[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1847 Introduced in House (IH)]
<DOC>
117th CONGRESS
1st Session
H. R. 1847
To suspend obligations of residential renters and mortgagors to make
payments during the COVID-19 emergency, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 11, 2021
Ms. Omar (for herself, Mr. Lowenthal, Ms. Lee of California, Mr.
Bowman, Mr. Pocan, Mr. Grijalva, Mr. Jones, Mrs. Watson Coleman, Mr.
Garcia of Illinois, Ms. Pressley, Ms. Jayapal, Mr. Thompson of
Mississippi, Ms. Norton, Ms. Velazquez, Ms. Tlaib, Ms. Clarke of New
York, Mr. Espaillat, Ms. Wilson of Florida, Ms. Schakowsky, Mr.
McGovern, Mr. Gomez, Mr. Carson, Ms. Ocasio-Cortez, Mr. Nadler, and Ms.
Bush) introduced the following bill; which was referred to the
Committee on Financial Services
_______________________________________________________________________
A BILL
To suspend obligations of residential renters and mortgagors to make
payments during the COVID-19 emergency, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Rent and Mortgage Cancellation Act
of 2021''.
SEC. 2. SUSPENSION OF OBLIGATIONS TO MAKE RESIDENTIAL MORTGAGE AND RENT
PAYMENTS.
(a) Rent Payments.--
(1) Suspension.--Notwithstanding any other provision of
law, the obligation of each tenant household of a covered
rental dwelling unit to pay rent for occupancy in such dwelling
unit shall be suspended with respect to such occupancy during
the COVID-19 suspension period.
(2) Prohibitions.--
(A) On fines.--No tenant or tenant household may be
charged a fine or fee for nonpayment of rent in
accordance with paragraph (1) and such nonpayment of
rent shall not be grounds for any termination of
tenancy or eviction.
(B) On debt.--No tenant or tenant household may be
treated as accruing any debt by reason of suspension of
contribution of rent under paragraph (1).
(C) On repayment.--No tenant or tenant household
may be held liable for repayment of any amount of rent
contribution suspended under paragraph (1).
(D) On credit scores.--The nonpayment of rent by a
tenant or tenant household shall not be reported to a
consumer reporting agency nor shall such nonpayment
adversely affect a tenant or member of a tenant
household's credit score.
(b) Mortgage Payments.--
(1) Suspension.--Notwithstanding any other provision of
law, the obligation of each mortgagor under a covered
residential mortgage loan to make mortgage payments of
principal and interest that become due during the COVID-19
suspension period is hereby suspended.
(2) Requirements and prohibitions.--
(A) On debt.--No mortgagor under any covered
residential mortgage loan may be held responsible for
payment of mortgage payments suspended under paragraph
(1) or treated as accruing any debt by reason of
suspension under such paragraph of the obligation to
make mortgage payments.
(B) On foreclosure.--A mortgagee under a covered
residential mortgage loan (or servicer for such
mortgagee) may not commence or continue any judicial
foreclosure action or non-judicial foreclosure process
or any action for failure to make a payment due under
such mortgage that is suspended pursuant to paragraph
(1).
(C) On fees, penalties, and interest.--No fees,
penalties, or additional interest beyond the amounts
scheduled or calculated as if the mortgagor made all
contractual payments on time and in full under the
terms of the mortgage contract in effect as of the
commencement of the COVID-19 suspension period shall
accrue.
(D) On credit scores.--The nonpayment of a mortgage
payment by a mortgagor pursuant to suspension under
paragraph (1) of the obligation to make such payment
shall not be reported to a consumer reporting agency
nor shall such nonpayment adversely affect a
mortgagor's credit score.
(c) Notice.--The Secretary of Housing and Urban Development shall
establish and carry out a system to notify all tenants of covered
rental dwelling units, including tenants described in section
8(1)(B)(ii), and all mortgagors under covered residential mortgage
loans, of the suspensions under paragraph (1) of subsections (a) and
(b) of the obligations to make rental payments or mortgage payments,
respectively, and of their right to pursue legal action pursuant to
section 4.
SEC. 3. FORGIVENESS OF RESIDENTIAL RENT AND MORTGAGE DEBT.
(a) Rent Debt.--
(1) In general.--Notwithstanding any other provision of
law, all debt for unpaid residential rent arrears for a covered
rental dwelling unit that accrued from March 13, 2020, through
April 1, 2022, is hereby forgiven.
(2) Preemption.--To the extent that any State or local law
or decision of any State or local court or arbitral body
conflicts with paragraph (1), it is preempted and shall have no
force or effect.
(3) No effect on credit score.--Receipt of forgiveness of
residential rent debt pursuant to paragraph (1) shall not be
reported to any consumer reporting agency nor shall receipt of
such forgiveness adversely affect the credit score of any
tenant or member of a tenant household.
(b) Mortgage Debt.--
(1) In general.--Notwithstanding any other provision of
law, all debt for unpaid residential mortgage arrears under a
covered residential mortgage loan that accrued from March 13,
2020, through April 1, 2022, is hereby forgiven.
(2) Reduction of balance.--By consequence of the
forgiveness required under paragraph (1), forgiven mortgage
debt shall be reduced from mortgagors' interest and principal
balances, as applicable.
(3) Preemption.--To the extent that any State or local law
or decision of any State or local court or arbitral bodies
conflicts with paragraph (1), it is preempted and shall have no
force or effect.
(4) No effect on credit score.--Receipt of forgiveness of
residential rent debt pursuant to paragraph (1) shall not be
reported to any consumer reporting agency nor shall receipt of
such forgiveness adversely affect the credit score of a
mortgagor.
(c) Notice.--The Secretary of Housing and Urban Development shall
establish and carry out a system to notify all tenants of covered
rental dwelling units, including tenants described in section
8(1)(B)(ii), and all mortgagors under covered residential mortgage
loans, of the forgiveness under paragraph (1) of subsections (a) and
(b) of debt for unpaid residential rent and mortgage arrears,
respectively, and of their right to pursue legal action pursuant to
section 4.
SEC. 4. CIVIL ACTION.
(a) In General.--Any individual aggrieved by an adverse action
taken by a lessor or mortgagee for exercising rights under section 2 or
3 may commence a civil action under this section against the lessor or
mortgagee violating such section in an appropriate United States
district court or State court not later than 2 years after such
violation occurs for damages under subsection (b).
(b) Damages; Penalty.--Any lessor or mortgagee found to have taken
adverse action against any lessee or mortgagor for exercising rights
under section 2 shall be liable--
(1) to the individual aggrieved by such violation, for any
actual damages as a result of such adverse action; and
(2) for a fine in the amount of--
(A) $5,000, in the case of violation that is the
first violation by such lessor or mortgagee;
(B) $10,000, in the case of violation that is the
second violation by such lessor or mortgagee; and
(C) $50,000 or forfeiture of the property, in the
case of violation that is the third or subsequent
violation by such lessor or mortgagee.
(c) Authority of Court.--In an action brought under this section,
the court--
(1) may award preventative relief, including a permanent or
temporary injunction or other order, to ensure the full rights
granted by subsections (a) and (b) of section 2 and by
subsections (a) and (b) of section 3; and
(2) shall award any prevailing plaintiff, other than the
United States, reasonable attorney's fee and costs.
(d) Attorney General Enforcement.--The Attorney General may bring a
civil action in any appropriate United States district court against
any individual who violates subsection (a) or (b) of section 2 for
fines, or subsection (a) or (b) of section 3, under subsection (b)(2)
of this section.
SEC. 5. LANDLORD RELIEF FUND.
(a) Establishment.--The Secretary of Housing and Urban Development
shall establish and manage a Landlord Relief Fund (in this section
referred to as the ``Fund''), to provide lessors payments under this
section to reimburse such lessors for payments under covered rental
dwelling units suspended or forgiven pursuant to section 2(a) or 3(a),
respectively.
(b) Application.--The Secretary shall provide for lessors of
covered rental dwelling units to apply for reimbursement payments from
the Fund, which applications shall include the certifications and
binding agreements required pursuant to subsection (c).
(c) Eligibility.--The Secretary may provide a payment under this
section only with respect to covered rental dwelling units that meet
all of the following requirements:
(1) Fair rental requirements.--The lessor of the covered
rental dwelling unit has made such certifications to, and
entered into such binding agreements with, the Secretary as the
Secretary considers necessary to ensure that during the 5-year
period beginning upon initial receipt by such lessor of payment
under this section for such dwelling unit, such dwelling unit
shall be subject to the following requirements:
(A) Rent freeze.--The monthly rent for the dwelling
unit may not be increased from the amount of such rent
charged as of the date of the enactment of this Act.
(B) Just-cause evictions.--A tenant of the dwelling
unit may be evicted only for just cause and only
pursuant to advance written notice to the tenant of
such just cause.
(C) Source of income discrimination.--The lessor
may not refuse to rent the dwelling unit, or
discriminate in the renting of the dwelling unit, to a
household based on the source of income of such
household, including income under the program under
section 8(o) of the United States Housing Act of 1937
(42 U.S.C. 1437f(o)) or any similar tenant-based rental
assistance program.
(D) New vacancies.--The lessor shall coordinate
with the public and other housing authorities for the
jurisdiction within which the dwelling unit is located
to make the dwelling unit available, upon any vacancy,
to households assisted as described in subparagraph
(C).
(E) Admissions restrictions.--The lessor may not
restrict tenancy of the dwelling unit on the basis of
sexual identity or orientation, gender identity or
expression, conviction or arrest record, credit
history, or immigration status.
(F) Arrearages.--The lessor may not collect an
arrearage in rent owed by the tenant as of the
expiration of such 5-year period.
(G) Retaliation.--The lessor may not retaliate in
any way against a tenant of the dwelling unit.
(H) Debt collectors and credit reporting
agencies.--The lessor may not report the tenant of the
dwelling unit to a debt collector or provide any
adverse information regarding the tenant to any credit
reporting agency.
(2) Required disclosures.--
(A) In general.--The lessor shall disclose, for any
person that has an ownership interest in the lessor,
including any members, shareholders, general partners,
or limited partners, if applicable, the following
information:
(i) Name.
(ii) Address of place of residence.
(iii) Date of birth.
(iv) Social Security Number or Employer
Identification Number.
(v) Size of their interest in the lessor.
(vi) Type of entity.
(vii) State of incorporation.
(viii) Registered agent.
(ix) Address of any covered rental dwelling
units owned by such person.
(x) Occupancy or vacancy status of all
covered rental dwelling units owned by such
person.
(xi) Current rents charged for all covered
rental dwelling units owned by such person.
(xii) Total assets and liabilities.
(B) Non-natural persons.--For any person identified
in the disclosure required by this paragraph that is
not a natural person, the lessor shall provide the
information required by subparagraph (A) for that
entity and for any persons with ownership interests in
that entity and shall provide that information
iteratively for each layer of ownership until all
ownership interests are traced back to natural persons
or publicly traded corporations.
(C) Exemption.--Nothing in this paragraph shall
require the disclosure of the identity of, or
personally-identifying information regarding,
shareholders of publicly traded corporations.
(3) Prohibition on duplication of assistance.--Assistance
may not be provided under this section with respect to any
dwelling unit for which assistance is provided pursuant to
section 6.
(d) Amount.--
(1) In general.--Subject to paragraph (2), the amount of a
payment under this section with respect to a covered rental
dwelling unit may not exceed the aggregate amount of rent for
the dwelling unit suspended or forgiven pursuant to section
2(a) or 3(a) and attributable only to days during the COVID-19
suspension period that the dwelling unit was occupied by a
tenant otherwise required to pay rent for such occupancy.
(2) Reimbursement for rent paid by tenants.--In making
payments under this section with respect to any covered
dwelling unit for which tenant made a payment of rent during
the COVID-19 suspension period, the Secretary shall--
(A) reduce the amount of the payment to the lessor
under paragraph (1) by the amount of any such rent
paid; and
(B) make a payment to such tenant in the amount of
any such rent paid.
(e) Priority.--In making payments under this section, the Secretary
shall establish a tiered system for priority for such payments based on
assets, revenues, disclosure requirements, and profit status with
respect to lessors. Such system shall provide priority for making
payments to eligible lessors that are nonprofit organizations or
entities and lessors having the fewest available amount of assets.
(f) Recapture.--If a lessor violates any requirement with respect
to a covered rental dwelling unit under any certification or agreement
entered into pursuant to subsection (c)(2), the Secretary shall
recapture from the lessor an amount equal to the entire amount of
assistance provided under this section that is attributable to such
dwelling unit and cover such amount recaptured into the Fund.
(g) Authorization of Appropriations.--There is authorized to be
appropriated for the Landlord Relief Fund established pursuant to this
section such sums as may be necessary to reimburse all lessors for all
rent payments suspended pursuant to section 2(a) or forgiven pursuant
to section 3(a).
SEC. 6. LENDER RELIEF FUND.
(a) Establishment.--The Secretary of Housing and Urban Development
shall establish and manage a Lender Relief Fund (in this section
referred to as the ``Fund''), to provide mortgagees payments under this
section to reimburse such mortgagees for mortgage payments suspended
pursuant to section 2(b) or for residential mortgage debt forgiven
pursuant to section 3(b).
(b) Application.--The Secretary shall provide for mortgagees under
covered residential mortgage loans to apply for reimbursement payments
from the Fund, which applications shall include the certifications and
binding agreements required pursuant to subsection (c). The Secretary
shall provide that an eligible mortgagee may apply for assistance from
the Fund only once with respect to any covered residential mortgage
loan.
(c) Eligibility.--The Secretary may provide a payment under this
section only with respect to covered residential mortgage loans that
meet all of the following requirements:
(1) Fair and inclusive lending requirements.--The mortgagee
for the mortgage loan has made such certifications to, and
entered into such binding agreements with, the Secretary as the
Secretary considers necessary to ensure that during the 5-year
period beginning upon initial receipt by such mortgagee of
payment under this section for such mortgage loan, such
mortgagee shall be subject to the following requirements:
(A) Reporting on lending.--The mortgagee shall
report annually to the Secretary such detailed
information regarding residential mortgage loans made
by such mortgagee as the Secretary shall require,
including the race, ethnicity, age, and credit score of
mortgagors, the zip codes of properties for which
mortgages were made, and the interest rates and other
loan pricing features of such mortgage loans.
(B) Reporting on lender.--The mortgagee shall
report annually to the Secretary such detailed
information regarding the mortgagee as the Secretary
shall require, including the location of the offices of
the mortgagee, and practices and systems for outreach
to and referral of borrowers.
(2) Required disclosures.--
(A) In general.--The mortgagee for the mortgage
loan shall disclose, for any person that has an
ownership interest in the mortgagee, including any
members, shareholders, general partners, or limited
partners, if applicable, the following information:
(i) Name.
(ii) Address of place of residence.
(iii) Date of birth.
(iv) Social Security Number or Employer
Identification Number.
(v) Size of their interest in the
mortgagee.
(vi) Type of entity.
(vii) State of incorporation.
(viii) Registered agent.
(ix) Address of any covered rental dwelling
units owned by such person.
(x) Occupancy or vacancy status of all
covered rental dwelling units owned by such
person.
(xi) Current rents charged for all covered
rental dwelling units owned by such person.
(xii) Total assets and liabilities.
(B) Non-natural persons.--For any person identified
in the disclosure required by this paragraph that is
not a natural person, the mortgagee shall provide the
information required by subparagraph (A) for that
entity and for any persons with ownership interests in
that entity and shall provide that information
iteratively for each layer of ownership until all
ownership interests are traced back to natural persons
or publicly traded corporations.
(C) Exemption.--Nothing in this paragraph shall
require the disclosure of the identity of, or
personally-identifying information regarding,
shareholders of publicly traded corporations.
(3) Prohibition on duplication of assistance.--Assistance
may not be provided under this section with respect to any
dwelling unit subject to a covered residential mortgage loan
for which assistance is provided pursuant to section 5.
(d) Amount.--
(1) In general.--Subject to paragraph (2), the amount of a
payment under this section with respect to a covered
residential mortgage may not exceed the aggregate amount of
mortgage payments under the mortgage suspended pursuant to
section 2(b) or forgiven pursuant to section 3(b).
(2) Reimbursement for mortgage payments made by
mortgagors.--In making payments under this section with respect
to any covered residential mortgage loan for which the
mortgagor made a mortgage payment during the COVID-19
suspension period, the Secretary shall--
(A) reduce the amount of the payment to the
mortgagee under paragraph (1) by the amount of any such
mortgage payments paid; and
(B) make a payment to the mortgagor in the amount
of any such mortgages payments paid.
(e) Authorization of Appropriations.--There is authorized to be
appropriated for the Lender Relief Fund established pursuant to this
section such sums as may be necessary to reimburse all lessors for all
rent payments suspended pursuant to section 2(b) or forgiven pursuant
to section 3(b).
SEC. 7. AFFORDABLE HOUSING ACQUISITION FUND.
(a) Establishment.--The Secretary of Housing and Urban Development
shall establish and manage an Affordable Housing Acquisition Fund (in
this section referred to as the ``Fund''), to fund the acquisition of
multifamily housing projects by eligible purchasers to--
(1) ensure that tenants have access to safe and habitable
housing conditions regardless of their landlords' ability to
pay for repairs and maintenance during and after the COVID-19
pandemic;
(2) prevent financial hardship for rental property owners;
and
(3) prevent a mass exit in the rental housing market that
results in massive corporate purchases similar to the 2008
economic crisis.
(b) First Right of Purchase.--
(1) Notice to secretary.--During the 5-year period
beginning upon the date of the enactment of this Act, the owner
of a multifamily housing property may not sell or transfer
ownership of such property unless--
(A) the owner has notified the Secretary, in
accordance with such requirements as the Secretary
shall establish, of the owner's intent to sell or
transfer the property;
(B) a period of 60 days, beginning upon provision
of such notice to the Secretary, has elapsed; and
(C) if during such 60-day period any eligible
purchaser under paragraph (3) applies to the Secretary
for purchase assistance under subsection (c) with
respect to such property, the Secretary has approved or
denied such application and, if approved, the eligible
purchaser has made a bona fide offer to the owner to
purchase such project in the amount determined under
subsection (c)(3)(A).
(2) Notice to eligible purchasers.--Upon provision to the
Secretary of notice under paragraph (1)(A) regarding a
multifamily housing project, the Secretary shall take such
actions as may be necessary to provide notice to eligible
purchasers of the owner's intent to sell or transfer the
property.
(3) Eligible purchasers.--For purposes of this section, an
eligible purchaser under this paragraph shall be a nonprofit
organization, a public housing agency, a cooperative housing
association, a community land trust, or a State or unit of
local government or an agency thereof, as such terms are
defined by the Secretary.
(c) Purchase Assistance.--
(1) Application.--The Secretary shall provide for eligible
purchasers to apply for assistance from the Fund to cover the
cost of acquisition of a multifamily housing project for which
notice has been submitted pursuant to subsection (1)(A).
(2) Criteria.--The Secretary shall establish such criteria
and preferences as the Secretary considers appropriate to
select an eligible purchaser for assistance under this section
in cases in which more than one approvable application for such
assistance is submitted with respect to a single multifamily
housing project.
(3) Amount.--Pursuant to an application submitted under
paragraph (1) with respect to a multifamily housing project,
the Secretary may provide assistance from the Fund on behalf of
eligible purchaser submitting such application, in an amount
equal to the purchase price for the project agreed to under
subparagraph (A) of this paragraph, but only if the Secretary
determines that--
(A) such eligible purchaser and the owner of such
multifamily housing project have voluntarily agreed to
a sale of such project to the eligible purchaser for an
amount not exceeding the fair market value of the
project as of the time of provision of assistance from
the Fund for purchase of the project, as determined by
the Secretary; and
(B) the eligible purchaser has made the
certifications and entered into the agreements required
under subsection (d) with respect to the project.
(d) Affordable Housing Restrictions.--The certifications and
agreements required under this subsection with respect to a multifamily
housing project are such certifications to, and binding agreements
with, the Secretary as the Secretary considers necessary to ensure that
during the useful life of the project the project will comply with the
following requirements:
(1) Affordable housing.--The project shall comply with the
requirements under section 215(a) of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12745(a)) necessary
to qualify under such section as affordable housing.
(2) Just-cause evictions.--A tenant of the project may be
evicted only for just cause and only pursuant to advance
written notice to the tenant of such just cause.
(3) Source of income discrimination.--A prospective tenant
household of the project may not be refused rental of a
dwelling unit in the project, and a prospective tenant
household or tenant household may not be discriminated against
in the renting of a dwelling unit in the project, based on the
source of income of such household, including income under the
program under section 8(o) of the United States Housing Act of
1937 (42 U.S.C. 1437f(o)) or any similar tenant-based rental
assistance program.
(4) Admissions restrictions.--Tenancy of dwelling units in
the project may not be restricted on the basis of sexual
identity or orientation, gender identity or expression,
conviction or arrest record, credit history, or immigration
status.
(5) Supportive services.--Residents of the project shall be
provided with free, voluntary supportive services that help
address the needs of those experiencing chronic homelessness or
housing instability, including access to healthcare, employment
or education assistance, childcare, financial literacy
education, and other community-based support services, as the
Secretary shall require.
(6) Democratic control.--Tenants of the project shall have
control of living and operating conditions in the project
through a democratically elected resident board or council.
(e) Recapture.--If an eligible purchaser violates any requirement
with respect to a multifamily housing project purchased with assistance
provided from the Fund under any certification or agreement entered
into pursuant to subsection (d), the Secretary shall recapture from the
eligible purchase an amount equal to the amount of such assistance
provided and shall cover such amount recaptured into the Fund.
(f) Authorization of Appropriations.--There is authorized to be
appropriated for the Affordable Housing Acquisition Fund established
pursuant to this section such sums as may be necessary--
(1) for assistance under this section to fund acquisition
of multifamily housing projects by eligible purchasers; and
(2) for each fiscal year, for assistance for the operation
and maintenance of eligible properties purchased with
assistance provided from the Fund.
SEC. 8. DEFINITIONS.
For purposes of this Act, the following definitions shall apply:
(1) Covered rental dwelling unit.--The term ``covered
rental dwelling unit'' means a dwelling that is occupied by a
tenant--
(A) as a primary residence; and
(B)(i) pursuant to a residential lease; or
(ii) without a lease or with a lease terminable at
will under State law.
Such term includes such a dwelling unit in multifamily housing,
single-family housing, a condominium unit, a unit in
cooperative housing, a dwelling unit that is occupied pursuant
to a sublease, a single-room occupancy unit, and a manufactured
housing dwelling unit and the lot on which it is located.
(2) Covered residential mortgage loan.--The term ``covered
residential mortgage loan'' means any consumer credit
transaction that is secured by a mortgage, deed of trust, or
other equivalent consensual security interest on residence
consisting of a single dwelling unit that is occupied by the
mortgagor as a primary residence.
(3) COVID-19 suspension period.--The term ``COVID-19
suspension period'' means the period beginning on March 1,
2020, and ending on April 1, 2022.
(4) Multifamily housing project.--The term ``multifamily
housing project'' means a residential structure consisting of 5
or more dwelling units.
(5) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
SEC. 9. REGULATIONS.
The Secretary may issue any regulations necessary to carry out this
Act.
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