[Congressional Record Volume 172, Number 85 (Tuesday, May 19, 2026)]
[House]
[Pages H3588-H3624]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
PROVIDING FOR THE CONCURRENCE BY THE HOUSE IN THE SENATE AMENDMENT TO
H.R. 6644, WITH AMENDMENT
Mr. HILL of Arkansas. Mr. Speaker, I move to suspend the rules and
agree to the resolution (H. Res. 1299) providing for the concurrence by
the House in the Senate amendment to H.R. 6644, with amendment.
The Clerk read the title of the resolution.
The text of the resolution is as follows:
H. Res. 1299
Resolved, That upon the adoption of this resolution the
House shall be considered to have taken from the Speaker's
table the bill, H.R. 6644, with the Senate amendment thereto,
and to have concurred in the Senate amendment with the
following amendment:
In lieu of the matter proposed to be inserted by the
amendment of the Senate to the text of the bill, insert the
following:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``21st
Century ROAD to Housing Act''.
(b) Table of Contents.--The table of contents for this Act
is as follows:
Sec. 1. Short title; table of contents.
TITLE I--OPPORTUNITIES FOR HOUSING
Sec. 101. Reforms to housing counseling and financial literacy
programs.
Sec. 102. Federal guidelines for point access block buildings.
Sec. 103. Exemption on construction or modification of residential
housing located on an infill site.
Sec. 104. Database of publicly owned land.
Sec. 105. FHA Small-Dollar Mortgages.
Sec. 106. Temperature Sensor Pilot Program.
Sec. 107. Housing supply frameworks.
TITLE II--BUILDING MORE IN AMERICA
Sec. 201. Increasing housing in opportunity zones.
Sec. 202. Whole-Home Repairs Act.
Sec. 203. Community Investment and Prosperity Act.
Sec. 204. Addition of affordable housing construction as an eligible
activity.
Sec. 205. Better Use of Intergovernmental and Local Development (BUILD)
Housing Act.
Sec. 206. Unlocking Housing Supply Through Streamlined and Modernized
Reviews Act.
Sec. 207. Grants for planning and implementation associated with
affordable housing.
Sec. 208. Innovation Fund.
Sec. 209. Accelerating Home Building Act.
Sec. 210. Revitalizing Empty Structures Into Desirable Environments
(RESIDE) Act.
Sec. 211. Housing Affordability Act.
TITLE III--MANUFACTURED HOUSING FOR AMERICA
Sec. 301. Housing Supply Expansion Act.
Sec. 302. Modular Housing Production Act.
Sec. 303. Property Improvement and Manufactured Housing Loan
Modernization Act.
TITLE IV--ACCESSING THE AMERICAN DREAM
Sec. 401. Creating incentives for small-dollar loan originators.
Sec. 402. Small-dollar mortgage points and fees.
Sec. 403. Appraisal Industry Improvement Act.
Sec. 404. Helping More Families Save Act.
Sec. 405. Choice in Affordable Housing Act.
TITLE V--PROGRAM REFORM
Sec. 501. HOME Investment Partnerships Reauthorization and Reform Act.
Sec. 502. Rural Housing Service Reform Act.
Sec. 503. Incentivizing local solutions to homelessness.
TITLE VI--VETERANS AND HOUSING
Sec. 601. Military Service Question.
Sec. 602. Housing Unhoused Disabled Veterans Act.
TITLE VII--OVERSIGHT AND ACCOUNTABILITY
Sec. 701. Requiring annual testimony and oversight from housing
regulators.
Sec. 702. FHA reporting requirements on safety and soundness.
Sec. 703. United States Interagency Council on Homelessness oversight.
Sec. 704. Appraisal Modernization Act.
TITLE VIII--ACCOUNTABILITY, COORDINATION, STUDIES, AND REPORTING
Sec. 801. HUD-USDA-VA Interagency Coordination Act.
Sec. 802. Streamlining Rural Housing Act.
Sec. 803. Improving self-sufficiency of families in HUD-subsidized
housing.
Sec. 804. GAO studies.
Sec. 805. Improving public housing agency accountability.
TITLE IX--STRENGTHENING COMMUNITY BANKS' ROLE IN HOUSING
Sec. 901. Community bank deposit access.
Sec. 902. Keeping deposits local.
Sec. 903. Tailored regulatory updates for supervisory testing.
Sec. 904. Credit union board modernization.
[[Page H3589]]
Sec. 905. Systemic risk authority transparency.
Sec. 906. Least cost exception.
Sec. 907. Failing bank acquisition fairness.
Sec. 908. Advancing the mentor-protege program for small financial
institutions.
Sec. 909. American access to banking.
Sec. 910. Promoting new bank formation.
Sec. 911. Rural depositories revitalization study.
Sec. 912. Discretionary surplus fund.
TITLE X--HOME-OWNERSHIP FOR MAIN STREET AMERICA
Sec. 1001. Homes are for people, not corporations.
TITLE XI--CENTRAL BANK DIGITAL CURRENCY
Sec. 1101. Central bank digital currency.
TITLE XII--MISCELLANEOUS
Sec. 1201. Severability.
Sec. 1202. No additional funds authorized.
TITLE I--OPPORTUNITIES FOR HOUSING
SEC. 101. REFORMS TO HOUSING COUNSELING AND FINANCIAL
LITERACY PROGRAMS.
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) Reviews.--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 compliance
with all program requirements; and
``(ii) may take into account the organization'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
housing 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
prepurchase 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;
``(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 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. 102. 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 of 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) Treatment of Projects.--Projects assisted under this
section shall be treated as projects assisted under the
Community Development Block Grant program under title I of
the Housing and Community Development Act of 1974 (42 U.S.C.
5301 et seq.).
(f) Rule of Construction.--Nothing in this section may be
construed to preempt a State or local building code.
(g) 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.
[[Page H3590]]
SEC. 103. EXEMPTION ON CONSTRUCTION OR MODIFICATION OF
RESIDENTIAL HOUSING LOCATED ON AN INFILL SITE.
(a) 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.
(b) 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--
(1) determines whether the implementation of this section--
(A) reduced the amount of time it takes to review an
application for assistance under the sections of the Housing
Act of 1949 identified in subsection (a); and
(B) reduced the administrative cost of providing such
assistance;
(2) describes how the implementation of this section
affects the affordable housing sector in rural America; and
(3) includes any legislative recommendations from the
Secretary of Agriculture.
(c) Definitions.--In this section:
(1) Greenfield.--The term ``greenfield'' means a site that
has not been developed, including a woodland, farmland, and
an open field.
(2) Infill site.--The term ``infill site''--
(A) means a site that is served by existing infrastructure,
including water lines, sewer lines, and roads; and
(B) 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. 104. DATABASE OF PUBLICLY OWNED LAND.
(a) In General.--Section 104(b) of the Housing and
Community Development Act of 1974 (42 U.S.C. 5304(b)) is
amended--
(1) in paragraph (5), by striking ``and'' at the end;
(2) in paragraph (6), by striking the period at the end and
inserting ``; and''; and
(3) 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.''.
(b) Effective Date.--The amendment made by this subsection
shall take effect on October 1, 2026.
SEC. 105. 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;
(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. 106. 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 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
[[Page H3591]]
(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) Treatment of Projects.--Projects assisted under this
section shall be treated as projects assisted under the
Community Development Block Grant program under title I of
the Housing and Community Development Act of 1974 (42 U.S.C.
5301 et seq.).
(h) 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.
(i) 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 (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. 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 (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. 107. 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;
[[Page H3592]]
(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 subsection (b);
(2) a summary of the localities that have adopted
recommendations from the guidelines and best practices,
pursuant to subsection (b);
(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 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 (b).
TITLE II--BUILDING MORE IN AMERICA
SEC. 201. INCREASING HOUSING IN OPPORTUNITY ZONES.
(a) Covered Grant Defined.--In this section, the term
``covered grant'' means any competitive grant relating to the
construction, modification, rehabilitation, or preservation
of housing, as determined by the Secretary of Housing and
Urban Development.
(b) Priority.--When awarding a covered grant, the Secretary
of Housing and Urban Development may give additional weight
to applicants with proposed activities or projects that are
located in or substantially and directly benefit a community
designated as a qualified opportunity zone under section
1400Z-1 of the Internal Revenue Code of 1986.
SEC. 202. WHOLE-HOME REPAIRS ACT.
(a) Definitions.--In this section:
(1) Affordable unit.--The term ``affordable unit'' means a
unit for which the monthly rental payment is not more than 30
percent of the gross income of an individual earning at or
below 80 percent of the area median income, as defined by the
Secretary.
(2) Assisted unit.--The term ``assisted unit'' means a unit
that undergoes repair or rehabilitation work through a whole-
home repairs program administered by an implementing
organization under this section.
(3) Eligible home-owner.--The term ``eligible home-owner''
means a home-owner--
(A) with a household income that--
(i) is not more than 80 percent of the area median income;
or
(ii) meets the income eligibility requirements for
receiving assistance or benefits under a specified program,
as defined in paragraph (11); and
(B) who is--
(i) an owner of record as evidenced by a publicly recorded
deed, or other document recorded by the Bureau of Indian
Affairs, and occupies the home on which repairs are to be
conducted as their principal residence;
(ii) an owner-occupant of the manufactured home on which
repairs are to be conducted;
(iii) an owner-occupant of the cooperative housing unit on
which repairs are to be conducted; or
(iv) an owner who can demonstrate an ownership interest in
the property, or trust land leasehold, on which repairs are
to be conducted, including a person who has inherited an
interest in that property.
(4) Eligible landlord.--The term ``eligible landlord''
means an individual--
(A) who owns, as determined by the relevant implementing
organization, fewer than 10 eligible rental properties, with
a majority of affordable units and not more than 25 total
units, operated as primary residences in which a majority
ownership interest is held by the individual, the spouse of
the individual, or the dependent children of the individual,
or any closely held legal entity controlled by the
individual, the spouse of the individual, or the dependent
children of the individual, either individually or
collectively; and
(B) who agrees to the provisions described in subsection
(b)(3).
(5) Eligible rental property.--The term ``eligible rental
property'' means a residential property that--
(A) is leased, or offered exclusively for lease, as a
primary residence by an eligible landlord; and
(B) includes affordable units.
(6) Forgivable loan.--The term ``forgivable loan'' means a
loan--
(A) made to an eligible landlord;
(B) that is secured by a lien recorded against a
residential property; and
(C) that may be forgiven by the implementing organization
not later than the date that is 3 years after the completion
of the repairs if the eligible landlord has maintained
compliance with the loan agreement described in subsection
(b)(3).
(7) Implementing organization.--The term ``implementing
organization''--
(A) means a unit of general local government or a State
that--
(i) will administer a whole-home repairs program through an
agency, department, or other entity; or
(ii) enters into agreements with 1 or more local
governments, Indian Tribes, municipal authorities, other
governmental authorities, including a tribally designated
housing entity, or qualified nonprofit organizations, to
administer a whole-home repairs program as a subrecipient;
and
(B) does not include a redundant entity in a jurisdiction
already served by a grantee under subsection (b).
(8) Indian tribe.--The term ``Indian Tribe'' has the
meaning given the term in section 4 of the Native American
Housing Assistance and Self-Determination Act of 1996 (25
U.S.C. 4103).
(9) Qualified nonprofit.--The term ``qualified nonprofit''
means a nonprofit organization that--
(A) has received funding, as a recipient or subrecipient,
through--
(i) the Community Development Block Grant program under
title I of the Housing and Community Development Act of 1974
(42 U.S.C. 5301 et seq.);
(ii) the HOME Investment Partnerships program under
subtitle A of title II of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 12741 et seq.);
(iii) the Lead-Based Paint Hazard Reduction grant program
under section 1011 of the Residential Lead-Based Paint Hazard
Reduction Act of 1992 (42 U.S.C. 4852), a grant under the
Healthy Homes Initiative administered by the Secretary
pursuant to sections 501 and 502 of the Housing and Urban
Development Act of 1970 (12 U.S.C. 1701z-1, 1701z-2), or a
grant under the Older Adult Home Modification Grants Program
authorized under the Consolidated Appropriations Act, 2024
(Public Law 118-42), or any successor Act, to make safety and
functional home modification repairs and renovations to meet
the needs of low-income seniors to enable them to remain in
their primary residence;
(iv) the Self-Help and Assisted home-ownership Opportunity
program authorized under section 11 of the Housing
Opportunity Program Extension Act of 1996 (42 U.S.C. 12805
note);
(v) a rural housing program under title V of the Housing
Act of 1949 (42 U.S.C. 1471 et seq.); or
(vi) the Neighborhood Reinvestment Corporation established
under the Neighborhood Reinvestment Corporation Act (42
U.S.C. 8101 et seq.);
(B) has coordinated, performed, or otherwise been engaged
in weatherization, lead remediation, or home-repair work for
not less than 2 years;
(C) has been certified by the Environmental Protection
Agency, or by a State authorized by the Environmental
Protection Agency to administer a certification program, as--
(i) eligible to carry out activities under the lead
renovation, repair, and painting program under section 402(c)
or 404 of the Toxic Substances Control Act (15 U.S.C.
2682(c), 2684); or
(ii) a Home Certification Organization under the Energy
Star program established by section 324A of the Energy Policy
and Conservation Act (42 U.S.C. 6294a) or the WaterSense
program under section 324B of that Act (42 U.S.C. 6294b), or
recognized or otherwise approved by the Environmental
Protection Agency as a Home Certification Organization under
either of those programs; or
(D) is a community development financial institution, as
defined in section 103 of the Community Development Banking
and Financial Institutions Act of 1994 (12 U.S.C. 4702).
(10) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
[[Page H3593]]
(11) Specified program.--For purposes of paragraph
(3)(A)(ii), the term ``specified program'' means any of the
following:
(A) The Medicaid program established under title XIX of the
Social Security Act (42 U.S.C. 1396 et seq.).
(B) The State Children's Health Insurance Program
established under title XXI of the Social Security Act (42
U.S.C. 1397aa et seq.).
(C) The supplemental security income benefits program
established under title XVI of the Social Security Act (42
U.S.C. 1381 et seq.).
(D) The supplemental nutrition assistance program
established under the Food and Nutrition Act of 2008 (7
U.S.C. 2011 et seq.).
(E) The temporary assistance for needy families program
established under part A of title IV of the Social Security
Act (42 U.S.C. 601 et seq.).
(12) State.--The term ``State'' means--
(A) each State of the United States;
(B) the District of Columbia;
(C) the Commonwealth of Puerto Rico;
(D) any territory or possession of the United States; and
(E) an Indian Tribe.
(13) Tribally designated housing entity.--The term
``tribally designated housing entity'' has the meaning given
the term in section 4 of the Native American Housing
Assistance and Self-Determination Act of 1996 (25 U.S.C.
4103).
(14) Whole-home repairs.--The term ``whole-home repairs''
means modifications, repairs, or updates to home-owner or
renter-occupied units to address--
(A) physical and sensory accessibility for individuals with
disabilities and older adults, such as bathroom and kitchen
modifications, installation of grab bars and handrails,
guards and guardrails, lifting devices, ramp additions or
repairs, sidewalk addition or repair, or doorway or hallway
widening;
(B) habitability and safety concerns, such as repairs
needed to ensure residential units are fit for human
habitation and free from defective conditions or health and
safety hazards; or
(C) energy and water efficiency, resilience, and
weatherization.
(b) Pilot Program.--
(1) Establishment.--There is authorized a Pilot Program to
provide grants to implementing organizations to administer a
whole-home repairs program for eligible home-owners and
eligible landlords.
(2) Use of funds.--An implementing organization that
receives a grant from appropriated funds made available for
this subsection--
(A) shall provide grants to eligible home-owners to
implement whole-home repairs not covered by other Federal
home repair programs up to a maximum amount per unit, which
maximum amount should--
(i) reflect local construction costs and the level of
repairs needed in each unit; and
(ii) be calculated and approved by the Secretary;
(B) shall provide loans, which may be forgivable, to
eligible landlords to implement whole-home repairs not
covered by other Federal home repair programs for individual
affordable units, public and common use areas within the
property, and common structural elements up to a maximum
amount per unit, area, or element, as applicable, which
maximum amount should--
(i) reflect local construction costs; and
(ii) be calculated and approved by the Secretary;
(C) shall evaluate, or provide assistance to eligible home-
owners and eligible landlords to evaluate, whole-home repair
program funds provided under this subsection with Federal,
State, Tribal, and local home repair programs to provide the
greatest benefit to the greatest number of eligible landlords
and eligible home-owners and avoid duplication of benefits
and redundancies for the same home repairs;
(D) shall require that--
(i) all repairs funded or facilitated through an award
under this subsection have been completed;
(ii) if repairs are not completed and the plan for whole-
home repairs is not updated to reflect the new scope of work,
that the loan or grant is repaid on a prorated basis based on
completed work; and
(iii) any unused grant or loan balance is returned to the
implementing organization, and is reused by the implementing
organization for a new whole-home repair grant or loan under
this subsection;
(E) may use not more than 5 percent of the awarded funds to
carry out related functions, including workforce training for
home repair professions, which shall be related to efforts to
increase the number of home repairs performed and approved by
the Secretary;
(F) may use not more than 10 percent of the awarded funds
for administrative expenses;
(G) shall comply with Federal accessibility requirements
and standards under applicable Federal fair housing and civil
rights laws and regulations, including section 504 of the
Rehabilitation Act of 1973 (29 U.S.C. 794); and
(H) shall ensure that rental properties assisted under
subparagraph (B) shall be treated as projects assisted under
title I of the Housing and Community Development Act of 1974
(42 U.S.C. 5301 et seq.).
(3) Loan agreement.--In a loan agreement with an eligible
landlord under this subsection, an implementing organization
shall include provisions establishing that the eligible
landlord shall, for each eligible rental property for which a
loan is used to fund repairs under this subsection--
(A) comply with Federal accessibility requirements and
standards under applicable Federal fair housing and civil
rights laws and regulations, including section 504 of the
Rehabilitation Act of 1973 (29 U.S.C. 794); and
(B)(i) if the landlord is renting the assisted units
available in the eligible rental property to tenants
receiving tenant-based rental assistance under section 8(o)
of the United States Housing Act of 1937 (42 U.S.C.
1437f(o)), under another tenant-based rental assistance
program administered by the Secretary or the Secretary of
Agriculture, or under a tenant-based rental subsidy provided
by a State or local government, comply with the program
requirements under the relevant tenant-based rental
assistance program; or
(ii) if the eligible landlord is not renting to tenants
receiving rental-based assistance as described in clause
(i)--
(I)(aa) offer to extend the lease of current tenants on
current terms, other than the terms described in subclause
(iv) for not less than 3 years beginning after the completion
of the repairs, unless the lease is terminated due to failure
to pay rent, performance of an illegal act within the rental
unit, or a violation of an obligation of tenancy that the
tenants failed to correct after notice; and
(bb) if the tenant of an assisted unit moves out of the
assisted unit at any point in the 3-year period following the
loan agreement, maintain the unit as an affordable unit for
the remainder of the 3-year period;
(II) provide documentation verifying that the property,
upon completion of approved renovations, has met all
applicable State and local housing and building codes;
(III) attest that the landlord has no known serious
violations of renter protections that have resulted in fines,
penalties, or judgments during the preceding 10 years; and
(IV) cap annual rent increases for each assisted unit at 5
percent of base rent or at the rate of inflation, whichever
is lower, for not less than 3 years beginning after the
completion of the repairs.
(4) Application.--
(A) In general.--An implementing organization desiring an
award under this subsection shall submit to the Secretary an
application that includes--
(i) the geographic scope of the whole-home repairs program
to be administered by the implementing organization,
including the plan to address need in any rural, Tribal,
suburban, or urban area within a jurisdiction;
(ii) a plan for selecting subrecipients, if applicable;
(iii) a description of how the implementing organization
plans to execute the coordination of Federal, State, Tribal,
and local home repair programs, including programs
administered by the Department of Energy, the Department of
the Interior, the Department of Veteran Affairs, or the
Department of Agriculture, to increase efficiency and reduce
redundancy;
(iv) available data on the need for affordable and quality
housing within the geographic scope of the whole-home repairs
program, and any plans to preserve affordability through the
term of the award;
(v) a description of how the implementing organization
plans to process and verify applications for grants from
eligible home-owners and applications for loans from eligible
landlords; and
(vi) such other information as the Secretary requires to
determine the ability of an applicant to carry out a program
under this subsection.
(B) Considerations.--In making awards under this
subsection, the Secretary shall--
(i) with respect to applications submitted by States other
than the District of Columbia and the territories of the
United States, prioritize those applications with a
demonstrated plan to--
(I) make a good-faith effort to implement the Pilot Program
in every jurisdiction; and
(II) provide nonmetropolitan areas, or subrecipients
serving non-metropolitan areas if applicable, with a share of
total funds commensurate with their population;
(ii) aim to select applicants so that the awardees
collectively span diverse geographies, with an intent to
understand the impact of the Pilot Program under this
subsection in urban, suburban, rural, and Tribal settings;
and
(iii) not disqualify implementing organizations that were
awarded grants under the Pilot Program in prior application
cycles.
(5) Program information.--The Secretary shall make
available to grant recipients under this subsection
information regarding existing Federal programs for which
grant recipients may coordinate or provide assistance in
coordinating applications for those programs in accordance
with paragraph (2)(C).
(6) Grant number.--In each year in which an award is made
under this subsection, the Secretary shall award assistance
to--
(A) not less than 2, and not more than 10, implementing
organizations, as application numbers and funding permit; and
(B) not more than 1 implementing organization in any State.
(7) Loans that are not forgiven.--If a loan made by an
implementing organization under paragraph (2)(B) is not
forgiven, the loan repayment funds shall be reused by the
implementing organization for a new whole-home repair grant
or loan under this subsection, which shall remain subject to
the original terms of the assistance awarded under this
subsection.
[[Page H3594]]
(8) Supplement, not supplant.--Amounts awarded under this
subsection to implementing organizations shall supplement,
not supplant, other Federal, State, Tribal, and local funds
made available to those entities.
(9) Streamlining program delivery and ensuring
efficiency.--To the extent possible, in carrying out the
Pilot Program under this subsection, the Secretary shall--
(A) endeavor to improve efficiency of service delivery, as
well as the experience of and impact on the taxpayer, by
encouraging programmatic collaboration and information
sharing across Federal, State, Tribal, and local programs for
home repair or improvement, including programs administered
by the Department of Agriculture, the Department of the
Interior, the Department of Veterans Affairs, or the
Department of Energy; and
(B) enhance collaboration and cross-agency streamlining
efforts that reduce the burden of multiple income
verification processes and applications on the eligible home-
owner, the eligible landlord, the implementing organization,
and the Federal Government, including by establishing
assistance application procedures for income eligibility
under this subsection that recognize income eligibility
determinations for assistance using any of the criteria under
subsection (a)(3)(A) that have been used for assistance
applications during the 1-year period preceding the date on
which an eligible home-owner or eligible landlord applies for
assistance under this subsection.
(10) Reporting requirements.--
(A) Annual report.--An implementing organization that
receives a grant under this subsection shall submit to the
Secretary an annual report on initial funding that includes--
(i) the number of units served, including reporting on both
home-ownership and rental units, as well as accessible units;
(ii) the average cost per unit for modifications or repairs
and the nature of those modifications or repairs, including
reporting on accessibility in both home-ownership and rental
units;
(iii) the number of applications received, served, denied,
or not completed, disaggregated by geographic area;
(iv) the aggregated demographic data of grant recipients,
which may include data on income range, urban, suburban, and
rural residency, age, and racial and ethnic identity;
(v) the aggregated demographic data of loan recipients,
which may include data on income range, urban, suburban, and
rural residency, age, and racial and ethnic identity;
(vi) an affirmation that the implementation organization
has complied with the applicable regulations, including
compliance with Federal accessibility requirements;
(vii) in the first year of receiving a grant, and as
certified in subsequent reports, a comprehensive plan to
prevent waste, fraud, and abuse in the administration of the
Pilot Program, which shall include, at a minimum--
(I) a policy enacted and enforced by the implementing
organization to monitor ongoing expenditures under this
subsection and ensure compliance with applicable regulations;
(II) a policy enacted and enforced by the implementing
organization to detect and deter fraudulent activity,
including fraud occurring in individual projects and patterns
of fraud by parties involved in the expenditure of funds
under this subsection;
(III) a statement setting forth any violations detected by
the implementing organization during the previous calendar
year, including details about steps taken to achieve
compliance and any remedial measures; and
(IV) a certification by the chief executive or most senior
compliance officer of the organization that the organization
maintains sufficient staff and resources to effectively carry
out the above-mentioned policies; and
(viii) such other information as the Secretary may require.
(B) Reporting requirement alignment.--To limit the costs of
implementing the Pilot Program under this subsection, the
Secretary shall endeavor, to the extent possible, to
structure reporting requirements such that they align with
the data reporting requirements in place for funding streams
that implementing organizations are likely to use together
with funding from this subsection, including the reporting
requirements under--
(i) the Community Development Block Grant program under
title I of the Housing and Community Development Act of 1974
(42 U.S.C. 5301 et seq.);
(ii) the HOME Investment Partnerships program under
subtitle A of title II of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 12741 et seq.);
(iii) the Weatherization Assistance Program for low-income
persons established under part A of title IV of the Energy
Conservation and Production Act (42 U.S.C. 6861 et seq.); and
(iv) the Native American Housing Assistance and Self-
Determination Act of 1996 (25 U.S.C. 4101 et seq.).
(C) Pilot program period reports.--Not less frequently than
twice during the period in which the Pilot Program
established under this subsection operates, the Office of
Inspector General of the Department of Housing and Urban
Development shall complete an assessment of the
implementation of measures to ensure the fair and legitimate
use of the Pilot Program.
(D) Summary to congress.--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 an annual report providing a summary of
the data provided under subparagraphs (A) and (C) during the
1-year period preceding the report and all data previously
provided under those subparagraphs.
(11) Environmental review.--A grant under this subsection
shall be--
(A) treated as assistance 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); and
(B) subject to the regulations promulgated by the Secretary
to implement such section.
(12) Termination.--The Pilot Program established under this
subsection shall terminate on October 1, 2031.
SEC. 203. COMMUNITY INVESTMENT AND PROSPERITY ACT.
(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 the term 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 the term 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.
SEC. 204. ADDITION OF AFFORDABLE HOUSING CONSTRUCTION AS AN
ELIGIBLE ACTIVITY.
(a) Eligible Activity.--Section 105(a) of the Housing and
Community Development Act of 1974 (42 U.S.C. 5305(a)) is
amended--
(1) in paragraph (25)(D), by striking ``and'' at the end;
(2) in paragraph (26), by striking the period at the end
and inserting ``; and''; and
(3) by adding at the end the following:
``(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.''.
(b) 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''.
(c) Applicability.--The amendments made by this section
shall apply with respect only to amounts appropriated after
the date of enactment of this Act.
SEC. 205. BETTER USE OF INTERGOVERNMENTAL AND LOCAL
DEVELOPMENT (BUILD) HOUSING ACT.
(a) 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
[[Page H3595]]
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.''.
(b) 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--
(1) by striking ``State or unit of general local
government'' each place it appears and inserting ``State,
Indian Tribe, or unit of general local government'';
(2) 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
(3) 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) Implementation.--
(1) In general.--Except as provided in paragraph (2), a
designation of assistance under section 13 of the Department
of Housing and Urban Development Act, as added by subsection
(a), shall only apply with respect to funds appropriated
after the date of enactment of this Act.
(2) Exception.--If a grantee of assistance administered by
the Secretary of Housing and Urban Development combines funds
appropriated before and after the date of enactment of this
Act to carry out a project, section 13 of the Department of
and Urban Development Act, as added by subsection (a), shall
not apply to that assistance.
SEC. 206. UNLOCKING HOUSING SUPPLY THROUGH STREAMLINED AND
MODERNIZED REVIEWS ACT.
(a) Definitions.--In this section:
(1) Infill project.--The term ``infill project'' means a
project that--
(A) occurs 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 substantially surrounded by
residential or commercial development;
(D) will repurpose a vacant or underutilized parcel of
land, or a dilapidated or abandoned structure; and
(E) will serve a residential or commercial purpose.
(2) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
(b) NEPA Streamlining for HUD Housing-related Activities.--
(1) In general.--The Secretary shall, in accordance with
section 553 of title 5, United States Code, and section 103
of the National Environmental Policy Act of 1969 (42 U.S.C.
4333), 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.
(ii) Supportive services, including health care, housing
services, permanent housing placement, day care, nutritional
services, short-term payments 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.
(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 home-buyers in the purchase of
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 home-owner or renter assistance for the
repair or replacement of HVAC, hot water heaters, and other
necessary 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
section 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 of up to 4 scattered site
existing dwelling units where there is a maximum of 4 units
on any 1 site.
(iv) Acquisitions (including leasing) of, 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 section
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--
(I) a maximum number of units to be determined by the
Secretary; and
(II) a limitation on the change in building size of not
more than 20 percent.
(iii) New construction, development, demolition,
acquisition, or disposition of 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 of 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) The voluntary acquisition of properties--
(I) located in--
(aa) a floodway;
(bb) a floodplain; or
(cc) any other area, clearly delineated by the grantee; and
(II) that have been impacted by a predictable environmental
threat to the safety and well-being of program beneficiaries
caused or exacerbated by a federally declared disaster.
(c) Implementation.--For purposes of implementing the
streamlining of environmental review for housing-related
activities under subsection (b), the agency actions carried
out under that subsection--
(1) shall only apply with respect to funds appropriated
after the effective date of those actions; and
(2) shall not apply with respect to a grantee that combines
funds appropriated before and after the effective date of
those actions to carry out a project.
(d) 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 an annual report during the 5-year period
beginning on the date that is 2 years after the date of
enactment of this Act that provides 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 section, 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.
SEC. 207. GRANTS FOR PLANNING AND IMPLEMENTATION ASSOCIATED
WITH AFFORDABLE HOUSING.
(a) Definitions.--In this section:
(1) Eligible entity.--The term ``eligible entity'' means--
(A) a State, insular area, metropolitan city, or urban
county, as those terms are defined in section 102 of the
Housing and Community Development Act of 1974 (42 U.S.C.
5302); 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
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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 (42 U.S.C.
12705).
(4) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
(b) Establishment.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall establish a
program to award grants on a competitive basis to eligible
entities to assist planning and implementation activities
associated with affordable housing, except that such grant
awards may not be used for construction, alteration, or
repair work.
(c) Use of Amounts.--
(1) By regional planning agencies.--If an eligible entity
that receives amounts under this section is an eligible
entity described in subsection (a)(1)(B), the eligible entity
shall use those 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 an eligible entity described in
subsection (a)(1)(A), the eligible entity shall use those
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 those amounts for administrative costs.
(d) Coordination.--To the extent practicable, the Secretary
shall coordinate with the Administrator of the Federal
Transit Administration in carrying out this section.
(e) Expiration of Authority.--After the expiration of the
5-year period beginning on the date of enactment of this Act,
the Secretary may not newly establish a program as described
in this section.
(f) Sunset.--The program established under this section
shall terminate on the date that is 5 years after the date of
enactment of this Act.
SEC. 208. INNOVATION FUND.
(a) Definitions.--In this section:
(1) Attainable housing.--The term ``attainable housing''
means housing that serves households earning not more than
120 percent of the area median income, if the majority of the
housing units are affordable to households earning not more
than 60 percent of the area median income.
(2) Eligible entity.--The term ``eligible entity'' means--
(A) a metropolitan city or urban county, as those terms are
defined in section 102 of the Housing and Community
Development Act of 1974 (42 U.S.C. 5302), that has
demonstrated an objective improvement in housing supply
growth, as determined by the Secretary, whose methodology for
determining such growth is published in the Federal Register
to allow for public comment not less than 90 days before the
date on which the notice of funding opportunity is made
available; or
(B) a unit of general local government or an Indian Tribe,
as those terms are defined in section 102 of the Housing and
Community Development Act of 1974 (42 U.S.C. 5302), that has
demonstrated an objective improvement in housing supply
growth, as determined by the Secretary, whose methodology for
determining such improvement is published in the Federal
Register to allow for public comment not less than 90 days
before the date on which the notice of funding opportunity is
made available.
(3) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
(b) Establishment of a Grant Program.--
(1) Establishment.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall establish a
program to award grants on a competitive basis to eligible
entities that have increased their local housing supply.
(2) List of eligible entities.--The Secretary shall make a
list of eligible entities publicly available on the website
of the Department of Housing and Urban Development.
(3) Eligible purposes.--An eligible entity receiving a
grant under this section may use funds to--
(A) carry out any of the activities described in section
105 of the Housing and Community Development Act of 1974 (42
U.S.C. 5305);
(B) carry out any of the activities permitted under the
Local and Regional Project Assistance Program established
under section 6702 of title 49, United States Code; and
(C) carry out initiatives of the eligible entity that
facilitate the expansion of the supply of attainable housing
and that supplement initiatives the eligible entity has
carried out, or is in the process of carrying out, as
specified in the application submitted under paragraph (4).
(4) Application.--
(A) In general.--An eligible entity seeking a grant under
this section shall submit to the Secretary an application
that provides--
(i) a description of each purpose for which the eligible
entity will use the grant, and an attestation that the grant
will be used only for 1 or more eligible purposes described
in paragraph (3);
(ii) data on characteristics of increased housing supply
during the 3-year period ending on the date on which the
application is submitted, which may include whether such
housing--
(I) serves households at a range of income levels; and
(II) has improved the quality and affordability of housing
in the jurisdiction of the eligible entity;
(iii) a description of how each eligible purpose described
in clause (i) may address a community need or advance an
objective, or an aspect of an objective, included in the
comprehensive housing affordability strategy and community
development plan of the eligible entity under part 91 of
title 24, Code of Federal Regulations, or any successor
regulation (commonly referred to as a ``consolidated plan'');
and
(iv) a description of how the eligible entity has carried
out, or is in the process of carrying out, initiatives that
facilitate the expansion of the supply of housing.
(B) Initiatives.--Initiatives that meet the criteria
described in paragraph (3)(C) include, but shall not be
limited to--
(i) increasing by-right uses, including duplex, triplex,
quadplex, and multifamily buildings, in areas of opportunity;
(ii) revising or eliminating off-street parking
requirements to reduce the cost of housing production;
(iii) revising minimum lot size requirements, floor area
ratio requirements, set-back requirements, building heights,
and bans or limits on construction that allow for denser and
more affordable development;
(iv) instituting incentives to promote dense development
for communities where increased density is needed;
(v) passing zoning overlays or other ordinances that enable
the development of mixed-income housing;
(vi) streamlining regulatory requirements and shortening
processes, increasing code enforcement and permitting
capacity, reforming zoning codes, or other initiatives that
reduce barriers to increasing housing supply and
affordability;
(vii) eliminating restrictions against accessory dwelling
units and expanding their by-right use;
(viii) using local tax incentives or public financing to
promote development of attainable housing;
(ix) streamlining environmental regulations;
(x) eliminating unnecessary manufactured-housing or
cooperative housing regulations and restrictions;
(xi) minimizing the impact of overburdensome energy and
water efficiency standards on housing costs; and
(xii) other activities that reduce the cost of
construction, as determined by the Secretary.
(5) Grants.--
(A) In general.--The Secretary shall make not fewer than 25
grants on an annual basis (unless amounts appropriated to
provide grant amounts consistent with subsection (b) are
insufficient, in which case fewer grants may be awarded),
with strong consideration of different geographical areas and
a relatively even spread of rural, suburban, and urban
communities.
[[Page H3597]]
(B) Limitations on awards.--No grant awarded under this
paragraph may be--
(i) more than $10,000,000; or
(ii) less than $250,000.
(C) Priority.--When awarding grants under this paragraph,
the Secretary shall give priority to an eligible entity that
has--
(i) demonstrated the use of innovative policies,
interventions, or programs for increasing housing supply; and
(ii) demonstrated a marked improvement in housing supply
growth, as needed.
(D) Grant administration and terms.--Projects assisted
under this section for activities described in sector 23 of
the North American Industry Classification System shall be
treated as projects assisted under the Community Development
Block Grant program under title I of the Housing and
Community Development Act of 1974 (42 U.S.C. 5301 et seq.).
(c) Rules of Construction.--Nothing in this section shall
be construed--
(1) to authorize the Secretary to mandate, supersede, or
preempt any local zoning or land use policy; or
(2) to affect the requirements of section 105(c)(1) of the
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C.
12705(c)(1)).
(d) Sunset.--The program established under this section
shall terminate on the date that is 7 years after the date of
enactment of this Act.
(e) Authorization of Appropriations.--
(1) In general.--There is authorized to be appropriated to
carry out this section $200,000,000 for each of fiscal years
2027 through 2031.
(2) Adjustment.--The amount authorized to be appropriated
under paragraph (1) shall be adjusted for inflation based on
the Consumer Price Index for all Urban Customers published by
the Bureau of Labor Statistics of the Department of Labor.
SEC. 209. ACCELERATING HOME BUILDING ACT.
(a) 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) a low-rise or mid-rise structure with not more than 25
dwelling units; and
(B) includes--
(i) an accessory dwelling unit;
(ii) infill development;
(iii) a duplex;
(iv) a triplex;
(v) a fourplex;
(vi) a cottage court;
(vii) a courtyard building;
(viii) a townhouse;
(ix) a multiplex; and
(x) any other structure with not less than 2 dwelling units
that the Secretary considers 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));
(B) a municipal membership organization; and
(C) 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 residential development on small parcels in previously
established areas for replacement with 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) Prereviewed designs.--The term ``prereviewed designs'',
also known as pattern books, means sets of construction plans
that are assessed and approved 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.
(b) Authority.--The Secretary is authorized to award grants
to eligible entities utilizing funds appropriated for such
purpose to select prereviewed designs of covered structures
of mixed-income housing for use in the jurisdiction of the
eligible entity, except that such grant awards 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 service area of
the eligible entity;
(2) the presence of high opportunity areas in the
jurisdiction of 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 amount 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) Reports.--The Secretary shall require eligible entities
receiving grants under this section to report on--
(1) the impacts of the activities carried out using the
grant amounts in improving the production and supply of
affordable housing;
(2) the prereviewed designs selected using the grant
amounts in their communities;
(3) the number of permits issued for housing development
utilizing prereviewed designs; and
(4) the number of housing units produced in developments
utilizing the prereviewed designs.
(f) Availability of Information.--The Secretary shall--
(1) to the extent possible, encourage localities to make
publicly available through a website information on the
prereviewed designs selected and submitted to the Secretary
by eligible entities receiving grants under this section,
including information on the benefits of use of those
designs; and
(2) collect, identify, and disseminate best practices
regarding such designs and make such information publicly
available on the website of the Department of Housing and
Urban Development.
(g) Design Adoption and Repayment.--The Secretary may
require an eligible entity to return to the Secretary any
grant funds received under this section if the selected
prereviewed designs submitted under this section have not
been adopted during the 5-year period following receipt of
the grant, unless that period is extended by the Secretary.
(h) Technical Assistance.--The Secretary may set aside not
more than 5 percent of amounts appropriated in a fiscal year
to provide technical assistance to grant recipients under
this section and pregrant technical assistance to prospective
applicants.
SEC. 210. REVITALIZING EMPTY STRUCTURES INTO DESIRABLE
ENVIRONMENTS (RESIDE) ACT.
(a) In General.--Subtitle A of title II of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C. 12741 et
seq.) is amended by adding at the end the following:
``SEC. 227. REVITALIZING EMPTY STRUCTURES INTO DESIRABLE
ENVIRONMENTS.
``(a) Definitions.--In this section:
``(1) Attainable housing.--The term `attainable housing'
means housing that serves households earning not more than
120 percent of the area median income, if the majority of the
housing units are affordable to households earning not more
than 60 percent of the area median income.
``(2) Converted housing unit.--The term `converted housing
unit' means a housing unit that is created using a covered
grant.
``(3) Covered grant.--The term `covered grant' means a
grant awarded under the Pilot Program.
``(4) Eligible entity.--The term `eligible entity' means a
participating jurisdiction.
``(5) Pilot program.--The term `Pilot Program' means the
Pilot Program established under subsection (b).
``(6) Vacant and abandoned building.--The term `vacant and
abandoned building' means a property--
``(A) that was constructed for use as a warehouse, factory,
mall, strip mall, or hotel, or for another industrial or
commercial use; and
``(B)(i) with respect to which--
``(I) a code enforcement inspection has determined that the
property is not safe; and
``(II) not less than 90 days have elapsed since the owner
was notified of the deficiencies in the property and the
owner has taken no corrective action; or
``(ii) that is subject to a court-ordered receivership or
nuisance abatement related to abandonment pursuant to State
or local law or otherwise meets the definition of an
abandoned property under State law.
``(b) Purpose of Grant Program.--Subject to the
availability of funds appropriated for this subsection, the
Secretary is authorized to establish a Pilot Program,
spanning from fiscal years 2027 through 2031, which shall
have the purpose of awarding grants on a competitive basis to
eligible entities to convert vacant and abandoned buildings
into attainable housing.
``(c) Amount of Grant.--
``(1) In general.--For any fiscal year for which not less
than $100,000,000 is made available to carry out the Pilot
Program, the amount of a covered grant shall be not less than
$1,000,000 and not more than $10,000,000.
``(2) Fiscal years with lower funding.--For any fiscal year
for which less than $100,000,000 is made available to carry
out the Pilot Program pursuant to subsection (b), the
Secretary shall seek to maximize the number of covered grants
awarded.
``(d) Relation to Formula Allocation.--A covered grant
awarded to an eligible entity shall be in addition to, and
shall not affect, the formula allocation for the eligible
entity under section 217.
``(e) Priority.--In awarding covered grants, the Secretary
shall give priority to an eligible entity that--
``(1) will use the covered grant in a community that is
experiencing economic distress;
``(2) will use the covered grant in a qualified opportunity
zone (as defined in section 1400Z-1(a) of the Internal
Revenue Code of 1986);
``(3) will use the covered grant to construct housing that
will serve a need identified in
[[Page H3598]]
the comprehensive housing affordability strategy and
community development plan of the eligible entity under part
91 of title 24, Code of Federal Regulations, or any successor
regulation (commonly referred to as a `consolidated plan');
or
``(4) has enacted ordinances to reduce regulatory barriers
to conversion of vacant and abandoned buildings to housing,
which shall not include any alteration of an ordinance that
governs safety and habitability.
``(f) Use of Funds.--An eligible entity may use a covered
grant for--
``(1) property acquisition;
``(2) demolition;
``(3) health hazard remediation;
``(4) site preparation;
``(5) construction, renovation, or rehabilitation; or
``(6) the establishment, maintenance, or expansion of
community land trusts or housing cooperatives.
``(g) Waiver Authority.--In administering covered grants,
the Secretary may waive, or specify alternative requirements
for, any statute or regulation that the Secretary administers
in connection with the obligation by the Secretary or the use
by eligible entities of covered grant funds (except for
requirements related to fair housing, nondiscrimination,
labor standards, or the environment) if the Secretary makes a
public finding that good cause exists for the waiver or
alternative requirement.
``(h) Study; Report.--Not later than 180 days after the
termination of the Pilot Program, the Secretary shall study
and submit to Congress a report on the impact of the Pilot
Program on--
``(1) improving the tax base of local communities;
``(2) increasing access to affordable housing, especially
for elderly individuals, disabled individuals, and veterans;
``(3) increasing home-ownership; and
``(4) removing blight.''.
(b) Technical and Conforming Amendment.--The table of
contents in section 1(b) of the Cranston-Gonzalez National
Affordable Housing Act (Public Law 101-625; 104 Stat. 4079)
is amended by inserting after the item relating to section
226 the following:
``Sec. 227. Revitalizing empty structures into desirable
environments.''.
SEC. 211. HOUSING AFFORDABILITY ACT.
(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 July 1, 2025. 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 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 amending subsection (b) to read as follows:
``(b) Publication.--
``(1) In general.--The Secretary shall publish in the
Federal Register any adjustments made to the Dollar Amounts.
``(2) Rounding.--The dollar amount of any adjustment
described in paragraph (1) shall be rounded to the next lower
dollar.'';
(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.
TITLE III--MANUFACTURED HOUSING FOR AMERICA
SEC. 301. HOUSING SUPPLY EXPANSION ACT.
(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(a)) is amended by adding the following:
``(7) Standards for manufactured homes built without a
permanent chassis.--
``(A) In general.--The Secretary, in consultation with the
consensus committee, shall issue revised standards for
manufactured homes built without a permanent chassis 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 that manufactured homes without
a permanent chassis have--
``(i) a distinct label, with revenue generated to be
deposited into the Manufactured Housing Fees Trust Fund
established under section 620(e)(1), to be issued by the
Secretary distinguishing manufactured home
[[Page H3599]]
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 (or any successor
regulation), 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 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 Certifications.--
``(1) In general.--
``(A) Initial certification.--Subject to subparagraph (B),
not later than 1 year after the date of enactment of the 21st
Century ROAD to Housing Act, a State shall submit to the
Secretary an initial certification that the laws and
regulations of the State--
``(i) treat any manufactured home 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, including
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(b) shall contain the required State
certification under subparagraph (A) 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 the 21st Century ROAD to Housing Act.
``(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 the 21st
Century ROAD to Housing Act.
``(B) Building, installation, and sale.--If a State does
not submit a certification under paragraph (1)(A) or (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 (as 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 (as 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. MODULAR HOUSING PRODUCTION ACT.
(a) Definitions.--In this section:
(1) Manufactured home.--The term ``manufactured home'' has
the meaning given the term in section 603 of the National
Manufactured Housing Construction and Safety Standards Act of
1974 (42 U.S.C. 5402).
(2) Modular home.--The term ``modular home'' means a home
that is constructed in a factory in 1 or more modules, each
of which meets applicable State and local building codes of
the area in which the home will be located, and that are
transported to the home building site, installed on
foundations, and completed.
(3) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
(b) FHA Construction Financing Programs.--
(1) In general.--The Secretary shall conduct a review of
Federal Housing Administration construction financing
programs to identify barriers to the use of modular home
methods.
(2) Requirements.--In conducting the review under paragraph
(1), the Secretary shall--
(A) identify and evaluate regulatory and programmatic
features that restrict participation in construction
financing programs by modular home developers, including
construction draw schedules; and
(B) identify administrative measures authorized under
section 525 of the National Housing Act (12 U.S.C. 1735f-3)
to facilitate program utilization by modular home developers.
(3) Report.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall publish a report
that describes the results of the review conducted under
paragraph (1), which shall include a description of
programmatic and policy changes that the Secretary recommends
to reduce or eliminate identified barriers to the use of
modular home methods in Federal Housing Administration
construction financing programs.
(4) Rulemaking.--
(A) In general.--Not later than 120 days after the date on
which the Secretary publishes the report under paragraph (3),
the
[[Page H3600]]
Secretary shall initiate a rulemaking to examine an
alternative draw schedule for construction financing loans
provided to modular and manufactured home developers, which
shall include the ability for interested stakeholders to
provide robust public comment.
(B) Determination.--Following the period for public comment
under subparagraph (A), the Secretary shall--
(i) issue a final rule regarding an alternative draw
schedule described in subparagraph (A); or
(ii) provide an explanation as to why the rule shall not
become final.
(c) Standardized Uniform Commercial Code for Modular
Homes.--The Secretary may award a grant to study the design
and feasibility of a standardized uniform commercial code for
modular homes, which shall evaluate--
(1) the utility of a standardized coding system for
serializing and securing modules, streamlining design and
construction, and improving modular home innovation; and
(2) a means to coordinate a standardized code with
financing incentives.
SEC. 303. PROPERTY IMPROVEMENT AND MANUFACTURED HOUSING LOAN
MODERNIZATION ACT.
(a) National Housing Act Amendments.--
(1) In general.--Section 2 of the National Housing Act (12
U.S.C. 1703) is amended--
(A) in subsection (a), by inserting ``construction of
additional or accessory dwelling units, as defined by the
Secretary,'' after ``energy conserving improvements,''; and
(B) in subsection (b)--
(i) in paragraph (1)--
(I) by striking subparagraph (A) and inserting the
following:
``(A) $75,000 if made for the purpose of financing
alterations, repairs, and improvements upon or in connection
with an existing single-family structure, including a
manufactured home;'';
(II) in subparagraph (B)--
(aa) by striking ``$60,000'' and inserting ``$150,000'';
(bb) by striking ``$12,000'' and inserting ``$37,500''; and
(cc) by striking ``an apartment house or'';
(III) by striking subparagraphs (C) and (D) and inserting
the following:
``(C)(i) $106,405 if made for the purpose of financing the
purchase of a single-section manufactured home; and
``(ii) $195,322 if made for the purpose of financing the
purchase of a multi-section manufactured home;
``(D)(i) $149,782 if made for the purpose of financing the
purchase of a single-section manufactured home and a suitably
developed lot on which to place the home; and
``(ii) $238,699 if made for the purpose of financing the
purchase of a multi-section manufactured home and a suitably
developed lot on which to place the home;'';
(IV) in subparagraph (E)--
(aa) by striking ``$23,226'' and inserting ``$43,377''; and
(bb) by striking the period at the end and inserting a
semicolon;
(V) in subparagraph (F), by striking ``and'' at the end;
(VI) in subparagraph (G), by striking the period at the end
and inserting ``; and''; and
(VII) by inserting after subparagraph (G) the following:
``(H) such principal amount as the Secretary may prescribe
if made for the purpose of financing the construction of an
accessory dwelling unit.'';
(ii) in the matter immediately preceding paragraph (2)--
(I) by striking ``regulation'' and inserting ``notice'';
(II) by striking ``increase'' and inserting ``set'';
(III) by striking ``(A)(ii), (C), (D), and (E)'' and
inserting ``(A) through (H)'';
(IV) by inserting ``, or as necessary to achieve the goals
of the Federal Housing Administration, periodically reset the
dollar amount limitations in subparagraphs (A) through (H)
based on justification and methodology set forth in advance
by regulation'' before the period at the end; and
(V) by adjusting the margins appropriately;
(iii) in paragraph (3), by striking ``exceeds--'' and all
that follows through the period at the end and inserting
``exceeds such period of time as determined by the Secretary,
not to exceed 30 years.'';
(iv) by striking paragraph (9) and inserting the following:
``(9) Annual indexing of certain dollar amount
limitations.--The Secretary shall develop or choose 1 or more
methods of indexing in order to annually set the loan limits
established in paragraph (1), based on data the Secretary
determines is appropriate for purposes of this section.'';
and
(v) in paragraph (11), by striking ``lease--'' and all that
follows through the period at the end and inserting ``lease
meets the terms and conditions established by the
Secretary''.
(2) Deadline for development or choice of new index;
interim index.--
(A) Deadline for development or choice of new index.--Not
later than 1 year after the date of enactment of this Act,
the Secretary of Housing and Urban Development shall develop
or choose 1 or more methods of indexing as required under
section 2(b)(9) of the National Housing Act (12 U.S.C.
1703(b)(9)), as amended by paragraph (1) of this subsection.
(B) Interim index.--During the period beginning on the date
of enactment of this Act and ending on the date on which the
Secretary of Housing and Urban Development develops or
chooses 1 or more methods of indexing as required under
section 2(b)(9) of the National Housing Act (12 U.S.C.
1703(b)(9)), as amended by paragraph (1) of this subsection,
the method of indexing established by the Secretary under
such section 2(b)(9) before the date of enactment of this Act
shall apply.
(b) HUD Study of Offsite Construction.--
(1) Definitions.--In this subsection:
(A) Offsite construction housing.--The term ``offsite
construction housing'' includes manufactured homes and
modular homes.
(B) Manufactured home.--The term ``manufactured home''
means any home constructed in accordance with the
construction and safety standards established under the
National Manufactured Housing Construction and Safety
Standards Act of 1974 (42 U.S.C. 5401 et seq.).
(C) Modular home.--The term ``modular home'' means a home
that is constructed in a factory in 1 or more modules, each
of which meets applicable State and local building codes of
the area in which the home will be located, and that are
transported to the home building site, installed on
foundations, and completed.
(2) Study.--Not later than 1 year after the date of the
enactment of this section the Secretary of Housing and Urban
Development shall conduct a study and submit to Congress a
report on the cost effectiveness of offsite construction
housing, that includes--
(A) an analysis of the advantages and the impact of
centralization in a factory and transportation to a
construction site on cost, precision, and materials waste;
(B) the extent to which offsite construction housing meets
housing quality standards under the National Standards for
the Physical Inspection of Real Estate, or other standards as
the Secretary may prescribe, compared to the extent for site-
built homes, for such standards;
(C) the expected replacement and maintenance costs over the
first 40 years of life of offsite construction homes compared
to those costs for site-built homes; and
(D) opportunities for use beyond single-family housing,
such as applications in accessory dwelling units, two- to
four-unit housing, and large multifamily housing.
TITLE IV--ACCESSING THE AMERICAN DREAM
SEC. 401. CREATING INCENTIVES FOR SMALL-DOLLAR LOAN
ORIGINATORS.
(a) Definitions.--In this section:
(1) Director.--The term ``Director'' means the Director of
the Bureau of Consumer Financial Protection.
(2) Small-dollar mortgage.--The term ``small-dollar
mortgage'' means a mortgage loan having an original principal
obligation of not more than $100,000 that is--
(A) secured by real property designed for 1 to 4 dwelling
units; and
(B)(i) insured by the Federal Housing Administration under
title II of the National Housing Act (12 U.S.C. 1707 et
seq.);
(ii) made, guaranteed, or insured by the Department of
Veterans Affairs;
(iii) made, guaranteed, or insured by the Department of
Agriculture; or
(iv) eligible to be purchased or securitized by the Federal
Home Loan Mortgage Corporation or the Federal National
Mortgage Association.
(b) Requirement Regarding Loan Originator Compensation
Practices.--Not later than 270 days after the date of
enactment of this Act, the Director 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 on loan originator compensation
practices throughout the residential mortgage market,
including the relative frequency of loan originators being
compensated--
(1) with a salary;
(2) with a commission reflecting a fixed percentage of the
amount of credit extended;
(3) with a commission based on a factor other than a fixed
percentage of the amount of credit extended;
(4) with a combination of salary and commission;
(5) on a loan volume basis; and
(6) with a commission reflecting a percentage of the amount
of credit extended, for which a minimum or maximum
compensation amount is set.
(c) Community Development Financial Institution Loan
Originators.--In performing the study required under
subsection (b), the Secretary shall, in coordination with
relevant Federal agencies that regulate federally backed
small-dollar mortgages and in consultation with the Director
of the Community Development Financial Institutions Fund
established under section 104 of the Community Development
Banking and Financial Institutions Act of 1994 (12 U.S.C.
4703), give due consideration to the practices for
compensating loan originators that are employed by or
originate loans on behalf of community development financial
institutions.
(d) Contents.--The report required under subsection (b)
shall include--
(1) data and other analyses regarding the effect of the
approaches to loan originator compensation described in
subsection (b) on the availability of small-dollar mortgage
loans; and
[[Page H3601]]
(2) an analysis and a discussion regarding potential
barriers to small-dollar mortgage lending.
SEC. 402. SMALL-DOLLAR MORTGAGE POINTS AND FEES.
(a) Small-dollar Mortgage Defined.--In this section, the
term ``small-dollar mortgage'' means a mortgage with an
original principal obligation of less than $100,000.
(b) Amendments.--Not later than 270 days after the date of
enactment of this Act, the Director of the Bureau of Consumer
Financial Protection, in consultation with the Secretary of
Housing and Urban Development and the Director of the Federal
Housing Finance Agency, shall evaluate the impact of the
thresholds under section 1026.43 of title 12, Code of Federal
Regulations (as in effect on the date of enactment of this
Act), on small-dollar mortgage originations.
SEC. 403. APPRAISAL INDUSTRY IMPROVEMENT ACT.
(a) Appraisal Standards.--
(1) Certification or licensing.--
(A) In general.--Section 202(g)(5) of the National Housing
Act (12 U.S.C. 1708(g)(5)) is amended--
(i) by moving the paragraph two ems to the left; and
(ii) by striking subparagraphs (A) and (B) and inserting
the following:
``(A) be certified or licensed by the State in which the
property to be appraised is located, except that an appraiser
who has as their primary duty conducting appraisal-related
activities and who chooses to become a State-licensed or
certified real estate appraiser need only to be licensed or
certified in 1 State or territory to perform appraisals on
mortgages insured by the Federal Housing Administration in
all States and territories;
``(B) meet the requirements under the competency rule set
forth in the Uniform Standards of Professional Appraisal
Practice before accepting an assignment; and
``(C) have demonstrated verifiable education in the
appraisal requirements established by the Federal Housing
Administration under this subsection, which shall include the
completion of a course or seminar that educates appraisers on
those appraisal requirements, which shall be provided by--
``(i) the Federal Housing Administration; or
``(ii) a third party, if the course is approved by the
Secretary or a State appraiser certifying or licensing
agency.''.
(B) Application.--Subparagraph (C) of section 202(g)(5) of
the National Housing Act (12 U.S.C. 1708(g)(5)), as added by
subparagraph (A), shall not apply with respect to any
certified appraiser approved by the Federal Housing
Administration to conduct appraisals on property securing a
mortgage to be insured by the Federal Housing Administration
on or before the effective date described in paragraph
(3)(C).
(2) Compliance with verifiable education and competency
requirements.--On and after the effective date described in
paragraph (3)(C), no appraiser may conduct an appraisal on a
property securing a mortgage to be insured by the Federal
Housing Administration unless--
(A) the appraiser is in compliance with the requirements of
subparagraphs (A) and (B) of section 202(g)(5) of the
National Housing Act (12 U.S.C. 1708(g)(5)), as amended by
paragraph (1); and
(B) if the appraiser was not approved by the Federal
Housing Administration to conduct appraisals on mortgages
insured by the Federal Housing Administration before the date
on which the mortgagee letter or guidance takes effect under
paragraph (3)(C), the appraiser is in compliance with
subparagraph (C) of such section 202(g)(5).
(3) Implementation.--Not later than the 240 days after the
date of enactment of this Act, the Secretary of Housing and
Urban Development shall issue a mortgagee letter or guidance
that--
(A) implements the amendments made by paragraph (1);
(B) clearly sets forth all of the specific requirements
under section 202(g)(5) of the National Housing Act (12
U.S.C. 1708(g)(5)), as amended by paragraph (1), for approval
to conduct appraisals on property secured by a mortgage to be
insured by the Federal Housing Administration, which shall
include--
(i) providing that, before the effective date of the
mortgagee letter or guidance, compliance with the
requirements under subparagraphs (A), (B), and (C) of such
section 202(g)(5), as amended by paragraph (1), shall be
considered to fulfill the requirements under such
subparagraphs; and
(ii) providing a method for appraisers to demonstrate such
prior compliance; and
(C) takes effect not later than the date that is 180 days
after the date on which the Secretary issues the mortgagee
letter or guidance.
(b) Annual Registry Fees for Appraisal Management
Companies.--Section 1109(a) of the Financial Institutions
Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C.
3338(a)) is amended, in the matter following clause (ii) of
paragraph (4)(B), by adding at the end the following:
``Subject to the approval of the Council, the Appraisal
Subcommittee may adjust fees established under clause (i) or
(ii) to carry out its functions under this Act.''.
(c) State Credentialed Trainees.--
(1) Maintenance on national registry.--Section 1103(a) of
the Financial Institutions Reform, Recovery, and Enforcement
Act of 1989 (12 U.S.C. 3332(a)) is amended--
(A) in paragraph (3)--
(i) by inserting ``and State credentialed trainee
appraisers'' after ``licensed appraisers''; and
(ii) by striking ``and'' at the end;
(B) by striking paragraph (4);
(C) by redesignating paragraphs (5) and (6) as paragraphs
(4) and (5), respectively; and
(D) in paragraph (4), as so redesignated--
(i) by striking ``year. The report shall also detail'' and
inserting ``year, detailing'';
(ii) by striking ``provide'' and inserting ``provides'';
and
(iii) by striking the period at the end and inserting ``;
and''.
(2) Annual registry fees.--
(A) In general.--Section 1109 of the Financial Institutions
Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C.
3338) is amended--
(i) in the section heading, by striking ``certified or
licensed'' and inserting ``, certified, licensed, and
credentialed trainee''; and
(ii) in subsection (a)--
(I) in paragraph (1), by inserting ``, and in the case of a
State with a supervisory or trainee program, a roster listing
individuals who have received a State trainee credential''
after ``this title''; and
(II) by striking paragraph (2) and inserting the following:
``(2) transmit reports on the issuance and renewal of
licenses, certifications, credentials, sanctions, and
disciplinary actions, including license, credential, and
certification revocations, on a timely basis to the national
registry of the Appraisal Subcommittee;''.
(B) Rule of construction.--Nothing in the amendments made
by subparagraph (A) shall require a State to establish or
operate a program for State credentialed trainee appraisers,
as defined in paragraph (12) of section 1121 of the Financial
Institutions Reform, Recovery, and Enforcement Act of 1989,
as added by paragraph (4) of this subsection.
(3) Transactions requiring the services of a state
certified appraiser.--Section 1113 of the Financial
Institutions Reform, Recovery, and Enforcement Act of 1989
(12 U.S.C. 3342) is amended--
(A) by striking ``In determining'' and inserting ``(a) In
General.--In determining''; and
(B) by adding at the end the following:
``(b) Use of State Credentialed Trainee Appraisers.--In
performing an appraisal under this section, a State certified
appraiser may use the assistance of a State credentialed
trainee appraiser or an unlicensed trainee appraiser, except
that the State certified appraiser assisted by a trainee
shall be liable for appraisal and valuation work.''.
(4) Definition.--Section 1121 of the Financial Institutions
Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C.
3350) is amended by adding at the end the following:
``(12) State credentialed trainee appraiser.--The term
`State credentialed trainee appraiser' means an individual
who--
``(A) meets the minimum criteria established by the
Appraiser Qualification Board for a trainee appraiser
credential; and
``(B) is credentialed by a State appraiser certifying and
licensing agency.''.
(d) Grants for Workforce and Training.--Section 1109(b) of
the Financial Institutions Reform, Recovery, and Enforcement
Act of 1989 (12 U.S.C. 3338(b)) is amended--
(1) in paragraph (5)(B), by striking ``and'' at the end;
(2) in paragraph (6), by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following:
``(7) to make grants to State appraiser certifying and
licensing agencies to support the carrying out of education
and training activities or other activities related to
addressing appraiser industry workforce needs, including
recruiting and retaining workforce talent, such as through
scholarship assistance and career pipeline development, and
such agencies shall report on the use of funds and
outcomes.''.
(e) Appraisal Subcommittee.--Section 1011 of the Federal
Financial Institutions Examination Council Act of 1978 (12
U.S.C. 3310) is amended, in the first sentence, by inserting
``the Department of Veterans Affairs, the Rural Housing
Service of the Department of Agriculture, the Department of
Housing and Urban Development,'' after ``Financial
Protection,''.
SEC. 404. HELPING MORE FAMILIES SAVE ACT.
Section 23 of the United States Housing Act of 1937 (42
U.S.C. 1437u) is amended by adding at the end the following:
``(p) Escrow Expansion Pilot Program.--
``(1) Definitions.--In this subsection:
``(A) Covered family.--The term `covered family' means a
family that receives assistance under section 8 or 9 of this
Act and is enrolled in the Pilot Program.
``(B) Eligible entity.--The term `eligible entity' means an
entity described in subsection (c)(2).
``(C) Pilot program.--The term `Pilot Program' means the
Pilot Program established under paragraph (2).
``(D) 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.
``(2) Establishment.--The Secretary may 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 5,000 covered families, in accordance with
this subsection.
[[Page H3602]]
``(3) Escrow accounts.--
``(A) In general.--An eligible entity selected to
participate in the Pilot Program--
``(i) 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 families during the participation of
each covered family in the Pilot Program; and
``(ii) notwithstanding any other provision of law, may use
funds it controls under section 8 or 9 for purposes of making
the escrow deposit for covered families assisted under, or
residing in units assisted under, section 8 or 9,
respectively, provided such funds are offset by the increase
in the amount of rent paid by the covered family.
``(B) Income limitation.--An eligible entity may not escrow
any amounts for any covered family whose adjusted income
exceeds 80 percent of the area median income at the time of
enrollment.
``(C) Withdrawals.--A covered family may withdraw funds,
including interest earned, from an escrow account established
by an eligible entity under the Pilot Program--
``(i) after the covered family ceases to receive welfare
assistance; and
``(ii)(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;
``(V) for any reason listed under section 984.303(k) of
title 24, Code of Federal Regulations; or
``(VI) under other circumstances in which the Secretary
determines an exemption for good cause is warranted.
``(D) Interim recertification.--For purposes of the Pilot
Program, a covered family may recertify the income of the
covered family multiple times per year at the request of the
participating family, as determined by the Secretary, and not
less frequently than once per year, unless the eligible
entity has established an alternative rent structure with
approval from the Secretary.
``(E) Contract or plan.--A covered family is not required
to complete a standard contract of participation or an
individual training and services plan in order to participate
in the Pilot Program.
``(4) Effect of increases in family income.--Any increase
in the earned income of a covered family during the
enrollment of the family in the Pilot Program may not be
considered as income or a resource for purposes of
eligibility of the family for other benefits, or amount of
benefits payable to the family, under any program
administered by the Secretary.
``(5) Application.--
``(A) In general.--An eligible entity seeking to
participate in the Pilot Program shall submit to the
Secretary an application--
``(i) at such time, in such manner, and containing such
information as the Secretary may require by notice; and
``(ii) that includes the number of proposed covered
families to be served by the eligible entity under this
subsection.
``(B) Geographic and entity variety.--The Secretary shall
ensure that eligible entities selected to participate in the
Pilot Program--
``(i) are located across various States and in both urban
and rural areas; and
``(ii) vary by size and type, including both public housing
agencies and private owners of projects receiving project-
based rental assistance under section 8.
``(6) Notification and opt-out.--An eligible entity
participating in the Pilot Program shall--
``(A) notify covered families of their enrollment in the
Pilot Program;
``(B) provide covered families with a detailed description
of the Pilot Program, including how the Pilot Program will
impact their rent and finances;
``(C) inform covered families that the families cannot
simultaneously participate in the Pilot Program and the
Family Self-Sufficiency program under this section; and
``(D) provide covered families with the ability to elect
not to participate in the Pilot Program--
``(i) not less than 2 weeks before the date on which the
escrow account is established under paragraph (3); and
``(ii) at any point during the duration of the Pilot
Program.
``(7) 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 rental
provisions of section 3 or 8(o), as applicable.
``(8) Pilot program timeline.--
``(A) Awards.--Not later than 1 year after establishing the
Pilot Program, the Secretary shall select the eligible
entities to participate in the Pilot Program.
``(B) Establishment and term of accounts.--An eligible
entity selected to participate in the Pilot Program shall--
``(i) not later than 6 months after selection, establish
escrow accounts under paragraph (3) for covered families; and
``(ii) maintain those escrow accounts for not less than 5
years, or until a determination is made for termination with
FSS escrow disbursement under section 984.303(k) of title 24,
Code of Federal Regulations, 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.
``(9) Nonparticipation and housing assistance.--
``(A) In general.--Assistance under section 8 or 9 for a
family that elects not to participate in the Pilot Program
shall not be delayed or denied by reason of such election.
``(B) No termination.--Housing assistance may not be
terminated as a consequence of participating, or not
participating, in the Pilot Program under this subsection for
any period.
``(10) Study.--Not later than 10 years after the date the
Secretary selects eligible entities to participate in the
Pilot Program under this subsection, the Secretary shall, if
awards were made, 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
under 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.
``(11) Waivers.--To allow selected eligible entities to
effectively administer the Pilot Program and make the
required escrow account deposits under this subsection, the
Secretary may waive requirements under this section.
``(12) Termination.--The Pilot Program under this
subsection shall terminate on the date that is 10 years after
the date of enactment of this subsection.
``(13) Eligible uses of appropriations.--Subject to the
appropriation of funds, the Secretary may use funds--
``(A) for technical assistance related to implementation of
the Pilot Program; and
``(B) to carry out an evaluation of the Pilot Program under
paragraph (10).''.
SEC. 405. CHOICE IN AFFORDABLE HOUSING ACT.
(a) 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 done by a
building owner who may be eligible for low-income housing
credits because the building had been allocated a housing
credit dollar amount under section 42(h) of the Internal
Revenue Code of 1986 or is described in section 42(h)(4) of
such Code (concerning buildings that meet a criterion for a
certain amount of tax-exempt financing);
``(II) the dwelling unit, during the preceding 12-month
period, was physically inspected and satisfied the
suitability-for-occupancy requirement in section
42(i)(3)(B)(ii) of such Code; and
``(III) the applicable public housing agency performed the
inspection itself or 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 (42 U.S.C.
12721 et seq.);
``(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 section, the
[[Page H3603]]
Secretary may allow a grantee to conduct a remote or video
inspection of a unit if the remote or video inspection--
``(I) is thorough;
``(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 relevant standards.
``(v) Rule of construction.--Nothing in clause (i), (ii),
(iii), or (iv) shall be construed to affect the operation of
a housing program described in, or authorized under a
provision of law described in, that clause.''.
(b) Pre-approval 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 tenant 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 this
subparagraph and subparagraph (C) if the new landlord enters
into a lease agreement with a tenant 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).''.
TITLE V--PROGRAM REFORM
SEC. 501. HOME INVESTMENT PARTNERSHIPS REAUTHORIZATION AND
REFORM ACT.
(a) Authorization.--Section 205 of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12724) is amended
to read as follows:
``SEC. 205. AUTHORIZATION OF PROGRAM.
``The HOME Investment Partnerships Program under subtitle A
is hereby authorized.''.
(b) Definition of Community Housing Development
Organization.--Section 104(6)(B) of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12704(6)(B)) is
amended by striking ``significant''.
(c) 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) (42 U.S.C. 12742(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''; and
(2) in section 271(c) (42 U.S.C. 12821(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''.
(d) Choices Made by Participating Jurisdictions.--Section
212(a)(2) of the Cranston-Gonzalez National Affordable
Housing Act (42 U.S.C. 12742(a)(2)) is amended to read as
follows:
``(2) Limitation.--The Secretary may not restrict the
choice by a participating jurisdiction of rehabilitation,
substantial rehabilitation, new construction, reconstruction,
acquisition, or other eligible housing uses authorized in
paragraph (1) unless the restriction is explicitly authorized
under section 223(2).''.
(e) 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 (42 U.S.C. 5310); 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
enactment of this Act, the Secretary of Housing and Urban
Development shall issue rules to carry out the amendment made
by paragraph (1).
(f) 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.
(g) 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 contribution of the tenant toward rent does not
exceed the amount permitted under the assistance described in
subparagraph (A); and
``(C) the total rent for the unit does not exceed the
amount approved by the public housing agency administering
the assistance described in subparagraph (A).''.
(h) Affordable Home-ownership Housing Qualifications.--
Section 215 of the Cranston-Gonzalez National Affordable
Housing Act (42 U.S.C. 12745) is amended--
(1) in subsection (b)--
(A) in paragraph (2), by redesignating subparagraphs (A),
(B), and (C) as clauses (i), (ii), and (iii), respectively,
and adjusting the margins accordingly;
(B) in paragraph (3)--
(i) in subparagraph (A), by redesignating clauses (i) and
(ii) as subclauses (I) and (II), respectively, and adjusting
the margins accordingly; and
(ii) by redesignating subparagraphs (A) and (B) as clauses
(i) and (ii), respectively, and adjusting the margins
accordingly;
(C) by redesignating paragraphs (1) through (4) as
subparagraphs (A) through (D), respectively, and adjusting
the margins accordingly;
(D) by striking ``Housing that is for home-ownership'' and
inserting the following:
``(1) Qualification.--Housing that is for home-ownership'';
(E) in paragraph (1), as so designated--
(i) in subparagraph (A), as so redesignated--
(I) by striking ``95 percent'' and inserting ``110
percent''; and
(II) by inserting ``(defined as the amount borrowed by the
homebuyer to purchase the home, or the estimated value after
rehabilitation, which may be adjusted to account for the
limits on future value imposed by the resale restriction)''
after ``purchase price'';
(ii) in subparagraph (B), as so redesignated, in the matter
preceding clause (i), 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'';
(iii) in subparagraph (C), as so redesignated--
(I) in clause (i)(II)--
(aa) by striking ``low-income home-buyers'' and inserting
``home-buyers 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
(bb) by striking ``or'' at the end;
(II) in clause (ii), by striking ``and'' at the end and
inserting ``or''; and
(III) by adding at the end the following:
``(iii) 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 home-buyers 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;'';
(iv) in subparagraph (D), as so redesignated, by striking
the period at the end and inserting ``; and''; and
(v) by adding at the end the following:
``(E) is subject to restrictions that are established by
the participating jurisdiction and determined by the
Secretary to be appropriate, including with respect to the
useful life of the property, to--
``(i) require that any subsequent purchase of the property
be--
``(I) only by a person who meets the qualifications
specified under subparagraph (B); and
[[Page H3604]]
``(II) at a price that is determined by a formula or method
established by the participating jurisdiction that provides
the owner with a reasonable return on investment, which may
include a percentage of the cost of any improvements; or
``(ii) recapture the investment provided under this title
in order to assist other persons in accordance with the
requirements of this title, except where there are no net
proceeds or where the net proceeds are insufficient to repay
the full amount of the assistance.''; and
(F) by adding at the end the following:
``(2) Purchase by community land trust or cooperative
housing corporation.--Notwithstanding subparagraph (C)(i) of
paragraph (1) and under terms determined by the Secretary,
the Secretary may permit a participating jurisdiction to
allow a community land trust, housing cooperative, or a
community development corporation that used assistance
provided under this subtitle for the development of housing
that meets the criteria under paragraph (1), to acquire the
housing--
``(A) in accordance with the terms of the preemptive
purchase option, lease, covenant on the land, or other
similar legal instrument of the community land trust or
housing cooperative when the terms and rights in the
preemptive purchase option, lease, covenant, or legal
instrument are and remain subject to the requirements of this
title;
``(B) when the purchase is for--
``(i) the purpose of--
``(I) entering into the chain of title;
``(II) enabling a purchase by a person who meets the
qualifications specified under paragraph (1)(B) and is on a
waitlist maintained by the community land trust or housing
cooperative, subject to enforcement by the participating
jurisdiction of all applicable requirements of this title, as
determined by the Secretary;
``(III) performing necessary rehabilitation and
improvements; or
``(IV) adding a subsidy to preserve affordability, which
may be from Federal or non-Federal sources; or
``(ii) another purpose determined appropriate by the
Secretary; and
``(C) if, within a reasonable period of time after the
applicable purpose under subparagraph (B) of this paragraph
is fulfilled, as determined by the Secretary, the housing is
then sold to a person who meets the qualifications specified
under paragraph (1)(B).''; and
(2) by adding at the end the following:
``(c) Qualification Exceptions for Home-ownership.--
``(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)(1)(B) with respect to housing that otherwise
meets the criteria described in subsection (b)(1) 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 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)(1)(C)
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.''.
(i) 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).
(j) 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
this title without regard to whether a community housing
development organization materially participates in the use
of such funds.''.
(k) 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''.
(l) 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
``(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
interagency 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.
(4) Definition.--Section 104 of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12704) is amended
by adding at end the following new paragraph:
``(27) 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.''.
(m) 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).
(n) 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:
``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
[[Page H3605]]
$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 not more than 50.''.
(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)(1)(E) of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 12745(a)) is amended 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''.
(q) Tenant and Participant Protections for 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) of
subsection (d) shall not apply to housing under this section
that meets the following criteria:
``(1) The housing is affordable housing with not more than
4 dwelling units, each of which is made available for rental.
``(2) Each dwelling unit in the housing bears rent in an
amount that complies with the requirements described in
paragraph (1)(A).
``(3) Each dwelling unit in the housing is accompanied by a
low-income family.
``(4) No dwelling in the 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 that voucher.
``(5) The housing complies with the requirement described
in paragraph (1)(E).
``(6) The participating jurisdiction in which the housing
is located monitors the compliance of the housing with the
requirements of this title in a manner consistent with the
purposes of section 226(b), as determined by the
Secretary.''.
(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:
``(26) The term `community land trust' means a nonprofit
entity, a State, a unit of local government, or an
instrumentality of a State or unit of local government that--
``(A) is not managed by, or an affiliate of, a forprofit
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 home-ownership; 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) Set-aside for Community Housing Development
Organizations.--Section 231(a) of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12771(a)) is
amended, in the first sentence, by striking ``to be
developed, sponsored, or owned by community housing
development organizations'' and inserting ``when a community
housing development organization materially participates in
the ownership or development of that housing, as determined
by the Secretary''.
(t) Administrative Reforms.--
(1) Increase in program administration resources.--Section
220(b) of the Cranston-Gonzalez National Affordable Housing
Act (42 U.S.C. 12750(b)) is amended--
(A) by striking ``Recognition.--'' and all that follows
through ``A contribution'' and inserting ``Recognition.--A
contribution'';
(B) by redesignating subparagraphs (A) and (B) as
paragraphs (1) and (2), respectively and
(C) by striking paragraph (2).
(2) Modification of jurisdictions eligible for
reallocations.--Section 217(d)(3) of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12747(d)(3)) is
amended--
(A) in the paragraph heading, by striking ``Limitation''
and inserting ``Limitations''; and
(B) by striking ``Unless otherwise specified'' and
inserting the following:
``(A) Removal of participating jurisdictions from
reallocation.--The Secretary may, upon a finding that the
participating jurisdiction has failed to meet or comply with
the requirements of this title, remove a participating
jurisdiction from participation in reallocations of funds
made available under this title.
``(B) Reallocation to same type of entity.--Unless
otherwise specified''.
(3) Home property inspections.--Section 226(b) of the
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C.
12756(b)) is amended--
(A) by striking ``Each participating jurisdiction'' and
inserting the following:
``(1) In general.--Each participating jurisdiction''; and
(B) by striking ``Such review shall include'' and all that
follows and inserting the following:
``(2) Onsite inspections.--
``(A) Inspections by units of general local government.--A
review conducted under paragraph (1) by a participating
jurisdiction that is a unit of general local government shall
include an onsite inspection to determine compliance with
housing codes and other applicable regulations.
``(B) Inspections by states.--A review conducted under
paragraph (1) by a participating jurisdiction that is a State
shall include an onsite inspection to determine compliance
with a national standard as determined by the Secretary.
``(3) Inclusion in performance report and publication.--A
participating jurisdiction shall include in the performance
report of the participating jurisdiction submitted to the
Secretary under section 108(a), and make available to the
public, the results of each review conducted under paragraph
(1).''.
(4) Revisions to strengthen enforcement and penalties for
noncompliance.--Section 223 of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 12753) is amended--
(A) in the section heading, by striking ``penalties for
misuse of funds'' and inserting ``program enforcement and
penalties for noncompliance'';
(B) in the matter preceding paragraph (1), by inserting
after ``any provision of this subtitle'' the following: ``,
including any provision applicable throughout the period
required by section 215(a)(1)(E) and applicable
regulations,'';
(C) in paragraph (2), by striking ``or'' at the end;
(D) in paragraph (3), by striking the period at the end and
inserting ``; or''; and
(E) by adding at the end the following:
``(4) reduce payments to the participating jurisdiction
under this subtitle by an amount equal to the amount of such
payments that were not expended by the participating
jurisdiction in accordance with this title.''.
(u) 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'';
(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 $500,000 before the date of enactment of the 21st
Century ROAD to Housing Act or less than $750,000 on or after
the date of enactment of the 21st Century ROAD to Housing
Act''; and
(C) by striking ``, except as provided in paragraph (4)'';
and
(3) by striking paragraph (4).
(v) Technical and Conforming 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 that term appears and inserting ``McKinney-
Vento Homeless Assistance Act'';
(2) by striking ``Committee on Banking, Finance and Urban
Affairs'' each place that
[[Page H3606]]
term appears and inserting ``Committee on Financial
Services'';
(3) in the table of contents in section 1(b) (Public Law
101-625; 104 Stat. 4079)--
(A) by striking the item relating to section 205 and
inserting the following:
``Sec. 205. Authorization of program.'';
(B) by striking the item relating to section 223 and
inserting the following:
``Sec. 223. Program enforcement and penalties for noncompliance.''; and
(C) by inserting after the item relating to section 290 the
following:
``Sec. 291. Nonapplicability of certain requirements for small
projects.'';
(4) in section 104 (42 U.S.C. 12704)--
(A) by redesignating paragraph (23) (relating to the
definition of the term ``to demonstrate to the Secretary'')
as paragraph (22); and
(B) by redesignating paragraph (24) (relating to the
definition of the term ``insular area'', as added by section
2(2) of Public Law 102-230) as paragraph (23);
(5) in section 105(b)(8) (42 U.S.C. 12705(b)(8)), by
striking ``subparagraphs'' and inserting ``paragraphs'';
(6) in section 108(a)(1) (42 U.S.C. 12708(a)(1)), by
striking ``section 105(b)(15)'' and inserting ``section
105(b)(18)'';
(7) in section 212 (42 U.S.C. 12742)--
(A) in subsection (a)(3)(A)(ii), by inserting ``United
States'' before ``Housing Act'';
(B) in subsection (d)(5), by inserting ``United States''
before ``Housing Act''; and
(C) in subsection (e)(1)--
(i) by striking ``section 221(d)(3)(ii)'' and inserting
``section 221(d)(4)''; and
(ii) by striking ``not to exceed 140 percent'' and
inserting ``as determined by the Secretary'';
(8) in section 215(a)(6)(B) (42 U.S.C. 12745(a)(6)(B)), by
striking ``grand children'' and inserting ``grandchildren'';
(9) in section 217 (42 U.S.C. 12747)--
(A) in subsection (a)--
(i) in paragraph (1), by striking ``(3)'' and inserting
``(2)'';
(ii) by striking paragraph (3), as added by section
211(a)(2)(D) of the Housing and Community Development Act of
1992 (Public Law 102-550; 106 Stat. 3756); and
(iii) by redesignating the remaining paragraph (3), as
added by the matter under the heading ``home investment
partnerships program'' under the heading ``Housing Programs''
in title II of the Departments of Veterans Affairs and
Housing and Urban Development, and Independent Agencies
Appropriations Act, 1993 (Public Law 102-389; 106 Stat.
1581), as paragraph (2); and
(B) in subsection (b)(1)--
(i) in subparagraph (A), in the first sentence--
(I) by striking ``in regulation'' and inserting ``, by
regulation,''; and
(II) by striking ``eligible jurisdiction'' and inserting
``eligible jurisdictions''; and
(ii) in subparagraph (F), in the first sentence--
(I) in clause (i), by striking ``Subcommittee on Housing
and Urban Affairs'' and inserting ``Subcommittee on Housing,
Transportation, and Community Development''; and
(II) in clause (ii), by striking ``Subcommittee on Housing
and Community Development'' and inserting ``Subcommittee on
Housing and Insurance'';
(10) in section 220(c) (42 U.S.C. 12750(c))--
(A) in paragraph (3), by striking ``Secretary'' and all
that follows and inserting ``Secretary;'';
(B) in paragraph (4), by striking ``under this title'' and
all that follows and inserting ``under this title;''; and
(C) by redesignating paragraphs (6), (7), and (8) as
paragraphs (5), (6), and (7), respectively;
(11) in section 225(d)(4)(B) (42 U.S.C. 12755(d)(4)(B)), by
striking ``for'' the first place that term appears; and
(12) in section 233 (42 U.S.C. 12773)--
(A) in subsection (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)''; and
(B) by striking subsection (f).
SEC. 502. RURAL HOUSING SERVICE REFORM ACT.
(a) Application of Multifamily Mortgage Foreclosure
Procedures to Multifamily Mortgages Held by the Secretary of
Agriculture and Preservation of the Rental Assistance
Contract Upon Foreclosure.--
(1) Multifamily mortgage procedures.--Section 363(2) of the
Multifamily Mortgage Foreclosure Act of 1981 (12 U.S.C.
3702(2)) is amended--
(A) in subparagraph (E), by striking ``and'' at the end;
(B) in subparagraph (F), by striking the period at the end
and inserting ``; or''; and
(C) by adding at the end the following:
``(F) section 514, 515, or 538 of the Housing Act of 1949
(42 U.S.C. 1484, 1485, 1490p-2).''.
(2) Preservation of contract.--Section 521(d) of the
Housing Act of 1949 (42 U.S.C. 1490a(d)) is amended by adding
at the end the following:
``(3) Notwithstanding any other provision of law, in
managing and disposing of any multifamily property that is
owned or has a mortgage held by the Secretary, and during the
process of foreclosure on any property with a contract for
rental assistance under this section--
``(A) the Secretary shall maintain any rental assistance
payments that are attached to any dwelling units in the
property; and
``(B) the rental assistance contract may be used to provide
further assistance to existing projects under 514, 515, or
516.''.
(b) Study on Rural Housing Loans for Housing for Low- and
Moderate-income Families.--Not later than 6 months after the
date of enactment of this Act, the Secretary of Agriculture
shall conduct a study and submit to Congress a publicly
available report on the loan program under section 521 of the
Housing Act of 1949 (42 U.S.C. 1490a), including--
(1) the total amount provided by the Secretary in subsidies
under such section 521 to borrowers with loans made pursuant
to section 502 of such Act (42 U.S.C. 1472);
(2) how much of the subsidies described in paragraph (1)
are being recaptured; and
(3) the amount of time and costs associated with
recapturing those subsidies.
(c) Staffing and Information Technology Upgrades.--
Utilizing funds appropriated for such purposes, the Secretary
of Agriculture may increase staffing capacity and upgrade
information technology to support all Rural Housing Service
programs.
(d) Technical Improvements.--
(1) Authorization of appropriations.--Utilizing funds
appropriated for such purposes, the Secretary of Agriculture
may make improvements to the technology of the Rural Housing
Service of the Department of Agriculture used to process and
manage housing loans.
(2) Availability.--Amounts appropriated pursuant to
paragraph (1) shall remain available until the date that is 5
years after the date of the appropriation.
(3) Timeline.--The Secretary of Agriculture shall make the
improvements described in paragraph (1) during the 5-year
period beginning on the date on which amounts are
appropriated under paragraph (1).
(e) Permanent Establishment of Housing Preservation and
Revitalization Program.--Title V of the Housing Act of 1949
(42 U.S.C. 1471 et seq.) is amended by adding at the end the
following:
``SEC. 545. HOUSING PRESERVATION AND REVITALIZATION PROGRAM.
``(a) Establishment.--The Secretary shall carry out a
program under this section for the preservation and
revitalization of multifamily rental housing projects
financed under section 514, 515, or 516.
``(b) Notice of Maturing Loans.--
``(1) To owners.--On an annual basis, the Secretary shall
provide written notice to each owner of a property financed
under section 514, 515, or 516 that will mature within the 4-
year period beginning upon the provision of the notice,
setting forth the options and financial incentives that are
available to facilitate the extension of the loan term or the
option to decouple a rental assistance contract pursuant to
subsection (f).
``(2) To tenants.--
``(A) In general.--On an annual basis, for each property
financed under section 514, 515, or 516, not later than the
date that is 2 years before the date that the loan will
mature, the Secretary shall provide written notice to each
household residing in the property that informs them of--
``(i) the date of the loan maturity;
``(ii) the possible actions that may happen with respect to
the property upon that maturity; and
``(iii) how to protect their right to reside in federally
assisted housing, or how to secure housing voucher, after
that maturity.
``(B) Language.--Notice under this paragraph shall be
provided in plain English and shall be translated to other
languages in the case of any property located in an area in
which a significant number of residents speak such other
languages.
``(c) Loan Restructuring.--Under the program under this
section, in any circumstance in which the Secretary proposes
a restructuring to an owner or an owner proposes a
restructuring to the Secretary, the Secretary may restructure
such existing housing loans, as the Secretary considers
appropriate, for the purpose of ensuring that those projects
have sufficient resources to preserve the projects to provide
safe and affordable housing for low-income residents and farm
laborers, by--
``(1) reducing or eliminating interest;
``(2) deferring loan payments;
``(3) subordinating, reducing, or reamortizing loan debt;
``(4) providing other financial assistance, including
advances, payments, and incentives (including the ability of
owners to obtain reasonable returns on investment) required
by the Secretary; and
``(5) permanently removing a portion of the housing units
from income restrictions when sustained vacancies have
occurred.
``(d) Renewal of Rental Assistance.--
``(1) In general.--When the Secretary proposes to
restructure a loan or agrees to the proposal of an owner to
restructure a loan pursuant to subsection (c), the Secretary
shall offer to renew the rental assistance contract under
section 521(a)(2) for a term that is the shorter of 20 years
and the term of the restructured loan, subject to annual
appropriations, provided that the owner agrees to bring the
property up to such standards that will ensure maintenance of
the property as decent, safe, and sanitary housing for the
full term of the rental assistance contract.
``(2) Additional rental assistance.--With respect to a
project described in paragraph (1), if rental assistance is
not available for
[[Page H3607]]
all households in the project for which the loan is being
restructured pursuant to subsection (c), the Secretary may
extend such additional rental assistance to unassisted
households at that project as is necessary to make the
project safe and affordable to low-income households.
``(e) Restrictive Use Agreements.--
``(1) Requirement.--As part of the preservation and
revitalization agreement for a project, the Secretary shall
obtain a restrictive use agreement that is recorded and
obligates the owner to operate the project in accordance with
this title.
``(2) Term.--
``(A) No extension of rental assistance contract.--Except
when the Secretary enters into a 20-year extension of the
rental assistance contract for a project, the term of the
restrictive use agreement for the project shall be consistent
with the term of the restructured loan for the project.
``(B) Extension of rental assistance contract.--If the
Secretary enters into a 20-year extension of the rental
assistance contract for a project, the term of the
restrictive use agreement for the project shall be for the
longer of--
``(i) 20 years; or
``(ii) the remaining term of the loan for that project.
``(C) Termination.--The Secretary may terminate the 20-year
restrictive use agreement for a project before the end of the
term of the agreement if the 20-year rental assistance
contract for the project with the owner is terminated at any
time for reasons outside the control of the owner.
``(f) Decoupling of Rental Assistance.--
``(1) Renewal of rental assistance contract.--If the
Secretary determines that a loan maturing during the 4-year
period beginning upon the provision of the notice required
under subsection (b)(1) for a project cannot reasonably be
restructured in accordance with subsection (c) because it is
not financially feasible or the owner does not agree with the
proposed restructuring, and the project was operating with
rental assistance under section 521 and the recipient is a
borrower under section 514 or 515, the Secretary may renew
the rental assistance contract, notwithstanding any
requirement under section 521 that the recipient be a current
borrower under section 514 or 515, for a term of 20 years,
subject to annual appropriations.
``(2) Additional rental assistance.--With respect to a
project described in paragraph (1), if rental assistance is
not available for all households in the project for which the
loan is being restructured pursuant to subsection (c), the
Secretary may extend such additional rental assistance to
unassisted households at that project as is necessary to make
the project safe and affordable to low-income households.
``(3) Rents.--
``(A) In general.--Any agreement to extend the term of the
rental assistance contract under section 521 for a project
shall obligate the owner to continue to maintain the project
as decent, safe, and sanitary housing and to operate the
development as affordable housing in a manner that meets the
goals of this title.
``(B) Rent amounts.--Subject to subparagraph (C), in
setting rents, the Secretary--
``(i) shall determine the maximum initial rent based on
current fair market rents established under section 8 of the
United States Housing Act of 1937 (42 U.S.C. 1437f); and
``(ii) may annually adjust the rent determined under clause
(i) by the operating cost adjustment factor as provided under
section 524 of the Multifamily Assisted Housing Reform and
Affordability Act of 1997 (42 U.S.C. 1437f note).
``(C) Higher rent.--
``(i) In general.--Subparagraph (B) shall not apply if the
Secretary determines that the budget-based needs of a project
require a higher rent than the rent described in subparagraph
(B).
``(ii) Rent.--If the Secretary makes a positive
determination under clause (i), the Secretary may approve a
budget-based rent level for the project.
``(4) Conditions for approval.--Before the approval of a
rental assistance contract authorized under this section, the
Secretary shall require, through an annual notice in the
Federal Register, the owner to submit to the Secretary a plan
that identifies financing sources and a timetable for
renovations and improvements determined to be necessary by
the Secretary to maintain and preserve the project.
``(g) Multifamily Housing Transfer Technical Assistance.--
Under the program under this section, the Secretary may
provide grants to qualified nonprofit organizations, housing
cooperative corporations, and public housing agencies to
provide technical assistance, including financial and legal
services, to borrowers under loans under this title for
multifamily housing to facilitate the acquisition or
preservation of such multifamily housing properties in areas
where the Secretary determines there is a risk of loss of
affordable housing.
``(h) Administrative Expenses.--Of any amounts made
available for the program under this section for any fiscal
year, the Secretary may use not more than $1,000,000 for
administrative expenses for carrying out such program.
``(i) Rulemaking.--
``(1) In general.--Not later than 180 days after the date
of enactment of the 21st Century ROAD to Housing Act, the
Secretary shall--
``(A) publish an advance notice of proposed rulemaking; and
``(B) consult with appropriate stakeholders.
``(2) Interim final rule.--Not later than 1 year after the
date of enactment of the 21st Century ROAD to Housing Act,
the Secretary shall publish an interim final rule to carry
out this section.''.
(f) Rental Assistance Contract Authority.--Section 521(d)
of the Housing Act of 1949 (42 U.S.C. 1490a(d)), as amended
by this section, is amended--
(1) in paragraph (1)--
(A) by redesignating subparagraphs (B) and (C) as
subparagraphs (C) and (D), respectively;
(B) by inserting after subparagraph (A) the following:
``(B) upon request of an owner of a project financed under
section 514 or 515, the Secretary is authorized to enter into
renewal of such agreements for a period of 20 years or the
term of the loan, whichever is shorter, subject to amounts
made available in appropriations Acts;'';
(C) in subparagraph (C), as so redesignated, by striking
``subparagraph (A)'' and inserting ``subparagraphs (A) and
(B)''; and
(D) in subparagraph (D), as so redesignated, by striking
``subparagraphs (A) and (B)'' and inserting ``subparagraphs
(A), (B), and (C)'';
(2) in paragraph (2), by striking ``shall'' and inserting
``may''; and
(3) by adding at the end the following:
``(4) In the case of any rental assistance contract
authority that becomes available because of the termination
of assistance on behalf of an assisted family--
``(A) at the option of the owner of the rental project, the
Secretary shall provide the owner a period of not more than 6
months before unused assistance is made available pursuant to
subparagraph (B) during which the owner may use such
authority to provide assistance on behalf of an eligible
unassisted family that--
``(i) is residing in the same rental project in which the
assisted family resided before the termination; or
``(ii) newly occupies a dwelling unit in the rental project
during that 6-month period; and
``(B) except for assistance used as provided in
subparagraph (A), the Secretary shall use such remaining
authority to provide assistance on behalf of eligible
families residing in other rental projects originally
financed under section 514, 515, or 516.''.
(g) Modifications to Loans and Grants for Minor
Improvements to Farm Housing and Buildings; Income
Eligibility.--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''.
(h) Rural Community Development Initiative.--Subtitle E of
the Consolidated Farm and Rural Development Act (7 U.S.C.
2009 et seq.) is amended by adding at the end the following:
``SEC. 381O. RURAL COMMUNITY DEVELOPMENT INITIATIVE.
``(a) Definitions.--In this section:
``(1) Eligible entity.--The term `eligible entity' means--
``(A) a private, nonprofit community-based housing or
community development organization;
``(B) a rural community; or
``(C) a federally recognized Indian Tribe.
``(2) Eligible intermediary.--The term `eligible
intermediary' means a qualified--
``(A) private, nonprofit organization; or
``(B) public organization.
``(b) Establishment.--The Secretary shall establish a Rural
Community Development Initiative, under which the Secretary
shall provide grants, subject to the availability of
appropriations, to eligible intermediaries to carry out
programs to provide financial and technical assistance to
eligible entities to develop the capacity and ability of
eligible entities to carry out projects to improve housing,
community facilities, and community and economic development
projects in rural areas.
``(c) Amount of Grants.--The amount of a grant provided to
an eligible intermediary under this section shall be not more
than $500,000.
``(d) Matching Funds.--
``(1) In general.--An eligible intermediary receiving a
grant under this section shall provide matching funds from
other sources, including Federal funds for related
activities, in an amount not less than the amount of the
grant.
``(2) Waiver.--The Secretary may waive paragraph (1) with
respect to a project that would be carried out in a
persistently poor rural region, as determined by the
Secretary.''.
(i) 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. 546. ANNUAL REPORT.
``(a) In General.--The Secretary shall submit to the
appropriate committees of Congress and publish on the website
of the Department of Agriculture an annual report on rural
housing programs carried out under this title, which shall
include significant details on the health of Rural Housing
Service programs, including--
[[Page H3608]]
``(1) raw data sortable by programs and by region regarding
loan performance;
``(2) the housing stock of those programs, including
information on why properties end participation in those
programs, such as for maturation, prepayment, foreclosure, or
other servicing issues; and
``(3) risk ratings for properties assisted under those
programs.
``(b) Protection of Information.--The data included in each
report required under subsection (a) may be aggregated or
anonymized to protect participant financial or personal
information.''.
(j) 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
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.
(k) Adjustment to Rural Development Voucher Amount.--
(1) In general.--Not later than 2 years after the date of
enactment of this Act, the Secretary of Agriculture shall
issue regulations to establish a process for adjusting the
voucher amount provided under section 542 of the Housing Act
of 1949 (42 U.S.C. 1490r) after the issuance of the voucher
following an interim or annual review of the amount of the
voucher.
(2) Interim review.--The interim review described in
paragraph (1) shall, at the request of a tenant, allow for a
recalculation of the voucher amount when the tenant
experiences a reduction in income, change in family
composition, or change in rental rate.
(3) Annual review.--
(A) In general.--The annual review described in paragraph
(1) shall require tenants to annually recertify the family
composition of the household and that the family income of
the household does not exceed 80 percent of the area median
income at a time determined by the Secretary of Agriculture.
(B) Considerations.--If a tenant does not recertify the
family composition and family income of the household within
the time frame required under subparagraph (A), the Secretary
of Agriculture--
(i) shall consider whether extenuating circumstances caused
the delay in recertification; and
(ii) may alter associated consequences for the failure to
recertify based on those circumstances.
(C) Effective date.--Following the annual review of a
voucher under paragraph (1), the updated voucher amount shall
be effective on the 1st day of the month following the
expiration of the voucher.
(4) Deadline.--The process established under paragraph (1)
shall require the Secretary of Agriculture to review and
update the voucher amount described in paragraph (1) for a
tenant not later than 60 days before the end of the voucher
term.
(l) Eligibility for Rural Housing Vouchers.--Section 542 of
the Housing Act of 1949 (42 U.S.C. 1490r) is amended by
adding at the end the following:
``(c) Eligibility of Households in Sections 514, 515, and
516 Projects.--The Secretary may provide rural housing
vouchers under this section for any low-income household
(including those not receiving rental assistance) residing
for a term longer than the remaining term of their lease that
is in effect on the date of prepayment, foreclosure, or
mortgage maturity, in a property financed with a loan under
section 514 or 515 or a grant under section 516 that has--
``(1) been prepaid with or without restrictions imposed by
the Secretary pursuant to section 502(c)(5)(G)(ii)(I);
``(2) been foreclosed; or
``(3) matured after September 30, 2005.''.
(m) Amount of Voucher Assistance.--Notwithstanding any
other provision of law, in the case of any rural housing
voucher provided pursuant to section 542 of the Housing Act
of 1949 (42 U.S.C. 1490r), the amount of the monthly
assistance payment for the household on whose behalf the
assistance is provided shall be determined as provided in
subsection (a) of such section 542, including providing for
interim and annual review of the voucher amount in the event
of a change in household composition or income or rental
rate.
(n) Transfer of Multifamily Rural Housing Projects.--
Section 515 of the Housing Act of 1949 (42 U.S.C. 1485) is
amended--
(1) in subsection (h), by adding at the end the following:
``(3) Transfer to nonprofit organizations.--A nonprofit or
public body purchaser, including a limited partnership with a
general partner with the principal purpose of providing
affordable housing, may purchase a property for which a loan
is made or insured under this section that has received a
market value appraisal, without addressing rehabilitation
needs at the time of purchase, if the purchaser--
``(A) makes a commitment to address rehabilitation needs
during ownership and long-term use restrictions on the
property; and
``(B) at the time of purchase, accepts long-term use
restrictions on the property.''; and
(2) in subsection (w)(1), in the first sentence in the
matter preceding subparagraph (A), by striking ``9 percent''
and inserting ``25 percent''.
(o) Extension of Loan Term.--
(1) In general.--Section 502(a)(2) of the Housing Act of
1949 (42 U.S.C. 1472(a)(2)) is amended--
(A) by inserting ``(A)'' before ``The Secretary'';
(B) in subparagraph (A), as so designated, by striking
``paragraph'' and inserting ``subparagraph''; and
(C) by adding at the end the following:
``(B) The Secretary may refinance or modify the period of
any loan, including any refinanced loan, made under this
section in accordance with terms and conditions as the
Secretary shall prescribe, but in no event shall the total
term of the loan from the date of the refinance or
modification exceed 40 years.''.
(2) Application.--The amendment made under paragraph (1)
shall apply with respect to loans made under section 502 of
the Housing Act of 1949 (42 U.S.C. 1472) before, on, or after
the date of enactment of this Act.
(p) Release of Liability for Section 502 Guaranteed
Borrower Upon Assumption of Original Loan by New Borrower.--
Section 502(h) of the Housing Act of 1949 (42 U.S.C. 1472(h))
is amended--
(1) by striking paragraph (10) and inserting the following:
``(10) Transfer and assumption.--Upon the transfer of
property for which a guaranteed loan under this subsection
was made, and the assumption of the guaranteed loan by an
approved eligible borrower, the original borrower of a
guaranteed loan under this subsection shall be relieved of
liability with respect to the loan.'';
(2) by redesignating paragraph (16) as paragraph (17); and
(3) by inserting after paragraph (15) the following:
``(16) Fee.--
``(A) In general.--The mortgagee may charge an assuming
borrower a reasonable and customary processing fee for an
assumption request made under this subsection.
``(B) Maximum fee.--The Secretary shall set a maximum
allowable fee described in subparagraph (A), which may be
indexed for inflation.''.
(q) Department of Agriculture Loan Restrictions.--
(1) Definitions.--In this subsection, the terms ``State''
and ``tribal organization'' have the meanings given those
terms in section 658P of the Child Care and Development Block
Grant Act of 1990 (42 U.S.C. 9858n).
(2) Revision.--The Secretary of Agriculture shall revise
section 3555.102(c) of title 7, Code of Federal Regulations,
to exclude from the restriction under that section--
(A) a home-based business that is a licensed, registered,
or regulated child care provider under State law or by a
tribal organization; and
(B) an applicant that has applied to become a licensed,
registered, or regulated child care provider under State law
or by a tribal organization.
(r) Loan Guarantees.--Section 502(h)(4) of the Housing Act
of 1949 (42 U.S.C. 1472(h)(4)) is amended--
(1) by redesignating subparagraphs (A), (B), and (C) as
clauses (i), (ii), and (iii), respectively, and adjusting the
margins accordingly;
(2) by striking ``Loans may be guaranteed'' and inserting
the following:
``(A) Definition.--In this paragraph, the term `accessory
dwelling unit' means a single, habitable living unit--
``(i) with means of separate ingress and egress;
``(ii) that is usually subordinate in size;
``(iii) that can be added to, created within, or detached
from a primary 1-unit, single-family dwelling; and
``(iv) in combination with a primary 1-unit, single-family
dwelling, constitutes a single interest in real estate.
``(B) Single-family requirement.--Loans may be
guaranteed''; and
(3) by adding at the end the following:
``(C) Rule of construction.--Nothing in this paragraph
shall be construed to prohibit the leasing of an accessory
dwelling unit or the use of rental income derived from such a
lease to qualify for a loan guaranteed under this
subsection--
``(i) after the date of enactment of the 21st Century ROAD
to Housing Act; and
``(ii) if the property that is the subject of the loan was
constructed before the date of enactment of the 21st Century
ROAD to Housing Act.''.
(s) Application Review.--
(1) Sense of congress.--It is the sense of 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--
[[Page H3609]]
(i) detailing the timeliness of eligibility determinations
and final determinations with respect to applications under
sections 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) that includes recommendations to shorten the timeline
for notifications of eligibility determinations described in
clause (i) to not more than 90 days.
(B) Date described.--The date described in this
subparagraph 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.
SEC. 503. INCENTIVIZING LOCAL SOLUTIONS TO HOMELESSNESS.
Section 414 of the McKinney-Vento Homeless Assistance Act
(42 U.S.C. 11373) is amended by adding at the end the
following:
``(f) Funding Cap Waiver Authority.--
``(1) In general.--Notwithstanding any other provision of
law or regulation, a recipient may request a waiver to the
expenditure limit established pursuant to section 415(b) for
amounts provided for each of fiscal years 2027 through 2030.
``(2) Waiver request.--
``(A) In general.--A recipient seeking a waiver described
in paragraph (1) shall submit to the Secretary a waiver
request that includes not more than the following:
``(i) A demonstration of local needs and circumstances that
necessitate a waiver.
``(ii) A detailed plan for how the recipient intends to use
funds.
``(iii) A justification for how the proposed use of funds
supports the most recent Consolidated Plan submitted by the
recipient.
``(iv) Any public input solicited under subparagraph
(B)(ii).
``(B) Notification.--Each recipient shall--
``(i) notify all subrecipients and local Continuums of Care
that serve the recipient's geographic area of the
availability of waivers under this subsection; and
``(ii) prior to the submission of a waiver request under
subparagraph (A), solicit public input regarding the
potential need for and proposed uses of such waiver.
``(C) Approval; publication.--The Secretary shall--
``(i) make all waiver requests submitted under subparagraph
(A) publicly available on the website of the Department of
Housing and Urban Development;
``(ii) not later than 60 days after the date on which the
Secretary receives a waiver request under subparagraph (A),
approve or deny the request; and
``(iii) deny any waiver request submitted under
subparagraph (A) by a recipient that relocates or threaten to
relocate individuals or their property without providing
emergency shelter, rapid rehousing, transitional housing,
permanent supportive housing, or other permanent housing
options.
``(3) Revocation.--
``(A) In general.--A waiver approved under this subsection
shall remain in effect for the duration of the period of
performance of fiscal year 2027 through 2030 grants, unless
the recipient notifies the Secretary in writing that the
recipient wishes to revoke the waiver.
``(B) Notification.--If a recipient intends to revoke a
waiver under subparagraph (A), the recipient shall--
``(i) solicit input from subrecipients regarding the
revocation before submitting the revocation; and
``(ii) provide subrecipients with a summary of the input
and the justification for the revocation in its submittal
prior to notifying the Secretary in writing.
``(C) Publication.--The Secretary shall publish any
revocation of a waiver under subparagraph (A) and the
justification of the recipient for the waiver on the website
of the Department of Housing and Urban Development.''.
TITLE VI--VETERANS AND HOUSING
SEC. 601. 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. 602. HOUSING UNHOUSED DISABLED VETERANS ACT.
(a) Exclusion of Certain Disability Benefits.--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) for the purpose of determining income eligibility
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 shall not apply to the
income in the definition of adjusted income;
``(v) for the purpose of determining income eligibility
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, but such amounts shall not be excluded from income
when determining adjusted income;''.
(b) Treatment of Certain Disability Benefits.--
(1) In general.--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, 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.
(2) Definitions.--In this subsection:
(A) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
(B) Department property.--The term ``Department property''
has the meaning given the term in section 901 of title 38,
United States Code.
TITLE VII--OVERSIGHT AND ACCOUNTABILITY
SEC. 701. REQUIRING ANNUAL TESTIMONY AND OVERSIGHT FROM
HOUSING REGULATORS.
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:
``(u) Annual Testimony.--The Secretary shall appear before
the Committee on Banking, Housing, and Urban Affairs of the
Senate and the Committee on Financial Services of the House
of Representatives 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. 702. FHA REPORTING REQUIREMENTS ON SAFETY AND SOUNDNESS.
Section 202(a) of the National Housing Act (12 U.S.C.
1708(a)) is amended by adding at the end the following:
``(8) Other required reporting.--The Secretary shall--
``(A) submit to Congress monthly reports on the capital
ratio required under section 205(f)(2); and
``(B) notify Congress as soon as practicable after the Fund
falls below the capital ratio required under section
205(f)(2).''.
SEC. 703. UNITED STATES INTERAGENCY COUNCIL ON HOMELESSNESS
OVERSIGHT.
Section 203(a) of the McKinney-Vento Homeless Assistance
Act (42 U.S.C. 11313(a)) is amended--
(1) in paragraph (1)--
(A) by striking ``Homeless Emergency Assistance and Rapid
Transition to Housing Act of 2009'' and inserting ``21st
Century ROAD to Housing Act''; and
(B) by striking ``update such plan annually'' and inserting
``submit to the President and Congress a report every year
thereafter that includes--
``(A) the status of completion of the plan; and
``(B) any modifications that were made to the plan and the
reasons for those modifications;'';
(2) by redesignating paragraphs (10) through (13) as
paragraphs (11) through (14), respectively;
(3) by redesignating the second paragraph (9) (relating to
collecting and disseminating information) as paragraph (10);
(4) in paragraph (13), as so redesignated, by striking
``and'' at the end;
(5) in paragraph (14), as so redesignated, by striking the
period at the end and inserting ``; and''; and
(6) by adding at the end the following:
``(15) testify annually before Congress, if requested.''.
SEC. 704. APPRAISAL MODERNIZATION ACT.
(a) Reconsideration of Value.--
(1) Federally backed mortgage loan defined.--In this
subsection, the term ``federally backed mortgage loan'' has
the meaning
[[Page H3610]]
given the term in section 4022 of the CARES Act (15 U.S.C.
9056).
(2) Requirement.--The Secretary of Agriculture, the
Secretary of Veterans Affairs, the Commissioner of the
Federal Housing Administration, and the Director of the
Federal Housing Finance Agency shall each implement and
maintain requirements that creditors of a federally backed
mortgage loan have a review and resolution procedure for a
consumer-initiated reconsideration of value or subsequent
appraisal in connection with a consumer credit transaction
secured by a consumer's principal dwelling.
(b) Public Appraisal Database.--
(1) Covered agencies defined.--In this subsection, the term
``covered agencies'' means--
(A) the Federal Housing Finance Agency, on behalf of the
Federal National Mortgage Association and the Federal Home
Loan Mortgage Corporation;
(B) the Department of Housing and Urban Development,
including the Federal Housing Administration;
(C) the Department of Agriculture; and
(D) the Department of Veterans Affairs.
(2) Feasibility report.--No later than 240 days after the
date of enactment of this Act, the Comptroller General of the
United States shall submit to Congress a public report
assessing the feasibility of creating a publicly available
appraisal database that consists of a searchable and
downloadable appraisal-level public use file that
consolidates appraisal data held or aggregated by covered
agencies, including--
(A) the costs and benefits associated with establishing and
maintaining the public database;
(B) the benefits and risks associated with the Federal
Housing Finance Agency or the Bureau of Consumer Financial
Protection being responsible for the public database and
whether there is another Federal agency best suited for
implementing and administering such database;
(C) any safety and soundness, antitrust, or consumer
privacy-related risks associated with making certain
appraisal data factors publicly available, including
whether--
(i) there are any existing legal requirements, including
under the Home Mortgage Disclosure Act of 1975 (12 U.S.C.
2801 et seq.) and section 552 of title 5, United States Code
(commonly known as the ``Freedom of Information Act''), or
additional actions Federal agencies could take to mitigate
such risks, such as modifying or aggregating data or
eliminating personally identifiable information; and
(ii) there are any data factors that, if made public, may
violate conduct, ethics, or other professional standards as
they relate to appraisals and appraisal or valuation
professionals;
(D) the feasibility of consolidating or matching appraisal
data held by covered agencies with corresponding data that
are required and made public under the Home Mortgage
Disclosure Act of 1975 (12 U.S.C. 2801 et seq.);
(E) whether the publication of any appraisal data factors
may pose unfair business advantages within the valuation
industry;
(F) the feasibility of including all valuation data held by
covered agencies, including data produced by automated
valuation models;
(G) the feasibility and benefits of making the full
appraisal dataset, including any modified fields, available
to--
(i) Federal agencies, including for purposes related to
enforcement and supervision responsibilities;
(ii) relevant State licensing, supervision, and enforcement
agencies and State attorneys general;
(iii) approved researchers, including academics and
nonprofit organizations that, in connection with their
mission, work to ensure the fairness and consistency of home
valuations, including appraisals; and
(iv) any other entities identified by the Comptroller
General as having a compelling use for disaggregated data;
(H) what appraisal data are already available in the public
domain; and
(I) the feasibility of incorporating legacy data held by
covered agencies during the period beginning on January 1,
2017, and ending on the date of enactment of this Act, and
whether there are specific data points not easily
consolidated or matched, as described in subparagraph (D),
with more recent data.
(3) Purpose.--The database described in paragraph (2) shall
be used to provide the public, the Federal Government, and
State governments with residential real estate appraisal data
to help determine whether financial institutions, appraisal
management companies, appraisers, valuation technologies,
such as automated valuation models, and other valuation
professionals are effectively serving the entire housing
market.
(4) Consultation.--As part of the information used in the
report required under paragraph (2), the Comptroller General
of the United States shall conduct interviews with--
(A) relevant Federal agencies;
(B) relevant State licensing, supervision, and enforcement
agencies and State attorneys general;
(C) appraisers and other home valuation industry
professionals;
(D) mortgage lending institutions;
(E) fair housing and fair lending experts; and
(F) any other relevant stakeholders as determined by the
Comptroller General.
(5) Hearing.--Upon the completion of the report under
paragraph (2), the Committee on Banking, Housing, and Urban
Affairs of the Senate and the Committee on Financial Services
of the House of Representatives shall each hold a hearing on
the findings of the report and the feasibility of
establishing a public appraisal-level appraisal database.
TITLE VIII--ACCOUNTABILITY, COORDINATION, STUDIES, AND REPORTING
SEC. 801. HUD-USDA-VA INTERAGENCY COORDINATION ACT.
(a) Memorandum of Understanding.--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
facilitate evidence-based policymaking.
(b) Interagency Report.--
(1) Report.--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 jointly submit to the Committee on
Banking, Housing, and Urban Affairs of the Senate and the
Committee on Financial Services of the House of
Representatives a report containing--
(A) a description of opportunities for increased
collaboration between the Secretary of Housing and Urban
Development, the Secretary of Agriculture, and the Secretary
of Veterans Affairs to reduce inefficiencies in housing
programs;
(B) a list of Federal laws (including regulations) that
adversely affect the availability and affordability of new
construction of assisted housing and single-family and
multifamily residential housing subject to mortgages insured
under title II of the National Housing Act (12 U.S.C. 1707 et
seq.), insured, guaranteed, or made by the Secretary of
Agriculture under title V of the Housing Act of 1949 (42
U.S.C. 1471 et seq.), or insured, guaranteed, or made by the
Secretary of Veterans Affairs under chapter 37 of title 38,
United States Code; and
(C) recommendations for Congress regarding the Federal laws
(including regulations) described in subparagraph (B).
(2) Publication.--The report required under paragraph (1)
shall, prior to submission under this subsection, be
published in the Federal Register and open for comment for a
period of 30 days.
SEC. 802. STREAMLINING RURAL HOUSING ACT.
(a) 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--
(1) evaluate categorical exclusions under the environmental
review process for housing projects funded by amounts from
the Department of Housing and Urban Development and the
Department of Agriculture;
(2) develop a process to designate a lead agency and
streamline adoption of environmental impact statements and
environmental assessments approved by the other Department to
construct housing projects funded by both agencies;
(3) maintain compliance with environmental regulations
under part 58 of title 24, Code of Federal Regulations, as in
effect on January 1, 2025, except as required to amend, add,
or remove categorical exclusions identified under section
58.35 of title 24, Code of Federal Regulations, through
standard rulemaking procedures; and
(4) evaluate the feasibility of a joint physical inspection
process for housing projects funded by amounts from the
Department of Housing and Urban Development and the
Department of Agriculture.
(b) 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--
(1) to improve the efficiency and effectiveness of housing
projects funded by amounts from the Department of Housing and
Urban Development and the Department of Agriculture; and
(2) that do not materially, with respect to residents of
housing projects described in paragraph (1)--
(A) reduce the safety of those residents;
(B) shift long-term costs onto those residents; or
(C) undermine the environmental standards of those
residents.
SEC. 803. IMPROVING SELF-SUFFICIENCY OF FAMILIES IN HUD-
SUBSIDIZED HOUSING.
(a) In General.--
(1) Study.--Subject to subsection (b), the Secretary of
Housing and Urban Development shall conduct a study on the
implementation of work requirements implemented prior to the
date of enactment of this Act by public housing agencies
described in paragraph (4) participating in the Moving to
Work demonstration authorized under section 204 of the
Departments of Veterans Affairs and Housing and Urban
Development, and Independent Agencies Appropriations Act,
1996 (42 U.S.C. 1437f note).
(2) Scope.--The study required under paragraph (1) shall--
[[Page H3611]]
(A) consider the short-, medium-, and long-term benefits
and challenges of work requirements on public housing
agencies described in paragraph (4) and on program
participants who are subject to such requirements, including
the effects work requirements have on homelessness rates,
poverty rates, asset building, earnings growth, job
attainment and retention, and public housing agencies'
administrative capacity; and
(B) include quantitative and qualitative evidence,
including interviews with program participants described in
subparagraph (A) and their respective resident councils.
(3) Report.--Not later than 1 year after the date of
enactment of this Act, 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 a report on the initial findings of the
study required under paragraph (1).
(4) Public housing agencies described.--The public housing
agencies described in this paragraph are public housing
agencies that, as part of an application to participate in
the demonstration authorized under section 204 of the
Departments of Veterans Affairs and Housing and Urban
Development, and Independent Agencies Appropriations Act,
1996 (42 U.S.C. 1437f note), submit a proposal identifying
work requirements as an innovative proposal.
(b) Determination.--The requirement under subsection (a)
shall apply if the Secretary of Housing and Urban Development
determines that--
(1) there are a sufficient number of public housing
agencies described in subsection (a)(4) such that the
Secretary of Housing and Urban Development can rigorously
evaluate the impact of the implementation of work
requirements described in that subsection; and
(2) the study would not negatively impact low-income
families receiving assistance through a public housing agency
described in subsection (a)(4).
SEC. 804. GAO STUDIES.
(a) Workforce Housing Study.--
(1) Middle-income household defined.--In this subsection,
the term ``middle-income 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 of Housing and Urban Development
with adjustments for smaller and larger families.
(2) Study.--Not later than 1 year after the date of
enactment of this Act, the Comptroller General of the United
States shall conduct a study and submit to Congress a report
that--
(A) identifies obstacles middle-income households face when
looking to secure affordable housing;
(B) identifies geographic areas where housing is the most
unaffordable and unavailable for middle-income households;
(C) 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;
(D) 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 those middle-income
households in Federal housing programs if funding
commensurate with the additional eligibility were to be made
available; and
(E) 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) Housing for Elderly or Disabled.--Not later than 1 year
after the date of enactment of this Act, the Comptroller
General of the United States shall carry out a study and
submit to 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).
(c) Proximity of Housing to Superfund Sites.--Not later
than 1 year after the date of enactment of this Act, the
Comptroller General of the United States shall carry out a
study and submit to Congress a report that identifies how
many residential dwelling units, and how many dwelling units
that are a part of public housing (as 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).
(d) Residential Heirs Property.--Not later than 1 year
after the date of enactment of this Act, the Comptroller
General of the United States shall carry out 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 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, nonprofit organizations, and institutions
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 those States and jurisdictions to
establish and document property ownership rights or settle a
decedent's estate;
(C) by awarding grants to entities that--
(i) provide housing counseling, legal assistance, and
financial assistance to home-owners and their heirs relating
to title clearing and home retention efforts of heirs'
property; and
(ii) 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.
SEC. 805. 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 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
[[Page H3612]]
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 IX--STRENGTHENING COMMUNITY BANKS' ROLE IN HOUSING
SEC. 901. 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. 902. 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 nonprofit
organizations, that drive demand for reciprocal products;
(B) an analysis, to the extent practicable, of how
reciprocal deposits compare to other deposit arrangements;
and
(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. 903. 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. 904. 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:
[[Page H3613]]
``(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 a 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 a 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. 905. 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))--
``(I) all reports of examination and inspection that relate
to the failed insured depository institution in the previous
3-year period;
``(II) all 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 United States 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. 906. 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:
``(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
[[Page H3614]]
``(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. 907. 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) of the
Federal Deposit Insurance Act (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 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
[[Page H3615]]
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 of 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
906(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. 908. ADVANCING THE MENTOR-PROTEGE PROGRAM FOR SMALL
FINANCIAL INSTITUTIONS.
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.''.
SEC. 909. 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--
(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--
[[Page H3616]]
(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. 910. 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 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. 911. 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).
(e) Definitions.--In this section:
[[Page H3617]]
(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. 912. 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.
TITLE X--HOME-OWNERSHIP FOR MAIN STREET AMERICA
SEC. 1001. HOMES ARE FOR PEOPLE, NOT CORPORATIONS.
(a) Definitions.--In this section:
(1) Consumer reporting agency.--The term ``consumer
reporting agency'' has the meaning given the term in section
603 of the Fair Credit Reporting Act (15 U.S.C. 1681a)).
(2) Excepted purchase.--The term ``excepted purchase''
means any purchase of a single-family home that is--
(A) newly constructed, renovated, or a rental conversion
for sale by a large institutional investor and not as a
residence rented pending sale;
(B) pursuant to a build-to-rent program where the large
institutional investor purchases, constructs, or constructs
and retains a newly constructed single-family homes to be
managed as a rental property, whether as part of a community
made up exclusively of renter-occupied single-family homes or
as part of a community made up of single-family homes that
are both owner- and renter-occupied;
(C) pursuant to a renovate-to-rent program that--
(i) substantially rehabilitates single-family homes that do
not meet structural or core system elements of local building
codes; and
(ii) makes improvements in an aggregate dollar amount of
not less than 15 percent of the purchase price of the single-
family home;
(D) pursuant to a homeownership program that--
(i) requires rental payments and any other fees that are
not greater than those collected by the large institutional
investor on other similarly situated single-family homes not
covered by the eligible homeownership program;
(ii) is subject to a contract between the large
institutional investor and renter that shall be considered a
consumer credit transaction secured by a dwelling or real
property;
(iii) provides for positive reporting of rental payments to
consumer reporting agencies for any renter, who shall be
informed of and opts into such reporting; and
(iv) requires contribution of meaningful financial support
from the large institutional investor, including price
concessions, for the purchase of the single-family home by
the renter;
(E) pursuant to a program to boost homeownership that--
(i) provides for positive reporting of rental payments to
consumer reporting agencies for any renter, who shall be
informed of and opts into such reporting;
(ii) provides for the right of first refusal and a 30-day
``first look'' period; and
(iii) may entail the meaningful financial support from the
large institutional investor, including price concessions,
for the purchase of a single-family home by the renter
(whether it is the home the renter occupies or another home);
(F) in connection with the satisfaction of debts previously
contracted in good faith and where the large institutional
investor has the right to repossess the single-family home
under such contract;
(G) undertaken by a mortgage servicer, lender, or other
entity that has a legal right to a single-family home, for
the purpose of loss mitigation or compliance with servicing
or investor obligations, and not as a long-term investment
strategy, and is solely as a result of--
(i) a foreclosure;
(ii) a deed-in-lieu of foreclosure;
(iii) enforcement of a mortgage, deed of trust, or other
security interest; or
(iv) operation of law following borrower default;
(H) purchased from another large institutional investor
that either owned the single-family home on the date of
enactment of this Act or purchased the single-family home in
compliance with this section;
(I) purchased from an investor not covered under this
section, so long as the purchase occurred not more than 2
years after the effective date under subsection (f);
(J) newly constructed, renovated, or a rental conversion
that is intended and operated for occupancy as part of a
community for households with 1 or more members aged 55 years
or older, and satisfies visitability standards established by
the Secretary of Housing and Urban Development; or
(K) purchased through a single purchase or combination or
series of purchases described in subparagraphs (A) through
(J).
(3) Single-family home.--The term ``single-family home''--
(A) means a structure that contains 2 or fewer dwelling
units that are each intended for residential occupancy by a
single household; and
(B) does not include a manufactured home, as defined in
section 603 of the National Manufactured Housing Construction
and Safety Standards Act of 1974 (42 U.S.C. 5402).
(4) Large institutional investor.--
(A) In general.--The term ``large institutional
investor''--
(i) means an investment fund, corporation, general or
limited partnership, limited liability company, joint
venture, association, or other for-profit entity that is a
legal entity structured in a manner that is not
aforementioned that--
(I) is engaged, in whole or in part, in the business of
investing in, owning, renting, managing, or holding single-
family homes; and
(II) alone or in concert with 1 or more other entities,
beginning after the date of enactment of this Act, directly
or indirectly has investment control of not less than 350
single-family homes in the aggregate, not including any
single-family home purchased in an excepted purchase made
after the date of enactment of this Act; and
(ii) does not include any local, State, Tribal, or Federal
government entity or instrumentality thereof.
(B) Rule of construction.--For purposes of this paragraph,
an entity has direct or indirect investment control over a
single-family home if the entity--
(i) owns, or has primary authority or fiduciary
responsibility to make material investment or management
decisions relating to, the single-family home;
(ii) is, or directly or indirectly controls, the general
partner or managing member of the entity that owns the
single-family home;
(iii) is or controls the investment manager, management
company, or investment advisor of the entity that owns the
single-family home;
(iv) owns or controls more than 25 percent of any class of
equity interests of the entity that owns the single-family
home, unless such entity is a passive investor; or
(v) otherwise controls the entity that owns the single-
family home.
(5) Purchase.--The term ``purchase'' includes any purchase,
transfer, or other acquisition of a single family home,
including through mergers, acquisitions, construction,
foreclosures, or bulk purchases, whether or not for cash
consideration.
(b) Prohibition on Purchases by Large Institutional
Investors.--
(1) In general.--No large institutional investor may
purchase, or enter into a contract to directly or indirectly
purchase, any single-family home.
(2) Exceptions.--The prohibition under paragraph (1) shall
not apply to--
(A) any excepted purchase; or
(B) any purchase of a single-family home in connection with
a restructuring or other reorganization of ownership of
single-family homes that were owned or purchased on or before
the date of enactment of this Act.
(3) Rule of construction.--Nothing in this section may be
construed to--
(A) require any large institutional investor to divest or
otherwise sell any single-family home purchased before the
date of enactment of this Act; or
(B) prevent the filing of a petition, or otherwise affect
any bankruptcy proceeding, under title 11, United States
Code.
(4) Implementation.--
(A) In general.--In consultation with the Secretary of
Housing and Urban Development, the Director of Federal
Housing Finance Agency, and the Chair of the Securities and
Exchange Commission, the Secretary of the Treasury may issue
regulations in accordance with the notice and comment
rulemaking procedures under section 553 of title 5, United
States Code, to carry out the purposes of this section,
including regulations to--
(i) minimize market disruptions upon identifying a risk of
material negative impact on the housing market, including an
impact on the ability of market participants to dispose of
single-family homes in an orderly fashion; and
(ii) mitigate, to the extent possible, negative impacts on
consumers and communities.
(B) Rule of construction.--For the avoidance of doubt, no
regulation issued under subparagraph (A) may amend the
definitions of the terms defined under subsection (a),
including to--
(i) alter the scope of excepted purchases in a manner that
would undermine the goal of expanding the number of single-
family homes available to individual households for purchase;
(ii) alter any type of excepted purchase in a manner that
would undermine the goal of expanding the number of single-
family homes available to individual households for purchase;
(iii) add any category of large institutional investor as
an eligible class if not determined by this section; or
(iv) alter the quantitative threshold in the definition of
``large institutional investor''.
(c) Renter Outreach Resource Established.--
(1) In general.--The Secretary shall, not later than 180
days after the date of the enactment of this section,
establish a renter outreach resource that consists of a toll-
free telephone number and a public website designed to assist
renters of residential properties owned by a large
institutional investor in--
[[Page H3618]]
(A) notifying Federal agencies about disputes relating to
the rental of such properties, including disputes about
potential violations of Federal law;
(B) sharing information about such disputes with other
Federal agencies, including other Federal agencies that
manage similar disputes;
(C) monitoring such disputes; and
(D) resolving such disputes, to the extent practicable.
(2) Response to outreach.--
(A) In general.--The Secretary shall establish reasonable
procedures to--
(i) promptly respond, in writing where appropriate, to a
renter who provides information to the Secretary about a
dispute using the renter outreach resource established under
paragraph (1); and
(ii) document such responses.
(B) Contents.--Responses provided under subparagraph (A)
shall include, where appropriate, information about--
(i) steps that have been taken by the Secretary or another
Federal agency in response to the information about the
dispute provided by the renter, including determining the
appropriate large institutional investor involved as
described in paragraph (3);
(ii) any responses received by the Secretary or another
Federal agency from the large institutional investor related
to such dispute; and
(iii) any outcome of the dispute, to the extent
practicable.
(3) Investigation of potential violations of federal law.--
(A) In general.--The Secretary shall promptly process and
investigate any information relating to a dispute received
through the renter outreach resource established under
paragraph (1) about a potential violation of Federal law that
is received from a renter of a residential property owned by
a large institutional investor through the renter outreach
resource established under paragraph (1), including:
(i) Requesting information from a large institutional
investor;
(ii) Determining the appropriate large institutional
investor involved in the dispute; and
(iii) Sharing information about such potential violation of
Federal law with any relevant Federal agencies, as the
Secretary may determine appropriate.
(B) Responses to requests for information.--Upon request
for information made pursuant to subparagraph (A), the
Secretary shall provide a large institutional investor the
opportunity to respond, including regarding whether such
large institutional investor currently owns the property
described in such request for information.
(4) Information for appropriate state authority.--When the
Secretary receives information about a potential violation of
State law or about a dispute received through the renter
outreach resource, from a renter of a residential property
owned by a large institutional investor through the renter
outreach resource established under paragraph (1), the
Secretary shall, at a minimum, provide the renter with
contact information for the appropriate, State-specific,
State authority authorized to process and investigate such
information.
(5) Notice about renter outreach resource.--Each large
institutional investor shall--
(A) provide to each renter of a residential property owned
by such investor at the time such renter first occupies such
home and annually thereafter--
(i) written notice about the renter outreach resource
established under paragraph (1); and
(ii) the name, phone number, and email address of the
person or entity responsible for receiving and addressing
renter disputes for the large institutional investor, and
update the name, phone number, and email address within 30
days if such information changes prior to the subsequent time
at which such notice is required to be provided; and
(B) prominently feature information about the renter
outreach resource established under paragraph (1) on a public
website of such investor that is accessible by such renter.
(6) Annual report to the congress.--
(A) In general.--The Secretary shall, not later than March
31 of each year, submit to the Congress a public report which
analyzes and aggregates the information received or obtained
pursuant to this subsection during the prior year that
includes--
(i) information about the types and the number of disputes
received about potential violations of Federal law;
(ii) information about the types and the number of disputes
received about potential violations of State law;
(iii) where practicable, information about the resolution
of such disputes; and
(iv) information provided to the Secretary of Housing and
Urban Development under paragraph (8).
(B) Anonymization of data.--Any data included in a report
that is submitted under this paragraph shall be aggregated or
anonymized so as to protect any individual dispute or
personally identifiable information received through the
renter outreach resource.
(7) Protection of personal information.--In complying with
the requirements of this subsection, the Secretary shall take
such measures as the Secretary determines are necessary to
provide for the protection of personally identifiable
information received through the renter outreach resource in
a manner that conforms with existing standards for protection
of the confidentiality of personally identifiable
information.
(8) Annual notification.--Not later than 180 days after the
date of the enactment of this Act, and not later than
December 31st of each year thereafter, each person or entity
that satisfies the definition of a large institutional
investor, as such term is defined in subsection (a) shall--
(A) notify the Secretary each year whether such owner is a
large institutional investor as defined in subsection (a);
and
(B) in such notification, identify how many single-family
homes such large institutional investor has direct or
indirect investment control of as of the date of the
submission of such notice, and the city and State where each
such single-family home is located, unless such large
institutional investor owns 10 or fewer single-family homes
in such city.
(d) Enforcement.--
(1) Civil penalties.--The Secretary of the Treasury, or the
Attorney General at the request of the Secretary of the
Treasury, may bring an action against a large institutional
investor that violates subsection (b) for a civil penalty in
an amount that is not more than $1,000,000 per violation, or
3 times the purchase price of the property involved,
whichever is greater.
(2) Transfer to hud for homeownership expansion
activities.--For fiscal year 2027 and each fiscal year
thereafter, to the extent and in the amounts provided in
advance in appropriations Acts, civil penalties assessed
under this section shall be transferred to and available to
the Secretary of Housing and Urban Development to provide
additional funding for the HOME Investment Partnerships
program under subtitle A of title II of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12741 et seq.), to
be allocated in accordance with the formula under that
program, for new construction, acquisition, and
rehabilitation of single-family homes and to provide
assistance grants to first-time homebuyers, which may be for
downpayments, closing costs, and interest rate buydowns.
(e) Studies on Large Institutional Investors.--
(1) Gao report.--Not later than 2 years after the date on
which the prohibition under subsection (b)(1) takes effect,
and again not later than 10 years after that date, the
Comptroller General of the United States shall submit to the
Senate Committee on Banking, Housing and Urban Affairs and
the House Committee on Financial Services a report on--
(A) the impact of the ownership by large institutional
investors of single-family homes on housing availability and
affordability for renters and homebuyers; and
(B) the effectiveness of this section in reducing demand by
large institutional investors for single-family homes and
expanding homeownership for renters and homebuyers.
(2) Hud report.--Not later than 2 years after the date on
which the prohibition under subsection (b)(1) takes effect,
and again not later than 10 years after that date, the
Secretary of the Housing and Urban Development, in
consultation with the Secretary of the Treasury, the
Administrator of the Rural Housing Service, the Executive
Director of the Loan Guaranty Service of the Department of
Veterans Affairs, the Chair of Securities and Exchange
Commission, and the Director of the Federal Housing Finance
Agency, 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 on--
(A) whether there should be adjustments to the definition
of the term ``large institutional investor'';
(B) the financial impact of this section on large
institutional investors, renters, and homebuyers; and
(C) any legislative recommendations regarding ways to
improve the authorities provided under this section to
increase the supply and affordability of single-family homes
for purchase by individual homebuyers.
(3) Sense of congress.--It is the sense of Congress that--
(A) this section is intended to expand the number of
single-family homes available to individuals for purchase and
is aimed at preserving and expanding the supply of single-
family homes available to individuals; and
(B) any further study on the effectiveness of this section
and any legislative recommendations therefrom should consider
this sense of Congress.
(f) Effective Date.--The requirements and prohibitions
under subsections (b) and (d) of this section--
(1) shall take effect on the date that is 180 days after
the date of enactment of this Act; and
(2) are repealed on the date that is 15 years after the
effective date under paragraph (1).
TITLE XI--CENTRAL BANK DIGITAL CURRENCY
SEC. 1101. CENTRAL BANK DIGITAL CURRENCY.
The Federal Reserve Act (12 U.S.C. 221 et seq.) is amended
by inserting after section 16 (12 U.S.C. 411 et seq.) the
following:
``SEC. 16A. CENTRAL BANK DIGITAL CURRENCY.
``(a) Definitions.--In this section:
``(1) Central bank digital currency.--The term `central
bank digital currency' means a digital asset that--
``(A) is denominated in United States dollars;
``(B) is a United States currency;
[[Page H3619]]
``(C) is a direct liability of the Federal Reserve System;
and
``(D) is widely available to the general public.
``(2) Digital asset.--The term `digital asset' has the
meaning given the term in section 2 of the GENIUS Act (12
U.S.C. 5901).
``(b) Prohibition.--Except as provided in subsection (c),
the Board of Governors of the Federal Reserve System or a
Federal reserve bank may not issue or create a central bank
digital currency or any digital asset that is substantially
similar to a central bank digital currency directly or
indirectly through a financial institution or other
intermediary.
``(c) Exception.--Subsection (b) shall not prohibit any
dollar-denominated currency that is open, permissionless, and
private, and fully preserves the privacy protections of
United States coins and physical currency.
``(d) Sunset.--This provisions of this section shall cease
to be effective on December 31, 2030.
``(e) Rule of Construction.--Nothing in this section shall
be construed to allow the Board of Governors of the Federal
Reserve to issue a central bank digital currency or any
digital asset that is substantially similar to a central bank
digital currency directly or indirectly absent authorization
by an Act of Congress.''.
TITLE XII--MISCELLANEOUS
SEC. 1201. SEVERABILITY.
If any provision of this Act, or the application thereof
to any person or circumstance, is held invalid, the remainder
of the Act, and the application of such provisions to other
persons or circumstances, shall not be affected thereby.
SEC. 1202. NO ADDITIONAL FUNDS AUTHORIZED.
No additional funds are authorized to be appropriated to
carry out the requirements of this Act or any amendment made
by this Act.
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 resolution.
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 include in the Record the Congressional Budget Office
estimate for this bill.
Legislation Considered Under Suspension of the Rules
The Majority Leader of the House of Representatives
announces bills that will be considered under suspension of
the rules in that chamber. Under suspension, floor debate is
limited, all floor amendments are prohibited. points of order
against the bill are waived, and anal passage requires a two-
thirds majority vote.
At the request of the Majority Leader and the House
Committee on the Budget, CBO estimates the effects of those
bills on direct spending and revenues. CBO has limited time
to review the legislation before consideration. Although it
is possible in most cases to determine whether the
legislation would affect direct spending or revenues, time
may be insufficient to estimate the magnitude of those
effects. If CBO has prepared estimates for similar or
identical legislation, a more detailed assessment of
budgetary effects, including effects on spending subject to
appropriation, may be included.
EFFECTS ON DIRECT SPENDING AND REVENUES OF LEGISLATION CONSIDERED UNDER SUSPENSION OF THE RULES IN THE HOUSE OF REPRESENTATIVES
Week of May 18, 2026
--------------------------------------------------------------------------------------------------------------------------------------------------------
Additional
Effect on Direct Information on Direct Link to Published
Bill Number Title Spending Effect on Revenues Spending and Revenue Estimates
Effects
--------------------------------------------------------------------------------------------------------------------------------------------------------
H. Res. 6644....................... 21st Century ROAD to Increase by at Least Increase by at Least Would reduce the N/A
Housing Act, as $500K. $500K. deficit by tens of
amended. millions.
--------------------------------------------------------------------------------------------------------------------------------------------------------
On May 18, 2026, this table was updated to include the addition of S. 1003, LuLu's Law, to the list of bills that may be considered under suspension of
the rules in the House of Representatives during the week of May 18, 2026.
On May 18, 2026, the text for H. Res. 6644, 21st Century ROAD to Housing Act, as amended, was revised. The changes to the legislation did not affect
CBO's assessment of the effects of the resolution on direct spending and revenues.
Sources: Congressional Budget Office; staff of the Joint Committee on Taxation.
Mr. HILL of Arkansas. Mr. Speaker, I rise today in strong support of
the House amendment to the 21st Century ROAD to Housing Act.
I share in President Trump's commitment to delivering a housing bill
that puts American families first and expands access to American
homeownership.
Over the last couple of months, we have heard clear concerns from
literally hundreds of bipartisan Members and stakeholders expressing
concerns with some of the provisions that were contained in the Senate-
passed version of the housing bill.
For Ranking Member Waters and me, Ranking Member Cleaver and Chairman
Flood on the Subcommittee on Housing and Insurance, this has been years
of work in the making and months of intensive work in this 119th
Congress to find a path that improves accessibility to housing for the
American people, and affordability for the American people, that could
be a bicameral, bipartisan housing measure.
This amendment that is before us today, which amends the good work of
the Senate, is exactly that: hours and hours of listening to the
American people across our cities, hours of testimony in our
Subcommittee on Housing and Insurance, led by the gentleman from
Nebraska. We have that feedback.
That feedback, Mr. Speaker, informs this amendment. It informs this
debate. Ranking Member Waters and I have collaborated together today on
several revisions that ensure that these reforms are narrowly tailored
and do not, in any way, in some unintentional way, reduce housing
supply, disrupt housing markets, or harm those in the rental community.
The focus of the bill in the House and the Senate, and the focus of
our work today in the amendment, is to continue to cut unnecessary
barriers to new home construction, modernize HUD programs, and allow
our community banks to more freely deploy funding into their
communities that aid in the development of new housing products,
whether it is single-family housing or housing for rent.
This bill has a provision in it that also meets the request of
President Trump, which he outlined in this room in his State of the
Union Address, that we limit institutional investors from competing
with Moms and Dads and Americans out there trying to buy a house.
It removes some of the legal challenges that we felt were in the
structure of the Senate's approach. Ultimately, in my view, and I
believe the view of Chairman Flood, Ranking Member Cleaver, and Ranking
Member Waters, this delivers on that goal of not having a young family
buying their first home, being informed by their Realtor that somehow
they missed that opportunity because the house was bought out from
under them by some big-shot institutional investor. That is what
President Trump talked about here in this House Chamber at the State of
the Union Address.
I believe, Mr. Speaker, that the changes that we made in a
collaborative, bipartisan way deliver on the President's goal and, in
fact, help this bill.
Additionally, this bill modernizes outdated banking regulations so
that community banks can focus on doing what they do best: lending and
providing loans to families who are looking to buy a home and companies
looking to finance construction.
Together, these changes strengthen our joint, bicameral focus on
expanding housing access and affordability without discouraging
investment in new housing development.
The amendment we are voting on advances practical, bipartisan
solutions to modernizing the Federal housing programs, reducing
regulatory burdens, streamlining the development process, and building
more homes to meet growing demand.
Congress has a responsibility to pursue reforms that expand
opportunity and keep this great American Dream within reach.
Mr. Speaker, I thank the ranking member. I thank Mr. Flood and Mr.
Cleaver for their tireless effort over
[[Page H3620]]
the last year and a half, and I am proud to support this effort. I urge
my colleagues to do the same.
Mr. Speaker, 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. Res. 1299, amending H.R. 6644,
the 21st Century ROAD to Housing Act, sponsored by Chairman Hill and
me.
Tomorrow, the House has a historic opportunity to pass an improved
bipartisan housing package, negotiated in partnership with Chairman
Hill and me, and with the input of many House Democrats.
Mr. Speaker, our housing bill is the most comprehensive housing
reform bill in a generation and is a huge step toward finally
addressing the affordable housing and homelessness crises in our
country.
Let me make it clear, and let me take a moment to remind everyone
what is at stake or who we are trying to help. The age of a median
first-time homebuyer is now 40 years old. That is largely because the
average cost of a single-family home has skyrocketed, and wages have
not kept pace. In fact, 22 million households spend over 30 percent of
their paycheck on rent, and 12 million spend over 50 percent on
housing. What is most shameful is that nearly 800,000 people experience
homelessness on any given night. This is unacceptable, and we must act
now.
The House first passed H.R. 6644 back in February. A month later, the
Senate amended our bill, stripping out numerous House provisions that
would address real problems in the housing market. However, the Senate
also added a poorly drafted ban on large institutional investors buying
new single-family homes.
I say this not as someone who is a fan of private equity ownership of
these homes, but as someone who was concerned that the Senate's
drafting was unconstitutional and could lead to thousands of families
and persons living with disabilities being evicted, students and
servicemembers without housing options, and private equity being
incentivized to use certain types of contracts with tenants that have
been rife with abuses.
{time} 1750
For this reason, I called on the Senate to join us in a conference to
resolve our differences. While I am disappointed that our Senate
colleagues chose not to conference with us, Chairman Hill and I just
kept on going. We pressed on, making those critical improvements to
restore the legislation to its intent to address the housing crisis.
To be clear, the consequences of simply passing the Senate's bill
were stark. The Urban Institute concluded that 72,000 housing units
would not be built as a result of the Senate's bill.
Even more alarming, the Senate's language also threatened tens of
thousands of families with eviction.
Mr. Speaker, before I go on, I must say that the process to get here
today has been less than ideal. That is an understatement. Chairman
Hill, the Speaker, the White House, and I were making changes to this
text right up until the last minute.
While I support our final agreement, we must inform our colleagues
about how this bill has changed since it was posted on Friday, as they
will be voting on it tomorrow, so I am going to describe those changes
here.
First, the bill removes section 204, which was the Build Now Act.
Second, we added a new section 107, called Housing Supply Frameworks.
Third, section 208, the Housing Innovation Fund, now sunsets after 7
years instead of 5 years.
Fourth, we added language ensuring prevailing wage requirements under
the Davis-Bacon Act apply to sections 102 and 106 of this bill.
Fifth, we are revising section 1001 of the bill, which relates to
private equity ownership of single-family homes, by replacing our text
with the Senate-based language while removing the divestment
requirement, changing the definition of build-to-rent, and inserting a
renter hotline that requires HUD to respond to renter complaints.
Mr. Speaker, this revised House package of needed housing reforms
preserves more than 90 percent of the Senate's bill, while
strengthening it by adding numerous, critical House-passed, Democratic-
led housing and community banking provisions. As a result, we will be
providing more relief and support to millions of families and
communities all across the Nation.
Mr. Speaker, there is broad recognition in this Chamber of the
problems in our housing markets. We need comprehensive reforms at the
Federal, State, and local levels, along with a commitment by everyone
to get America building housing again.
How do we do this? We do this by: creating a pilot to increase access
to small-dollar mortgages, especially in rural areas; allowing housing
cooperatives, a type of affordable housing option, to participate in
Federal programs; creating local databases about unused, government-
owned land--very important; increasing access to more family-sized
affordable housing units; and adding in community bank and credit union
reforms so that these small institutions can help.
These and so many other reforms in this bill are a huge first step
toward finally addressing the housing crisis in this country.
Finally, the Senate had a temporary ban on central bank digital
currencies, that is the CBDC. This is the status quo we have in effect
today as Trump's new Fed Chair has stated that he will not issue a CBDC
during his tenure. More importantly, this temporary ban is only partial
and will still allow the Fed to study other forms of CBDC, like the
ones that more closely parallel how currency is used in our economy.
Mr. Speaker, I urge Members to join me in passing this bill. I will
just say that we have learned an awful lot over a number of years about
what we could do to create some real opportunities. We are now using
our experiences working on housing bills to interject into how we are
going to be able to get more housing for all of those who are in
desperate need and to get the homeless off of our streets.
We have learned a lot. You are going to hear in this bill about how
we are learning about land that is owned by cities and counties for
years that they could get rid of and don't have to do it for market
value, on and on and on.
Mr. Speaker, I am very proud, even though this has been a real, real
labor--I want to say of love, but it has been a real labor, maybe not
of love but something that really had to be done.
I think we have finally made these meaningful steps to our Nation's
housing crisis and strengthened our community banks.
Mr. Speaker, I ask everyone to please support this bill. I reserve
the balance of my time.
Mr. HILL of Arkansas. Mr. Speaker, I yield myself such time as I may
consume.
Mr. Speaker, when I think about the ranking member, she knows the
respect I have for her, and she has, I am sure, no less than four
decades as one of the Nation's most strong and effective advocates for
housing and housing solutions in our country. To say she supports a
bill is high praise, and we are grateful to her.
Mr. Speaker, I have to say that I started what is a modest career in
D.C. as a youngster in my twenties, and I was a staffer on the Senate
Committee on Banking, Housing, and Urban Affairs during the first term
of President Ronald Reagan.
President Reagan was trying to restart the economy after the grim
decade of the 1970s. It was bad. President Carter had struggled with
it. We were in two back-to-back recessions. One of his ideas was: What
could we do in housing? Interest rates were at 20 percent. It is a
little hard to buy a house when interest rates are 20 percent.
But he had a commission on housing; and one of his top ideas was to
change the building codes, make them more modern, make them more
competitive, both in manufactured housing and in modular construction
techniques for resiliency and for energy efficiency.
Guess what, Mr. Speaker. We are going to do that today, 40 years
later. We wouldn't be doing it if we didn't have the hard work of Mike
Flood, the chairman of the Subcommittee on Housing and Insurance in
this Congress, and his partner in this effort, Emanuel Cleaver of
Missouri.
Mr. Speaker, I yield 4 minutes to the gentleman from Nebraska (Mr.
Flood), the chair of the Housing and Insurance Subcommittee.
Mr. FLOOD. Mr. Speaker, I thank Chairman Hill and Ranking Member
Waters for supporting this bill.
[[Page H3621]]
When I got the privilege of leading this subcommittee given to me by
our chairman, the first order of business, after I found out where my
office was, was to go meet Emanuel Cleaver for dinner. We shared a
prime rib, and I knew that night that we had something special.
Housing is personal. Housing is not a building or a garage. It is
where you bring home your first baby, and the first bath is under the
sink faucet. It is where you tuck your little 7-year-old into bed, and
you say: I am doing my part as a parent to protect her from being
homeless or living a better life.
When I met Emanuel Cleaver, I could see in his eyes that this was
personal to him. I thought, I am a Republican. He is a Democrat. God
has placed us in these spots to try and fix something for the American
people, to make it easier to get that first house, to buy a
manufactured home that doesn't have a chassis and save $25,000, and to
do it for all the right reasons.
Last Sunday, as I was coming back to Omaha, we were flying. Because
of storms, I was flying over Kansas City and I looked at the lights of
Kansas City, and I thought to myself: I want this as much for him as I
want it for Lincoln or Waverly or Papillion.
Mr. Speaker, because of our chairman, our ranking member, our
Speaker, our leader, and the leadership in both parties, we have a
product that the American people can look at tonight on this floor and
say: Congress did its job. They worked together. They compromised.
Did we get everything we wanted? No. Have you ever met the ranking
member? She drives a hard bargain. Yet, did we move the ball forward
for the American people? The answer is yes.
People send us to this town because they want solutions. They don't
want what they get too often at 9 o'clock eastern. They want to wake up
and know that their kids have a chance to get into a home, to park
their car in a garage, go to work at the factory the next day, and
build a better life for the next generation.
{time} 1800
What do we have in this bill? We have a bicameral, bipartisan
solution.
The institutional investor ban language by the Senate created massive
unintended consequences for the market. We know that. However, the
Senate impressed us with sending a truly bipartisan bill over here.
What the American people need to know is this is what the Founders
envisioned, House versus Senate, Republicans and Democrats united in
the House, Republicans and Democrats united in the Senate behind an
issue, not a personality. I credit the leadership for working the way
they did that allowed Mr. Cleaver and I to set a table and listen to
the Habitat for Humanity folks from Huntsville, Alabama, to welcome in
the mayor of San Diego, to talk to the mayor of Lincoln, who is high up
on the United States Conference of Mayors, and find out what her
priorities are.
People are going to get into homes, and they are going to get into
homes easier because of this. I, for one, want the people I signed up
to represent to know this is exactly why I want to be in Congress.
I would like to take a moment to highlight a few provisions that I
feel will make a difference. Sections 205 and 206 of the bill work to
rightsize environmental reviews on both HUD and USDA housing projects.
Mr. Nunn of Iowa is a big fan of that.
This legislation ensures these environmental reviews are properly
tailored to the real impact of the project going forward, not just a
box that needs to be checked. I worked with Mr. Cleaver on this section
of the bill for a long time as it relates to the reform of the HOME
Investment Partnerships Program, the largest block grant program at HUD
dedicated to building affordable housing.
What does it do? It slashes the environmental review requirements and
eases labor cost burdens like the ones created by Section 3.
The SPEAKER pro tempore. The time of the gentleman has expired.
Mr. HILL of Arkansas. Mr. Speaker, I yield an additional 1 minute to
the gentleman from Nebraska.
Mr. FLOOD. Mr. Speaker, in addition, it provides greater flexibility
for cities and towns across the country to utilize HOME dollars to
promote homeownership. Sometimes it is as easy as extending the
wastewater and the water system another 15 blocks. Think how far that
goes in California or a small town in Nebraska where they only have two
blocks, and another block means you get 10 more houses there. That is
10 more families. That is 50 more kids for a school that is on life
support. Now they have housing.
I am very proud of the committee I serve on. I am proud of the way we
work in a bipartisan manner. I want my career in Congress to be
experiences like this, and I thank Mr. Cleaver for everything that he
has accomplished in Congress and look forward to a continued great
relationship.
Ms. WATERS. Mr. Speaker, I yield 3 minutes to the gentleman from
Missouri (Mr. Cleaver), the ranking member of the Housing and Insurance
Subcommittee and coauthor of this bill. He is someone who worked very
hard to make some changes in the HOME program and that when some
questions were raised about Davis-Bacon, he was right there to ensure
that they were protected. I thank him so very much.
Mr. CLEAVER. Mr. Speaker, I rise in support of the revision of H.R.
6644, the 21st Century ROAD to Housing Act introduced by Chairman Hill,
Ranking Member Waters, Chairman Flood, and myself.
I appreciate very much the leadership of Ranking Member Waters and
Chairman Hill in negotiating this very important revision. To quote
Chairman Hill: ``This is how Congress is supposed to work.'' I could
not agree more. I might add, this is how the vast majority of the
American public would like to see us conduct business.
Housing remains the single largest expense for the Americans who sent
us to Washington. Rising housing costs are consuming an increasing
share of household income. Families are struggling to cover necessities
and are increasingly unable to save enough to transition into
homeownership.
The legislation we will be voting on is extraordinary. The underlying
concept--updating Federal housing programs--is a matter, really, of
common sense.
What sets this moment apart is not just the concept of the bill, but
the bipartisan, open, and deliberative process. The process in the
House has made the bill appealing legislatively and politically. It
reflects a monthslong and difficult effort to do what our constituents
sent us here to do. Chairman Hill did not get everything he wanted.
Ranking Member Waters did not get everything she wanted. Chairman Flood
did not get everything he wanted, and I can say very clearly I did not
get everything I wanted. However, I understand that democracy demands
deliberation, and we have a bill that is supported by housing
stakeholders and will deliver for the American people.
I thank Chairman Flood for working with me to reform the HOME
program. I thank Chairman Flood and Representative Rose for working
with me to expand access to manufactured housing. I thank
Representative Nunn for working with me to reform USDA rural housing
programs. I thank Representative Lawler for working with me on HUD
oversight and to improve Section 8. Finally, I thank Ranking Member
Warren for her partnership in working with me on the innovation piece.
I also thank Ranking Member Warren and Chairman Scott in the Senate,
who I greatly respect.
The revised bill, negotiated by Chairman Hill and Ranking Member
Waters, is an effort to advance the priorities of the House, Senate,
and White House. The constituents in my district, like those all around
this country, want to see this bill passed and signed into law. This
was one of the greatest opportunities I have had since I have been in
Congress.
Mr. HILL of Arkansas. Mr. Speaker, I yield 2 minutes to the gentleman
from Pennsylvania (Mr. Meuser), the chair of our Oversight and
Investigations Subcommittee.
Mr. MEUSER. Mr. Speaker, I am very honored to rise in support of the
21st Century ROAD to Housing Act. I congratulate our full committee
chairman, Chairman Hill, for his diligence and ability to find a
solution to a very important issue as well to the chair of the Housing
and Insurance Subcommittee, my friend Michael Flood,
[[Page H3622]]
for his words and just his tenacity in seeing this through.
I also offer special thanks to Ranking Member Waters and as well as
the subcommittee chair, Mr. Cleaver, for everything that they have done
to find a solution.
America, Mr. Speaker, faces a housing shortage of well over 4 million
homes, while only 1.5 million housing units are built each year. It is
a big problem. We have a housing supply program. This bill addresses
that shortfall and, importantly, expands affordability in
homeownership.
Homebuilders tell us their costs are nearly $100,000 before a shovel
even hits the dirt due to overregulation, permitting, environmental
reviews, and zoning delays. Many can't build a home for less than
$250,000.
This bill cuts through the blue tape, I tend to call it, by
streamlining bank financing for construction and development loans,
giving banks greater flexibility to support new housing, which is so
very important. It modernizes zoning guidance to create new housing
developments, speeds up environmental and project reviews that too
often delay construction for months, if not years, and increase costs.
President Trump and Republicans in Congress and, clearly, many
Democrats are determined to address our housing challenges, including
preventing institutional investors from owning single-family homes,
which is, again, very important. This legislation proves bipartisan and
bicameral solutions are actually possible where results matter more
than politics.
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 Pennsylvania.
Mr. MEUSER. Mr. Speaker, all future and existing homeowners
throughout the United States will benefit from this bill.
Ms. WATERS. Mr. Speaker, I yield 1 minute to the gentlewoman from New
York (Ms. Velazquez), the ranking member of the Small Business
Committee and an author of several provisions of this bill.
Ms. VELAZQUEZ. Mr. Speaker, I rise in support of H.R. 6644. I thank
Ranking Member Waters and Chairman Hill for including my language on
cooperative housing developments and oversight of monitors and
receivers of public housing authorities.
Cooperatives provide more than 1.5 million families with financially
stable housing across the United States and are a critical source of
homeownership. Unfortunately, however, they are often excluded from
Federal housing programs.
Explicit recognition in this bill will ensure that cooperatives can
access the bill's benefits and continue to remain a critical component
of our affordable housing stock.
Additionally, my language requiring Federal monitors and receivers of
PHAs to provide annual testimony and written assessments to Congress
will ensure Congress is coordinated and providing struggling PHAs with
the resources they need to improve their operations and conditions. It
will also help ensure effective use of the taxpayers' money.
{time} 1810
The SPEAKER pro tempore. The time of the gentlewoman has expired.
Ms. WATERS. Mr. Speaker, I yield an additional 30 seconds to the
gentlewoman from New York.
Ms. VELAZQUEZ. Mr. Speaker, finally, let me say that this bill is a
much-needed first step. It is not the entire answer. We must all
recognize that we still need substantial monetary investments in
housing programs to ensure effective development and reconstruction of
the units we need.
Mr. Speaker, I urge my colleagues to vote ``yes.''
Mr. HILL of Arkansas. Mr. Speaker, I reserve the balance of my time.
Ms. WATERS. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I say to Chairman Hill that in light of changes we
agreed to today, I want to take a moment to make clarifications about
the authority the Treasury has and should use related to the provisions
banning large institutional investors from purchasing single-family
homes.
Under our bill, the Secretary of the Treasury, in consultation with
the heads of HUD, FHFA, and SEC, may issue regulations to minimize
market disruptions and negative impacts on consumers and communities.
He and I both firmly agree that the bill allows Treasury to do this
and that Treasury must use this authority to issue regulations and
clarify the following things.
First, the bill was not intended to impact military housing, student
housing, disability housing, or LIHTC-supported housing, as defined in
our earlier May 15, 2026, posted draft of this bill.
This bill was also not intended to include or impact nonprofits or
community land trusts that purchase single-family homes. These entities
are not for-profit, large institutional investors.
In addition, large institutional investors are still prohibited from
buying properties with land contracts, again, as defined in our earlier
May 15 posted draft. These are not subject to landlord-tenant laws and
are harmful to renters. Large institutional investors should only be
allowed to purchase foreclosed, federally backed properties after
individuals and approved nonprofits have been given the first chance to
buy them through a 30-day first look period, as described in our
earlier May 15 posted draft.
Given our congressional intent, Treasury should use its authority to
address these concerns and to minimize market disruption and mitigate
negative impacts on consumers and communities.
Mr. Speaker, I know Mr. Hill agrees with me on all of this, as we
have discussed, and I would love for him to share his thoughts with our
colleagues on this also.
I yield to the gentleman from Arkansas (Mr. Hill).
Mr. HILL of Arkansas. Mr. Speaker, I appreciate the gentlewoman
yielding time.
I agree with her that throughout this process, we have tried to be on
the same page and be focused on that. We have heard from a lot of
stakeholders, a lot of different companies, and a lot of different
business models that provide housing options for Americans.
Ms. Waters outlined a number in her comments. These include providers
of housing for Active-Duty military families, for adults with
intellectual and developmental disabilities, near-campus student
housing, and, of course, the senior market.
Also included are providers who are organized as nonprofits, as was
noted, community land trusts, or entities engaged in Federal or State
affordability programs, like the low-income housing tax credit program.
We have also heard from many about tools that we use today to provide
for more affordable housing options, like First Look programs, to give
current renters a leg up on becoming homeowners.
These are all valuable features of our current system that encourage,
not reduce, the great availability and affordability of housing.
I agree with Ms. Waters that we need to make sure that, in the
implementation of this section, these beneficial features are not
inadvertently caught up when really they have done nothing to the
fundamental problem that we are trying to solve today, which is this
institutional investor challenge.
Leveling the playing field between individual buyers and large
institutional investors is the goal. I think we have achieved it in
what we have drafted.
These features did not cause the problem that we are here today to
solve. I thank the ranking member for working with me to ensure that
the build-to-rent industry, particularly, is appropriately exempted in
the text that we negotiated and considered today, and I commit to
working with the Treasury Department and the ranking member throughout
the rulemaking process on these issues.
Ms. WATERS. Mr. Speaker, I reclaim my time.
I approve of everything Chairman Hill said, and I thank him.
Mr. HILL of Arkansas. Mr. Speaker, I thank the ranking member for
this long process. It was a labor of love, I think. When Arkansas and
L.A. get together, good things happen.
I thank Ms. Waters for her diligence. I thank her staff for their
diligence in working with my team, Ed and Shannon, and Cary. They all
worked very
[[Page H3623]]
hard and collaboratively on what we did today.
I also thank Senators Tim Scott and Elizabeth Warren in the Senate. I
think too often we play back and forth work here, but you are actually
seeing legislation, Mr. Speaker, going back and forth between the
committees. This is regular order.
Mr. Speaker, 390 Members came to the House floor a few weeks ago and
voted for a housing bill that Ms. Waters and I put forward. That is a
pretty big vote in today's time.
Likewise, in the Senate, as Chairman Flood referenced, Senators Scott
and Warren got 89 Senators to vote for a housing bill. What does that
tell us? That tells us that on a bicameral, bipartisan basis, we ought
to have a housing bill.
President Trump has attempted to spur housing and housing ownership
through tax changes in the Working Families Tax Cut Act, lowering
regulatory burden so we can do more housing across this country. In his
own State of the Union Address, he pointed out that we ought to have
moms and dads being able to buy a house without competing on cash
against somebody that is some big institutional investor.
That is the executive branch and the House and Senate all on the same
page.
Today, we come to the House floor eager to bring that to fruition, to
have a win, as Chairman Flood referenced, for the American people on
greater affordability of housing and greater accessibility of housing.
Mr. Speaker, I reserve the balance of my time.
Ms. WATERS. Mr. Speaker, let me just say that I appreciate Mr. Hill's
support of some of the efforts that we made. Because of his background
in banking and his experience, he understood exactly what we were
talking about when we talked about the banks being able to do smaller
loans and to provide mortgages for homes that cost a lot less than the
millions of dollars.
It was because of his background and his experience that he
understood right away that we want this pilot program so that we can
show everybody that it is impossible to be able to have a mortgage if,
in fact, you are buying a home that costs less than millions of
dollars. I thank him very much.
Mr. Speaker, I yield 1 minute to the gentleman from California (Mr.
Liccardo), a member of the Financial Services Committee and an author
of several provisions in this bill.
Mr. LICCARDO. Mr. Speaker, I thank the ranking member and the chair
for their leadership on this effort.
Mr. Speaker, I rise today in support of this amendment to the 21st
Century ROAD to Housing Act.
Today, a rapidly growing number of our families, nearly 13 million,
appear severely rent burdened, meaning they spend more than half of
their income on housing and utilities.
Our housing crisis requires many actions from this Congress, but we
should start precisely where we all agree, Republicans and Democrats,
on improving affordability through accelerating expansion of housing
supply.
This legislation, which includes four bills that I either lead or co-
lead with my colleagues, will take important steps to cut red tape,
lower costs, and boost supply of multifamily housing construction, both
market-rate and affordable.
{time} 1820
Let's embrace this too rare moment of bipartisanship and approve this
package to expand supply, and then let's continue this momentum,
rolling up our sleeves, to address the affordability crisis that too
many of our families are pressed by. Mr. Speaker, the rent is too damn
high.
Mr. Speaker, I urge my colleagues to support this package.
Ms. WATERS. Mr. Speaker, I yield back the balance of my time.
Mr. HILL of Arkansas. Mr. Speaker, may I inquire how much time is
remaining.
The SPEAKER pro tempore. The gentleman from Arkansas has 4\1/4\
minutes remaining.
Mr. HILL of Arkansas. Mr. Speaker, I yield myself the balance of my
time.
Mr. Speaker, I thank Members from both sides of the aisle for their
perseverance and efforts. Let me thank my friends in the Senate for
their perseverance and support of the important policy of having more
accessible and more affordable housing by cutting red tape and
increasing capital availability to housing.
I want to think about my own constituency in central Arkansas. The
community development officers, Mr. Howard and his team, at the city of
Little Rock, have constantly approached me that if we could make
reforms to the HOME Program, like Mr. Flood and Mr. Cleaver have
proposed, it will lower the cost per square foot of the ability to use
that program by the city of Little Rock for new housing construction.
They have approached me about CDBG money being more flexible in how
it can be used for infrastructure and how that could produce more
housing availability in Little Rock.
In this bill, we reform the incentives to investment by bank holding
companies to directly invest in housing. That is a major, new source of
capital that will come to the housing market.
Then just think about the reforms we talked about in building codes,
Mr. Speaker, that have a nationwide benefit. Some 3,000 zoning agencies
will be benefited from those changes. Then, also in Little Rock, there
is the importance of HUD oversight.
I thank Mr. Torres of New York and Mr. Lawler of New York and their
provisions in this bill that talk about HUD's oversight.
How do we hold HUD accountable for doing a better job?
Finally, Mr. Speaker, I will close by saying that the ranking member
and I have included some commonsense, bipartisan reforms to our
community banks to make it easier for them to be engaged in their
community and delivering for those homebuilders who are building for
our families across our communities.
It is important because, Mr. Speaker, six out of ten home
construction loans in this country--six out of ten of those loans--are
made by community banks under $10 billion. That is the heart of
America. It is the heart of Main Street, and that is why the ranking
member and I have put a modest number of consensus elements to signal
to Americans living on Main Street and living in our neighborhoods we
want to have a supply side approach: more capital available for the
banks, more funding for our homebuilders, and more investment in one-
to-four family properties through the provisions of cutting red tape in
this bill led by Mr. Flood and Mr. Cleaver.
I just insist that that, I believe, is so important, and I believe
that has been recognized by policymakers on both sides of the aisle.
The White House recently reinforced this principle in an executive
order promoting access to mortgage credit which recognized that
regulatory changes over the past two decades have made it increase the
cost to originate a mortgage and service a mortgage and have distorted
the structure of the mortgage market.
This executive order specifically emphasized the importance of
ensuring that community banks and smaller lenders can continue
participating in mortgage lending markets, reducing unnecessary
regulatory burden.
The executive branch is on the same page with the legislative branch.
I think this poses an opportunity for a bicameral success that we can
send to President Trump's desk that increases accessibility to housing,
increases affordability to housing, and is a real success in economic
policy for this country.
Mr. Speaker, I encourage all Members on both sides of the aisle to
support this legislation, and I yield back the balance of my time.
Ms. BONAMICI. Mr. Speaker, the bill we are debating today, 21st
Century ROAD to Housing Act, is a meaningful investment in addressing
the Nation's housing crisis. It appears to be a comprehensive
legislation, but manufactured housing is left out.
For no good reason the House removed a bipartisan provision from this
legislation that would revitalize manufactured housing communities. 22
million Americans, including many veterans, seniors, and working
families, live in manufactured homes, and manufactured housing
communities provide a critical source of attainable homeownership.
The Preservation and Reinvestment Initiative for Community
Enhancement--or PRICE Act--helps to preserve existing low-cost homes at
a fraction of the cost of new construction. Although this housing
package makes major investments, rural communities and people living in
manufactured houses are being left behind.
[[Page H3624]]
Both the President and Senate support keeping the PRICE program in
the bill, so I urge my colleagues to add PRICE back in and recognize
the needs of the millions of low-income Americans who live in
manufactured housing communities.
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
agree to the resolution, H. Res. 1299.
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.
____________________