagement by the executives and board of the
insured depository institution that contributed to the
failure of the insured depository institution;
``(ee) a review of the compensation practices of the
insured depository institution;
``(ff) any supervisory or regulatory shortcomings with
respect to the appropriate Federal banking agency of the
insured depository institution;
``(gg) any actions taken by the Federal banking regulators,
Financial Stability Oversight Council, Department of the
Treasury, and other relevant financial regulators in relation
to the failure of the insured depository institution; and
``(hh) any additional relevant entities or activities that
may have contributed to the failure of the insured depository
institution, including with respect to auditing, accounting,
credit rating agencies, investment bank underwriters, and
emergency liquidity options such as loans from the Federal
reserve banks or advances through the Federal Home Loan Bank
system.
``(II) Rule of construction.--Nothing in this clause or a
report issued pursuant to this clause may be construed to
limit the authority of a Federal agency to enforce violations
of Federal statutes, rules, or orders.''.
(b) Appropriate Federal Banking Agency Report.--Section
13(c) of the Federal Deposit Insurance Act (12 U.S.C.
1823(c)) is amended by adding at the end the following:
``(12) Appropriate federal banking agency report.--
``(A) In general.--The appropriate Federal banking agency
of an insured depository institution about which a
determination is made under paragraph (4)(G)(i) shall, not
later than 90 days after the date of such determination, and
again 210 days thereafter, submit a report to the Congress
that discloses the following:
``(i) Subject to such redactions as the appropriate Federal
banking agency determines appropriate to protect personally
identifiable information about customers and other financial
institutions (as such term is defined under section
11(e)(9)(D)), all--
``(I) reports of examination and inspection that relate to
the failed insured depository institution in the previous 3-
year period;
``(II) formal communications of a material supervisory
determination conveyed to the failed insured depository
institution in the previous 3-year period; and
``(III) any additional exam reports and correspondence that
the appropriate Federal banking agency determines may be
relevant to the failure of the insured depository
institution.
``(ii) An examination of any mismanagement by the
executives and board of the insured depository institution
that contributed to the failure of the insured depository
institution.
``(iii) Any supervisory or regulatory shortcomings by such
appropriate Federal banking agency with respect to the
insured depository institution.
``(iv) Any dynamics that the appropriate Federal banking
agency determines may have contributed to the failure of the
insured depository institution.
``(v) Any supervisory, regulatory, or legislative
recommendations such appropriate Federal banking agency may
have to improve the safety and soundness of similarly
situated insured depository institutions, the banking system,
and financial stability.
``(B) Protection of sensitive information.--
``(i) Effect on privilege.--The provision of any
information by a Federal banking agency under this paragraph
may not be construed as--
``(I) waiving, destroying, or otherwise affecting any
privilege applicable to the information; or
``(II) waiving any exemption applicable to the information
under section 552 of title 5, United States Code (commonly
known as the `Freedom of Information Act').
``(ii) Transparency.--
``(I) In general.--A Federal banking agency shall publish
materials contained in a report required under subparagraph
(A) to the fullest extent possible to promote transparency.
``(II) Consultation on omitting materials.--If a Federal
banking agency determines particular materials described
under subclause (I) should not be published, the Federal
banking agency shall consult with the chair and ranking
member of the Committee on Financial Services of the House of
Representatives and the chair and ranking member of the
Committee on Banking, Housing, and Urban Affairs of the
Senate.
``(III) Omitting materials.--If, after the consultation
required under subclause (II), the Federal banking agency
determines there is a substantial public interest in not
publishing such materials, the Federal banking agency shall
provide those materials to the Committee on Financial
Services of the House of Representatives and the Committee on
Banking, Housing, and Urban Affairs of the Senate with a
written explanation describing the reasons for not publishing
those materials.
``(iii) Privilege.--For purposes of this subparagraph, the
term `privilege' includes any work-product, attorney-client,
or other privilege recognized under Federal or State law.
``(C) Report extension.--A Federal banking agency may
extend a deadline described under subparagraph (A) for an
additional 60 days, if the Federal banking agency--
``(i) faces ongoing circumstances that require the Federal
banking agency to prioritize activities to promote stability
of the U.S. banking system; and
``(ii) notifies the Congress of such extension and the
reasons for such extension.
``(D) Consolidated reports.--A Federal banking agency may
consolidate multiple reports required under this paragraph so
long as the individual reports being consolidated all meet
the timing requirements under this paragraph.
``(E) Rule of construction.--Nothing in this paragraph or
reports or materials provided pursuant to this paragraph may
be construed to limit the authority of a Federal agency to
enforce violations of Federal statutes, rules, or orders.''.
SEC. 607. LEAST COST EXCEPTION.
(a) In General.--Section 13(c)(4) of the Federal Deposit
Insurance Act (12 U.S.C. 1823(c)(4)) is amended--
(1) in subparagraph (A)(ii), by inserting ``except as
provided in subparagraph (I),'' before ``the total amount'';
(2) in subparagraph (E)(i), by inserting ``and except as
provided in subparagraph (I),'' after ``appropriate,''; and
(3) by adding at the end the following:
[[Page H2067]]
``(I) Least cost resolution exception.--
``(i) In general.--With respect to an exercise of authority
by the Corporation described in subparagraph (A), the
Corporation may, at the discretion of the Corporation, select
an alternative method of exercising such authority that is
not the least costly to the Deposit Insurance Fund, if--
``(I) the Corporation determines that the selected
alternative complies with the requirements of clause (iii);
and
``(II) the Corporation and the Board of Governors of the
Federal Reserve System, after consultation with the Secretary
of the Treasury, determine that the potential additional
risks to the Deposit Insurance Fund of the selected
alternative are outweighed by the reasonably expected
benefits of limiting further concentration of the United
States banking system in global systemically important
banking organizations.
``(ii) Maximum cost to the deposit insurance fund.--Not
later than 1 year after the date of enactment of this
subparagraph, the Corporation, by rule, shall establish
criteria for determining on a case-by-case basis the maximum
allowable cost against the net worth of the Deposit Insurance
Fund that may be utilized to account for any determination
under clause (i).
``(iii) Requirements described.--The requirements for the
selected alternative described in clause (i) are as follows:
``(I) The selected alternative is the least costly to the
Deposit Insurance Fund of all alternatives that do not
involve a transaction with a global systemically important
banking organization and that do not exceed the cost of
liquidating the insured depository institution.
``(II) The difference between the cost of the selected
alternative and the cost of a covered alternative is less
than or equal to the maximum cost to the Deposit Insurance
Fund specified pursuant to the rule adopted under clause
(ii).
``(III) In the case of a selected alternative that involves
another person purchasing assets of the insured depository
institution or assuming deposit liabilities of the insured
depository institution, such person agrees to pay an
assessment to the Corporation comprised of payments--
``(aa) made over a period to be determined by the
Corporation, but which may not be less than 5 years; and
``(bb) in an amount that takes into account, on a case-by-
case basis, criteria the Corporation, by rule, shall
establish, including a realistic discount rate, the aggregate
amount equal to the difference calculated in subclause (II),
and any bid inconsistent with the purposes of this Act, with
such rule to be established by the Corporation not later than
1 year after the date of enactment of this subparagraph.
``(iv) Report to congress.--Not later than 30 days after
selecting an alternative described in clause (i), the
Corporation shall issue a report to the Committee on
Financial Services of the House of Representatives and the
Committee on Banking, Housing, and Urban Affairs of the
Senate containing an analysis of the economic difference
between the cost to the Deposit Insurance Fund of the
selected alternative and the cost to the Deposit Insurance
Fund of the least costly alternative that would have been
selected absent the application of this subparagraph.
``(v) Cost determinations.--All cost determinations
required under this subparagraph shall be made in accordance
with subparagraphs (B) and (C).
``(vi) Definitions.--In this subparagraph:
``(I) Covered alternative.--The term `covered alternative'
means a method of exercising authority described in
subparagraph (A) that is the least costly to the Deposit
Insurance Fund of all such methods that involve a sale of all
or substantially all assets of the insured depository
institution to, and assumption of all or substantially all
deposit liabilities of the insured depository institution by,
a global systemically important banking organization.
``(II) Global systemically important banking
organization.--The term `global systemically important
banking organization' means a global systemically important
BHC (as such term is defined in section 217.402 of title 12,
Code of Federal Regulations, or any successor thereto) and
any affiliate thereof.''.
(b) Rule of Construction.--Section 13(c)(4)(H) of the
Federal Deposit Insurance Act (12 U.S.C. 1823(c)(4)(H)) does
not apply to the amendments made by subsection (a).
SEC. 608. FAILING BANK ACQUISITION FAIRNESS.
(a) Concentration Limit Exceptions Only Available to Avoid
Serious Adverse Economic or Financial Effects.--
(1) Concentration limits with respect to deposits.--
(A) Federal deposit insurance act.--The Federal Deposit
Insurance Act (12 U.S.C. 1811 et seq.) is amended--
(i) in section 18(c)(13)--
(I) by amending subparagraph (B) to read as follows:
``(B) Subparagraph (A) shall not apply to an interstate
merger transaction if--
``(i) such interstate merger transaction involves 1 or more
insured depository institutions in default or in danger of
default and the responsible agency determines, based on clear
and convincing evidence, that consummation of the proposed
interstate merger transaction is necessary to prevent
significant economic disruption or significant adverse
effects on financial stability, and the Corporation has not
received any qualified bid from a company that is not subject
to the prohibition in subparagraph (A); or
``(ii) the Corporation provides assistance under section 13
to facilitate such interstate merger transaction and the
responsible agency determines, based on clear and convincing
evidence, that consummation of the proposed interstate merger
transaction is necessary to prevent significant economic
disruption or significant adverse effects on financial
stability, and the Corporation has not received any qualified
bid from a company that is not subject to the prohibition in
subparagraph (A).''; and
(II) in subparagraph (C)--
(aa) in clause (i), by striking ``and'' at the end;
(bb) in clause (ii), by striking the period at the end and
inserting a semicolon; and
(cc) by adding at the end the following:
``(iii) the term `qualified bid' means an application,
proposed application, or bid from a company where--
``(I) if applicable, the company, any affiliate insured
depository institution, and any affiliate depository
institution holding company are well capitalized and well
managed, as of the date of the application, proposed
application, or bid; and
``(II) upon consummation of the transaction, the resulting
insured depository institution is well capitalized;
``(iv) the term `well capitalized'--
``(I) with respect to an insured depository institution,
has the meaning given such term in section 38(b) (12 U.S.C.
1831o(b));
``(II) with respect to a bank holding company, has the
meaning given such term in section 2(o)(1)(B) of the Bank
Holding Company Act of 1956 (12 U.S.C. 1841(o)(1)(B));
``(III) with respect to a savings and loan holding company,
has the meaning given such term in section 238.2 of title 12,
Code of Federal Regulations; and
``(IV) with respect to a company that is not an insured
depository institution, bank holding company, or savings and
loan holding company, means maintaining equity capital that
the Corporation determines is commensurate with the capital
maintained by an insured depository institution that is well
capitalized; and
``(v) the term `well managed' has the meaning given such
term in section 2(o)(9) of the Bank Holding Company Act of
1956 (12 U.S.C. 1841(o)(9)).''; and
(ii) in section 44, by amending subsection (e) to read as
follows:
``(e) Exception for Banks in Default or in Danger of
Default.--
``(1) General exception.--The responsible agency may,
without regard to paragraph (1), (3), (4), or (5) of
subsection (b) or paragraph (2), (4), or (5) of subsection
(a), approve an application under subsection (a)(1) for
approval of a merger transaction if--
``(A) the merger transaction involves 1 or more banks in
default or in danger of default; or
``(B) the Corporation provides assistance under section
13(c) to facilitate such merger transaction.
``(2) Concentration limit exception.--The responsible
agency may, without regard to subsection (b)(2), approve an
application under subsection (a)(1) for approval of a merger
transaction if--
``(A) the merger transaction involves 1 or more banks in
default or in danger of default and the responsible agency
determines, based on clear and convincing evidence, that
consummation of the proposed interstate merger transaction is
necessary to prevent significant economic disruption or
significant adverse effects on financial stability, and the
Corporation has not received any qualified bid from another
institution that is not subject to the prohibition in
subsection (b)(2); or
``(B) the Corporation provides assistance under section
13(c) to facilitate such merger transaction and the
responsible agency determines, based on clear and convincing
evidence, that consummation of the proposed interstate merger
transaction is necessary to prevent significant economic
disruption or significant adverse effects on financial
stability, and the Corporation has not received any qualified
bid from another institution that is not subject to the
prohibition in subsection (b)(2).
``(3) Qualified bid defined.--In this subsection, the term
`qualified bid' has the meaning given that term in section
18(c)(13)(C).''.
(B) Bank holding company act of 1956.--The Bank Holding
Company Act of 1956 (12 U.S.C. 1841 et seq.) is amended--
(i) in section 3(d), by amending paragraph (5) to read as
follows:
``(5) Exception for banks in default or in danger of
default.--
``(A) General exception.--The Board may, without regard to
subparagraph (B) or (D) of paragraph (1) or paragraph (3),
approve an application pursuant to paragraph (1)(A) if--
``(i) the application is for an acquisition of 1 or more
banks in default or in danger of default; or
``(ii) the application is for an acquisition with respect
to which assistance is provided under section 13(c) of the
Federal Deposit Insurance Act.
``(B) Concentration limit exception.--The Board may,
without regard to paragraph (2), approve an application
pursuant to paragraph (1)(A) if--
``(i) the application is for the acquisition of 1 or more
banks in default or in danger of default and the Board
determines, based on clear and convincing evidence, that
consummation of the proposed acquisition is necessary to
prevent significant economic
[[Page H2068]]
disruption or significant adverse effects on financial
stability, and the Corporation has not received any qualified
bid from another institution that is not subject to the
prohibition in paragraph (2); or
``(ii) the application is for an acquisition with respect
to which assistance is provided under section 13(c) of the
Federal Deposit Insurance Act and the Board determines, based
on clear and convincing evidence, that consummation of the
proposed acquisition is necessary to prevent significant
economic disruption or significant adverse effects on
financial stability, and the Corporation has not received any
qualified bid from another institution that is not subject to
the prohibition in paragraph (2).
``(C) Qualified bid defined.--In this paragraph, the term
`qualified bid' has the meaning given that term in section
18(c)(13)(C) of the Federal Deposit Insurance Act.''; and
(ii) in section 4(i)(8), by amending subparagraph (B) to
read as follows:
``(B) Exception.--Subparagraph (A) shall not apply to an
acquisition if--
``(i) such acquisition involves an insured depository
institution in default or in danger of default and the Board
determines, based on clear and convincing evidence, that
consummation of the proposed acquisition is necessary to
prevent significant economic disruption or significant
adverse effects on financial stability, and the Corporation
has not received any qualified bid (as defined in section
18(c)(13)(C) of the Federal Deposit Insurance Act) from
another institution that is not subject to the prohibition in
paragraph (2); or
``(ii) the Federal Deposit Insurance Corporation provides
assistance under section 13 of the Federal Deposit Insurance
Act to facilitate such acquisition and the Board determines,
based on clear and convincing evidence, that consummation of
the proposed acquisition is necessary to prevent significant
economic disruption or significant adverse effects on
financial stability, and the Corporation has not received any
qualified bid (as defined in section 18(c)(13)(C) of the
Federal Deposit Insurance Act) from another institution that
is not subject to the prohibition in paragraph (2).''.
(2) Concentration limit with respect to consolidated
liabilities.--Section 14(c) of the Bank Holding Company Act
of 1956 (12 U.S.C. 1852(c)) is amended--
(A) by redesignating paragraphs (1), (2), and (3) as
subparagraphs (A), (B), and (C), respectively;
(B) by striking ``With the'' and inserting the following:
``(1) In general.--With the''; and
(C) by adding at the end the following:
``(2) Limitation.--The Board may provide written consent
for an acquisition described in paragraph (1)(A) or in
paragraph (1)(B) only if the Board determines, based on clear
and convincing evidence, that consummation of the proposed
acquisition is necessary to prevent significant economic
disruption or significant adverse effects on financial
stability, and the Corporation has not received any qualified
bid (as defined in section 18(c)(13)(C) of the Federal
Deposit Insurance Act) from another institution that is not
subject to the prohibition in subsection (b).''.
(b) Congressional Notification and Justification for
Waivers.--
(1) In general.--Whenever the Board of Governors of the
Federal Reserve System, the Comptroller of the Currency, or
the Federal Deposit Insurance Corporation waives a
concentration limit under section 18(c)(13)(B) or section
44(e) of the Federal Deposit Insurance Act or under section
3(d)(5), section 4(i)(8)(B), or section 14(c)(2) of the Bank
Holding Company Act of 1956, in connection with the
acquisition of a bank or insured depository institution in
default or in danger of default, or in connection with an
acquisition with respect to which the Federal Deposit
Insurance Corporation provides assistance under section 13 of
the Federal Deposit Insurance Act, the waiving agency and the
Federal Deposit Insurance Corporation, jointly, shall, not
later than 30 days after such waiver, submit a written report
to the Committee on Financial Services of the House of
Representatives and the Committee on Banking, Housing, and
Urban Affairs in the Senate containing--
(A) a justification for the waiver, including an analysis
of why it was necessary to prevent significant economic
disruption or significant adverse effects on financial
stability;
(B) a description of alternative bids or outcomes
considered, including efforts to solicit and encourage bids
from entities that would not require a waiver;
(C) an explanation of why alternative bids were not
selected, if applicable; and
(D) any recommendations for legislative or regulatory
changes to improve competition in future insured depository
institution resolutions.
(2) Public disclosure.--The waiving agency submitting a
report under paragraph (1) and the Federal Deposit Insurance
Corporation shall make the report publicly available on their
respective websites, subject to redactions for confidential
supervisory information and any other information described
under section 552(b) of title 5, United States Code.
(c) Limitation on Considering Bad Faith Bids in Least Cost
Determination.--Section 13(c)(4) of the Federal Deposit
Insurance Act (12 U.S.C. 1823(c)(4)), as amended by section
607(a)(3), is further amended by adding at the end the
following:
``(J) Limitation on considering bad faith bids.--In making
a determination under this paragraph of whether an exercise
of authority is the least costly to the Deposit Insurance
Fund, the Corporation may not consider any application,
proposed application, or bid from a company, if such
application, proposed application, or bid would result in
violation of--
``(i) section 18(c)(13) or 44(b)(2); or
``(ii) section 3(d)(2), 4(i)(8), or 14 of the Bank Holding
Company Act of 1956.''.
SEC. 609. ADVANCING THE MENTOR-PROTEGE PROGRAM FOR SMALL
FINANCIAL INSTITUTIONS.
(a) In General.--Section 308 of the Financial Institutions
Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 1463
note) is amended by adding at the end the following new
subsection:
``(d) Financial Agent Mentor-Protege Program.--
``(1) In general.--The Secretary of the Treasury shall
establish a program to be known as the `Financial Agent
Mentor-Protege Program' (in this subsection referred to as
the `Program') under which a financial agent designated by
the Secretary or a large financial institution may serve as a
mentor, under guidance or regulations prescribed by the
Secretary, to a small financial institution to allow such
small financial institution--
``(A) to be prepared to perform as a financial agent; or
``(B) to improve capacity to provide services to the
customers of the small financial institution.
``(2) Outreach.--The Secretary shall hold outreach events
to promote the participation of financial agents, large
financial institutions, and small financial institutions in
the Program at least once a year.
``(3) Exclusion.--The Secretary shall issue guidance or
regulations to establish a process under which a financial
agent, large financial institution, or small financial
institution may be excluded from participation in the
Program.
``(4) Report.--The Secretary shall report to Congress
information pertaining to the Program, including--
``(A) the number of financial agents, large financial
institutions, and small financial institutions participating
in such Program; and
``(B) the number of outreach events described in paragraph
(2) held during the year covered by such report.
``(5) Definitions.--In this subsection:
``(A) Financial agent.--The term `financial agent' means
any national banking association designated by the Secretary
of the Treasury to be employed as a financial agent of the
Government.
``(B) Large financial institution.--The term `large
financial institution' means any entity regulated by the
Comptroller of the Currency, the Board of Governors of the
Federal Reserve System, the Federal Deposit Insurance
Corporation, or the National Credit Union Administration that
has total consolidated assets greater than or equal to
$50,000,000,000.
``(C) Rural depository institution.--The term `rural
depository institution' means a depository institution (as
defined in section 3 of the Federal Deposit Insurance Act)--
``(i) with total consolidated assets of less than
$10,000,000,000; and
``(ii) located in a rural area, as defined under section
1026.35(b)(2)(iv)(A) of title 12, Code of Federal
Regulations.
``(D) Small financial institution.--The term `small
financial institution' means--
``(i) any entity regulated by the Comptroller of the
Currency, the Board of Governors of the Federal Reserve
System, the Federal Deposit Insurance Corporation, or the
National Credit Union Administration that has total
consolidated assets less than or equal to $2,000,000,000;
``(ii) a minority depository institution; or
``(iii) a rural depository institution.''.
(b) Effective Date.--This section and the amendment made by
this section shall take effect 90 days after the date of the
enactment of this Act.
SEC. 610. AMERICAN ACCESS TO BANKING.
(a) Streamlining Application Process and Review of Capital
Raising by De Novo Regulated Institutions.--
(1) In general.--Each of the Federal financial institutions
regulatory agencies shall--
(A) for the purpose of streamlining the process of applying
to become a de novo regulated institution, conduct a review
of any application forms related to such process;
(B) to the extent practicable, gather information needed
from applicants seeking to become a de novo regulated
institution from other Federal Government agencies or public
sources to minimize information requests of such applicants;
and
(C) in consultation with the Securities and Exchange
Commission, review how de novo regulated institutions raise
capital while maintaining investor protections, including the
impact of--
(i) general capital raising restrictions; and
(ii) capital raising restrictions related to individuals
who are not accredited investors.
(2) Report.--Not later than 1 year after the date of the
enactment of this section, and annually for 5 years
thereafter, each of the Federal financial institutions
regulatory agencies shall submit to the Committee on
Financial Services of the House of Representatives and the
Committee on Banking, Housing, and Urban Affairs of the
Senate and publish on a public website of such agency a
report that contains--
[[Page H2069]]
(A) a description of the actions taken by such agency
pursuant to paragraph (1); and
(B) as appropriate, any administrative or legislative
recommendations with respect to the purpose described in
paragraph (1)(C).
(b) Improving Communication With De Novo Regulated
Institutions.--
(1) In general.--Each of the Federal financial institutions
regulatory agencies shall, at the request of an applicant to
become a de novo regulated institution, designate an employee
of the agency as a caseworker, who may perform such duty in
addition to the other duties of the employee.
(2) Caseworker duties.--Each caseworker described in
paragraph (1) shall, to the maximum extent practicable--
(A) meet with the lead organizers applying to become a de
novo regulated institution to provide a tutorial with respect
to the application process; and
(B) be the primary point of contact of the respective
Federal financial institutions regulatory agency for such
organizers during the application process.
(3) New caseworker.--Each agency described in paragraph (1)
may designate a new caseworker, as appropriate, to support
continuity based on staffing and responsibilities assigned to
the current caseworker.
(c) De Novo Mentor-Protege Partnerships.--
(1) In general.--At the request of an institution that
seeks to become a de novo regulated institution, each of the
Federal financial institutions regulatory agencies shall, to
the maximum extent practicable, provide a list to such
institution of similar types of institutions that--
(A) were recently approved to become a de novo regulated
institution; and
(B) are interested in volunteering to serve as a mentor to
provide advice about the de novo application process.
(2) Mentorship information.--Not later than 1 year after
the date of the enactment of this section, each of the
Federal financial institutions regulatory agencies shall
provide public information and directions on how an
institution may request a mentor or serve as a mentor as
described in paragraph (1).
(d) State and Stakeholder Engagement Plan.--
(1) In general.--Each of the Federal financial institutions
regulatory agencies shall develop a plan to--
(A) regularly consult with State regulators to promote
cooperation between State and Federal banking and credit
union agencies in the creation of de novo regulated
institutions, including responding to any State regulator
that requests assistance on how a State-chartered financial
institution can request Federal insurance;
(B) regularly consult with stakeholders, including
applicants to become de novo regulated institutions and
recently approved regulated institutions, to inform any
reforms that may support the creation of de novo regulated
institutions, including rural institutions, community
development financial institutions, and minority depository
institutions; and
(C) provide guidance, training material, and regular
workshops to assist any interested parties to understand such
agencies' processes.
(2) Submission to congress.--
(A) In general.--Not later than 2 years after the date of
the enactment of this section, and every 5 years thereafter,
each of the Federal financial institutions regulatory
agencies shall submit to the Committee on Financial Services
of the House of Representatives and the Committee on Banking,
Housing, and Urban Affairs of the Senate the respective plan
of such agency described in paragraph (1).
(B) Public comment.--With respect to developing the plan
described in paragraph (1), each of the Federal financial
institutions regulatory agencies shall--
(i) provide an opportunity for public comments; and
(ii) take such public comments into consideration.
(e) Definitions.--
(1) In general.--In this section:
(A) Federal banking agency.--The term ``Federal banking
agency'' has the meaning given the term in section 3 of the
Federal Deposit Insurance Act (12 U.S.C. 1813).
(B) Federal financial institutions regulatory agencies.--
The term ``Federal financial institutions regulatory
agencies'' has the meaning given the term in section 1003 of
the Federal Financial Institutions Examination Council Act of
1978 (12 U.S.C. 3302).
(C) Regulated institution.--The term ``regulated
institution'' means--
(i) with respect to a Federal banking agency, a depository
institution (as such term is defined in section 3 of the
Federal Deposit Insurance Act (12 U.S.C. 1813)) for which the
Federal banking agency is the appropriate Federal banking
agency (as such term is defined in such section 3); and
(ii) with respect to the National Credit Union
Administration, an insured credit union (as such term is
defined in section 101 of the Federal Credit Union Act (12
U.S.C. 1752)).
(D) State.--The term ``State'' means each of the several
States, the District of Columbia, and each territory of the
United States.
(E) State regulator.--The term ``State regulator'' means--
(i) with respect to a Federal banking agency, a State
banking regulator; and
(ii) with respect to the National Credit Union
Administration, the State regulatory agency having
jurisdiction over a State credit union (as such term is
defined in section 101 of the Federal Credit Union Act (12
U.S.C. 1752)).
(2) Rule of construction.--For purposes of this section,
the process of applying to become a de novo regulated
institution shall include the process of applying for Federal
deposit insurance, Federal share insurance, or membership in
the Federal Reserve System.
SEC. 611. PROMOTING NEW BANK FORMATION.
(a) Pilot Phase-in of Capital Standards.--The Federal
banking agencies may issue rules that provide for a 2-year
phase-in period for a qualifying community bank or its
depository institution holding company to meet any Federal
capital requirements that would otherwise be applicable to
the qualifying community bank or its depository institution
holding company, beginning on--
(1) the date on which the qualifying community bank became
an insured depository institution; or
(2) in the case of its depository institution holding
company, the date on which the qualifying community bank of
the depository institution holding company became an insured
depository institution.
(b) Pilot Changes to Business Plans.--
(1) In general.--During the 2-year period beginning on the
date on which a qualifying community bank became an insured
depository institution, the qualifying community bank or its
depository institution holding company may request to deviate
from a business plan that has been approved by the
appropriate Federal banking agency by submitting a request to
such agency pursuant to this section.
(2) Review of changes.--The appropriate Federal banking
agency shall, not later than the end of the 90-day period
beginning on the receipt of a request under paragraph (1)--
(A) approve, conditionally approve, or deny such request;
and
(B) notify the applicant of such decision and, if the
agency denies the request--
(i) provide the applicant with the reason for such denial;
and
(ii) suggest changes to the request that, if adopted, would
allow the agency to approve such request.
(3) Result of failure to act.--If the appropriate Federal
banking agency fails to approve or deny a request within the
90-day period required under paragraph (2), such request
shall be deemed to be approved.
(c) Pilot Program Study.--
(1) Study.--The Federal banking agencies shall, jointly,
carry out a study on the impact of the pilot program carried
out pursuant to subsections (a) and (b) of this section on
the formation of de novo insured depository institutions,
including such institutions which are rural depository
institutions, community development financial institutions,
and minority depository institutions, taking into account
safety and soundness, promoting competition, and expanding
access to affordable financial products and services to
underserved communities.
(2) Report to congress.--Not later than December 31, 2031,
the Federal banking agencies shall, jointly, issue a report
to the Committee on Financial Services of the House of
Representatives and the Committee on Banking, Housing, and
Urban Affairs of the Senate containing all findings and
determinations made in carrying out the study required under
paragraph (1).
(d) Study on De Novo Insured Depository Institutions.--
(1) Study.--The Federal banking agencies shall, jointly,
carry out a study on--
(A) the principal causes for the low number of de novo
insured depository institutions in the 10-year period ending
on the date of enactment of this subsection;
(B) ways to promote more de novo insured depository
institutions in areas currently underserved by insured
depository institutions; and
(C) ways to ensure de novo depository institutions,
including institutions which are rural depository
institutions, community development financial institutions,
and minority depository institutions, can utilize the
Community Bank Leverage Ratio.
(2) Report to congress.--Not later than the end of the 1-
year period beginning on the date of enactment of this Act,
the Federal banking agencies shall, jointly, issue a report
to the Committee on Financial Services of the House of
Representatives and the Committee on Banking, Housing, and
Urban Affairs of the Senate containing all findings and
determinations made in carrying out the study required under
paragraph (1).
(e) Definitions.--In this section:
(1) 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).
(2) Depository institution.--The term ``depository
institution'' has the meaning given the term in section 3 of
the Federal Deposit Insurance Act (12 U.S.C. 1813).
(3) Depository institution holding company.--The term
``depository institution holding company'' has the meaning
given the term in section 3 of the Federal Deposit Insurance
Act (12 U.S.C. 1813).
(4) Federal banking agency.--The term ``Federal banking
agency'' has the meaning given the term in section 3 of the
Federal Deposit Insurance Act (12 U.S.C. 1813).
(5) Insured depository institution.--The term ``insured
depository institution'' has
[[Page H2070]]
the meaning given the term in section 3 of the Federal
Deposit Insurance Act (12 U.S.C. 1813).
(6) Qualifying community bank.--The term ``qualifying
community bank'' means a depository institution that--
(A) including its holding company and all of its
subsidiaries and affiliates, has total combined assets of
less than $10,000,000,000; and
(B) became an insured depository institution between
January 1, 2026, and December 31, 2028.
SEC. 612. RURAL DEPOSITORIES REVITALIZATION STUDY.
(a) Study.--The Federal banking agencies shall, jointly,
carry out a study--
(1) to identify methods to improve the growth, capital
adequacy, and profitability of depository institutions in the
United States that primarily serve rural areas; and
(2) to identify Federal statutes (other than appropriations
Acts) or regulations of the Federal banking agencies that
limit--
(A) the methods identified under paragraph (1); or
(B) the establishment of de novo depository institutions in
rural areas.
(b) Report.--Not later than 1 year after the date of
enactment of this Act, the Federal banking agencies shall,
jointly, issue a report to Congress containing all findings
and determinations made in carrying out the study required
under subsection (a).
(c) Study on Rural Credit Unions.--The National Credit
Union Administration shall carry out a study--
(1) to identify methods to improve the growth, capital
adequacy, and profitability of credit unions in the United
States that primarily serve rural areas; and
(2) to identify Federal statutes (other than appropriations
Acts) or regulations of the National Credit Union
Administration that limit--
(A) the methods identified under paragraph (1); or
(B) the establishment of de novo credit unions in rural
areas.
(d) Report on Rural Credit Unions.--Not later than 1 year
after the date of enactment of this Act, the National Credit
Union Administration shall issue a report to Congress
containing all findings and determinations made in carrying
out the study required under subsection (c).
(c) Definitions.--In this section:
(1) Depository institution.--The term ``depository
institution'' has the meaning given that term in section 3 of
the Federal Deposit Insurance Act (12 U.S.C. 1813).
(2) Federal banking agencies.--The term ``Federal banking
agencies'' means the Board of Governors of the Federal
Reserve System, the Comptroller of the Currency, and the
Federal Deposit Insurance Corporation.
(3) Rural.--With respect to an area, the term ``rural'' has
the meaning given that term in section 1026.35(b)(2)(iv)(A)
of title 12, Code of Federal Regulations.
SEC. 613. DISCRETIONARY SURPLUS FUND.
(a) In General.--The dollar amount specified under section
7(a)(3)(A) of the Federal Reserve Act (12 U.S.C.
289(a)(3)(A)) is reduced by $115,000,000.
(b) Effective Date.--The amendment made by subsection (a)
shall take effect on September 30, 2035.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Arkansas (Mr. Hill) and the gentlewoman from California (Ms. Waters)
each will control 20 minutes.
The Chair recognizes the gentleman from Arkansas.
General Leave
Mr. HILL of Arkansas. Mr. Speaker, I ask unanimous consent that all
Members may have 5 legislative days in which to revise and extend their
remarks and include extraneous material on this bill.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Arkansas?
There was no objection.
Mr. HILL of Arkansas. Mr. Speaker, I yield myself such time as I may
consume.
Mr. Speaker, I rise in strong support today of our collaborative and
bipartisan bill titled: ``Housing for the 21st Century Act.''
Americans across our Nation have faced the tough reality of out-of-
control costs because of the recent spike in inflation coming out of
the pandemic.
President Trump has prioritized addressing affordability, and the
Financial Services Committee has been working on solutions in our
Committee's area of jurisdiction.
Alongside Ranking Member Waters, Chairman Flood of our Housing and
Insurance Subcommittee, and Ranking Member Cleaver of our Housing and
Insurance Subcommittee, together, we have introduced the Housing for
the 21st Century Act to deliver a straightforward approach to housing.
This includes building more homes and removing barriers standing in the
way with an eye towards driving down that marginal cost of a new unit.
Mr. Speaker, the Housing for the 21st Century Act will streamline
approvals and simplify the Federal and local housing process to give
rural and urban communities the tools they need to build homes faster.
Importantly, our bill helps banks access stable deposit funding. It
streamlines the exam process that is tailored particularly for our
vital community banks. It helps promote more community banks to do what
they do best, which is lend locally and support their communities.
I think it is important, Mr. Speaker, that on this House floor all of
us know that without our community banks and without vigorous lending,
homes don't get built. Our communities and regional banks play a key
role in that housing construction ecosystem.
When there are not enough homes, prices go up. The Housing for the
21st Century Act includes real bipartisan solutions to expand supply,
lower costs, and, more importantly, give our families more options.
Let's deliver this real solution and return the housing market back
to working for the very people that it should serve, the very people we
do serve in the people's House.
Mr. Speaker, I urge my colleagues to support this bill, and I reserve
the balance of my time.
Ms. WATERS. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I rise in support of H.R. 6644, the Housing for the 21st
Century Act, sponsored by myself and, of course, by Representatives
Hill, Cleaver, and Flood.
Our housing and homelessness crisis has reached a breaking point, as
millions of Americans each night struggle to find a decent, stable, and
affordable place to live. The struggle has real faces of our children's
teachers, working mothers, veterans, and, of course, children from all
over the country. The struggle is in our rural towns, urban areas, and
suburban neighborhoods across America.
On any given night, 800,000 people are experiencing homelessness in
the United States of America. Rents nationwide have soared by 47
percent, and home prices have skyrocketed 57 percent. Incomes haven't
kept pace with these increases, which means housing eats up more and
more of a family's paycheck.
As the lead Democrat on the House Financial Services Committee, it
has been my mission to fight to end this homelessness and housing
crisis. The Housing for the 21st Century Act is a critical first step
in that mission.
Passed in Committee with overwhelming bipartisan support, H.R. 6644
sets the stage for building and preserving more affordable homes in our
neighborhood. It makes many long overdue improvements to housing
programs, expands local development opportunities, and broadens access
to homeownership.
H.R. 6644 also includes a dozen bipartisan provisions to help small
banks like community development financial institutions, the CDFIs, and
minority depository institutions, the MDIs. It helps meet the housing
and other needs of our constituents.
The bill also addresses concerns from the 2023 banking crisis that
will now promote a safe, sound, and competitive banking system, one
that doesn't threaten our housing markets or our economy.
This package represents a historical, bipartisan agreement. I am
proud that Mr. Hill and I, along with Mr. Flood and Mr. Cleaver, have
been able to work together to prioritize the housing needs of millions
of Americans and advance this legislation.
Mr. Speaker, I also want to highlight House and committee Democrats
who worked tirelessly with me on this package. H.R. 6644 includes 25
provisions that come directly from bills championed and introduced by
House Democrats and another 16 provisions that House Democrats co-led.
I am excited that it includes my bill, H.R. 5077, which would allow
cities to use CDBG funds toward affordable housing construction.
It also includes H.R. 6774, which would finally create a pilot
program at the Federal Housing Administration to offer small-dollar
mortgages.
It includes my bill, H.R. 6773, which directs cities across America
to finally publish a database of their unused land so that developers
may be able to bid on it and build more housing.
[[Page H2071]]
Mr. Speaker, I am pleased that it includes my bill, H.R. 4544, to
encourage the formation of new banks including CDFIs and MDIs so that
borrowers will have more options when they want to buy a home.
{time} 1540
While we come today to pass this initial bill, let me be clear that
much more work is needed. We can't pass this bill, call it a night, and
then claim that this affordable housing and homelessness crisis is
over. A significant problem warrants a significant response, which
means that we need significant Federal investments to solve this
crisis.
Mr. Speaker, I hope that this administration is watching today and
learns something about true bipartisanship and getting things done for
the American people. Our bill is the type of bipartisan work that is
needed to tackle the crisis facing Americans. Among meaningless tweets,
empty promises, costly tariffs, and ridiculous policies like the 50-
year mortgage, while this affordability crisis rages on, Congress can
act tonight to support Americans who are looking for real housing
solutions.
Mr. Speaker, that is why I urge my colleagues to support this bill,
and I reserve the balance of my time.
Mr. HILL of Arkansas. Mr. Speaker, I yield myself such time as I may
consume. I include in the Record the CBO estimate for this bill.
EFFECTS ON DIRECT SPENDING AND REVENUES OF LEGISLATION CONSIDERED UNDER SUSPENSION OF THE RULES IN THE HOUSE OF
REPRESENTATIVES WEEK OF FEBRUARY 9, 2026
----------------------------------------------------------------------------------------------------------------
Additional
Information on
Bill Number Title Effect on Direct Effect on Revenues Direct Spending
Spending and Revenue
Effects
----------------------------------------------------------------------------------------------------------------
H.R. 6644....................... Housing for the Increase by at Increase by at Would not increase
21st Century Act, Least $500K. Least $500K. the deficit.
as amended.
----------------------------------------------------------------------------------------------------------------
Source: Congressional Budget Office.
Mr. HILL of Arkansas. Mr. Speaker, from Los Angeles, California, to
the capital city of Little Rock, Arkansas, I have heard directly, Mr.
Cleaver has heard directly from Kansas City, and other Members hear
directly about what is wrong at HUD. We are asked about how we can
improve these programs and make them work for the American people and
how they can have more accountability and more effectiveness for the
taxpayer dollars that are expended.
That is at the heart of the work that Mr. Cleaver and Mr. Flood have
done, as I say, benefiting a big city like the Los Angeles Basin all
the way to a capital city like Little Rock, Arkansas, and certainly to
Lincoln, Nebraska.
I am so pleased to have the leadership of the gentleman from Nebraska
(Mr. Flood), who serves as the chair in this Congress of the Housing
and Insurance Subcommittee. Mr. Flood has spent a lot of time working
with Mr. Cleaver to do exactly that: How to make these programs more
effective for the American people.
Mr. Speaker, I yield 3 minutes to the gentleman from Nebraska (Mr.
Flood), the author of the bill.
Mr. FLOOD. Mr. Speaker, I thank Chairman Hill; Ranking Member Waters;
and my counterpart on the Housing and Insurance Subcommittee, Ranking
Member Cleaver, for all of their work on this package.
This is how Congress is supposed to work. We all worked hard to bring
forth a bipartisan housing bill that addresses housing affordability.
The Housing for the 21st Century Act cuts costs, slashes red tape, and
will increase housing supply.
There is no question that the legislation before us is a historic
rewriting of our housing laws to bring our housing market into the 21st
century.
According to the National Association of Realtors, the median annual
existing home price in 2024 was up 69 percent relative to 1995, and
that figure is adjusted for inflation. The realtors also have data
showing that the median age of a first-time home buyer is 40 years old.
This is an absolutely astounding figure.
Some estimates put the gap between housing supply and demand at about
3.85 million units, while other estimates show it to be 5 million
units. This housing affordability challenge affects everyone, from
young people saving up for their first home, to middle-class workers
who are working as hard as they can to provide for their family and are
just trying to make the rent.
There is no silver bullet for fixing this problem, but I think that
this bill, this legislation, includes a range of meaningful housing
reforms that will add to housing supply and ultimately decrease housing
costs.
I will take a moment to highlight a few provisions that I think will
make a difference. Section 104 and 105 of the bill works to rightsize
the environmental reviews on both HUD and USDA housing projects to
properly reflect their impact on the environment. This legislation
ensures that these environmental reviews are properly tailored to the
real impact of a project going forward, and this change will ensure
that more housing projects break ground on time and on budget.
Section 201 includes reform of the HOME Investment Partnerships, the
largest block grant program at HUD dedicated to building affordable
housing. This bill would change HOME by slashing environmental reviews,
easing labor cost burdens like the ones created by section 3 HUD
requirements, and providing greater flexibility for cities and towns
across the country to use HOME dollars to promote homeownership.
Section 301 makes important changes for manufactured housing. I give
a special thanks to Congressman John Rose and his extremely important
bill that would remove the requirement that a manufactured home be
built with a chassis. That saves money. That one change is going to
enable a significant growth for manufactured housing, and it will
reduce the cost of manufactured homes.
Finally, title 6 of this bill adds meaningful community banking
reforms to this legislation. It eases the burdens for de novo banks so
that new banks can get off the ground. It tailors regulatory
requirements for the smallest community banks, and it reforms the bank
resolution process.
The SPEAKER pro tempore (Mr. Sessions). The time of the gentleman has
expired.
Mr. HILL of Arkansas. Mr. Speaker, I yield an additional 30 seconds
to the gentleman from Nebraska.
Mr. FLOOD. Mr. Speaker, the bottom line is that the Housing for the
21st Century Act is a comprehensive, bipartisan housing reform package
that will increase housing supply, slash government regulations that
keep housing costs high, and unleash our community banking sector.
Mr. Speaker, I thank everybody who worked on this bill, especially
the gentleman from Missouri (Mr. Cleaver), Chairman Hill, and Ranking
Member Waters.
Mrs. BEATTY. Mr. Speaker, I yield 3 minutes to the gentleman from
Missouri (Mr. Cleaver), who is also the ranking member of the
Subcommittee on Housing and Insurance.
Mr. Cleaver, along with Mr. Flood, worked hard to reauthorize and
reform HOME, which is in this bill.
Mr. CLEAVER. Mr. Speaker, I thank Mrs. Beatty for yielding me time.
Mr. Speaker, I rise in support of H.R. 6644, also known as the
Housing for the 21st Century Act. This legislation, introduced by
Chairman Hill, Ranking Member Waters, Chairman Flood, and me, advanced
out of the Financial Services Committee by an impressive 50-1 vote.
This legislation reflects input from Democrats, Republicans, and
hundreds of organizations nationwide. If enacted, the Housing for the
21st Century Act would streamline regulations, expand affordable
housing financing, and modernize Federal housing programs to
significantly expand the Nation's housing supply. Passage of this bill
would be historic not because it is extraordinary but because it is
overdue.
For decades, chronic underbuilding in the United States has driven up
housing costs, priced millions out of homeownership, strained household
budgets, and constrained employers' abilities to attract workers.
Americans want their Representatives to act on the rising cost of
living. For most American families, the monthly housing payment is
their single largest expense. Representing about one-third of the
Consumer Price Index, housing is also the single largest component of
overall inflation.
I commend Chairman Hill, Ranking Member Waters, Chairman Flood, and
[[Page H2072]]
others for prioritizing good policy over bad politics on this important
matter. I am especially proud that the Housing for the 21st Century Act
includes the HOME Reform Act, which represents the most significant
update to the HOME Investment Partnerships Program since its creation.
This bill may not increase spending, but it ensures that every dollar
we do spend goes further. Although this legislation is significant, we
must view this legislation as the beginning of a new era of
accommodating the American movement of housing for all.
In the Senate, the introduction of the ROAD to Housing Act highlights
growing bipartisan cooperation on housing. I look forward to
negotiations with the Senate on a bicameral product that can make it to
the President's desk for signature and, above all, a product that would
deliver tangible results for the American people.
Mr. HILL of Arkansas. Mr. Speaker, I yield myself such time as I may
consume.
Mr. Speaker, I thank Mr. Cleaver for his work with Mr. Flood on this
bill and his leadership in trying to find bipartisan solutions.
Mr. Speaker, I met last week with the community development folks
from Little Rock, Arkansas. Kevin Howard, my friend who runs Housing
and Community Development for the city of Little Rock, was in, singing
the praises of this bill of how it will make their work so much more
effective were the 21st century housing proposal enacted into law
today.
Mr. Speaker, I include in the Record a link to a list of over 70
organizations that support this bill being enacted: https://
financialservices.house.gov/news/documentsingle. aspx?DocumentID=411018
{time} 1550
Mr. Speaker, I yield 2 minutes to the gentleman from Michigan (Mr.
Huizenga), the vice chairman of our full committee, the Committee on
Financial Services, for remarks on this bill.
Mr. HUIZENGA. Mr. Speaker, I thank the chairman for yielding.
Mr. Speaker, housing is vital in every State and in every one of our
communities. As of 2025, my home State of Michigan was short more than
141,000 homes, leaving many qualified home buyers on the sidelines.
The Housing for the 21st Century Act will help increase home
production, which to date has failed to keep pace with rising demand,
leading to more affordability challenges for all Americans.
Additionally, today's legislation rightly focuses on modernizing
housing policies while increasing affordable housing and accelerating
development.
``Affordability'' is the keyword here. I have a professional
background in construction, housing development, and home sales. My own
family has been involved for over three generations in construction.
Now, my cousins have their ready-mix concrete company, and I have our
aggregate businesses and home development.
I can tell you, Mr. Speaker, we have seen firsthand how government at
every level, local, State, and Federal, has put up barrier after
barrier to affordable housing. In fact, based on recent analysis, the
average home in Michigan costs almost double to build than what the
average family can afford.
The Housing for the 21st Century Act would help reduce Federal
barriers to building housing by expanding the Federal and local housing
systems. Now, the American people need the same level of commitment
from their State and local governments, as well.
Mr. Speaker, I urge my colleagues to support this well-crafted,
bipartisan bill.
Mrs. BEATTY. Mr. Speaker, I yield 2 minutes to the gentleman from
Illinois (Mr. Foster), the ranking member of the Subcommittee on
Financial Institutions.
Mr. FOSTER. Mr. Speaker, I rise in support of H.R. 6644, the Housing
for the 21st Century Act, which makes improvements to Federal programs
that will support housing development and affordability.
This bipartisan bill will broaden access to homeownership, expedite
new construction, and lay the foundation for more cost-effective
housing developments across the Nation.
This legislation includes 25 housing provisions that were introduced
by Democrats and 12 banking provisions that passed our committee with
broad bipartisan support.
To support local lenders and access to financing, this bill includes
bipartisan reforms to strengthen our community banks, credit unions,
CDFIs, and MDIs.
As ranking member of the Subcommittee on Financial Institutions, I
support the inclusion of these reforms, including the SMART Act and the
Least Cost Exception Act, which I am proud to co-lead.
The banking provisions are narrowly tailored to help our small
community financial institutions, to provide regulatory relief for
well-managed institutions, to increase access to insured deposits, and
to establish safeguards to prevent the largest too-big-to-fail banks
from growing even larger during times of economic stress.
This legislation is a strong bipartisan effort to spur new housing
development, improve affordability, and increase access to financing.
Mr. Speaker, I encourage a ``yes'' vote on this bill.
Mr. HILL of Arkansas. Mr. Speaker, I yield myself such time as I may
consume.
Mr. Speaker, I appreciate the work of my friend from Illinois on this
bill, the important work he has done both in the housing portion and on
the work we have done together on nonbank designations. I appreciate
his leadership.
Mr. Speaker, he mentioned the importance of community banks, from
Texas to California, Arkansas, and across this country. The reason why
it is so important to link housing and lowering housing cost policies,
these HUD-related policies, to banking is because our banks under $10
billion, Mr. Speaker, make about 60 percent of all the home
construction loans in our country.
Therefore, that is why the ranking member and I, and our committee,
have chosen to come to this House floor to talk about some specific
housing measures. I want to make sure that the American people know
that we know that the supply of housing has to be financed. Some 60
percent of that is done by our local community banks and credit unions
spread across this country.
Mr. Speaker, I yield 2 minutes to the gentlewoman from Texas (Ms. De
La Cruz), the author of section 106 in this bill.
Ms. De La CRUZ. Mr. Speaker, I thank my colleague for yielding.
Mr. Speaker, today, I rise in support of H.R. 6644, the Housing for
the 21st Century Act, sponsored by Chairman Hill.
This legislation includes dozens of commonsense, bipartisan housing
solutions that meet the needs of the housing crisis that everyday
Americans are dealing with.
I am particularly proud to see three key provisions of mine included
to update the FHA's mortgage insurance loan limits for residential
multifamily construction to bring more homes on the market, ensure
veterans are made aware of the VA loan products they are eligible for,
and strengthen the coordination of our Federal housing agencies to
maximize the impact of our current Federal housing programs.
H.R. 6644 is a critical step toward putting our housing sector back
on the right footing, and I urge my colleagues to join me in support.
Mrs. BEATTY. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I rise in support of H.R. 6644, the Housing for the 21st
Century Act.
I certainly applaud Ranking Member Waters and Chairman Flood for
working together and for the inclusiveness of this package. I am proud
to have five affordable housing bills included in this overwhelmingly
bipartisan package.
One of my bills makes key provisions to the HOME program at HUD to
ease compliance for small properties and to recognize community land
trusts as eligible HOME fund recipients.
The package also expands foreclosure mitigation counseling to
delinquent borrowers and raises the public welfare investment, or PWI,
cap to 20 percent to free up capital for historic investments in
affordable housing and community development.
Among other community bank reforms, H.R. 6644 includes my bill to
[[Page H2073]]
modernize the treatment of reciprocal deposits to help small- and mid-
size banks, like Fifth Third Bank, Huntington Bank, KeyBank, improve
liquidity and better compete for large accounts.
Finally, Mr. Speaker, it includes a measure that I have long
championed in Congress, a bill to codify the financial agent mentor-
protege program at the Treasury to help small banks and minority
deposit institutions, or MDIs, survive. We also have one AdelFi bank in
my district, and I thank them for all the work that they have done with
that. It will also help them survive and thrive.
Lastly, again, I thank Ranking Member Waters and Chairman Hill for
their leadership on this package, and I urge my colleagues to support
the package.
Mr. Speaker, I reserve the balance of my time.
Mr. HILL of Arkansas. Mr. Speaker, I yield 3 minutes to the gentleman
from Tennessee (Mr. Rose), who has authored the very important
manufactured housing provisions, which will immediately help our
consumers, our families, across this country have a more affordable
housing option.
Mr. ROSE. Mr. Speaker, I thank the chairman, my good friend from
Arkansas, for yielding me time today.
Mr. Speaker, I rise in strong support of the Housing for the 21st
Century Act.
This legislation will lower housing costs for millions of Americans,
including tens of thousands of Tennessee families whom I represent.
I am proud that my bipartisan bill, the Housing Supply Expansion Act
of 2025, was included in the Housing for the 21st Century Act. My bill
removes an outdated Federal chassis requirement that has stifled
manufactured housing construction for decades.
{time} 1600
When we hear the term ``manufactured home,'' many people still think
``mobile home.'' That is because Federal law has forced us to adhere to
a permanent chassis requirement. Since 1974, manufactured homes have
had to be built on a permanently installed steel chassis, even after
the home is placed on a site, never to be moved again.
This bill will give millions of Americans a path to homeownership
without going over budget. It will provide young and low-income
families with the opportunity to build equity instead of being locked
into rising rents year after year.
You don't have to be a trained economist to understand why home
prices and rental rates have skyrocketed. Demand continues to outpace
supply in our cities, suburbs, and even in many rural communities
across this country.
The simple truth is that we need more homes. This bill takes
meaningful steps toward making that happen. We are reducing unnecessary
regulatory barriers, removing financing roadblocks, and modernizing HUD
programs.
Municipalities across the country have restricted or outright banned
homes built on permanent steel chassis. The result has been less
construction, higher costs, and fewer opportunities for working
families to own where they live.
Yet, manufactured housing is one of the most effective ways to expand
housing supply quickly and affordably. By removing this outdated
Federal restriction, more homes will be built, and ultimately prices
will come down for everyone.
The experts in the manufactured housing space tell us that allowing
manufacturers to design a single-family home without a permanent
chassis will bring about modern low-profile builds, multistory
construction, and urban-friendly designs. It will also improve
efficiency and eliminate unnecessary steel, waste, and cost.
We cannot sit by while 50-year-old policies prevent folks from
signing on the dotted line. Imagine if the Federal Government had
mandated that every vehicle coming off of Henry Ford's assembly line
had to remain permanently attached to a trailer in order to be owned.
We all know that didn't happen because the trailer was a means of
transportation, not a permanent feature.
Housing should work the same way. There is a reason why this bill has
so much bipartisan support.
The SPEAKER pro tempore. The time of the gentleman has expired.
Mr. HILL of Arkansas. Mr. Speaker, I yield an additional 15 seconds
to the gentleman from Tennessee.
Mr. ROSE. Mr. Speaker, it includes commonsense solutions for building
more homes, lowering costs, and giving more Americans dignity and
stability.
Mrs. BEATTY. Mr. Speaker, I reserve the balance of my time.
Mr. HILL of Arkansas. Mr. Speaker, Mr. Rose certainly talked about
cost savings due to the deregulatory nature of this bill, lowering
costs. All of us here know that we have learned in our committee work
that 25 percent of the price of a new home in America is due to
regulatory costs, State, local, and Federal. So, our bill has that as a
theme.
Mr. Speaker, I yield 2 minutes to the gentleman from Iowa (Mr. Nunn).
He has worked hard at making sure these improvements in the Housing for
the 21st Century Act fully apply to housing in rural areas, not just
urban areas.
Mr. NUNN of Iowa. Mr. Speaker, I thank Chairman Hill and the team
here for a bipartisan bill that helps rural America have a successful
pathway to housing in the 21st century.
My legislation includes the Rural Housing Service Reform Act, the
most meaningful update to rural housing in decades.
Whether you are in Des Moines or Ottumwa, the number one expense
Iowans are facing is housing. The American Dream of homeownership is
starting to slip away.
In Iowa, renters spend 40 percent of their income just making sure
they have a roof over their head, and the average home buyer is now in
their mid-forties.
It doesn't have to be like this. This bipartisan legislation, led
with my colleague Representative Cleaver, a Democrat from Missouri,
makes commonsense changes to fix the housing programs that have been
broken for far too long.
My bill means a young couple in Creston, Iowa, can buy their first
home, and seniors in Osceola, Iowa, can stay in their communities.
This bill will help hundreds of thousands of Iowans and millions of
Americans into homeownership and continued homeownership.
Let's restore the dream of homeownership for all of our country. This
is a win for everyone. It is affordable. It is achievable. Let's get it
done.
Mrs. BEATTY. Mr. Speaker, I reserve the balance of my time.
Mr. HILL of Arkansas. Mr. Speaker, I yield 1 minute to the
gentlewoman from California (Mrs. Kim), a great member of our House
Financial Services Committee and a senior member on the House Foreign
Affairs Committee.
Mrs. KIM. Mr. Speaker, I thank the gentleman for yielding.
I rise today in support in the Housing for the 21st Century Act.
After years of inaction, my home State of California has earned an F in
housing affordability. Under Gavin Newsom and Sacramento leadership,
hardworking families are being left in the dust.
That is why I am taking action to help address this crisis for my
constituents in Orange, Riverside, and San Bernardino Counties.
Earlier this Congress, I worked with President Trump to secure
historic SALT relief for Californians. That relief, combined with the
provisions in the Housing for the 21st Century Act, will bring the
dream of homeownership closer to reality for working families in my
district.
For far too long, working-class Americans have been priced out of the
housing market. The Housing for the 21st Century Act confronts that
problem head-on by exploring where our housing system has left these
families behind.
For the first time since 2006, we are finally increasing the capital
that financial institutions can invest in affordable housing and
community development projects. There is finally the willingness to
tackle this housing crisis head-on.
The SPEAKER pro tempore (Mr. LaHood). The time of the gentlewoman has
expired.
Mr. HILL of Arkansas. Mr. Speaker, I yield an additional 15 seconds
to the gentlewoman from California.
Mrs. KIM. The Housing for the 21st Century Act builds on the success
of
[[Page H2074]]
the working-class families tax cuts and deserves swift passage so we
can deliver results for American families.
Mrs. BEATTY. Mr. Speaker, I yield myself the balance of my time.
H.R. 6644 represents an important first step, a strong bipartisan
one, in our fight to ensure affordable, decent housing for everyone in
America. It provides a critical foundation for us to end the affordable
housing and homelessness crisis.
This bill would update and improve existing Federal housing programs
by expanding local development opportunities and modernizing existing
housing programs in communities across the country. It will also
support community financial institutions to meet the housing needs in
their communities.
I am pleased to advance this legislation to the floor with Ranking
Member Waters, Chairman Hill, Mr. Flood, and Mr. Cleaver, and I am
proud that it includes 20 housing provisions and five banking
provisions championed by committee Democrats. This bill is a true
testament, Mr. Speaker, to bipartisanship.
I, again, urge my colleagues to support this bill, and I yield back
the balance of my time.
Mr. HILL of Arkansas. Mr. Speaker, I yield myself the balance of my
time.
Mr. Speaker, first, I have to say a big thank-you to Ranking Member
Waters; the ranking member of our subcommittee, Mr. Cleaver; and the
tireless leadership of Mike Flood, the chair of our Subcommittee on
Housing and Insurance. They have collaborated for a year to bring these
proposals to the House floor today.
I reiterate that the linkage of housing and community banking is two
sides of the same coin that leads to a better outcome, more choice,
more accessibility, more affordability, and more housing choices for
the American people.
This bill also has important HUD oversight, which I think is critical
to make sure those who are tenants in HUD programs have the care,
oversight, and safe and sound conditions they deserve.
Mr. Speaker, I also thank the staff on both sides of the aisle for
their work in putting this bill together, particularly on the majority
side, Ed Skala and Maura Woosley, for their collaboration on the
banking provisions with their minority colleagues and the community
banking provisions.
I urge Members on both sides of the aisle to provide a ``yes'' vote
for this important banking and housing legislation.
Mr. Speaker, I yield back the balance of my time.
{time} 1610
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from Arkansas (Mr. Hill) that the House suspend the rules and
pass the bill, H.R. 6644, as amended.
The question was taken.
The SPEAKER pro tempore. In the opinion of the Chair, two-thirds
being in the affirmative, the ayes have it.
Mr. HILL of Arkansas. Mr. Speaker, on that I demand the yeas and
nays.
The yeas and nays were ordered.
The SPEAKER pro tempore. Pursuant to clause 8 of rule XX, further
proceedings on this motion will be postponed.
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