[House Report 116-664]
[From the U.S. Government Publishing Office]


116th Congress    }                                    {        Report
                        HOUSE OF REPRESENTATIVES
 2d Session       }                                    {       116-664

======================================================================



 
                      HOUSING FAIRNESS ACT OF 2020

                                _______
                                

 December 17, 2020.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

  Ms. Waters, from the Committee on Financial Services, submitted the 
                               following

                              R E P O R T

                             together with

                             MINORITY VIEWS

                        [To accompany H.R. 149]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Financial Services, to whom was referred 
the bill (H.R. 149) to authorize funds to prevent housing 
discrimination through the use of nationwide testing, to 
increase funds for the Fair Housing Initiatives Program, and 
for other purposes, having considered the same, reports 
favorably thereon with an amendment and recommends that the 
bill as amended do pass.

                                CONTENTS

                                                                   Page
Purpose and Summary..............................................     5
Background and Need for Legislation..............................     5
Section-by-Section Analysis......................................     7
Hearings.........................................................     8
Committee Consideration..........................................     8
Committee Votes..................................................     9
Statement of Oversight Findings and Recommendations of the 
  Committee......................................................    14
Statement of Performance Goals and Objectives....................    14
New Budget Authority and CBO Cost Estimate.......................    14
Committee Cost Estimate..........................................    15
Unfunded Mandate Statement.......................................    15
Advisory Committee...............................................    16
Committee Correspondence.........................................
Application of Law to the Legislative Branch.....................    16
Earmark Statement................................................    16
Duplication of Federal Programs..................................    16
Changes to Existing Law..........................................    16

    The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Housing Fairness Act of 2020''.

SEC. 2. TESTING FOR DISCRIMINATION.

  (a) Eligible Activity Under FHIP.--Subsection (a) of section 561 of 
the Housing and Community Development Act of 1987 (42 U.S.C. 3616a(a)) 
is amended--
          (1) in the matter preceding paragraph (1), by inserting after 
        ``discriminatory housing practices'' the following: ``or, in 
        the case of grants or contracts for activities under paragraph 
        (3) with qualified private, non-profit fair housing enforcement 
        organizations that have demonstrated expertise in managing and 
        implementing regional or national testing programs to address 
        systemic fair housing issues'';
          (2) in paragraph (1), by striking ``and'' at the end;
          (3) in paragraph (2), by striking the period at the end and 
        inserting ``; and''; and
          (4) by adding at the end the following:
          ``(3) programs of regional or national testing and 
        investigations to (i) detect and document differences in the 
        treatment of persons seeking to rent or purchase housing or 
        obtain or refinance a home mortgage loan, and measure patterns 
        of differential treatment because of the status of a renter, 
        home buyer, or borrower as a member of the protected classes 
        under the Fair Housing Act (42 U.S.C. 3601 et seq.), and (ii) 
        measure the prevalence, nature, and extent of discriminatory 
        practices covered under the Fair Housing Act.
The results of any testing and investigations pursuant to paragraph (3) 
may be used as the basis for the Secretary, or any Federal agency 
authorized to bring such an enforcement action, or any State or local 
government or agency, public or private nonprofit organization or 
institution, or other aggrieved parties as defined by title VIII of the 
Civil Rights Act of 1968 or other substantially equivalent State or 
local fair housing law, or other public or private entity that the 
Secretary has entered into a contract or cooperative agreement with 
under this section to commence, undertake, or pursue any investigation 
or enforcement action to remedy any discriminatory housing practice (as 
such term is defined in section 802 of the Fair Housing Act (42 U.S.C. 
3602)) uncovered as a result of such testing and investigations. 
Testing conducted pursuant to paragraph (3) shall not constitute a 
violation of any provision of criminal law or the Truth in Lending Act 
(15 U.S.C. 1601 et seq.).''.
  (b) Regulations.--Not later than the expiration of the 180-day period 
beginning on the date of the enactment of this Act, the Secretary of 
Housing and Urban Development shall issue regulations that apply the 
minimum tester training standards required under section 125.107 of 
title 24, Code of Federal Regulations, to organizations conducting 
testing under section 561(a)(3) of the Housing and Community 
Development Act of 1987, as added by the amendment made by subsection 
(a)(4) of this section. Any subsequent amendments, changes, and updates 
to such minimum standards shall apply to all activities under such 
section 561.

SEC. 3. FAIR HOUSING INITIATIVES PROGRAM.

  (a) Amendments to Program.--Section 561 of the Housing and Community 
Development Act of 1987 (42 U.S.C. 3616a) is amended--
          (1) in subsection (b)--
                  (A) in paragraph (1), by inserting ``qualified'' 
                before ``private nonprofit fair housing enforcement 
                organizations,''; and
                  (B) in paragraph (2), by inserting ``qualified'' 
                before ``private nonprofit fair housing enforcement 
                organizations,'';
          (2) in subsection (c), by adding at the end the following:
          ``(3) Program-earned income.--No restrictions on the use of 
        program-earned income received by qualified fair housing 
        enforcement organizations shall apply after the grant period 
        for such organization ends.'';
          (3) in subsection (d)--
                  (A) in paragraph (1)--
                          (i) in subparagraph (C), by striking ``and'' 
                        at the end;
                          (ii) in subparagraph (D), by striking the 
                        period and inserting ``; and''; and
                          (iii) by adding after subparagraph (D) the 
                        following:
                  ``(E) websites and other media outlets.'';
                  (B) in paragraph (2), by striking ``or other public 
                or private entities'' and inserting ``or other public 
                or private nonprofit entities'';
                  (C) in paragraph (3), by striking ``or other public 
                or private entities'' and inserting ``or other public 
                or private nonprofit entities''; and
                  (D) by adding at the end the following:
          ``(4) Limitation.--Notwithstanding any other provision of 
        this section, a State or local agency certified by the 
        Secretary under section 810(f) of the Fair Housing Act may 
        receive assistance under this subsection only to carry out 
        activities eligible for assistance under this subsection in 
        areas in which no qualified fair housing enforcement 
        organization is available to carry out such activities.
          ``(5) Eligibility.--Notwithstanding any other provision of 
        this section, if an award of funding under subsection (b) for 
        multiple fiscal years has been made to a qualified fair housing 
        enforcement organization, such organization is, subject only to 
        the availability of amounts provided in appropriation Acts, 
        eligible to receive funding under this subsection for each 
        fiscal year covered by such award under subsection (b).'';
          (4) in subsection (e)--
                  (A) in paragraph (1) by striking ``Banking, Finance 
                and Urban Affairs'' and inserting ``Financial 
                Services''; and
                  (B) by adding at the end the following:
          ``(2) Priority.--In providing assistance under this section 
        with respect to metropolitan statistical areas for which there 
        are multiple applications for such assistance, the Secretary 
        shall give priority to applications submitted by qualified fair 
        housing enforcement organizations that have experience in 
        conducting fair housing enforcement activities.'';
          (5) by striking subsection (g) and inserting the following:
  ``(g) Authorization of Appropriations.--
          ``(1) In general.--There are authorized to be appropriated to 
        carry out this section--
                  ``(A) $58,000,000 for each of fiscal years 2021 
                through 2025, of which--
                          ``(i) $55,000,000 shall be available for any 
                        activities under this section other than 
                        programs under subsection (a)(3), of which--
                                  ``(I) not less than $38,000,000 shall 
                                be for private enforcement initiatives 
                                authorized under subsection (b);
                                  ``(II) not less than $1,500,000 shall 
                                be for the fair housing organizations 
                                initiative under subsection (c);
                                  ``(III) not less than $10,000,000 
                                shall be for the education and outreach 
                                initiative under subsection (d), of 
                                which--
                                          ``(aa) at least $8,000,000 
                                        shall be for local education 
                                        and outreach activities; and
                                          ``(bb) at least $2,000,000 
                                        shall be for national media 
                                        activities; and
                                  ``(IV) any remaining amounts shall be 
                                used for any program activities 
                                authorized under this section; and
                          ``(ii) $3,000,000 shall be available only for 
                        programs under subsection (a)(3); and
                  ``(B) $70,000,000 for each of fiscal years 2026 
                through 2031, of which--
                          ``(i) for each such fiscal year, $65,000,000 
                        shall be available for any activities under 
                        this section other than programs under 
                        subsection (a)(3), of which--
                                  ``(I) not less than $44,000,000 shall 
                                be for private enforcement initiatives 
                                authorized under subsection (b);
                                  ``(II) not less than $1,500,000 shall 
                                be for the fair housing organizations 
                                initiative under subsection (c);
                                  ``(III) not less than $12,500,000 
                                shall be for the education and outreach 
                                initiative under subsection (d), of 
                                which--
                                          ``(aa) at least $10,000,000 
                                        shall be for local education 
                                        and outreach activities; and
                                          ``(bb) at least $2,500,000 
                                        shall be for national media 
                                        activities; and
                                  ``(IV) any remaining amounts shall be 
                                used for any program activities 
                                authorized under this section; and
                          ``(ii) for each such fiscal year $5,000,000 
                        shall be available only for programs under 
                        subsection (a)(3).
          ``(2) Availability.--Any amount appropriated under this 
        section shall remain available until expended to carry out the 
        provisions of this section.
          ``(3) Award of funding.--Within 90 days after the date of the 
        enactment of any Act making amounts available to carry out this 
        section, the Secretary shall issue a Notice of Funding 
        Availability with respect to such amounts and, within 180 days 
        after such date of enactment, the Secretary shall award such 
        amounts.'';
          (6) in subsection (h)(1), in the matter following 
        subparagraph (C), by inserting ``and meets the criteria 
        described in subparagraphs (A) and (C)'' before the period at 
        the end; and
          (7) in subsection (j)--
                  (A) in the matter preceding paragraph (1), by 
                inserting ``regarding such preceding fiscal year,'' 
                after ``comprehensive report''; and
                  (B) in paragraph (2), by striking ``and the use of 
                such funds during the preceding fiscal year'' and 
                inserting ``, the use of such funds during the 
                preceding fiscal year, and outcomes such as the number 
                of housing units made available and accessible to 
                protected classes under the Fair Housing Act (42 U.S.C. 
                3601 et seq.)''.
  (b) Study.--The Secretary of Housing and Urban Development shall 
conduct a study to determine the feasibility, efficiency, and 
effectiveness of converting the Fair Housing Initiatives Program under 
section 561 of the Housing and Community Development Act of 1987 (42 
U.S.C. 3616a) into a noncompetitive, entitlement program to provide 
general operating funding to qualified fair housing organizations, the 
appropriate levels of funding for such a program taking into 
consideration the number of such qualified funding recipients, and what 
factors should be considered in providing for an equitable distribution 
to qualified recipients of funding. The Secretary shall submit a report 
to the Congress setting forth the results of the study under this 
subsection not later than the expiration of the 12-month period 
beginning on the date of the enactment of this Act, which shall include 
any recommendations regarding such conversion of the program.

SEC. 4. SENSE OF CONGRESS.

  It is the sense of Congress that the Secretary of Housing and Urban 
Development should--
          (1) fully comply with the requirements of section 561(d) of 
        the Housing and Community Development Act of 1987 (42 U.S.C. 
        3616a(d)) to establish, design, and maintain a national 
        education and outreach program to provide a centralized, 
        coordinated effort for the development and dissemination of--
                  (A) materials and information about the fair housing 
                rights of individuals who seek to rent, purchase, sell, 
                or facilitate the sale of a home; and
                  (B) materials and information about the fair housing 
                responsibilities of industry professionals providing 
                products and services covered under the Fair Housing 
                Act (42 U.S.C. 3601 et seq.);
          (2) expend for such education and outreach programs all 
        amounts appropriated for such programs;
          (3) fully reinstate the regulations promulgated on July 16, 
        2015 (80 Fed. Reg. 42271), regarding the fair housing 
        obligations of each recipient of Federal housing and community 
        development funds to affirmatively further fair housing, as 
        that term is defined under title VIII of the Civil Rights Act 
        of 1968 (42 U.S.C. 3601 et seq.); and
          (4) fully comply with the requirements of section 810(a) of 
        the Fair Housing Act (42 U.S.C. 3610(a)).

SEC. 5. GRANTS TO PUBLIC AND PRIVATE ENTITIES TO STUDY HOUSING 
                    DISCRIMINATION.

  (a) Grant Program.--The Secretary of Housing and Urban Development 
shall carry out a competitive matching grant program to assist public 
and private non-profit organizations in--
          (1) conducting studies that examine issues regarding housing 
        discrimination and segregation and the Fair Housing Act, 
        including--
                  (A) the causes of housing discrimination and 
                segregation, including their effects on members of 
                protected classes under the Fair Housing Act, and their 
                effects on education, poverty, economic development, 
                health, and other socioeconomic factors;
                  (B) the incidence, causes, and effects of housing 
                discrimination and segregation based on personal 
                characteristics not protected under the Fair Housing 
                Act, including--
                          (i) veteran and military status; and
                          (ii) source of income;
                  (C) the ways in which the use of algorithms and 
                artificial intelligence in the housing and mortgage 
                lending markets impact the availability of housing for 
                protected classes under the Fair Housing Act, including 
                the use of digital and online platforms in the 
                advertising and provision of housing and other services 
                covered under the Fair Housing Act; or
                  (D) any additional topics of study related to the 
                implementation and expansion of the Fair Housing Act; 
                or
          (2) implementing pilot projects that test solutions that will 
        help prevent or alleviate housing discrimination and 
        segregation.
A grant under this section may provide funding to an organization for 
only activities under paragraph (1) or paragraph (2) or for activities 
under both paragraph (1) and (2).
  (b) Eligibility.--To be eligible to receive a grant under this 
section, a public or private nonprofit organization shall--
          (1) submit an application to the Secretary of Housing and 
        Urban Development, containing--
                  (A) the issues the applicant will address and a 
                justification for the need to address such issues;
                  (B) the applicant's experience in formulating or 
                carrying out programs or activities described in this 
                section; and
                  (C) the geographical area and period of time to be 
                studied;
          (2) agree to provide matching non-Federal funds for 10 
        percent of the total amount of the grant, which matching funds 
        may include monetary donations and items donated on an in-kind 
        contribution basis; and
          (3) meet the requirements of a qualified fair housing 
        enforcement organization, as such term is defined in section 
        561(h) of the Housing and Community Development Act of 1987 (42 
        U.S.C. 3616a(h)).
  (c) Partnerships With Academic Institutions.--A public or private 
nonprofit organization applying for a grant under this section may 
partner with an academic or educational organization or institution for 
the purpose of carrying out activities assisted with such grant 
amounts.
  (d) Report.--The Secretary of Housing and Urban Development shall 
submit a report to the Congress on a biennial basis that provides a 
detailed summary of the results of the comprehensive studies and pilot 
projects carried out under subsection (a), together with any 
recommendations or proposals for legislative or administrative actions 
to address any issues raised by such studies. The Secretary may submit 
the reports required under this subsection as part of the reports 
prepared in accordance with paragraphs (2) and (6) of section 808(e) of 
the Fair Housing Act (42 U.S.C. 3608(e)) and section 561(j) of the 
Housing and Community Development Act of 1987 (42 U.S.C. 3616a(j)).
  (e) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out the provisions of this section $5,000,000 for 
each of fiscal years 2021 through 2025.

SEC. 6. LIMITATION ON USE OF FUNDS.

  None of the funds made available under this Act, or the amendments 
made by this Act, may be used for any political activities, political 
advocacy, or lobbying (as such terms are defined by Circular A-122 of 
the Office of Management and Budget, entitled ``Cost Principles for 
Non-Profit Organizations''), or for expenses for travel to engage in 
political activities or preparation of or provision of advice on tax 
returns.

                          Purpose and Summary

    On January 3, 2019, Representative Al Green introduced H.R. 
149, the ``Housing Fairness Act of 2020,'' which would 
authorize increased funding for the Department of Housing and 
Urban Development's (HUD) Fair Housing Initiatives Program 
(FHIP) and make a number of reforms to FHIP. It would also 
establish a new competitive matching grant program at HUD to 
support comprehensive studies of the causes and effects of 
ongoing discrimination and segregation, and the implementation 
of pilot projects to test solutions.

                  Background and Need for Legislation

    The Fair Housing Act of 1968 made discrimination in the 
housing market illegal based on race, color, sex, religion, 
national origin, disability, and familial status, and required 
that HUD enforce the law. Later, Congress went on to authorize 
HUD's Fair Housing Initiatives Program (FHIP) in 1987 under 
Section 561 of the Housing and Community Development Act to 
support the work of private fair housing organizations 
conducting local fair housing complaint intake, private 
investigations, and public education and outreach, among other 
activities.
    Since its inception, FHIP has become a central component of 
the nation's fair housing enforcement infrastructure. FHIP 
grantee organizations processed over 75 percent of all housing 
discrimination complaints in 2018--three times the amount of 
complaints processed by all federal agencies. Yet, FHIP funding 
levels and the activities allowed under the program constrain 
enforcement needs in the face of a rapidly evolving U.S. 
housing market, increased housing discrimination complaints, 
and documentation of ongoing industry practices that are in 
direct violation of federal Fair Housing law.
    H.R. 149, as reported by the Committee, authorizes a total 
of $735 million over 11 fiscal years to support the federal 
government's responsibility to enforce the Fair Housing Act. 
This includes: FHIP reauthorization of $665 million over 11 
fiscal years, authorization of $45 million for new eligible 
FHIP activities over 11 fiscal years, and authorization of $25 
million over five fiscal years for a new competitive matching 
grant program. These amounts were requested by NFHA and reflect 
their estimates of the funding levels necessary to support the 
activities authorized in this bill. The bill makes several 
reforms to FHIP that include the addition of eligible 
activities under a new National Testing Initiative that will 
allow national investigations into housing discrimination that 
are currently prohibited. The bill also requires HUD to fully 
comply with and expend all funds made available for education 
and outreach activities under FHIP, reinstate the 2015 
Affirmatively Furthering Fair Housing Rule, and fully comply 
with all complaint intake, investigation, and response 
requirements under the Fair Housing Act. Finally, the bill 
creates a competitive matching grant program at HUD to support 
comprehensive, publicly available studies of the causes and 
effects of ongoing housing discrimination and segregation, as 
well as the implementation of pilot projects to test solutions.
    H.R. 149 is supported by: the National Fair Housing 
Alliance, The Leadership Conference on Civil and Human Rights, 
NAACP, the Center for Responsible Lending, the National Low 
Income Housing Coalition, the National Association of Realtors, 
the Asian Real Estate Association of America, the National 
Association of Real Estate Brokers, the National Association of 
Hispanic Real Estate Professionals, the Appraisal Institute, 
Americans for Financial Reform, and National CAPACD, the 
Consortium for Citizens with Disabilities Housing Task Force, 
the National Action Network, the National LGBTQ Task Force 
Action Fund, The Arc, and the 48 following nonprofit 
organizations from 20 states across the country: Center for 
Fair Housing, Inc., Southwest Fair Housing Council, Eden 
Council for Hope and Opportunity, Western Center in Law & 
Poverty, Fair Housing Council of Riverside County, Inc., San 
Jose Law Foundation of Silicon Valley, Fair Housing Advocates 
of Northern California, Fair Housing Council of Orange County, 
Santa Ana Public Law Center, Santa Clara Project Sentinel, 
Connecticut Fair Housing Center, Equal Rights Center, 
Georgetown University Law Center--Civil Rights Clinic, Fair 
Housing Center of the Greater Palm Beaches, Housing 
Opportunities Project for Excellence (HOPE), Inc., Savannah-
Chatham Council on Disability Issues, Atlanta Metro Fair 
Housing Services, Inc., Savannah-Chatham County Fair Housing 
Council, Inc., Intermountain Fair Housing Council, Access 
Living of Metropolitan Chicago, Chicago United for Equity, 
Housing Action Illinois, Housing Choice Partners, Speak Up 
Chicago, South Suburban Housing Center, HOPE Fair Housing 
Center, Louisiana Fair Housing Action Center, Massachusetts 
Fair Housing Center, Fair Housing Center of Metropolitan 
Detroit, Fair Housing Center of West Michigan, Fair Housing 
Center of Southeast & Mid-Michigan, Fair Housing Council of 
Northern NJ, Long Island Housing Services, Inc., Housing 
Opportunities Made Equal, Inc., Fair Housing Justice Center, 
Inc., High Plains Fair Housing Center, Fair Housing Contact 
Service, Housing Opportunities Made Equal of Greater 
Cincinnati, Fair Housing Center for Rights & Research, Miami 
Valley Fair Housing Center, Inc., The Fair Housing Center, Fair 
Housing Council of Oregon, Fair Housing Rights Center in 
Southeastern Pennsylvania, Fair Housing Partnership of Greater 
Pittsburgh, Austin Tenants Council, Greater Houston Fair 
Housing Center, Fair Housing Council of Greater San Antonio, 
Fair Housing Center of Washington.

                      Section-by-Section Analysis


Section 1. Short title

    This section provides that H.R. 149 may be cited as the 
``Housing Fairness Act of 2020.''

Section 2. Testing for discrimination

    This section amends subsection (a) of section 561 of the 
Housing and Community Development Act of 1987 (42 U.S.C. 
3616a(a)) to allow for regional and national systemic testing 
activities under FHIP, which is intended to fund collaborative 
investigations that address housing discrimination practices 
that have been observed across geographies. FHIP grantees and 
the HUD Secretary will be able to take enforcement actions 
based on the results of these testing and investigation 
activities.
    This section also removes criminal liability for testers 
conducting full-application lending discrimination testing and 
authorizes full-application lending testing.

Section 3. Fair Housing Initiatives Program

    This section further amends section 561 of the Housing and 
Community Development Act of 1987 (42 U.S.C. 3616a(a)) to 
streamline FHIP application processes and makes a number of 
changes to FHIP grantee eligibility requirements to ensure 
scarce funding goes to mission-drive organizations with the 
greatest expertise in fair housing. It also clarifies that 
Education and Outreach Initiative grants under FHIP can be used 
to disseminate fair housing educational materials and content 
via websites and other media outlets, and that grantees under 
the Fair Housing Assistance Program (FHAP) may only apply for 
FHIP funding when there is no other QFHEO operating in the 
service area.
    The amendments made by this section also remove a 
requirement that FHIP grantees reimburse the federal government 
for any settlement or court-ordered funds they receive as a 
result of grant-funded enforcement activities after the 
termination of the grant period to accommodate the multi-year 
nature of private enforcement work under FHIP.
    This section authorizes a total of $710 million in 
appropriations for FHIP between fiscal years 2021 and 2031, 
which are to remain available until expended.

Section 4. Sense of Congress

    This section provides for a Sense of Congress that the HUD 
Secretary should fully comply with the national education and 
outreach components of the FHIP program and fully expend all 
available funding for these activities; fully reinstates the 
Affirmatively Furthering Fair Housing rule that was promulgated 
on July 16, 2015; and fully comply with the administrative 
complaint procedures established under the Fair Housing Act.

Section 5. Grants to public and private entities to study housing 
        discrimination

    This section authorizes $5 million for each of FYs 2021 
through 2025 to establish a new competitive matching grant 
program that supports comprehensive studies on the causes and 
effects of housing discrimination and residential segregation 
and to test potential solutions. Grants may also be used to 
study the incidence, causes, and effects of housing 
discrimination based on characteristics not currently protected 
under the Fair Housing Act.
    This section requires the Secretary of HUD to report to 
Congress on a biennial basis about the results of studies and 
pilot projects funded with grants under this section and to 
include any legislative or administrative recommendations or 
proposals raised in such studies.

Section 6. Limitation on use of funds

    This section creates a standard prohibition on the use of 
any funds made available under the Act for political 
activities, advocacy, or lobbying, the travel expenses 
associated with those activities, or for the provision of 
advice on tax returns.

                                Hearings

    For the purposes of section 103(i) of H. Res. 6 for the 
116th Congress, the Committee on Financial Services held a 
hearing on April 2, 2019, entitled ``The Fair Housing Act: 
Reviewing Efforts to Eliminate Discrimination and Promote 
Opportunity in Housing'' to consider H.R. 149, as introduced. 
Testifying before the Committee were: Debby Goldberg, Vice 
President, Housing Policy and Special Projects, National Fair 
Housing Alliance; Cashauna Hill, Executive Director, Greater 
New Orleans Fair Housing Action Center; Kierra Johnson, Deputy 
Executive Director, National LGBTQ Task Force; Skylar Olsen, 
Director of Economic Research & Outreach, Zillow Group; and the 
Minority witness, Salim Furth, Ph.D., Senior Research Fellow, 
Mercatus Center, George Mason University.

                        Committee Consideration

    The Committee on Financial Services met in open session on 
February 27, 2020 and ordered H.R. 149 to be reported favorably 
to the House with an amendment in the nature of a substitute by 
a vote of 33 ayes and 25 nays, a quorum being present.

                  Committee Votes and Roll Call Votes

    In compliance with clause 3(b) of rule XIII of the Rules of 
the House of Representatives, the Committee advises that the 
following roll call votes occurred during the Committee's 
consideration of H.R. 149:

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

  Statement of Oversight Findings and Recommendations of the Committee

    In compliance with clause 3(c)(1) of rule XIII and clause 
2(b)(1) of rule X of the Rules of the House of Representatives, 
the Committee's oversight findings and recommendations are 
reflected in the descriptive portions of this report.

             Statement of Performance Goals and Objectives

    Pursuant to clause (3)(c) of rule XIII of the Rules of the 
House of Representatives, the goals of H.R. 149 are to address 
ongoing discrimination, segregation, and other inequities in 
the U.S. housing market by providing substantial new federal 
fair housing investments for increased enforcement, research, 
and to test solutions.

               New Budget Authority and CBO Cost Estimate

    Pursuant to clause 3(c)(2) of rule XIII of the Rules of the 
House of Representatives and section 308(a) of the 
Congressional Budget Act of 1974, and pursuant to clause 
3(c)(3) of rule XIII of the Rules of the House of 
Representatives and section 402 of the Congressional Budget Act 
of 1974, the Committee has received the following estimate for 
H.R. 149 from the Director of the Congressional Budget Office:

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]


    H.R. 149 would authorize the appropriation of $58 million 
annually over the 2021-2025 period and $70 million annually 
from 2026 through 2031 for the Department of Housing and Urban 
Development (HUD) to make grants to states, localities, and 
nonprofit organizations to prevent discriminatory housing 
practices through the Fair Housing Initiatives Program. (In 
2020, the Congress provided $46 million to the program.)
    The bill also would authorize the appropriation of $5 
million annually over the 2021-2025 period for a competitive 
grant program for nonprofits to study the causes and effects of 
housing discrimination and to implement pilot projects to test 
approaches to preventing discrimination. Finally, the bill 
would require HUD to study the feasibility and effectiveness of 
converting the Fair Housing Initiatives Program into a 
noncompetitive, entitlement program.
    Most of the authorized amounts would be allocated for 
activities carried out by nonprofit organizations to enforce 
laws against discrimination in housing, as well as for 
education and outreach efforts. CBO estimates that implementing 
the bill would cost $207 million over the 2021-2025 period, 
$541 million over the 2021-2030 period, and $195 million after 
2030, assuming appropriation of the authorized amounts. That 
estimate is based on historical spending patterns for the 
programs and on information from the department.
    The costs of the legislation, detailed in Table 1, fall 
under budget function 750 (administration of justice).

                TABLE 1.--ESTIMATED INCREASES IN SPENDING SUBJECT TO APPROPRIATION UNDER H.R. 149
----------------------------------------------------------------------------------------------------------------
                                                       By fiscal year, millions of dollars--
                                  ------------------------------------------------------------------------------
                                      2020       2021       2022       2023       2024       2025     2020-2025
----------------------------------------------------------------------------------------------------------------
Fair Housing Initiatives Program
    Authorizationa...............          0         58         58         58         58         58          290
    Estimated Outlays............          0          1         22         48         58         58          187
Grant Program to Study Housing
 Discrimination
    Authorization................          0          5          5          5          5          5           25
    Estimated Outlays............          0          1          3          5          5          5           19
Study
    Estimated Authorization......          0          1          0          0          0          0            1
    Estimated Outlays............          0          1          0          0          0          0            1
Total Changes
    Estimated Authorization......          0         64         63         63         63         63          316
    Estimated Outlays............          0          3         25         53         63         63          207
----------------------------------------------------------------------------------------------------------------
aThe bill also would authorize the appropriation of $70 million annually from 2026 through 2031 for this
  program.

    The CBO staff contact for this estimate is Jon Sperl. The 
estimate was reviewed by H. Samuel Papenfuss, Deputy Director 
of Budget Analysis.

                        Committee Cost Estimate

    Clause 3(d)(1) of rule XIII of the Rules of the House of 
Representatives requires an estimate and a comparison of the 
costs that would be incurred in carrying out H.R. 149. However, 
clause 3(d)(2)(B) of that rule provides that this requirement 
does not apply when the committee has included in its report a 
timely submitted cost estimate of the bill prepared by the 
Director of the Congressional Budget Office under section 402 
of the Congressional Budget Act.

                       Unfunded Mandate Statement

    Pursuant to Section 423 of the Congressional Budget and 
Impoundment Control Act (as amended by Section 101(a)(2) of the 
Unfunded Mandates Reform Act, Pub. L. 104-4), the Committee 
adopts as its own the estimate of federal mandates regarding 
H.R. 149, as amended, prepared by the Director of the 
Congressional Budget Office.

                           Advisory Committee

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

              Application of Law to the Legislative Branch

    Pursuant to section 102(b)(3) of the Congressional 
Accountability Act, Pub. L. No. 104-1, H.R. 149, as reported, 
does not apply to terms and conditions of employment or to 
access to public services or accommodations within the 
legislative branch.

                           Earmark Statement

    In accordance with clause 9 of rule XXI of the Rules of the 
House of Representatives, H.R. 149 does not contain any 
congressional earmarks, limited tax benefits, or limited tariff 
benefits as described in clauses 9(e), 9(f), and 9(g) of rule 
XXI.

                    Duplication of Federal Programs

    Pursuant to clause 3(c)(5) of rule XIII of the Rules of the 
House of Representatives, the Committee states that no 
provision of H.R. 149 establishes or reauthorizes a program of 
the Federal Government known to be duplicative of another 
federal program, a program that was included in any report from 
the Government Accountability Office to Congress pursuant to 
section 21 of Public Law 111-139, or a program related to a 
program identified in the most recent Catalog of Federal 
Domestic Assistance.

                        Changes to Existing Law

    In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, H.R. 149, as reported, are shown as follows:

         Changes in Existing Law Made by the Bill, as Reported

    In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, and existing law in which no 
change is proposed is shown in roman):

             HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1987



           *       *       *       *       *       *       *
TITLE V--COMMUNITY DEVELOPMENT AND MISCELLANEOUS PROGRAMS

           *       *       *       *       *       *       *


SEC. 561. FAIR HOUSING INITIATIVES PROGRAM.

  (a) In General.--The Secretary of Housing and Urban 
Development (in this section referred to as the ``Secretary'') 
may make grants to, or (to the extent of amounts provided in 
appropriation Acts) enter into contracts or cooperative 
agreements with, State or local governments or their agencies, 
public or private nonprofit organizations or institutions, or 
other public or private entities that are formulating or carry 
out programs to prevent or eliminate discriminatory housing 
practices or, in the case of grants or contracts for activities 
under paragraph (3) with qualified private, non-profit fair 
housing enforcement organizations that have demonstrated 
expertise in managing and implementing regional or national 
testing programs to address systemic fair housing issues, to 
develop, implement, carry out, or coordinate--
          (1) programs or activities designed to obtain 
        enforcement of the rights granted by title VIII of the 
        Act of April 11, 1968 (commonly referred to as the 
        Civil Rights Act of 1968), or by State or local laws 
        that provide rights and remedies for alleged 
        discriminatory housing practices that are substantially 
        equivalent to the rights and remedies provided in such 
        title VIII, through such appropriate judicial or 
        administrative proceedings (including informal methods 
        of conference, conciliation, and persuasion) as are 
        available therefore; [and]
          (2) education and outreach programs designed to 
        inform the public concerning rights and obligations 
        under the laws referred to in paragraph (1)[.]; and
          (3) programs of regional or national testing and 
        investigations to (i) detect and document differences 
        in the treatment of persons seeking to rent or purchase 
        housing or obtain or refinance a home mortgage loan, 
        and measure patterns of differential treatment because 
        of the status of a renter, home buyer, or borrower as a 
        member of the protected classes under the Fair Housing 
        Act (42 U.S.C. 3601 et seq.), and (ii) measure the 
        prevalence, nature, and extent of discriminatory 
        practices covered under the Fair Housing Act.
The results of any testing and investigations pursuant to 
paragraph (3) may be used as the basis for the Secretary, or 
any Federal agency authorized to bring such an enforcement 
action, or any State or local government or agency, public or 
private nonprofit organization or institution, or other 
aggrieved parties as defined by title VIII of the Civil Rights 
Act of 1968 or other substantially equivalent State or local 
fair housing law, or other public or private entity that the 
Secretary has entered into a contract or cooperative agreement 
with under this section to commence, undertake, or pursue any 
investigation or enforcement action to remedy any 
discriminatory housing practice (as such term is defined in 
section 802 of the Fair Housing Act (42 U.S.C. 3602)) uncovered 
as a result of such testing and investigations. Testing 
conducted pursuant to paragraph (3) shall not constitute a 
violation of any provision of criminal law or the Truth in 
Lending Act (15 U.S.C. 1601 et seq.).
  (b) Private Enforcement Initiatives.--
          (1) In general.--The Secretary shall use funds made 
        available under this subsection to conduct, through 
        contracts with qualified private nonprofit fair housing 
        enforcement organizations, investigations of violations 
        of the rights granted under title VIII of the Civil 
        Rights Act of 1968, and such enforcement activities as 
        appropriate to remedy such violations. The Secretary 
        may enter into multiyear contracts and take such other 
        action as is appropriate to enhance the effectiveness 
        of such investigations and enforcement activities.
          (2) Activities.--The Secretary shall use funds made 
        available under this subsection to conduct, through 
        contracts with qualified private nonprofit fair housing 
        enforcement organizations, a range of investigative and 
        enforcement activities designed to--
                  (A) carry out testing and other investigative 
                activities in accordance with subsection 
                (b)(1), including building the capacity for 
                housing investigative activities in unserved or 
                underserved areas;
                  (B) discover and remedy discrimination in the 
                public and private real estate markets and real 
                estate-related transactions, including, but not 
                limited to, the making or purchasing of loans 
                or the provision of other financial assistance 
                sales and rentals of housing and housing 
                advertising;
                  (C) carry out special projects, including the 
                development of prototypes to respond to new or 
                sophisticated forms of discrimination against 
                persons protected under title VIII of the Civil 
                Rights Act of 1968;
                  (D) provide technical assistance to local 
                fair housing organizations, and assist in the 
                formation and development of new fair housing 
                organizations; and
                  (E) provide funds for the costs and expenses 
                of litigation, including expert witness fees.
  (c) Funding of Fair Housing Organizations.--
          (1) In general.--The Secretary shall use funds made 
        available under this section to enter into contracts or 
        cooperative agreements with qualified fair housing 
        enforcement organizations, other private nonprofit fair 
        housing enforcement organizations, and nonprofit groups 
        organizing to build their capacity to provide fair 
        housing enforcement, for the purpose of supporting the 
        continued development or implementation of initiatives 
        which enforce the rights granted under title VIII of 
        the Civil Rights Act of 1968, as amended. Contracts or 
        cooperative agreements may not provide more than 50 
        percent of the operating budget of the recipient 
        organization for any one year.
          (2) Capacity enhancement.--The Secretary shall use 
        funds made available under this section to help 
        establish, organize, and build the capacity of fair 
        housing enforcement organizations, particularly in 
        those areas of the country which are currently 
        underserved by fair housing enforcement organizations 
        as well as those areas where large concentrations of 
        protected classes exist. For purposes of meeting the 
        objectives of this paragraph, the Secretary may enter 
        into contracts or cooperative agreements with qualified 
        fair housing enforcement organizations. The Secretary 
        shall establish annual goals which reflect the national 
        need for private fair housing enforcement 
        organizations.
          (3) Program-earned income.--No restrictions on the 
        use of program-earned income received by qualified fair 
        housing enforcement organizations shall apply after the 
        grant period for such organization ends.
  (d) Education and Outreach.--
          (1) In general.--The Secretary, through contracts 
        with one or more qualified fair housing enforcement 
        organizations, other fair housing enforcement 
        organizations, and other nonprofit organizations 
        representing groups of persons protected under title 
        VIII of the Civil Rights Act of 1968, shall establish a 
        national education and outreach program. The national 
        program shall be designed to provide a centralized, 
        coordinated effort for the development and 
        dissemination of fair housing media products, 
        including--
                  (A) public service announcements, both audio 
                and video;
                  (B) television, radio and print 
                advertisements;
                  (C) posters; [and]
                  (D) pamphlets and brochures[.]; and
                  (E) websites and other media outlets.
        The Secretary shall designate a portion of the amounts 
        provided in subsection (g)(4) for a national program 
        specifically for activities related to the annual 
        national fair housing month. The Secretary shall 
        encourage cooperation with real estate industry 
        organizations in the national education and outreach 
        program. The Secretary shall also encourage the 
        dissemination of educational information and technical 
        assistance to support compliance with the housing 
        adaptability and accessibility guidelines contained in 
        the Fair Housing Act Amendments of 1988.
          (2) Regional and local programs.--The Secretary, 
        through contracts with fair housing enforcement 
        organizations, other nonprofit organizations 
        representing groups of persons protected under title 
        VIII of the Civil Rights Act of 1968, State and local 
        agencies certified by the Secretary under section 
        810(f) of the Fair Housing Act, [or other public or 
        private entities] or other public or private nonprofit 
        entities that are formulating or carrying out programs 
        to prevent or eliminate discriminatory housing 
        practices, shall establish or support education and 
        outreach programs at the regional and local levels.
          (3) Community-based programs.--The Secretary shall 
        provide funding to fair housing organizations and other 
        nonprofit organizations representing groups of persons 
        protected under title VIII of the Civil Rights Act of 
        1968, [or other public or private entities] or other 
        public or private nonprofit entities that are 
        formulating or carrying out programs to prevent or 
        eliminate discriminatory housing practices, to support 
        community-based education and outreach activities, 
        including school, church, and community presentations, 
        conferences, and other educational activities.
          (4) Limitation.--Notwithstanding any other provision 
        of this section, a State or local agency certified by 
        the Secretary under section 810(f) of the Fair Housing 
        Act may receive assistance under this subsection only 
        to carry out activities eligible for assistance under 
        this subsection in areas in which no qualified fair 
        housing enforcement organization is available to carry 
        out such activities.
          (5) Eligibility.--Notwithstanding any other provision 
        of this section, if an award of funding under 
        subsection (b) for multiple fiscal years has been made 
        to a qualified fair housing enforcement organization, 
        such organization is, subject only to the availability 
        of amounts provided in appropriation Acts, eligible to 
        receive funding under this subsection for each fiscal 
        year covered by such award under subsection (b).
  (e) Program Administration.--
          (1) Not less than 30 days before providing a grant or 
        entering into any contract or cooperative agreement to 
        carry out activities authorized by this section, the 
        Secretary shall submit notification of such proposed 
        grant, contract, or cooperative agreement (including a 
        description of the geographical distribution of such 
        contracts) to the Committee on Banking, Housing, and 
        Urban Affairs of the Senate and the Committee on 
        [Banking, Finance and Urban Affairs] Financial Services 
        of the House of Representatives.
          (2) Priority.--In providing assistance under this 
        section with respect to metropolitan statistical areas 
        for which there are multiple applications for such 
        assistance, the Secretary shall give priority to 
        applications submitted by qualified fair housing 
        enforcement organizations that have experience in 
        conducting fair housing enforcement activities.
  (f) Regulations.--
          (1) The Secretary shall issue such regulations as may 
        be necessary to carry out the provisions of this 
        section.
          (2) The Secretray shall, for use during the 
        demonstration authorized in this section, establish 
        guidelines for testing activities funded under the 
        private enforcement initiative of the fair housing 
        initiatives program. The purpose of such guidelines 
        shall be to ensure that investigations in support of 
        fair housing enforcement efforts described in 
        subsection (a)(1) shall develop credible and objective 
        evidence of discriminatory housing practices. Such 
        guidelines shall apply only to activities funded under 
        this section, shall not be construed to limit or 
        otherwise restrict the use of facts secured through 
        testing not funded under this section in any legal 
        proceeding under Federal fair housing laws, and shall 
        not be used to restrict individuals or entities, 
        including those participating in the fair housing 
        initiatives program, from pursuing any right or remedy 
        guaranteed by Federal law. Not later than 6 months 
        after the end of the demonstration period authorized in 
        this section, the Secretary shall submit to Congress 
        the evaluation of the Secretary of the effectiveness of 
        such guidelines in achieving the purposes of this 
        section.
          (3) Such regulations shall include provisions 
        governing applications for assistance under this 
        section, and shall require each such application to 
        contain--
                  (A) a description of the assisted activities 
                proposed to be undertaken by the applicant, 
                together with the estimated costs and schedule 
                for completion of such activities;
                  (B) a description of the experience of the 
                applicant in formulating or carrying out 
                programs to prevent or eliminate discriminatory 
                housing practices;
                  (C) available information, including studies 
                made by or available to the applicant, 
                indicating the nature and extent of 
                discriminatory housing practices occurring in 
                the general location where the applicant 
                proposes to conduct its assisted activities, 
                and the relationship of such activities to such 
                practices:
                  (D) an estimate of such other public or 
                private resources as may be available to assist 
                the proposed activities;
                  (E) a description of proposed procedures to 
                be used by the applicant for monitoring conduct 
                and evaluating results of the proposed 
                activities; and
                  (F) any additional information required by 
                the Secretary.
          (4) Regulations issued under this subsection shall 
        not become effective prior to the expiration of 90 days 
        after the Secretary transmits such regulations, in the 
        form such regulations are intended to be published, to 
        the Committee on Banking, Housing, and Urban Affairs of 
        the Senate and the Committee on Banking, Finance and 
        Urban Affairs of the House of Representatives.
          (5) The Secretary shall not obligate or expend any 
        amount under this section before the effective date of 
        the regulations required under this subsection.
  [(g) Authorization of Appropriations.--There are authorized 
to be appropriated to carry out the provisions of this section, 
$21,000,000 for fiscal year 1993 and $26,000,000 for fiscal 
year 1994, of which--
          [(1) not less than $3,820,000 for fiscal year 1993 
        and $8,500,000 for fiscal year 1994 shall be for 
        private enforcement initiatives authorized under 
        subsection (b), divided equally between activities 
        specified under subsection (b)(1) and those specified 
        under subsection (b)(2);
          [(2) not less than $2,230,000 for fiscal year 1993 
        and $8,500,000 for fiscal year 1994 shall be for 
        qualified fair housing enforcement organizations 
        authorized under subsection (c)(1);
          [(3) not less than $2,010,000 for fiscal year 1993 
        and $4,000,000 for fiscal year 1994 shall be for the 
        creation of new fair housing enforcement organizations 
        authorized under subsection (c)(2); and
          [(4) not less than $2,540,000 for fiscal year 1993 
        and $5,000,000 for fiscal year 1994 shall be for 
        education and outreach programs authorized under 
        subsection (d), to be divided equally between 
        activities specified under subsection (d)(1) and those 
        specified under subsections (d)(2) and (d)(3). Any 
        amount appropriated under this section shall remain 
        available until expended.]
  (g) Authorization of Appropriations.--
          (1) In general.--There are authorized to be 
        appropriated to carry out this section--
                  (A) $58,000,000 for each of fiscal years 2021 
                through 2025, of which--
                          (i) $55,000,000 shall be available 
                        for any activities under this section 
                        other than programs under subsection 
                        (a)(3), of which--
                                  (I) not less than $38,000,000 
                                shall be for private 
                                enforcement initiatives 
                                authorized under subsection 
                                (b);
                                  (II) not less than $1,500,000 
                                shall be for the fair housing 
                                organizations initiative under 
                                subsection (c);
                                  (III) not less than 
                                $10,000,000 shall be for the 
                                education and outreach 
                                initiative under subsection 
                                (d), of which--
                                          (aa) at least 
                                        $8,000,000 shall be for 
                                        local education and 
                                        outreach activities; 
                                        and
                                          (bb) at least 
                                        $2,000,000 shall be for 
                                        national media 
                                        activities; and
                                  (IV) any remaining amounts 
                                shall be used for any program 
                                activities authorized under 
                                this section; and
                          (ii) $3,000,000 shall be available 
                        only for programs under subsection 
                        (a)(3); and
                  (B) $70,000,000 for each of fiscal years 2026 
                through 2031, of which--
                          (i) for each such fiscal year, 
                        $65,000,000 shall be available for any 
                        activities under this section other 
                        than programs under subsection (a)(3), 
                        of which--
                                  (I) not less than $44,000,000 
                                shall be for private 
                                enforcement initiatives 
                                authorized under subsection 
                                (b);
                                  (II) not less than $1,500,000 
                                shall be for the fair housing 
                                organizations initiative under 
                                subsection (c);
                                  (III) not less than 
                                $12,500,000 shall be for the 
                                education and outreach 
                                initiative under subsection 
                                (d), of which--
                                          (aa) at least 
                                        $10,000,000 shall be 
                                        for local education and 
                                        outreach activities; 
                                        and
                                          (bb) at least 
                                        $2,500,000 shall be for 
                                        national media 
                                        activities; and
                                  (IV) any remaining amounts 
                                shall be used for any program 
                                activities authorized under 
                                this section; and
                          (ii) for each such fiscal year 
                        $5,000,000 shall be available only for 
                        programs under subsection (a)(3).
          (2) Availability.--Any amount appropriated under this 
        section shall remain available until expended to carry 
        out the provisions of this section.
          (3) Award of funding.--Within 90 days after the date 
        of the enactment of any Act making amounts available to 
        carry out this section, the Secretary shall issue a 
        Notice of Funding Availability with respect to such 
        amounts and, within 180 days after such date of 
        enactment, the Secretary shall award such amounts.
  (h) Qualified Fair Housing Enforcement Organization.--(1) The 
term ``qualified fair housing enforcement organization'' means 
any organization that--
          (A) is organized as a private, tax-exempt, nonprofit, 
        charitable organization;
          (B) has at least 2 years experience in complaint 
        intake, complaint investigation, testing for fair 
        housing violations and enforcement of meritorious 
        claims; and
          (C) is engaged in all the activities listed in 
        paragraph (1)(B) at the time of application for 
        assistance under this section.
An organization which is not solely engaged in fair housing 
enforcement activities may qualify as a qualified fair housing 
enforcement organization, provided that the organization is 
actively engaged in each of the activities listed in 
subparagraph (B) and meets the criteria described in 
subparagraphs (A) and (C).
  (2) The term ``fair housing enforcement organization'' means 
any organization that--
          (A) meets the requirements specified in paragraph 
        (1)(A);
          (B) is currently engaged in the activities specified 
        in paragraph (1)(B);
          (C) upon the receipt of funds under this section will 
        become engaged in all of the activities specified in 
        paragraph (1)(B); and
          (D) for purposes of funding under subsection (b), has 
        at least 1 year of experience in the activities 
        specified in paragraph (1)(B).
  (i) Prohibition on Use of Funds.--None of the funds 
authorized under this section may be used by the Secretary for 
purposes of settling claims, satisfying judgments or fulfilling 
court orders in any litigation action involving either the 
Department or housing providers funded by the Department. None 
of the funds authorized under this section may be used by the 
Department for administrative costs.
  (j) Reporting Requirements.--Not later than 180 days after 
the close of each fiscal year in which assistance under this 
section is furnished, the Secretary shall prepare and submit to 
the Congress a comprehensive report regarding such preceding 
fiscal year, which shall contain--
          (1) a description of the progress made in 
        accomplishing the objectives of this section;
          (2) a summary of all the private enforcement 
        activities carried out under this section [and the use 
        of such funds during the preceding fiscal year], the 
        use of such funds during the preceding fiscal year, and 
        outcomes such as the number of housing units made 
        available and accessible to protected classes under the 
        Fair Housing Act (42 U.S.C. 3601 et seq.);
          (3) a list of all fair housing enforcement 
        organizations funded under this section during the 
        preceding fiscal year, identified on a State-by-State 
        basis;
          (4) a summary of all education and outreach 
        activities funded under this section and the use of 
        such funds during the preceding fiscal year; and
          (5) any findings, conclusions, or recommendations of 
        the Secretary as a result of the funded activities.

           *       *       *       *       *       *       *


                             MINORITY VIEWS

    Committee Republicans unequivocally oppose illegal housing 
discrimination and support efforts to hold bad actors 
accountable. Unfortunately, H.R. 149 does nothing to deter or 
punish localities that allow discrimination to occur and will 
not support the victims of housing discrimination.
    Instead, H.R. 149 drastically increases taxpayer funding 
for a few non-profits that are more interested in their bottom 
line than targeting and punishing bad actors.
    The bill authorizes $735 million in new grant funding for 
the Department of Housing and Urban Development (HUD)'s Office 
of Fair Housing Initiatives Program (FHIP). FHIP is responsible 
for overseeing local, regional, and national fair housing 
testing programs.
    However, Committee Democrats have yet to demonstrate how 
this increased funding would assist the current HUD fair 
housing programs in eliminating discrimination. This bill 
throws more money at organizations without clear accountability 
or transparency requirements to understand how the funding will 
be used. It will also do nothing to ensure that the federal 
government is doing all it can to end illegal discrimination 
and hold bad actors accountable.
    Republicans offered three commonsense amendments during 
Committee markup that would have strengthened HUD's efforts to 
eradicate discrimination and address the specific failures of 
H.R. 149:
           Rep. Kustoff offered an amendment that would 
        have allowed HUD to suspend a locality's community 
        development grants for one year if they violate fair 
        housing laws.
           Rep. Stivers offered an amendment that would 
        have made grantees under the program submit audited 
        financial statements to HUD to show that any grant 
        money is well spent.
           Rep. Zeldin offered an amendment that would 
        have created a Victims Compensation Fund that would 
        help the true victims in those communities, not just 
        the nonprofits who discover violations of the law. Any 
        proceeds from lawsuits in this bill would be submitted 
        to the Fund and distributed to those who were 
        discriminated against before the bad actors were 
        discovered.
    Each amendment was rejected by Democrats on a party line 
vote.
    Stakeholders, victims, and advocates know that simply 
increasing funding alone will not end illegal housing 
discrimination.
    Rather than come together to ensure a bipartisan approach 
to prevent, deter, and punish bad actors who discriminate in 
housing, Committee Democrats took the partisan path.
    By rejecting commonsense policies that are proven to deter 
and punish bad actors, H.R. 149 fails to improve the very 
program it claims to support. For these reasons, Committee 
Republicans oppose H.R. 149.
                                   Patrick T. McHenry.
                                   Bill Posey.
                                   Bill Huizenga.
                                   Ann Wagner.
                                   Scott R. Tipton.
                                   J. French Hill.
                                   Lee M. Zeldin.
                                   Alexander X. Mooney.
                                   Ted Budd.
                                   Trey Hollingsworth.
                                   John W. Rose.
                                   Lance Gooden.
                                   William R. Timmons, IV.
                                   Frank D. Lucas.
                                   Blaine Luetkemeyer.
                                   Steve Stivers.
                                   Andy Barr.
                                   Roger Williams.
                                   Tom Emmer.
                                   Barry Loudermilk.
                                   Warren Davidson.
                                   David Kustoff.
                                   Anthony Gonzalez.
                                   Bryan Steil.
                                   Denver Riggleman.
                                   Van Taylor.

                                  [all]