[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 934 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
1st Session
S. 934
To make housing more affordable, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 11 (legislative day, March 10), 2025
Ms. Warren (for herself, Mr. Warnock, Mr. Markey, Mr. Sanders, Ms.
Hirono, Mr. Welch, Mr. Blumenthal, Mr. Van Hollen, and Mr. Kim)
introduced the following bill; which was read twice and referred to the
Committee on Finance
_______________________________________________________________________
A BILL
To make housing more affordable, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``American Housing
and Economic Mobility Act of 2025''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--MAKING HOUSING MORE AFFORDABLE
Sec. 101. Local housing innovation grants.
Sec. 102. Investing in affordable housing infrastructure.
Sec. 103. Conditions for the sale of real estate-owned properties and
non-performing loans.
TITLE II--TAKING THE FIRST STEPS TO REVERSE THE LEGACY OF HOUSING
DISCRIMINATION AND GOVERNMENT NEGLIGENCE
Sec. 201. Down payment assistance program for first-time, first-
generation homebuyers.
Sec. 202. Formula grant program for communities with an appraisal gap.
Sec. 203. Strengthening the Community Reinvestment Act of 1977.
Sec. 204. Amendments relating to credit union service to underserved
areas.
Sec. 205. Raising public welfare caps.
Sec. 206. Temporary eligibility of certain direct descendants of
certain veterans for housing loans
guaranteed by the Secretary of Veterans
Affairs.
TITLE III--REMOVING BARRIERS THAT ISOLATE COMMUNITIES
Sec. 301. Expanding rights under the Fair Housing Act.
Sec. 302. Improving outcomes in housing assistance programs.
TITLE IV--ESTATE TAX REFORM
Sec. 401. Amendment to Internal Revenue Code of 1986.
Sec. 402. Rate adjustment.
Sec. 403. Required minimum 10-year term, etc., for grantor retained
annuity trusts.
Sec. 404. Certain transfer tax rules applicable to grantor trusts.
Sec. 405. Elimination of generation-skipping transfer tax exemption for
transfers to certain persons.
Sec. 406. Simplifying gift tax exclusion for annual gifts.
Sec. 407. Clarification regarding disallowance of step-up in basis for
property held in certain grantor trusts.
Sec. 408. Limitation on discounts; valuation rules for certain
transfers of nonbusiness assets.
Sec. 409. Surcharge on high income estates and trusts.
Sec. 410. Modification of rules for value of certain farm, etc., real
property.
Sec. 411. Modification of estate tax rules with respect to land subject
to conservation easements.
TITLE V--ACCESSIBILITY REQUIREMENTS
Sec. 501. Accessibility requirements.
TITLE I--MAKING HOUSING MORE AFFORDABLE
SEC. 101. LOCAL HOUSING INNOVATION GRANTS.
(a) Definitions.--In this section:
(1) Elementary school; secondary school.--The terms
``elementary school'' and ``secondary school'' have the
meanings given those terms in section 8101 of the Elementary
and Secondary Education Act of 1965 (20 U.S.C. 7801).
(2) Eligible entity.--The term ``eligible entity'' means--
(A) a State;
(B) a unit of general local government; or
(C) an Indian tribe.
(3) Indian tribe.--The term ``Indian tribe'' has the
meaning given the term in section 4 of the Native American
Housing Assistance and Self-Determination Act of 1996 (25
U.S.C. 4103).
(4) Institution of higher education.--The term
``institution of higher education'' has the meaning given the
term in section 101 of the Higher Education Act of 1965 (20
U.S.C. 1001).
(5) Metropolitan area; state; unit of general local
government.--The terms ``metropolitan area'', ``State'', and
``unit of general local government'' have the meanings given
those terms in section 102 of the Housing and Community
Development Act of 1974 (42 U.S.C. 5302).
(6) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
(b) Establishment.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall establish a program to award
grants on a competitive basis to eligible entities to--
(1) reform local land use restrictions to bring down the
costs of producing affordable housing; and
(2) remove unnecessary barriers to building affordable
units in their communities.
(c) Eligible Activities.--An eligible entity receiving a grant
under this section may use funds to--
(1) carry out any of the activities described in section
105 of the Housing and Community Development Act of 1974 (42
U.S.C. 5305);
(2) carry out any of the activities permitted under the
Local and Regional Project Assistance Program under section
6702 of title 49, United States Code; or
(3) modernize, renovate, or repair facilities used by
public elementary schools, public secondary schools, and public
institutions of higher education, including modernization,
renovation, and repairs that--
(A) promote physical, sensory, and environmental
accessibility; and
(B) are consistent with a recognized green building
rating system.
(d) Application.--
(1) In general.--An eligible entity desiring a grant under
this section shall submit to the Secretary an application that
demonstrates that the eligible entity has carried out, or is in
the process of carrying out, initiatives that facilitate the
expansion of the supply of well-located affordable housing.
(2) Activities.--Initiatives that meet the criteria
described in paragraph (1)--
(A) include--
(i) establishing ``by-right'' development,
which allows jurisdictions to administratively
approve new developments that are consistent
with their zoning code;
(ii) revising or eliminating off-street
parking requirements to reduce the cost of
housing production;
(iii) instituting measures that incentivize
owners of vacant land to redevelop the space
into affordable housing or other productive
uses;
(iv) revising minimum lot size requirements
and bans or limits on multifamily construction
to allow for denser and more affordable
development;
(v) instituting incentives to promote dense
development, such as density bonuses;
(vi) passing inclusionary zoning ordinances
that require a portion of newly developed units
to be reserved for low- and moderate-income
renters or homebuyers;
(vii) streamlining regulatory requirements
and shortening processes, reforming zoning
codes, or other initiatives that reduce
barriers to housing supply elasticity and
affordability;
(viii) allowing accessory dwelling units;
(ix) using local tax incentives to promote
development of affordable housing; and
(x) implementing measures that protect
tenants from harassment and displacement,
including--
(I) providing access to counsel for
tenants facing eviction;
(II) the prohibition of eviction
except for just cause;
(III) measures intended to prevent
or mitigate sudden increases in rents;
(IV) the repeal of laws that
prevent localities from implementing a
measure described in subclause (I),
(II), or (III);
(V) protections against
constructive eviction;
(VI) tenant right-to-organize laws;
(VII) a cause of action for tenants
to sue landlords who threaten or begin
an illegal eviction; and
(VIII) landlord-tenant mediation or
other non-eviction diversion programs;
and
(B) do not include activities that alter ordinances
that govern wage and hour laws, family and medical
leave laws, health and safety requirements, prevailing
wage laws, or protections for workers' health and
safety, anti-discrimination, and right to organize.
(3) Relation to consolidated plan.--An eligible entity
shall include in an application submitted under paragraph (1) a
description of how the planning and development of eligible
activities described in subsection (c) may advance an
objective, or an aspect of an objective, included in the
comprehensive housing affordability strategy and community
development plan of the eligible entity under part 91 of title
24, Code of Federal Regulations, or any successor regulation
(commonly referred to as a ``consolidated plan'').
(e) Labor Laws.--
(1) In general.--All laborers and mechanics employed by
contractors or subcontractors in the performance of
construction work financed in whole or in part with a grant
received under this section shall be paid wages at rates not
less than those prevailing on similar construction in the
locality, as determined by the Secretary of Labor in accordance
with subchapter IV of chapter 31 of title 40, United States
Code (commonly known as the ``Davis-Bacon Act'').
(2) Authority and functions.--With respect to the labor
standards specified in paragraph (1), the Secretary of Labor
shall have the authority and functions set forth in
Reorganization Plan Numbered 14 of 1950 (64 Stat. 1267; 5
U.S.C. App.) and section 3145 of title 40, United States Code.
(f) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $2,000,000,000 for each of
fiscal years 2025 through 2029.
SEC. 102. INVESTING IN AFFORDABLE HOUSING INFRASTRUCTURE.
(a) Housing Trust Fund.--Section 1338(a) of the Federal Housing
Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C.
4568(a)) is amended by adding at the end the following:
``(3) Authorization of appropriations.--There is authorized
to be appropriated to the Housing Trust Fund $48,000,000,000
for each of fiscal years 2025 through 2034.''.
(b) Capital Magnet Fund.--Section 1339 of the Federal Housing
Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4569)
is amended by adding at the end the following:
``(k) Authorization of Appropriations.--There is authorized to be
appropriated to the Capital Magnet Fund $3,000,000,000 for each of
fiscal years 2025 through 2034.''.
(c) Public Housing Capital Fund.--Section 9(c)(2)(A) of the United
States Housing Act of 1937 (42 U.S.C. 1437g(c)(2)(A)) is amended to
read as follows:
``(A) Capital fund.--For allocations of assistance
from the Capital Fund, $70,000,000,000 for fiscal year
2025.''.
(d) Indian Housing Block Grant Program.--Section 108 of the Native
American Housing Assistance and Self-Determination Act of 1996 (25
U.S.C. 4117) is amended--
(1) by striking ``such sums as may be necessary for each of
fiscal years 2009 through 2013'' and inserting ``$2,500,000,000
for fiscal year 2025 and such sums as may be necessary for each
of fiscal years 2026 through 2034''; and
(2) by striking the second sentence.
(e) Native Hawaiian Housing Block Grant Program.--Section 824 of
the Native American Housing Assistance and Self-Determination Act of
1996 (25 U.S.C. 4243) is amended by striking ``such sums as may be
necessary for each of fiscal years 2001, 2002, 2003, 2004, and 2005''
and inserting ``$50,000,000 for fiscal year 2025 and such sums as may
be necessary for each of fiscal years 2026 through 2034''.
(f) Rural Housing Programs.--Out of funds in the Treasury not
otherwise appropriated, there is appropriated for fiscal year 2025--
(1) to provide direct loans under section 502 of the
Housing Act of 1949 (42 U.S.C. 1472), $420,000,000;
(2) to provide assistance under section 514 of such Act (42
U.S.C. 1484), $54,000,000;
(3) to provide assistance under section 515 of such Act (42
U.S.C. 1485), $420,000,000;
(4) to provide assistance under section 516 of such Act (42
U.S.C. 1486), $75,000,000;
(5) to provide grants under section 523 of such Act (42
U.S.C. 1490c), $75,000,000; and
(6) to provide funding to carry out the Multifamily
Preservation and Revitalization Demonstration Program of the
Rural Housing Service (as authorized under sections 514, 515,
and 516 of such Act (42 U.S.C. 1484, 1485, 1486)),
$240,000,000.
(g) Middle Class Housing Emergency Fund.--
(1) Definitions.--In this subsection--
(A) the term ``affordable rental housing unit''
means a unit for which monthly rent is not more than 30
percent of the monthly area median income; and
(B) the term ``State'' has the meaning given the
term in section 3(b)(7) of the United States Housing
Act of 1937 (42 U.S.C. 1437a(b)(7)).
(2) Establishment.--The Secretary of Housing and Urban
Development shall establish and manage a fund, to be known as
the ``Middle Class Housing Emergency Fund'', which shall be
funded with any amounts as may be appropriated, transferred, or
credited to the Fund under any provision law.
(3) Grants.--From amounts available in the fund established
under paragraph (2), the Secretary of Housing and Urban
Development shall award grants on a competitive basis to State
housing finance agencies located in a State in which--
(A) there is a shortage of affordable rental
housing units available to individuals with an income
that is at or below the area median income and median
rents have risen on average over the preceding 5 years
substantially faster than the area median income; or
(B) there is a shortage of housing units available
for sale that are affordable to individuals with an
income that is at or below the area median income and
median home prices have risen on average over the
preceding 5 years substantially faster than the area
median income.
(4) Use of funds.--Grants received under this subsection
shall be used to fund--
(A) the construction or acquisition, by nonprofit
organizations, State or local agencies, special-purpose
units of local government, resident councils organized
to acquire housing, and other qualified purchasers (as
defined by the Secretary of Housing and Urban
Development), of rental housing units or units for
purchase that are affordable to residents making less
than 120 percent of the area median income; and
(B) measures to prevent tenant displacement and
harassment, including--
(i) the provision of legal advice and
representation for tenants facing eviction;
(ii) enforcement of anti-harassment laws;
(iii) emergency rental assistance; and
(iv) other measures as specified by the
Secretary of Housing and Urban Development.
(5) Labor laws.--
(A) In general.--All laborers and mechanics
employed by contractors or subcontractors in the
performance of construction work financed in whole or
in part with a grant received under this subsection
shall be paid wages at rates not less than those
prevailing on similar construction in the locality as
determined by the Secretary of Labor in accordance with
subchapter IV of chapter 31 of title 40, United States
Code (commonly known as the ``Davis-Bacon Act'').
(B) Authority and functions.--With respect to the
labor standards specified in subparagraph (A), the
Secretary of Labor shall have the authority and
functions set forth in Reorganization Plan Numbered 14
of 1950 (64 Stat. 1267; 5 U.S.C. App.) and section 3145
of title 40, United States Code.
(6) Regulations.--The Secretary of Housing and Urban
Development shall promulgate regulations to carry out this
subsection that include--
(A) the metrics that the Secretary will use to
determine eligibility for a grant under this
subsection;
(B) a requirement that grantees and subgrantees
consult with impacted communities in policymaking and
planning for the construction or acquisition of housing
units as described in paragraph (4)(A); and
(C) a requirement that all housing units
constructed or acquired using grants awarded under the
subsection are affordable to residents making less than
120 percent of the area median income in perpetuity.
(7) Appropriations.--Out of funds in the Treasury not
otherwise appropriated, there is appropriated to the fund
established under this subsection $4,000,000,000 for fiscal
year 2025.
SEC. 103. CONDITIONS FOR THE SALE OF REAL ESTATE-OWNED PROPERTIES AND
NON-PERFORMING LOANS.
(a) Findings.--Congress finds that--
(1) the Federal Housing Administration, the Federal
National Mortgage Association, and the Federal Home Loan
Mortgage Corporation provide critical homeownership
opportunities that greatly benefit individuals, families, and
communities; and
(2) it is the purpose of this section to--
(A) preserve owner-occupied homes with mortgages
insured by the Federal Housing Administration or
purchased by the Federal National Mortgage Association
or the Federal Home Loan Mortgage Corporation for
continued use as owner-occupied homes; and
(B) direct that, upon the sale of those properties
or transfer of those mortgages, certain percentages of
those properties are sold to low- and moderate-income
homeowners.
(b) Loans Insured by the Federal Housing Administration.--Title II
of the National Housing Act (12 U.S.C. 1707 et seq.) is amended by
adding at the end the following:
``SEC. 259. SALE OF REAL ESTATE-OWNED PROPERTIES.
``(a) Definitions.--In this section--
``(1) the term `Claim Without Conveyance of Title program'
means the program of the Federal Housing Administration carried
out under section 203.368 of title 24, Code of Federal
Regulations, or any successor regulation; and
``(2) the term `community partner' has the meaning given
the term `nonprofit organization' in section 229 of the Low-
Income Housing Preservation and Resident Homeownership Act of
1990 (12 U.S.C. 4119).
``(b) Requirement.--Not later than 1 year after the date of
enactment of this section, the Secretary shall develop programs within
the Federal Housing Administration to ensure that not less than 75
percent of the single-family residential properties conveyed to the
Federal Housing Administration after foreclosure or conveyed to third
parties under the Claim Without Conveyance of Title program are sold--
``(1) directly to an owner-occupant; or
``(2) to community partners that will--
``(A) rehabilitate or develop the property; and
``(B) sell the property to an owner-occupant.
``(c) Guidelines.--Not later than 1 year after the date of
enactment of this section, the Secretary shall develop guidelines for
the Claim Without Conveyance of Title program that provide an exclusive
listing period during which only eligible governmental entities,
nonprofit organizations approved by the Department of Housing and Urban
Development, and owner-occupant buyers may submit bids.
``(d) Anti-Predatory Feature.--Unless the Secretary provides prior
approval, the Secretary shall prohibit any purchaser of a real estate-
owned property of the Federal Housing Administration from reselling the
property within 15 years of purchase using a land installment contract
or through any other mechanism that does not transfer title to the
buyer at the time of sale.
``SEC. 260. SALE OF NON-PERFORMING LOANS.
``(a) Definitions.--In this section--
``(1) the term `community partner' has the meaning given
the term in section 259; and
``(2) the term `covered mortgage'--
``(A) means any mortgage insured under this title
that is secured by a single-family residential
property; and
``(B) includes the promissory note secured by the
mortgage described in subparagraph (A).
``(b) Restriction on Sale or Transfer.--Except as provided in this
section, the Secretary may not sell or transfer any covered mortgage.
``(c) Conditions for Sale or Transfer.--
``(1) In general.--The Secretary--
``(A) may sell or transfer a covered mortgage only
if--
``(i) the capital level of the Fund is
substantially below the capital ratio required
under section 205(f)(2);
``(ii) the Secretary certifies that other
reasonable measures are not available to
restore the Fund to that capital ratio; and
``(iii) the Secretary complies with
paragraph (2)(C), if applicable; and
``(B) may sell or transfer only such covered
mortgages as are necessary to assist in restoration of
that capital ratio.
``(2) Requirements for the secretary.--
``(A) In general.--If the Secretary intends to sell
or transfer a covered mortgage, the Secretary shall
provide the current borrower and all owners of record
of the property securing the covered mortgage, or
require that the current borrower and owners of record
be provided, a separate written notice of the intent to
sell the covered mortgage that--
``(i) is mailed via certified and first
class mail not less than 90 days before the
date on which the loan is included in any
proposed sale; and
``(ii) includes--
``(I) a description of the loss
mitigation options of the Federal
Housing Administration that are
available to borrowers in financial
distress and the obligation of
servicers to consider borrowers in
default for those options;
``(II) a description of the actions
that the servicer of the loan has taken
to review and implement those options
for the borrower; and
``(III) a description of the
procedures the borrower may use to
contest with the Secretary the
compliance by the servicer with that
obligation.
``(B) Judicial review.--The determination of the
Secretary to authorize the sale of a mortgage insured
under this title shall be reviewable under chapter 7 of
title 5, United States Code, for abuse of discretion
and arbitrary and capricious agency action.
``(C) Auctions.--The Secretary may not sell any
covered mortgage through any type of non-performing
loan sale auction program until the Secretary issues
rules, through the notice and comment rulemaking
procedures under section 553 of title 5, United States
Code, that address essential aspects of any non-
performing loan sale program, including--
``(i) the method of selection of loans for
sale;
``(ii) notice to borrowers prior to
inclusion of the loan in a sale; and
``(iii) review of loss mitigation status
prior to the sale, selection of eligible
bidders, loss mitigation guidelines applicable
to loan purchasers, and reporting requirements
for purchasers.
``(3) Certification requirement for lenders and
servicers.--
``(A) Certification.--As a condition to payment of
an insurance claim under this title in connection with
any non-performing loan sale, the lender or servicer of
the loan shall provide the Secretary and the borrower
with written certification of the loss mitigation
review contained in the FHA Single Family Housing
Policy Handbook 4000.1, or any successor handbook,
which certification shall include a description of the
actions the lender or servicer has taken, prior to
transfer of the loan to the Secretary, to--
``(i) review the borrower for all available
loss mitigation options of the Federal Housing
Administration; and
``(ii) implement the options described in
clause (i) that are appropriate to the
borrower.
``(B) False statements.--
``(i) In general.--Any false statement
provided in a certification described in
subparagraph (A) shall be a basis for--
``(I) recovery by the Secretary of
any amounts paid under the insurance
claim and any other penalties and
sanctions authorized under Federal law;
and
``(II) a private right of action by
the borrower against the lender and
servicer, with remedies to include
compensatory and punitive damages and
an assessment of costs and attorney's
fees.
``(ii) Transfers.--Unless a bona fide
purchaser has acquired title to the property as
a primary residence--
``(I) a certification described in
subparagraph (A) that contains a false
statement shall be a basis for revoking
the transfer of the property; and
``(II) the pre-sale lender and
servicer of the property shall--
``(aa) resume servicing the
loan as a loan insured under
this title; and
``(bb) reimburse the
Secretary for any insurance
claim paid and all costs
related to the sale of the
property.
``(4) Requirements for purchasers.--
``(A) In general.--Each purchaser of a covered
mortgage shall offer the borrower on the covered
mortgage loss mitigation options that allow for payment
reduction at least as great as would be available to
the borrower if the loan had not been sold.
``(B) Loss mitigation options.--The specific
formula, calculations, waterfall steps, and other terms
for appropriate loss mitigation options described in
subparagraph (A) shall be published by the Secretary,
made available to the public, and included in a written
notice given to borrowers before any acceleration or
foreclosure is initiated after a loan sale.
``(5) Requirements for transferees.--With respect to a
transferee, including any subsequent transferee, of a covered
mortgage that is sold under this title--
``(A) the transferee shall certify in writing to
the Secretary that the transferee will comply with the
provisions of this section in the marketing and
transfer of any property received in the disposition of
any transferred loan;
``(B) the transferee shall provide to the Secretary
records documenting that the transfers of those
properties are in compliance with this section; and
``(C) the failure of the Secretary or the
transferee to comply with the requirements under this
section for a loan in default shall be a defense to
foreclosure, and a transferee may not execute a
foreclosure judgment or order of sale, or conduct a
foreclosure sale, until the transferee has complied
with all requirements under this section.
``(d) Limitations.--With respect to covered mortgages that are sold
under this title and acquired by the buyer through foreclosure sale,
not less than 90 percent of the properties that are the subject of the
covered mortgages shall be--
``(1) sold to owner-occupants;
``(2) operated or transferred to an entity that will
operate the property as affordable rental housing for
households below 80 percent of the area median income for a
period of not less than 15 years; or
``(3) transferred or donated to a nonprofit agency that is
certified by the Secretary and will redevelop the property for
owner occupancy or affordable rental housing.
``(e) Prioritization of Sales.--The Secretary shall implement
policies, procedures, and controls to--
``(1) identify and recruit community partners;
``(2) engage in consultations with community partners
before the sale of a pool of covered mortgages under this title
to determine whether that sale can be designed to meet the
specific needs of the communities served by the community
partners; and
``(3) prioritize the sale of pools of single-family
mortgages to community partners by--
``(A) designing pools of covered mortgages for
direct sale to a community partner, the price of which
shall be set by the Secretary based on a pricing model
that considers--
``(i) the current fair market value of the
properties; and
``(ii) the potential impact of foreclosures
on those properties to the value of other homes
that secure mortgages insured under this title
in the same census tract; or
``(B) in the case of an auction, if the winning bid
is not from a community partner, permitting any
community partner that bid during that same auction to
have a final opportunity to enter a higher bid on the
pool.''.
(c) Fannie Mae.--Section 302 of the Federal National Mortgage
Association Charter Act (12 U.S.C. 1717) is amended by adding at the
end the following:
``(d)(1) In this subsection, the term `covered mortgage'--
``(A) means any mortgage that is secured by a single-family
residential property; and
``(B) includes the promissory note secured by the mortgage
described in subparagraph (A).
``(2) The corporation may not sell or transfer any covered mortgage
under this section unless the requirements of this subsection are met.
``(3)(A) If the corporation intends to sell or transfer a covered
mortgage, the corporation shall provide the current borrower and all
owners of record of the property securing the covered mortgage, or
require that the current borrower and owners of record be provided, a
separate written notice of the intent to sell the covered mortgage
that--
``(i) is mailed via certified and first class mail not less
than 90 days before the date on which the loan is included in
any proposed sale; and
``(ii) includes--
``(I) a description of the loss mitigation options
of the corporation that are available to borrowers in
financial distress and the obligation of servicers to
consider borrowers in default for those options;
``(II) a description of the actions that the
servicer of the loan has taken to review and implement
those options for the borrower; and
``(III) a description of the procedures the
borrower may use to contest with the corporation the
compliance by the servicer with that obligation.
``(B) The Federal Housing Finance Agency, as receiver for the
corporation, may not authorize the corporation to sell any covered
mortgage through any type of non-performing loan sale auction program
until the Director of the Federal Housing Finance Agency issues rules,
through the notice and comment rule making procedures under section 553
of title 5, United States Code, that address essential aspects of any
non-performing loan sale program, including--
``(i) the method of selection of loans for sale;
``(ii) notice to borrowers prior to inclusion of the loan
in a sale; and
``(iii) review of loss mitigation status prior to the sale,
selection of eligible bidders, loss mitigation guidelines
applicable to loan purchasers, and reporting requirements for
purchasers.
``(4)(A) Each purchaser of a covered mortgage shall offer the
borrower on the covered mortgage loss mitigation options that allow for
payment reduction at least as great as would be available to the
borrower if the loan had not been sold.
``(B) The specific formula, calculations, waterfall steps, and
other terms for loss mitigation options described in subparagraph (A)
shall be published by the corporation, made available to the public,
and included in a written notice given to borrowers before any
acceleration or foreclosure is initiated after a loan sale.
``(5) With respect to a transferee, including any subsequent
transferee, of a covered mortgage that is sold by the corporation under
this section--
``(A) the transferee shall certify in writing to the
corporation that the transferee will comply with the provisions
of this subsection in the marketing and transfer of any
property received in the disposition of any transferred loan;
``(B) the transferee shall provide to the corporation
records documenting that the transfers of those properties are
in compliance with this subsection; and
``(C) the failure of the corporation or the transferee to
comply with the requirements under this subsection for a loan
in default shall be a defense to foreclosure, and a transferee
may not execute a foreclosure judgment or order of sale, or
conduct a foreclosure sale, until the transferee has complied
with all requirements under this subsection.
``(6) With respect to covered mortgages that are sold by the
corporation under this section and foreclosed upon by the buyer, not
less than 90 percent of the properties that are the subject of the
covered mortgages in an auction shall be--
``(A) sold to owner-occupants;
``(B) operated or transferred to an entity that will
operate the property as affordable rental housing for
households below 80 percent of the area median income for a
period of not less than 15 years; or
``(C) transferred or donated to a nonprofit agency that is
certified by the corporation and will redevelop the property
for owner occupancy or affordable rental housing.
``(7) The corporation shall implement policies, procedures, and
controls to--
``(A) identify and recruit community partners;
``(B) engage in consultations with community partners
before the sale of a pool of covered mortgages under this
section to determine whether that sale can be designed to meet
the specific needs of the communities served by the community
partners; and
``(C) prioritize the sale of pools of single-family
mortgages to community partners by--
``(i) designing pools of covered mortgages for
direct sale to a community partner, the price of which
shall be set by the corporation based on a pricing
model that considers--
``(I) the current fair market value of the
properties; and
``(II) the potential impact of foreclosures
on those properties to the value of other homes
in the same census tract; or
``(ii) in the case of an auction, if the winning
bid is not from a community partner, permitting any
community partner that bid during that same auction to
have a final opportunity to enter a higher bid on the
pool.''.
(d) Freddie Mac.--Section 305 of the Federal Home Loan Mortgage
Corporation Act (12 U.S.C. 1454) is amended by adding at the end the
following:
``(e)(1) In this subsection, the term `covered mortgage'--
``(A) means any mortgage that is secured by a single-family
residential property; and
``(B) includes the promissory note secured by the mortgage
described in subparagraph (A).
``(2) The Corporation may not sell or transfer any covered mortgage
under this section unless the requirements of this subsection are met.
``(3)(A) If the Corporation intends to sell or transfer a covered
mortgage, the Corporation shall provide the current borrower and all
owners of record of the property securing the covered mortgage, or
require that the current borrower and owners of record be provided, a
separate written notice of the intent to sell the covered mortgage
that--
``(i) is mailed via certified and first class mail not less
than 90 days before the date on which the loan is included in
any proposed sale; and
``(ii) includes--
``(I) a description of the loss mitigation options
of the Corporation that are available to borrowers in
financial distress and the obligation of servicers to
consider borrowers in default for those options;
``(II) a description of the actions that the
servicer of the loan has taken to review and implement
those options for the borrower; and
``(III) a description of the procedures the
borrower may use to contest with the Corporation the
compliance by the servicer with that obligation.
``(B) The Federal Housing Finance Agency, as receiver for the
Corporation, may not sell any covered mortgage through any type of non-
performing loan sale auction program until the Director of the Federal
Housing Finance Agency issues rules, through the notice and comment
rulemaking procedures under section 553 of title 5, United States Code,
that address essential aspects of any non-performing loan sale program,
including--
``(i) the method of selection of loans for sale;
``(ii) notice to borrowers prior to inclusion of the loan
in a sale; and
``(iii) review of loss mitigation status prior to the sale,
selection of eligible bidders, loss mitigation guidelines
applicable to loan purchasers, and reporting requirements for
purchasers.
``(4)(A) Each purchaser of a covered mortgage shall offer the
borrower on the covered mortgage loss mitigation options that allow for
payment reduction at least as great as would be available to the
borrower if the loan had not been sold.
``(B) The specific formula, calculations, waterfall steps, and
other terms for loss mitigation options described in subparagraph (A)
shall be published by the Corporation, made available to the public,
and included in a written notice given to borrowers before any
acceleration or foreclosure is initiated after a loan sale.
``(5) With respect to a transferee, including any subsequent
transferee, of a covered mortgage that is sold by the Corporation under
this section--
``(A) the transferee shall certify in writing to the
Corporation that the transferee will comply with the provisions
of this subsection in the marketing and transfer of any
property received in the disposition of any transferred loan;
``(B) the transferee shall provide to the Corporation
records documenting that the transfers of those properties are
in compliance with this subsection; and
``(C) the failure of the Corporation or the transferee to
comply with the requirements under this subsection for a loan
in default shall be a defense to foreclosure, and a transferee
may not execute a foreclosure judgment or order of sale, or
conduct a foreclosure sale, until the transferee has complied
with all requirements under this subsection.
``(6) With respect to covered mortgages that are sold by the
Corporation under this section and foreclosed upon by the buyer, not
less than 90 percent of the properties that are the subject of the
covered mortgages in an auction shall be--
``(A) sold to owner-occupants;
``(B) operated or transferred to an entity that will
operate the property as affordable rental housing for
households below 80 percent of the area median income for a
period of not less than 15 years; or
``(C) transferred or donated to a nonprofit agency that is
certified by the Corporation and will redevelop the property
for owner occupancy or affordable rental housing.
``(7) The Corporation shall implement policies, procedures, and
controls to--
``(A) identify and recruit community partners;
``(B) engage in consultations with community partners
before the sale of a pool of covered mortgages under this
section to determine whether that sale can be designed to meet
the specific needs of the communities served by the community
partners; and
``(C) prioritize the sale of pools of single-family
mortgages to community partners by--
``(i) designing pools of covered mortgages for
direct sale to a community partner, the price of which
shall be set by the Corporation based on a pricing
model that considers--
``(I) the current fair market value of the
properties; and
``(II) the potential impact of foreclosures
on those properties to the value of other homes
in the same census tract; or
``(ii) in the case of an auction, if the winning
bid is not from a community partner, permitting any
community partner that bid during that same auction to
have a final opportunity to enter a higher bid on the
pool.''.
(e) Sale of Re-Performing Loans.--The Federal Housing Enterprises
Financial Safety and Soundness Act of 1992 (12 U.S.C. 4501 et seq.) is
amended by inserting after section 1328 (12 U.S.C. 4548) the following:
``SEC. 1329. SALE OF RE-PERFORMING LOANS.
``(a) Bulk Auction or Group Sales.--An enterprise may not conduct
bulk auctions or other group sales of single family re-performing
residential loans unless the following requirements are met:
``(1) The enterprise establishes a system that provides
priority to Federal, State, local, or Tribal governments or
nonprofit organizations that have the capacity and experience
required for buying, servicing, and resolving single family
mortgage loans in a manner that promotes affordable housing,
fair housing, affordable homeownership, provision of housing
counseling, or neighborhood stabilization.
``(2) Clear, written notice is sent by the enterprise or
servicer through certified and first-class mail to the borrower
and all owners of record, with a copy sent to the enterprise if
sent by the servicer, not less than 90 days before the
inclusion of the loan in any proposed sale--
``(A) stating that the loan will be included in a
bulk auction or group sale of re-performing loans; and
``(B) describing the bulk auction or group sale
process, including--
``(i) the loss mitigation or other
protections available to the borrower and other
owners of record both before and after the
auction or sale; and
``(ii) the obligations of the servicer of
the loan before and after the auction or sale,
including loss mitigation requirements.
``(3) The enterprise requires in the terms of the bulk
auction or group sale that purchasers take loans subject to the
following requirements:
``(A) The purchaser is required to offer targeted
payment relief options to borrowers that become more
than 60 days delinquent on their mortgage after their
loan is sold that includes deferral of principal and
term extension options that reduce payments to an
affordable level.
``(B) The purchaser is required to offer a deferral
program to borrowers that become more than 60 days
delinquent on their mortgage after their loan is sold
that offers terms and protections at least as favorable
as those available under loss mitigation guidelines of
the enterprise, including the absence of fees, to
borrowers who can afford their pre-hardship mortgage
payment.
``(C) Failure by the purchaser to follow the
established loss mitigation guidelines shall serve as a
defense to a judicial foreclosure and a basis to enjoin
or otherwise stay a non-judicial foreclosure.
``(D) Data reporting as provided under subsection
(b)(1).
``(E) If a property becomes vacant, the purchaser
shall not release the lien until the property is sold
or donated.
``(F) Use of contract for deed, lease to own, or a
land installment contract to sell or otherwise transfer
any property that is secured by a purchased loan shall
be prohibited unless the tenant or purchaser is a
nonprofit organization.
``(b) Data and Reporting.--
``(1) Purchaser reporting.--During the 4-year period
following any auction or sale of single family re-performing
residential mortgage loans under subsection (a), the Director
shall require the enterprise to collect from each purchaser of
such loans, including any subsequent purchaser of a loan,
quarterly loan-level data regarding the treatment and outcome
of the loan, including--
``(A) loan characteristics, including loan type,
remaining loan term, loan to value ratio, number of
months in arrears, and loan status;
``(B) loss mitigation data, including whether loss
mitigation was provided by the purchaser, debt-to-
income ratio and percent payment reduction for any
modified loans, and performance of modified loans;
``(C) demographic data for each borrower and any
co-borrower, including race, national origin, sex, ZIP
Code, and census tract, and, if available, disability
status and veteran status; and
``(D) other purchaser actions, including charge
offs and resales of loans and dates for such actions.
``(2) Semiannual reports to congress.--The Director shall
submit to Congress, and make publicly available at no cost to
the public in a readily accessible format on the website of the
Agency, semi-annual reports on--
``(A) loans sold in an auction or sale under
subsection (a) by each enterprise, disaggregated by
pool, including--
``(i) the number of loans and types of
loans;
``(ii) mean and median delinquency and loan
to value ratios at the time of the sale;
``(iii) the number and percentage of loans
modified prior to auction or sale; and
``(iv) demographic and geographic data,
including property locations by census tract or
larger geographic location if necessary to
protect personally identifiable information;
``(B) the performance of loans after an auction or
sale under subsection (a), disaggregated by loan pool,
including the initial purchaser, current owner, current
servicer, data summarizing any alternatives to
foreclosure offered and enacted, and data summarizing
the data collected under subparagraph (A); and
``(C) the results of a fair lending analysis
conducted based on the data in subparagraphs (A) and
(B) to identify any discriminatory impacts or outcomes
associated with the auctions or sales.
``(c) Penalties for Noncompliance.--The enterprises may forcibly
retain loans or properties, without providing compensation, from
purchasers that do not meet the requirements under subsection (a)(3).
``(d) Regulations.--The Director shall issue regulations defining
the terms of permissible auctions or sales in accordance with the
requirements in this section.''.
TITLE II--TAKING THE FIRST STEPS TO REVERSE THE LEGACY OF HOUSING
DISCRIMINATION AND GOVERNMENT NEGLIGENCE
SEC. 201. DOWN PAYMENT ASSISTANCE PROGRAM FOR FIRST-TIME, FIRST-
GENERATION HOMEBUYERS.
(a) Definitions.--In this section:
(1) Eligible resident.--The term ``eligible resident''
means an individual who--
(A) is a first-time homebuyer;
(B) is a first-generation homebuyer; and
(C) has an income that is less than--
(i) 120 percent of the area median income;
or
(ii) in the case of a homebuyer acquiring a
property for use as a principal residence that
is located in a high-cost area, as determined
by the Secretary, 140 percent of the area
median income.
(2) First-generation homebuyer.--The term ``first-
generation homebuyer'' means a homebuyer who is, as self-
attested by the homebuyer, an individual--
(A) whose parents do not, or did not at the time of
their death, to the best of the individual's knowledge,
have any present ownership interest in a principal
residence in any State, excluding ownership of heir
property; and
(B) whose spouse or domestic partner has not,
during the 3-year period ending on the date of purchase
of a property using a grant under subsection (b), had
any present ownership interest in a principal residence
in any State, excluding ownership of heir property,
without regard to whether the spouse or domestic
partner is a co-borrower on a mortgage for the property
being purchased.
(3) First-time homebuyer.--The term ``first-time
homebuyer'' means a homebuyer who is, as self-attested by the
homebuyer, an individual (and if married or in a domestic
partnership, the spouse or domestic partner of the individual)
who, during the 3-year period ending on the date of purchase of
a property using a grant under subsection (b)--
(A) has had no present ownership in a principal
residence in any State, excluding ownership of heir
property; or
(B) surrendered any present ownership interest in a
principal residence in any State, excluding ownership
of heir property, as part of a divorce proceeding.
(4) Heir property.--The term ``heir property'' means
residential property for which title--
(A) passed by operation of law through intestacy;
and
(B) is held by 2 or more heirs as tenants in
common.
(5) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
(6) State.--The term ``State'' includes the District of
Columbia and any territory or possession of the United States.
(b) Establishment.--There is established in the Treasury of the
United States a fund that--
(1) shall be administered by the Secretary, acting through
the Office of Housing of the Department of Housing and Urban
Development; and
(2) shall be used--
(A) to provide grants to eligible residents to
purchase a property for use as a principal residence;
(B) for outreach to financial institutions in
targeted areas and eligible residents, including for
the administration of that outreach;
(C) for counseling or financial education
administered by counseling agencies approved by the
Secretary in order to ensure sustainable homeownership;
and
(D) to maintain any records required to implement
this section.
(c) Grant Amount.--An eligible resident may receive a grant under
subsection (b) in an amount equal to--
(1) not more than 3.5 percent of the appraised value of the
property to be purchased; or
(2) if the appraised value of the property to be purchased
exceeds the principal obligation amount limitation for
mortgages insured under title II of the National Housing Act
(12 U.S.C. 1707 et seq.), 3.5 percent of the maximum principal
obligation limitation for the property to be purchased.
(d) Relation to FHA Loan.--An eligible resident shall not be
required to obtain a mortgage that is insured under title II of the
National Housing Act (12 U.S.C. 1707 et seq.) as a condition of
receiving a grant under subsection (b).
(e) Layering of Assistance.--Receipt by an eligible recipient of
assistance for a down payment from a source other than the fund
established under subsection (b), including assistance from the Federal
Government, a State or local government, or any other public, private,
or nonprofit source, shall not affect the eligibility of the eligible
recipient for assistance under subsection (b).
(f) Regulations and Database.--Not later than 1 year after the date
of enactment of this Act, the Secretary shall--
(1) in consultation with interested parties, including
housing counseling agencies approved by the Secretary and
individuals or groups with expertise in fair housing,
promulgate regulations relating to the use of the fund
established under subsection (b);
(2) promulgate regulations relating to the disbursement of
funds under this section to ensure that an eligible resident is
able to receive funds before the closing date for the home of
the eligible resident, which may include creating a program
that allows a lender to be reimbursed by the fund established
under subsection (b) if the lender--
(A) provides an eligible resident with funds for
the closing; or
(B) allows an eligible resident to be preapproved
to receive assistance under this section when arranging
financing for the home of the eligible resident; and
(3) establish methods to verify that an individual is an
eligible resident.
(g) Appropriation.--Out of funds in the Treasury not otherwise
appropriated, there is appropriated to the fund established under
subsection (b) such sums as may be necessary for each of fiscal years
2025 through 2034 to carry out the activities under subsection (b)(2).
(h) Inclusion of Program in Home Buying Information Booklets.--
Section 5(b) of the Real Estate Settlement Procedures Act of 1974 (12
U.S.C. 2604(b)) is amended by inserting after paragraph (14) the
following:
``(15) Information relating to the down payment assistance
program established under section 201 of the American Housing
and Economic Mobility Act of 2025.''.
(i) Inclusion of Program as Mortgage Product.--Section 203(f)(1) of
the National Housing Act (12 U.S.C. 1709(f)(1)) is amended by inserting
``, including the down payment assistance program established under
section 201 of the American Housing and Economic Mobility Act of
2025,'' after ``mortgage products''.
(j) Reliance on Borrower Attestations.--No additional documentation
beyond the borrower's attestation shall be required to demonstrate
eligibility under paragraphs (2) and (3) of subsection (a), and no
creditor shall be subject to liability, including monetary penalties or
requirements to indemnify a Federal agency or repurchase a loan that
has been sold or securitized, for the provision of down payment
assistance under this section to a borrower who does not meet the
eligibility requirements under those paragraphs if the creditor does so
in good faith reliance on borrower attestations of eligibility required
by those paragraphs or any regulation promulgated to carry out those
paragraphs.
(k) Repayment of Assistance.--
(1) Requirement.--An eligible resident who receives a grant
under subsection (b) to purchase a property for use as a
principal residence and does not occupy the property as a
principal residence for 5 years or more shall repay to the
Secretary a proportional amount of the grant based on the
number of years, if any, for which the eligible resident has
occupied the property as a principal residence.
(2) Limitation.--Notwithstanding paragraph (1), an eligible
resident who receives a grant under subsection (b) to purchase
a property for use as a principal residence and does not occupy
the property as a principal residence for 5 years or more shall
not be liable to the Secretary for repayment under paragraph
(1) of this subsection if--
(A) the failure to occupy the property as a
principal residence is due at least in part to a
hardship; or
(B) the eligible resident sells the property before
the expiration of the 5-year period beginning on the
date of acquisition and the capital gains from the sale
to a bona fide purchaser in an arm's length transaction
are less than the amount the eligible resident would be
required to repay under paragraph (1).
SEC. 202. FORMULA GRANT PROGRAM FOR COMMUNITIES WITH AN APPRAISAL GAP.
(a) Definitions.--In this section--
(1) the term ``neighborhood with an appraisal gap'' means a
census tract in which the median sales price of a dwelling unit
is lower than the median cost to acquire and rehabilitate, or
build, a new dwelling unit;
(2) the term ``Secretary'' means the Secretary of Housing
and Urban Development; and
(3) the term ``State'' has the meaning given the term in
section 3(b)(7) of the United States Housing Act of 1937 (42
U.S.C. 1437a(b)(7)).
(b) Establishment.--The Secretary shall establish a formula grant
program to provide funding to States to support neighborhoods with an
appraisal gap, including borrowers with negative equity in their
primary residence in those neighborhoods, through--
(1) measures that provide funds to borrowers to--
(A) pay down arrears on an otherwise affordable
loan;
(B) pay down arrears or principal on a loan in
order to qualify for a loan modification that will
allow the borrower to keep the home;
(C) pay off, or pay down part of, a second mortgage
or home equity line of credit;
(D) pay off a small-dollar mortgage;
(E) pay delinquent taxes and tax liens;
(F) pay off delinquent water or sewer bills and
liens; and
(G) pay for home repairs or maintenance or for
modifications to bring the home into compliance with
any applicable codes; and
(2) programs to purchase or rehabilitate vacant or
distressed properties to enhance neighborhood property values.
(c) Formula.--The Secretary shall distribute amounts under this
section to States based on--
(1) the number of borrowers with a primary residence with
negative equity in each State; and
(2) the share of neighborhoods with an appraisal gap in
each State.
(d) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $5,000,000,000 for fiscal year
2025.
SEC. 203. STRENGTHENING THE COMMUNITY REINVESTMENT ACT OF 1977.
(a) Short Title.--This section may be cited as the ``Community
Reinvestment Reform Act of 2025''.
(b) Amendments to the Community Reinvestment Act of 1977.--The
Community Reinvestment Act of 1977 (12 U.S.C. 2901 et seq.) is
amended--
(1) by striking sections 802 and 803 (12 U.S.C. 2901, 2902)
and inserting the following:
``SEC. 802. FINDINGS AND PURPOSE.
``(a) Findings.--Congress finds that--
``(1) regulated financial institutions are required by law
to demonstrate that they serve the convenience and needs of the
communities in which they are chartered or do business, in
particular low- and moderate-income communities;
``(2) the convenience and needs of communities include the
need for credit services, deposit services, transaction
services, other financial services, and community development
loans and investments; and
``(3) regulated financial institutions have a continuing
and affirmative obligation to meet the credit or other
financial needs of all the local communities in which they are
chartered or do business, including communities in which--
``(A) the institutions make loans and do not accept
deposits; or
``(B) the institutions accept deposits but do not
make loans.
``(b) Purpose.--It is the purpose of this title to require each
appropriate Federal financial supervisory agency to use its authority
when examining regulated financial institutions to ensure that those
institutions meet the credit and other financial needs of the local
communities in which they are chartered or do business consistent with
the safe and sound operation of those institutions.
``SEC. 803. DEFINITIONS.
``In this title:
``(1) Application for a deposit facility.--The term
`application for a deposit facility' means an application to
the appropriate Federal financial supervisory agency otherwise
required under Federal law or regulations thereunder for--
``(A) a charter for a national bank or Federal
savings and loan association;
``(B) deposit insurance in connection with a newly
chartered State bank, savings bank, savings and loan
association, or similar institution;
``(C) the establishment of a domestic branch or
other facility with the ability to accept deposits of a
regulated financial institution;
``(D) the relocation of the home office or a branch
office of a regulated financial institution;
``(E) the merger or consolidation with, the
acquisition of the assets of, or the assumption of the
liabilities of a regulated financial institution
requiring approval under section 18(c) of the Federal
Deposit Insurance Act (12 U.S.C. 1828(c)); or
``(F) the acquisition of shares in, or the assets
of, a regulated financial institution requiring
approval under section 3 of the Bank Holding Company
Act of 1956 (12 U.S.C. 1842).
``(2) Appropriate federal banking agency.--The term
`appropriate Federal banking agency' has the meaning given the
term in section 3 of the Federal Deposit Insurance Act (12
U.S.C. 1813).
``(3) Appropriate federal financial supervisory agency.--
The term `appropriate Federal financial supervisory agency'
means--
``(A) the appropriate Federal banking agency with
respect to depository institutions and depository
institution holding companies; and
``(B) the Bureau of Consumer Financial Protection
with respect to any covered person supervised by the
Bureau pursuant to section 1024 of the Dodd-Frank Wall
Street Reform and Consumer Protection Act (12 U.S.C.
5514).
``(4) Assessment area.--The term `assessment area' means,
with respect to a regulated financial institution, each
community, including a State, metropolitan area, or urban or
rural county, in which the institution--
``(A) maintains deposit-taking branches, automated
teller machines, or retail offices;
``(B) is represented by an agent; or
``(C) issues a significant number of loans or other
products relative to the total number of loans or other
products made by the institution or relative to the
total number of loans or other products offered by the
private sector market.
``(5) Climate resiliency and disaster mitigation.--The term
`climate resiliency and disaster mitigation' means activities
that--
``(A) assist individuals and communities to prepare
for, adapt to, and withstand climate-related risks,
natural disasters, or weather-related disasters;
``(B) benefit or serve residents of low- to
moderate-income census tracts or climate vulnerable
communities and do not directly result in forced or
involuntary relocation of those residents; and
``(C) are done in conjunction with--
``(i) a plan, program or initiative of a
Federal, State, local or Tribal government; or
``(ii) a mission-driven nonprofit
organization that is focused on benefiting or
serving targeted census tracts or climate
vulnerable communities.
``(6) Climate vulnerable communities.--The term `climate
vulnerable communities' means communities experiencing
heightened risk and increased sensitivity to climate change
with less capacity and fewer resources to cope with, adapt to,
or recover from climate impacts, as determined by the
appropriate Federal financial supervisory agencies.
``(7) Community benefits plan.--The term `community
benefits plan' means a plan that provides measurable goals for
future amounts of safe and sound loans, investments, services,
and other financial products for low- and moderate-income
communities and other distressed or underserved communities.
``(8) Community development.--The term `community
development' includes--
``(A) affordable housing for low- or moderate-
income individuals and avoidance of patterns of lending
resulting in the loss of affordable housing units and
housing for low- and moderate-income individuals in
high-opportunity areas;
``(B) community development services, including
counseling and successful mortgage or loan
modifications of delinquent loans;
``(C) activities that promote integration;
``(D) activities that promote economic development
by financing small businesses or farms that meet the
size eligibility requirements of the development
company or small business investment company programs
under section 121.301 of title 13, Code of Federal
Regulations, or any successor regulation, with an
emphasis on small businesses that have gross annual
revenues of not more than $1,000,000;
``(E) activities that revitalize or stabilize--
``(i) low- or moderate-income geographies;
``(ii) designated disaster areas;
``(iii) distressed or underserved
nonmetropolitan middle-income geographies
designated by the Federal Financial
Institutions Examination Council, based on--
``(I) rates of poverty,
unemployment, and population loss; or
``(II) population size, density,
and dispersion, if those activities
help to meet essential community needs,
including the needs of low- and
moderate-income individuals; or
``(iv) other distressed or underserved
communities;
``(F) activities that promote physical,
environmental, and sensory accessibility in housing
stock that is integrated into the community; and
``(G) other activities that promote the objectives
of this title, as determined by the appropriate Federal
financial supervisory agencies.
``(9) Depository institution; depository institution
holding company; insured depository institution.--The terms
`depository institution', `depository institution holding
company', and `insured depository institution' have the
meanings given those terms in section 3 of the Federal Deposit
Insurance Act (12 U.S.C. 1813).
``(10) Entire community.--The term `entire community'
means--
``(A) all of the assessment areas of a regulated
financial institution; and
``(B) areas outside of assessment areas described
in subparagraph (A) in which a regulated financial
institution has made loans or received deposits.
``(11) Enumerated consumer laws.--The term `enumerated
consumer laws' has the meaning given the term in section 1002
of the Consumer Financial Protection Act of 2010 (12 U.S.C.
5481).
``(12) Fossil fuel.--The term `fossil fuel' means coal,
petroleum, methane gas (often referred to as `natural gas'), or
any derivative of coal, petroleum, or methane gas that is used
for fuel directly or indirectly, such as for generating
electricity.
``(13) Fossil fuel company.--The term `fossil fuel company'
means any company that--
``(A) is among the 200 companies with the largest
fossil fuel reserves in the world;
``(B) is among the 30 largest public company owners
in the world of coal-fired power plants;
``(C) has as its core business--
``(i) the construction or operation of
fossil fuel infrastructure; or
``(ii) the exploration, extraction,
refining, processing or distribution of fossil
fuels; or
``(D) receives more than 50 percent of its gross
revenue from companies that meet the definition under
subparagraph (A), (B), or (C).
``(14) Fossil fuel expansion.--The term `fossil fuel
expansion' means financing for new fossil fuel infrastructure
projects, including financing of exploration activities, that
would--
``(A) increase greenhouse gas emissions; and
``(B) increase the difficulty of achieving Federal,
State, or local carbon emission reduction goals.
``(15) Fossil fuel infrastructure.--The term `fossil fuel
infrastructure' means oil or gas wells, oil or gas pipelines
and refineries, oil, coal or gas-fired power plants, oil and
gas storage tanks, fossil fuel export terminals, and any other
infrastructure used exclusively for fossil fuels, including
facilities with carbon capture, utilization, and storage.
``(16) Geography.--The term `geography' means a census
tract delineated by the Bureau of the Census in the most recent
decennial census.
``(17) Intermediate bank.--The term `intermediate bank' is
a depository institution with assets of not less than
$402,000,000 and less than $1,609,000,000, as adjusted annually
for purposes of an examination under section 804.
``(18) Large bank.--The term `large bank' is a depository
institution with assets of not less than $1,609,000,000, as
adjusted annually for purposes of an examination under section
804.
``(19) Other distressed or underserved community.--The term
`other distressed or underserved community' means an area or
census tract that, according to a periodic review and data
analysis by the appropriate Federal financial supervisory
agencies on an interagency basis through the Federal Financial
Institutions Examination Council of certain metrics, such as
loans per households or small business, is experiencing
economic hardship or is underserved by financial institutions.
``(20) Other underserved population.-- The term `other
underserved population' means a population that is experiencing
ongoing effects of discrimination or is relatively underserved
by financial institutions, as measured by loans per households
or other similar metrics.
``(21) Regulated financial institution.--The term
`regulated financial institution' means--
``(A) an insured depository institution;
``(B) a depository institution holding company; and
``(C) a U.S. nonbank mortgage originator.
``(22) Retail lending assessment area.--The term `retail
lending assessment area' means a geographical area in which a
regulated financial institution--
``(A) makes a threshold number of loans, as
determined by the appropriated Federal supervisory
agencies;
``(B) does not have branches, deposit-taking
automated teller machines, or offices; and
``(C) is not represented by agents.
``(23) Small bank.--The term `small bank' is a depository
institution with assets of less than $402,000,000, as adjusted
annually to take into account inflation for purposes of
determining which institutions are subject to an examination
under section 804.
``(24) U.S. nonbank mortgage originator.--The term `U.S.
nonbank mortgage originator' means a covered person subject to
section 1024 of the Dodd-Frank Wall Street Reform and Consumer
Protection Act (12 U.S.C. 5514) that offers or provides--
``(A) origination of loans secured by real estate
for use by consumers primarily for personal, family, or
household purposes; or
``(B) loan modification or foreclosure relief
services in connection with a loan described in
subparagraph (A).'';
(2) in section 804 (12 U.S.C. 2903)--
(A) by redesignating subsections (c) and (d) as
subsections (f) and (g), respectively;
(B) by striking subsections (a) and (b) and
inserting the following:
``(a) Depository Institutions and Bank Holding Companies.--
``(1) In general.--In connection with its examination of a
regulated financial institution other than a U.S. nonbank
mortgage originator, the appropriate Federal financial
supervisory agency shall perform the following:
``(A) Assess the record of the institution in
meeting the credit and other financial needs of its
entire community, in particular low- and moderate-
income people and communities, and other distressed or
underserved communities, and other underserved
populations consistent with the safe and sound
operation of the institution.
``(B) Assess the effectiveness of the following
activities in meeting the credit and other financial
needs of the assessment areas of the institution,
consistent with the safe and sound operation of the
institution:
``(i) Retail lending, including home, small
business, consumer, automobile, and other
lending and financial products, that responds
to credit needs or other financial needs.
``(ii) Community development lending and
investments, which may include a consideration
of--
``(I) the origination of loans and
other efforts by the institution to
assist existing low- and moderate-
income residents to remain in
affordable housing in their community;
and
``(II) the origination of loans by
the institution that result in the
construction, rehabilitation, or
preservation of affordable housing
units.
``(iii) Community development finance tests
or similar tests developed by the appropriate
Federal banking agencies shall include separate
quantitative measures for community development
investments. The evaluation of investments
shall positively or negatively affect test
scores depending on bank performance, in
community development finance tests or similar
tests.
``(iv) Retail financial services and
community development services.
``(v) Evaluation of the responsiveness,
affordability, and sustainability of retail
financial services including credit and deposit
products shall positively or negatively affect
tests scores, depending on bank performance, in
the retail products and service test or similar
tests.
``(vi) Retail lending assessment areas
shall be established for large banks and
intermediate banks if not more than 90 percent
of the retail loans of the bank are in
assessment areas containing their branches and
deposit-taking automated teller machines. Large
banks and intermediate bank evaluations shall
also examine lending outside of retail lending
assessment areas and assessment areas
containing branches and deposit-taking
automated teller machines. Evaluations of these
loans shall be considered when assigning an
institution level rating to the bank.
``(C) With respect to its evaluation of an
application for a deposit facility by the institution--
``(i) consider the record described in
subparagraph (A), the effectiveness of the
activities described in subparagraph (B), the
overall rating of the institution under this
section, and any improvement plans submitted
pursuant to this section;
``(ii) provide an opportunity for public
comment for a period of not less than 60 days;
``(iii) consider changes in the community
reinvestment performance of the institution
since the most recent rating under this section
by the appropriate Federal financial
supervisory agency; and
``(iv) require--
``(I) a demonstration of public
benefit, including a community benefits
plan with measurable goals regarding
increasing responsible lending and
other financial products that is
commensurate with the ability of the
institution to accomplish those goals;
``(II) that the institution consult
with community-based organizations and
other community stakeholders in
developing the community benefits plan;
and
``(III) a public hearing for any
institution that has a received a
`need-to-improve' or `low satisfactory'
grade in any individual assessment area
during the most recent examination.
``(2) Consideration of lending in partnership with non-
depository lenders.--
``(A) In general.--As part of assessing a financial
institution under paragraph (1), the appropriate
Federal financial supervisory agency shall evaluate the
performance of the financial institution in originating
loans for small farms, consumer loans (including
residential mortgages, unsecured installment loans,
advances, and lines of credit), and loans for small
businesses (including unsecured installment loans,
advances, and lines of credit) in partnership with 1 or
more non-depository lenders.
``(B) Affordability and sustainability.--In making
the evaluation described in subparagraph (A), the
appropriate Federal financial supervisory agency shall
consider the affordability and sustainability of the
loan originations made in partnership with 1 or more
non-depository lenders.
``(C) Definitions.--In this paragraph:
``(i) Non-depository lender.--The term
`non-depository lender' means a lender that is
not an insured depository institution.
``(ii) Small business; small farm.--The
terms `small business' and `small farm' have
the meanings given those terms under the
regulations promulgated by the Bureau
implementing the amendments made by section
1071 of the Dodd Frank Wall Street Reform and
Consumer Protection Act of 2010 (Public Law
111-203; 124 Stat. 2056) under part 1002 of
title 12, Code of Federal Regulations, or any
successor regulation.
``(3) Deductions for fossil expansion.--
``(A) In general.--As part of assessing a financial
institution under paragraph (1), the appropriate
Federal financial supervisory agency shall--
``(i) determine the total dollar amount of
loans and investments to fossil fuel companies
for the purposes of fossil fuel expansion that
were originated or held by the financial
institution during the period covered by an
examination under section 804; and
``(ii) deduct not more than that total
dollar amount from the reported community
development loans and investments of the
financial institution, both in the aggregate
and at the local market, or assessment area,
level.
``(B) Activities.--The deduction described in
subparagraph (A)(ii) may only be offset by financing by
the institution of climate resiliency and disaster
mitigation activities specifically targeted to
underserved communities, such as--
``(i) the development of climate resilient
affordable housing, schools, and small
businesses (as defined in paragraph (2)(C));
``(ii) clean electricity projects and
microgrids;
``(iii) nature-based protective
infrastructure;
``(iv) building decarbonization, which
includes holistic home weatherization and
health interventions;
``(v) lending to green small businesses and
companies with legitimate public
decarbonization transition plans, strategies,
and targets;
``(vi) electric public transit and electric
vehicle charging infrastructure;
``(vii) investments in weatherization and
climate resilience for local businesses;
``(viii) operational and technical support
and capacity building for environmental and
climate justice organizations, including
support for community groups active in
environmental testing and training of community
members to identify climate or environmental
risks and opportunities in their communities;
and
``(ix) workforce development related to the
transition away from fossil fuels, including
activities to train workers on skills needed to
participate in carbon-pollution-free energy
sectors.
``(4) Penalties for sustained failing performance.--A
regulated financial institution other than a U.S. nonbank
mortgage originator that receives overall performance ratings
under this section of `needs to improve' or `substantial
noncompliance' for 2 consecutive examinations shall be subject
to the following penalties, as deemed applicable by the
appropriate Federal financial supervisory agency:
``(A) Restrictions on the institution's growth
(overall or in discrete areas), business activities, or
payment of dividends, including restrictions on ability
to sell loans originated by the institution to
enterprises, as defined in section 1303 of the Federal
Housing Enterprises Financial Safety and Soundness Act
of 1992 (12 U.S.C. 4502).
``(B) Recommendations to appropriate State agencies
that State mortgage licenses be suspended or revoked
with a statement of facts covering the justification
for the recommended suspension or revocation.
``(C) Requiring the institution to simplify or
reduce its operations, including that the institution
reduce its asset size, divest subsidiaries or business
lines, or exit from 1 or more markets of operation.
``(D) Recovery, or claw back, of portions of
executive compensation received during consecutive
evaluation periods under this section of which the
institution received an overall performance rating of
`needs to improve' or `substantial noncompliance'.
``(b) U.S. Nonbank Mortgage Originator.--
``(1) In general.--In connection with its examination of a
U.S. nonbank mortgage originator, the appropriate Federal
financial supervisory agency shall perform the following:
``(A) Assess the record of the U.S. nonbank
mortgage originator in meeting the credit or other
financial needs of its entire community, in particular
low-income and moderate-income people and communities
and other distressed or underserved communities and
other underserved populations, consistent with the safe
and sound operation of the U.S. nonbank mortgage
originator.
``(B) Assess, as appropriate, the following
activities in the assessment areas of the U.S. nonbank
mortgage originator:
``(i) Retail lending, including home loans.
``(ii) Community development services.
``(iii) Community development lending and
investments, which may include a consideration
of--
``(I) the origination of loans and
other efforts by the institution to
assist existing low- and moderate-
income residents to remain in
affordable housing in their community;
``(II) the origination of loans by
the institution that result in the
construction, rehabilitation or
preservation of affordable housing
units; and
``(III) investments in, grants to,
or loans to community development
financial institutions (as defined in
section 103 of the Community
Development Banking and Financial
Institutions Act of 1994 (12 U.S.C.
4702)), community development
corporations (as defined in section 613
of the Community Economic Development
Act of 1981 (42 U.S.C. 9802)), and
other nonprofit organizations serving
the housing and development needs of
the community.
``(iv) Retail lending assessment areas
shall be established if not more than 90
percent of the retail loans of the U.S. nonbank
originator are in containing offices or agents.
The evaluations shall also examine lending
outside of retail lending assessment areas and
assessment areas containing offices or agents.
Evaluations of these loans shall be considered
when assigning an institution level rating to
the U.S. nonbank mortgage originator.
``(C) With respect to its evaluation of an
application for a deposit facility by the U.S. nonbank
mortgage originator--
``(i) consider the record described in
subparagraph (A), the activities described in
subparagraph (B), the overall rating of the
U.S. nonbank mortgage originator under this
section, and any improvement plans submitted
pursuant to this section;
``(ii) provide an opportunity for public
comment for a period of not less than 60 days;
``(iii) consider changes in the community
reinvestment performance of the U.S. nonbank
mortgage originator since the most recent
rating under this section by the appropriate
Federal financial supervisory agency; and
``(iv) require--
``(I) a demonstration that granting
the application for a deposit facility
is in the public interest, which shall
include a submission of a community
benefits plan, which shall be
commensurate with the ability of the
institution to accomplish the plan, by
the U.S. nonbank mortgage originator to
the appropriate Federal financial
supervisory agency;
``(II) that the U.S. nonbank
mortgage originator consult with
community-based organizations and other
community stakeholders in developing
the community benefits plan; and
``(III) a public hearing for any
U.S. nonbank mortgage originator that
has a received a `need-to-improve' or
`low satisfactory' grade in any
individual assessment area during the
most recent examination.
``(2) Penalties and fees.--The appropriate Federal
financial supervisory agency shall have the same authority to
assess penalties and fees under subsection (a)(4) for the U.S.
nonbank mortgage originator as is the case for regulated
financial institutions described in subsection (a).
``(3) Authority to adjust examination and supervisory
fees.--The appropriate Federal financial supervisory agencies
shall have the authority to adjust the dollar amount of
examination and supervisory fees, based in part on the rating
of institutions under this section.
``(c) Requirements.--
``(1) In general.--In connection with its examination of a
regulated financial institution under subsection (a) or (b),
the appropriate Federal financial supervisory agency shall--
``(A) consider public comments received by the
appropriate Federal financial supervisory agency
regarding the record of the institution in meeting the
credit or other financial needs of its entire
community, including low- and moderate-income
communities, and hold not less than 1 public hearing to
receive comments for large banks with assets of not
less than $50,000,000,000; and
``(B) require--
``(i) an improvement plan for an
institution that receives a rating of `low
satisfactory' or lower on the written
evaluation of the institution, or such a rating
in any individual assessment area; and
``(ii) the improvement plan described in
clause (i) to result in the reasonable
likelihood that the institution will obtain a
rating of at least `high satisfactory' in
meeting community credit or other financial
needs in the relevant measure on the next
examination.
``(2) Improvement plan.--
``(A) In general.--A regulated financial
institution that is required to submit an improvement
plan required under paragraph (1)(B) shall submit the
plan in writing to the appropriate Federal financial
supervisory agency not later than 90 days after
receiving notice that the regulated financial
institution is required to submit the plan.
``(B) Public comment.--Upon receipt of an
improvement plan of a regulated financial institution
required under paragraph (1)(B), the appropriate
Federal financial supervisory agency shall--
``(i) make the plan available to the public
for review and comment for a period of not less
than 60 days; and
``(ii) require the regulated financial
institution to revise, as appropriate, the
improvement plan in response to the public
comments received under the public review and
comment period described in clause (i) and
submit the plan to the appropriate Federal
financial supervisory agency not later than 60
days after the end of that period.
``(3) Examination of certain regulated financial
institutions.--In the case of a regulated financial institution
whose lending or other business is not clustered in
geographical areas and is thinly dispersed across the country,
the institution shall--
``(A) be evaluated under subsection (a) or (b), as
applicable--
``(i) by considering the effectiveness of
the institution in serving customers or
borrowers, with a special emphasis on low- and
moderate-income individuals and other
underserved populations across the country
regardless of where the individuals reside; and
``(ii) based on objective thresholds
developed by the appropriate Federal financial
supervisory agencies to clarify when lending or
other business is dispersed across the country
and not clustered in distinct geographical
areas, which may include low levels of lending
or other financial products across States or
other areas; and
``(B) meet the needs of other distressed or
underserved communities.
``(d) Consideration.--Remediation of consumers pursuant to an order
by a court or administrative body or a settlement with a government
agency or a private party may not be considered in an assessment
conducted under subsection (a) or (b).
``(e) Rule of Construction.--An evaluation of a bank holding
company under this section shall incorporate evaluations of subsidiary
regulated financial institutions made by the appropriate Federal
financial supervisory agency of each subsidiary, if applicable.'';
(C) in subsection (f), as so redesignated--
(i) by striking paragraph (2);
(ii) by redesignating paragraph (3) as
paragraph (2); and
(iii) in paragraph (2), as so redesignated,
by striking subparagraph (C); and
(D) in subsection (g), as so redesignated, by
striking ``subsection (a)'' and inserting ``subsections
(a) and (b)'';
(3) in section 807 (12 U.S.C. 2906)--
(A) in subsection (a)--
(i) by striking ``an insured depository
institution'' and inserting ``a regulated
financial institution''; and
(ii) by inserting ``or financial'' after
``credit'';
(B) in subsection (b)--
(i) in paragraph (1)--
(I) in subparagraph (A)--
(aa) in clause (ii), by
striking ``and'' at the end;
(bb) by redesignating
clause (iii) as clause (iv);
and
(cc) by inserting after
clause (ii) the following:
``(iii) disclose whether the institution engaged in
acts or practices that the Bureau of Consumer Financial
Protection has determined, and has publicly disclosed,
violate the enumerated consumer laws; and''; and
(II) by striking subparagraph (B)
and inserting the following:
``(B) Evaluation on an assessment area basis.--The
information required under subsections (a) and (b) of section
804 shall be presented separately for each assessment area.
``(C) Treatment with respect to violations of enumerated
consumer laws.--If a regulated financial institution has
engaged in acts or practices that the appropriate Federal
financial supervisory agency has determined to be unfair,
deceptive, or abusive or acts or practices that violate
enumerated consumer laws intended to ensure the fair,
equitable, and nondiscriminatory access to credit for
individuals and communities that are enforced by the Bureau of
Consumer Financial Protection or other Federal or State
agencies, the written evaluation shall be negatively influenced
in a manner commensurate with the extent of the harm suffered
by those individuals and communities.'';
(ii) in paragraph (2)--
(I) by striking subparagraphs (A),
(B), (C), and (D) and inserting the
following:
``(A) `Outstanding record of meeting community
credit or other financial needs'.
``(B) `High Satisfactory record of meeting
community credit or other financial needs'.
``(C) `Low Satisfactory record of meeting community
credit or other financial needs'.
``(D) `Needs to improve record of meeting community
credit or other financial needs'.
``(E) `Substantial noncompliance in meeting
community credit or other financial needs'.''; and
(iii) by inserting after the flush text
following paragraph (2) the following:
``(3) Additional authority.--The appropriate Federal
financial supervisory agencies may--
``(A) alter the ratings under this subsection to
change or include additional ratings for the overall
ratings and subtest ratings; and
``(B) develop an accompanying point system that
includes ranges for each rating category under
paragraph (2).'';
(C) by redesignating subsection (e) as subsection
(f); and
(D) by inserting after subsection (d) the
following:
``(e) Appeals of Rating.--If a regulated financial institution
appeals the assigned rating under this section, the appropriate Federal
financial supervisory agency shall--
``(1) post a public notice of the appeal on the part of the
website of the appropriate Federal financial supervisory agency
that contains information on this title; and
``(2) provide an opportunity for public comment on the
appeal.'';
(4) in section 806 (12 U.S.C. 2905)--
(A) by striking ``Regulations'' and inserting the
following:
``(a) In General.--Regulations'';
(B) in subsection (a), as so designated, by
striking ``companies,,'' and inserting ``companies,'';
and
(C) by adding at the end the following:
``(b) Periodic Review.--Not later than 5 years after the date of
enactment of this subsection and every 5 years thereafter, the
appropriate Federal financial supervisory agencies shall--
``(1) review the regulations promulgated to carry out this
title; and
``(2) report to Congress any recommendations for updates to
the regulations and this title, which may include consideration
of--
``(A) data collection under this title;
``(B) the rigor of evaluations under this title;
``(C) the assessment area coverage of loans and
deposits; and
``(D) the extent to which the provisions of this
title are reducing disparities in access to credit and
capital by income and race.''; and
(5) by adding at the end the following:
``SEC. 810. DATA COLLECTION AND REPORTING REQUIREMENTS.
``(a) Data Collection.--
``(1) Consumer loans.--
``(A) In general.--Each regulated financial
institution shall collect and maintain in machine
readable form, as prescribed by the appropriate Federal
financial supervisory agency, data for consumer loans
originated or purchased by the regulated financial
institution, including motor vehicle loans, credit
cards, lines of credit, and other secured or unsecured
loans. The regulated financial institution shall
maintain data separately for each category of consumer
loan, including the following for each loan:
``(i) A unique number or alpha-numeric
symbol that can be used to identify the
relevant loan.
``(ii) The loan amount at origination or
purchase.
``(iii) The loan location.
``(iv) The gross annual income of the
borrower that the regulated financial
institution considered in making its credit
decision.
``(B) Exemptions.--The appropriate Federal
financial supervisory agencies may exempt classes of
regulated financial institutions from the requirements
under subparagraph (A) due to low levels of consumer
lending or other factors.
``(2) Community development loans and investments.--
``(A) Collection and maintenance of data.--Each
regulated financial institution shall collect and
maintain in machine readable form, as prescribed by the
appropriate Federal financial supervisory agency, data
on the categories of community development lending and
investments, including data regarding financing
affordable housing, small business development, and
economic development.
``(B) Public dissemination.--Each regulated
financial institution and the appropriate Federal
financial supervisory agencies shall--
``(i) publicly disseminate the data
described in subparagraph (A) on a county level
and for categories of census tracts including
low- and moderate-income census tracts or other
distressed and underserved census tracts; and
``(ii) consider disseminating the data
described in subparagraph (A) by individual
census tracts in addition to the categories
described in clause (i).
``(3) Assessment area data.--
``(A) In general.--Each regulated financial
institution shall collect and report to the appropriate
Federal financial supervisory agency by March 1 of each
year a list for each assessment area showing the
geographies within the area.
``(B) Publication.--The appropriate Federal
financial supervisory agencies shall make the list of
assessment areas reported by each regulated financial
institution under subparagraph (A) publicly available
on the part of the website of the appropriate Federal
financial supervisory agency that contains information
on this title.
``(4) Deposits.--The appropriate Federal financial
supervisory agencies shall--
``(A) collect data from regulated financial
institutions that reflects--
``(i) the number of customers of those
institutions that reside in categories of
census tracts including low- and moderate-
income census tracts or other distressed and
underserved census tracts and the dollar amount
of deposits of those customers; and
``(ii) the number of small businesses that
are located in the census tract categories
described in clause (i); and
``(B) consider the dissemination of the deposit
data collected under subparagraph (A) by individual
census tracts in addition to the categories described
in that subparagraph.
``(b) Aggregate Disclosure Statements.--
``(1) In general.--Each appropriate Federal financial
supervisory agency shall prepare annually, for each assessment
area, a disclosure statement of home, small business, small
farm, and consumer lending for each regulated financial
institution subject to reporting under this section and an
aggregated statement for all reporting institutions combined,
which shall indicate, for each assessment area, the number and
amount of all small business, small farm, and consumer loans
originated or purchased sorted by income level of borrowers,
race and ethnicity of borrowers, revenue size of small
businesses and farms, and categories of census tracts.
``(2) Deposits and community development loans and
investments.--An appropriate Federal financial supervisory
agency shall include data on deposits and community development
loans and investments in the disclosure statements prepared
under paragraph (1).
``(3) Adjusted form.--An appropriate Federal financial
supervisory agency may adjust the form of the disclosure
statement prepared under paragraph (1) if necessary, because of
special circumstances, to protect the privacy of a borrower or
the competitive position of a regulated financial institution.
``(c) Central Data Depositories.--The Federal Financial
Institutions Examination Council, in consultation with the appropriate
Federal financial supervisory agencies, shall implement a system--
``(1) to allow the public to access online and in a
searchable format the data maintained under paragraphs (1)
through (4) of subsection (a); and
``(2) that ensures that personally identifiable financial
information is not disclosed to public.
``(d) Limitation.--An appropriate Federal financial supervisory
agency may not use the authorities of the appropriate Federal financial
supervisory agency under this section to obtain a record from a
regulated financial institution for the purpose of gathering or
analyzing the personally identifiable financial information of a
consumer.
``SEC. 811. COMMUNITY ADVISORY COMMITTEES.
``(a) Depository Institutions.--Each regulated financial
institution that is not a U.S. nonbank mortgage originator shall form a
separate Community Advisory Committee (which shall be composed of a
diverse set of consumer, housing, community development, and other
stakeholder groups) in each of the following:
``(1) With respect to a depository institution with
consolidated assets equal to or greater than $2,000,000,000 the
branches of which are located in 1 census region, each
metropolitan statistical area where the financial institution
or any subsidiaries of the financial institution have a branch
or other facility (including an automated teller machine) and
each metropolitan statistical area where the financial
institution has a substantial number of customers who maintain
deposit accounts with the financial institution.
``(2) With respect to a depository institution with
consolidated assets equal to or greater than $2,000,000,000 the
branches of which are located in more than 1 census region,
each census division within each of the regions.
``(3) With respect to a depository institution with
consolidated assets of less than $2,000,000,000, each State
where the financial institution or any subsidiaries of the
financial institution are located.
``(b) U.S. Nonbank Mortgage Originators.--Each U.S. nonbank
mortgage originator shall form a separate Community Advisory Committee
(which shall be composed of a diverse set of consumer, housing,
community development, and other stakeholder groups) in each of the
following:
``(1) With respect to a U.S. nonbank mortgage originator
that is required to make a number of disclosures under the Home
Mortgage Disclosure Act of 1975 (12 U.S.C. 2801 et seq.) that
is less than the national median, each State in which the U.S.
nonbank mortgage originator offers loans.
``(2) With respect to a U.S. nonbank mortgage originator
that is required to make a number of disclosures under the Home
Mortgage Disclosure Act of 1975 (12 U.S.C. 2801 et seq.) that
is more than the national median, each census division within
the census regions in which the U.S. nonbank mortgage
originator offers loans.
``(c) Biannual Consultation.--The executives of each regulated
financial institution shall meet not less frequently than twice per
year with the Community Advisory Committees of the regulated financial
institution formed under subsection (a) or (b), as applicable--
``(1) to discuss the financial institution's current work
to meet the credit and deposit needs of low- and moderate-
income individuals and underserved communities, persons with
disabilities, LGBTQ+ communities, and Chinese, Asian Indian,
Filipino, Japanese, Korean, Vietnamese, Pakistani, Cambodian,
Hmong, Laotian, Thai, Taiwanese, Burmese, Bangladeshi,
Nepalese, Indonesian, Malaysian, Hispanic or Latino, Black or
African American, American Indian and Alaska Native, Native
Hawaiian, Samoan, Chamorro, Tongan, iTaukei, Marshallese, and
Other Pacific Islander communities, as applicable to the
geographic areas of the financial institution;
``(2) with respect to an institution described in
subsection (a)(2) or a U.S. nonbank mortgage originator
described in subsection (b)(2), to assist the executives in
developing and updating a plan for how the institution will
work to meet the credit needs of the institution's entire
community, including low- and moderate-income neighborhoods;
and
``(3) to discuss the institution's data (which shall be
disaggregated by Chinese, Asian Indian, Filipino, Japanese,
Korean, Vietnamese, Pakistani, Cambodian, Hmong, Laotian, Thai,
Taiwanese, Burmese, Bangladeshi, Nepalese, Indonesian,
Malaysian, Hispanic or Latino, Black or African American,
American Indian and Alaska Native, and Native Hawaiian, Samoan,
Chamorro, Tongan, iTaukei, Marshallese and Other Pacific
Islander communities, as applicable to the institution's
geographic areas) on--
``(A) mortgage lending and lending to small
businesses and small farms, as defined in section
804(a)(2)(C);
``(B) retail products and services;
``(C) community development services; and
``(D) community development financing.
``(d) Specific Consultations.--In addition to the consultations
required under paragraph (2), the executives of a depository
institution described in subsection (a)(2) shall meet with the
Community Advisory Committee of the institution before--
``(1) the institution applies for a merger or acquisition;
``(2) the institution, or any subsidiary of the
institution, applies for deposit insurance;
``(3) the institution applies to open a new branch or to
relocate an existing branch; or
``(4) the institution provides notice that it would close a
branch or other facility.
``SEC. 812. STUDY ON DISCRIMINATION AND DISPARITIES IN ACCESS TO
CREDIT.
``(a) Study.--Not later than the end of the 2-year period beginning
on the date of enactment of this section, and every 2 years thereafter,
the appropriate Federal financial supervisory agencies shall, jointly,
and in consultation with such other Federal or State agencies as the
appropriate Federal financial supervisory agencies determine
appropriate, complete an interagency statistical study to identify--
``(1) metropolitan areas and rural counties that either
experience ongoing discrimination or exhibit significant racial
disparities in access to credit for any racial or ethnic group;
and
``(2) significant disparities in access to branches by
racial or ethnic composition of census tract and disparities in
access to community development financing by racial or ethnic
composition of census tract.
``(b) Use of Data.--In carrying out each study required under
subsection (a), the appropriate Federal financial supervisory agencies
shall make use of data including--
``(1) data obtained under the Home Mortgage Disclosure Act
of 1975 (12 U.S.C. 2801 et seq.);
``(2) data obtained under section 704B of the Equal Credit
Opportunity Act (15 U.S.C. 1691c-2);
``(3) data obtained under this Act;
``(4) available State data; and
``(5) information contained in public litigation against
regulated financial institutions for redlining or lending
discrimination (including litigation initiated by the Bureau of
Consumer Financial Protection, the Department of Housing and
Urban Affairs, the Department of Justice, or by private
parties).
``(c) Report.--Upon the completion of each study required under
subsection (a), the appropriate Federal financial supervisory agencies
shall jointly submit to the Committee on Banking, Housing, and Urban
Affairs of the Senate and the Committee on Financial Services of the
House of Representatives a report that includes--
``(1) all findings and determinations made in carrying out
the study; and
``(2) policy recommendations to remedy the discrimination
and disparities identified in the study.
``SEC. 813. PUBLIC REGISTRIES.
``The appropriate Federal supervisory financial agencies, acting
through the Federal Financial Institutions Examination Council, shall--
``(1) maintain a list of community-based organizations and
other stakeholders who wish to be listed and who have commented
on examinations conducted under section 804 and applications
regarding community needs and bank performance; and
``(2) conduct outreach to community groups and strive for
geographical diversity, gender and racial diversity, and
diversity in terms of various types of needs, including
affordable housing and economic development to community
facilities.''.
(c) Amendment to the Bank Holding Company Act of 1956.--Section
4(k)(6) of the Bank Holding Company Act of 1956 (12 U.S.C. 1843(k)(6))
is amended to read as follows:
``(6) Notice and opportunity for comment required.--
``(A) In general.--No financial holding company
shall directly or indirectly acquire, and no company
that becomes a financial holding company shall directly
or indirectly acquire control of, any company in the
United States, including through merger, consolidation,
or other type of business combination, that is engaged
in activities permitted under this subsection or
subsection (n) or (o), unless--
``(i) the holding company has provided
notice to the Board, not later than 60 days
prior to the proposed acquisition or prior to
becoming a financial holding company, and
during that time period, or such longer time
period not exceeding an additional 60 days, as
established by the Board;
``(ii) the Board has provided public notice
and opportunity for comment for not less than
60 days; and
``(iii) the Board has not issued a notice
disapproving the proposed acquisition or
retention.
``(B) Factors for consideration.--In reviewing any
prior notice filed under this paragraph, the Board
shall--
``(i) consider the overall rating of the
financial holding company under the Community
Reinvestment Act of 1977 (12 U.S.C. 2901 et
seq.) and any improvement plans submitted
pursuant to that Act;
``(ii) provide opportunity for public
comment for a period of not less than 60 days;
``(iii) consider changes in the community
reinvestment performance of the financial
holding company since the last rating under the
Community Reinvestment Act of 1977 (12 U.S.C.
2901 et seq.) by the appropriate Federal
financial supervisory agency; and
``(iv) require--
``(I) a demonstration that granting
the application for a deposit facility
is in the public interest, which shall
include submission to the appropriate
Federal financial supervisory agency of
a community benefits plan commensurate
with the ability of the institution to
carry out that plan;
``(II) that the institution consult
with community-based organizations and
other community stakeholders in
developing the community benefits plan;
and
``(III) a public hearing for any
bank that has received a `need-to-
improve' or `low satisfactory' grade in
any assessment area during the last
examination under the Community
Reinvestment Act of 1977 (12 U.S.C.
2901 et seq.).''.
(d) Technical and Conforming Amendment.--Section 10(c)(2)(H)(i) of
the Home Owners' Loan Act (12 U.S.C. 1467a(c)(2)(H)(i)) is amended by
striking ``section 804(c) of the Community Reinvestment Act of 1977 (12
U.S.C. 2903(c))'' and inserting ``section 804(f) of the Community
Reinvestment Act of 1977 (12 U.S.C. 2903(f))''.
SEC. 204. AMENDMENTS RELATING TO CREDIT UNION SERVICE TO UNDERSERVED
AREAS.
(a) In General.--The Federal Credit Union Act (12 U.S.C. 1751 et
seq.) is amended--
(1) in section 101 (12 U.S.C. 1752)--
(A) in paragraph (8), by striking ``and'' at the
end;
(B) in paragraph (9), by striking the period at the
end and inserting ``; and''; and
(C) by adding at the end the following:
``(10) the term `underserved area'--
``(A) means a local community, neighborhood, or
rural district that--
``(i) is an investment area, as defined in
section 103 of the Community Development
Banking and Financial Institutions Act of 1994
(12 U.S.C. 4702), that meets such additional
requirements that the Board may impose; and
``(ii) is underserved, based on data of the
Board and the Federal banking agencies (as
defined in section 3 of the Federal Deposit
Insurance Act (12 U.S.C. 1813)), by other
depository institutions (as defined in section
19(b)(1)(A) of the Federal Reserve Act (12
U.S.C. 461(b)(1)(A)); and
``(B) notwithstanding subparagraph (A), includes,
with respect to any Federal credit union, any
geographic area within which the credit union--
``(i) has received approval to provide
service as an underserved area before the date
of enactment of this paragraph from the
Administration; and
``(ii) has established a service facility
before that date of enactment.'';
(2) in section 106 (12 U.S.C. 1756)--
(A) in the first sentence, by striking ``Federal''
and inserting ``(a) Federal''; and
(B) by adding at the end the following:
``(b) The Board shall monitor adherence by a Federal credit union
to a significant unmet needs plan submitted under section 109(h) by
that Federal credit union that describes how the Federal credit union
will serve the deposit and other financial needs of the community.'';
and
(3) in section 109 (12 U.S.C. 1759)--
(A) in subsection (c), by amending paragraph (2) to
read as follows:
``(2) Exception for underserved areas.--
``(A) In general.--Notwithstanding subsection (b),
the Board may approve an application by a Federal
credit union to allow the membership of the credit
union to include any person or organization whose
principal residence or place of business is located
within a local community, neighborhood, or rural
district if--
``(i) the Board determines--
``(I) at any time after August 7,
1998, that the local community,
neighborhood, or rural district taken
into account for purposes of this
paragraph is an underserved area; and
``(II) at the time of the approval,
that the credit union is well
capitalized or adequately capitalized
(as defined in section 216(c)(1)); and
``(ii) before the end of the 24-month
period beginning on the date of the approval,
the credit union has established and maintains
an ongoing method to provide services in the
local community, neighborhood, or rural
district.
``(B) Termination of approval.--
``(i) In general.--Any failure of a Federal
credit union to meet the requirement of clause
(ii) of subparagraph (A) by the end of the 24-
month period referred to in that clause shall
constitute a termination, as a matter of law,
of any approval of an application under this
paragraph by the Board with respect to the
membership of the credit union.
``(ii) Significant unmet needs plan.--The
Board may terminate the approval of an
application under this paragraph with respect
to the membership of a Federal credit union
upon a finding that the credit union is not
meeting the terms of the significant unmet
needs plan of the credit union submitted under
subsection (h)(1).
``(C) Credit union reporting requirement.--Any
Federal credit union that has an application approved
under this paragraph shall, as part of the ordinary
course of the examination cycle and supervision
process, submit a report to the Administration that
includes--
``(i) the number of members of the credit
union who are members by reason of the
application;
``(ii) the number of offices or facilities
maintained by the credit union in the local
community, neighborhood, or rural district
taken into account by the Board in approving
the application; and
``(iii) evidence, as specified by the Board
by regulation, demonstrating compliance by the
credit union with the significant unmet needs
plan submitted by the credit union under
subsection (h)(1), as specified by the
Administration.
``(D) Publication by administration.--The
Administration shall publish an annual report
containing--
``(i) a list of all the applications
approved under this paragraph before the date
on which the report is published;
``(ii) the number and locations of the
underserved areas taken into account in
approving those applications;
``(iii) the total number of members of
credit unions who are members by reason of the
approval of those applications; and
``(iv) evidence demonstrating compliance by
credit unions with significant unmet needs
plans submitted by the credit unions under
subsection (h)(1), as specified by the
Administration.'';
(B) in subsection (e)(2), by inserting ``subsection
(c)(2) and'' after ``provided in''; and
(C) by adding at the end the following:
``(h) Additional Requirements for Community Credit Unions.--
``(1) In general.--A Federal credit union desiring a field
of membership as a credit union described in subsection (b)(3)
shall submit to the Board a business plan, which shall include,
among other issues, a marketing plan that identifies--
``(A) the unique needs of the various demographic
groups in the proposed community; and
``(B) how the credit union will market to each
group, particularly underserved groups, to address
those needs.
``(2) Public comment and hearing.--With respect to a
Federal credit union desiring a field of membership as a credit
union described in subsection (b)(3) for an area with multiple
political jurisdictions with a population of not less than
2,500,000, the Administration shall--
``(A) publish a notice in the Federal Register
seeking comment from interested parties about the
proposed community; and
``(B) conduct a public hearing regarding the
application of the Federal credit union.''.
(b) Regulations.--Not later than 1 year after the date of enactment
of this Act, the National Credit Union Administration Board shall issue
final regulations to implement the amendments made by subsection (a).
SEC. 205. RAISING PUBLIC WELFARE CAPS.
(a) National Banks.--The paragraph designated as the ``Eleventh.''
of section 5136 of the Revised Statutes of the United States (12 U.S.C.
24) is amended to read as follows: ``Eleventh. To make investments
directly or indirectly, each of which promotes the public welfare by
benefitting primarily low- and moderate-income communities or families
(such as by providing housing, services, or jobs). An association shall
not make any such investment if the investment would expose the
association to unlimited liability. The Comptroller of the Currency
shall limit an association's investments in any 1 project and an
association's aggregate investments under this paragraph. Aggregate
investments for associations that do not meet the criteria of being
well capitalized, as defined in section 24.2(e) of title 12, Code of
Federal Regulations, or any successor regulation, under this paragraph
shall not exceed an amount equal to the sum of 5 percent of the
association's capital stock actually paid in and unimpaired and 5
percent of the association's unimpaired surplus fund, unless the
Comptroller determines by order that the higher amount will pose no
significant risk to the affected deposit insurance fund, and the
association is adequately capitalized. In no case shall aggregate
investments of an association that do not meet the criteria for being
well capitalized under this paragraph exceed an amount equal to the sum
of 15 percent of the association's capital stock actually paid in and
unimpaired and 15 percent of the association's unimpaired surplus fund.
Aggregate investments of well capitalized associations, as defined in
section 24.2(e) of title 12, Code of Federal Regulations, or any
successor regulation, under this paragraph shall not exceed an amount
equal to the sum of 15 percent of the association's capital stock
actually paid in and unimpaired and 15 percent of the association's
unimpaired surplus fund, unless the Comptroller determines by order
that the higher amount will pose no significant risk to the affected
deposit insurance fund. With respect to any association that meets the
criteria for being well capitalized, as defined in section 24.2(e) of
title 12, Code of Federal Regulations, or any successor regulation,
aggregate investments under this paragraph shall not exceed an amount
equal to the sum of 25 percent of the association's capital stock
actually paid in and unimpaired and 25 percent of the association's
unimpaired surplus fund. The foregoing standards and limitations apply
to investments under this paragraph made by a national bank directly
and by its subsidiaries.''.
(b) Conforming Amendments for State Member Banks.--The 23rd
undesignated paragraph of section 9 of the Federal Reserve Act (12
U.S.C. 338a) is amended to read as follows:
``A State member bank may make investments directly or
indirectly, each of which promotes the public welfare by
benefitting primarily low- and moderate-income communities or
families (such as by providing housing, services, or jobs), to
the extent permissible under State law. A State member bank
shall not make any such investment if the investment would
expose the State member bank to unlimited liability. Aggregate
investments for State member banks that do not meet the
criteria of being well capitalized, as defined in section
208.43(b) of title 12, Code of Federal Regulations, or any
successor regulation, under this paragraph shall not exceed an
amount equal to the sum of 5 percent of the association's
capital stock actually paid in and unimpaired and 5 percent of
the association's unimpaired surplus fund, unless the Board
determines by order that the higher amount will pose no
significant risk to the affected deposit insurance fund, and
the association is adequately capitalized. In no case shall
aggregate investments of a State member bank that does not meet
the criteria for being well capitalized under this paragraph
exceed an amount equal to the sum of 15 percent of the
association's capital stock actually paid in and unimpaired and
15 percent of the association's unimpaired surplus fund.
Aggregate investments of well capitalized State member banks,
as defined in section 208.43(b) of title 12, Code of Federal
Regulations, or any successor regulation, with an examination
rating under section 804 of the Community Reinvestment Act of
1977 (12 U.S.C. 2903) of `outstanding' or `satisfactory', under
this paragraph shall not exceed an amount equal to the sum of
15 percent of the State member bank's capital stock actually
paid in and unimpaired and 15 percent of the state member
Bank's unimpaired surplus fund, unless the Board determines by
order that the higher amount will pose no significant risk to
the affected deposit insurance fund. With respect to any State
member bank that meets meet the criteria for being well
capitalized as defined in section 208.43(b) of title 12, Code
of Federal Regulations, or any successor regulation, with an
examination rating under section 804 of the Community
Reinvestment Act of 1977 (12 U.S.C. 2903) of `outstanding' or
`satisfactory', aggregate investments under this paragraph
shall not exceed an amount equal to the sum of 25 percent of
the State member bank's capital stock actually paid in and
unimpaired and 25 percent of the State member bank's unimpaired
surplus fund. The foregoing standards and limitations apply to
investments under this paragraph made by a State member bank
directly and by its subsidiaries.''.
SEC. 206. TEMPORARY ELIGIBILITY OF CERTAIN DIRECT DESCENDANTS OF
CERTAIN VETERANS FOR HOUSING LOANS GUARANTEED BY THE
SECRETARY OF VETERANS AFFAIRS.
(a) In General.--During the period described in subsection (b)--
(1) section 3701(b) of title 38, United States Code, shall
be applied and administered by adding at the end the following
new paragraph:
``(8)(A) The term `veteran' also includes, for purposes of
home loans, any direct descendant of a veteran described in
subparagraph (B) if the descendant--
``(i) is living on the date of the enactment of the
American Housing and Economic Mobility Act of 2025;
``(ii) is a first-time homebuyer; and
``(iii) is a first-generation homebuyer.
``(B) A veteran described in this clause is a veteran who--
``(i) served on active duty at any time during the
period between June 22, 1944, and April 11, 1968;
``(ii) is deceased; and
``(iii) did not receive a housing loan benefit
under this chapter during his or her lifetime.
``(C) In this paragraph:
``(i) The term `direct descendant' includes a
legally adopted descendant.
``(ii) The terms `first-generation homebuyer' and
`first-time homebuyer' have the meanings given those
terms in section 201(a) of the American Housing and
Economic Mobility Act of 2025.''; and
(2) section 3702(a)(2) of such title shall be applied and
administered by adding at the end the following new
subparagraph:
``(H) Each direct descendant described in section
3701(b)(8) of this title.''.
(b) Period Described.--The period described in this subsection is
the period beginning one year after the date of the enactment of this
Act and ending ten years after the date on which the Secretary of
Veterans Affairs prescribes the regulations required by subsection (c).
(c) Regulations.--
(1) In general.--Not later than 180 days after the date of
the enactment of this Act, the Secretary of Veterans Affairs
shall prescribe regulations to carry out this section.
(2) Elements.--The regulations required by paragraph (1)
shall provide rules and procedures for determining--
(A) the eligibility of a direct descendant for
housing loan benefits under this section when the
records of the Veterans Benefits Administration are
incomplete or otherwise inadequate to verify
eligibility; and
(B) appropriate implementation of this section if
more than one direct descendant of a veteran seeks
housing loan benefits under this section.
TITLE III--REMOVING BARRIERS THAT ISOLATE COMMUNITIES
SEC. 301. EXPANDING RIGHTS UNDER THE FAIR HOUSING ACT.
(a) Purposes.--The purposes of the amendments made by this section
are--
(1) to expand, as well as clarify, confirm, and create
greater consistency in, the protections against discrimination
on the basis of all covered characteristics; and
(2) to provide guidance and notice to individuals,
organizations, corporations, and agencies regarding their
obligations under Federal law.
(b) Amendments to the Fair Housing Act.--The Fair Housing Act (42
U.S.C. 3601 et seq.) is amended--
(1) in section 802 (42 U.S.C. 3602), by adding at the end
the following:
``(p) `Gender identity' means the gender-related identity,
appearance, or mannerisms or other gender-related characteristics of an
individual, regardless of the individual's designated sex at birth.
``(q) `Marital status' has the meaning given the term in section
202.2 of title 12, Code of Federal Regulations, or any successor
regulation.
``(r) `Sexual orientation' means homosexuality, heterosexuality, or
bisexuality.
``(s) `Source of income' includes income for which there is a
reasonable expectation that the income will continue from--
``(1) a profession, occupation, or job;
``(2) any government or private assistance, grant, loan, or
rental assistance program, including vouchers issued under the
United States Housing Act of 1937 (42 U.S.C. 1437 et seq.);
``(3) a gift, an inheritance, a pension, an annuity,
alimony, child support, or other consideration or benefit; or
``(4) the sale or pledge of property or an interest in
property.
``(t) `Veteran status' means--
``(1) a member of the uniformed services, as defined in
section 101 of title 10, United States Code; or
``(2) a veteran, as defined in section 101 of title 38,
United States Code.'';
(2) in section 804 (42 U.S.C. 3604)--
(A) by inserting ``actual or perceived'' before
``race, color'' each place that term appears;
(B) by striking ``sex,'' each place that term
appears and inserting ``sex (including sexual
orientation and gender identity), marital status,
source of income, veteran status,''; and
(C) in subsection (c)--
(i) by inserting ``(1)'' before ``To
make''; and
(ii) by adding at the end the following:
``(2) Nothing in this title shall be construed to--
``(A) prohibit a lender from implementing a loan program
for veterans or based upon veteran status; or
``(B) prohibit an entity from providing housing assistance
under--
``(i) section 8(o)(19) of the United States Housing
Act of 1937 (42 U.S.C. 1437f(o)(19));
``(ii) the Homeless Providers Grant and Per Diem
program of the Department of Veterans Affairs; or
``(iii) any other Federal housing assistance
program for veterans or based on veteran status.'';
(3) in section 805 (42 U.S.C. 3605)--
(A) by inserting ``actual or perceived'' before
``race, color'' each place that term appears; and
(B) by striking ``sex,'' each place that term
appears and inserting ``sex (including sexual
orientation and gender identity), marital status,
source of income, veteran status,'';
(4) in section 806 (42 U.S.C. 3606)--
(A) by inserting ``actual or perceived'' before
``race, color''; and
(B) by striking ``sex,'' each place that term
appears and inserting ``sex (including sexual
orientation and gender identity), marital status,
source of income, veteran status,''; and
(5) in section 808(e)(6) (42 U.S.C. 3608(e)(6)), by
striking ``sex,'' and inserting ``sex (including sexual
orientation and gender identity), marital status, source of
income, veteran status,''.
(c) Prevention of Intimidation.--Section 901 of the Civil Rights
Act of 1968 (42 U.S.C. 3631) is amended--
(1) by inserting ``actual or perceived'' before ``race,
color'' each place that term appears; and
(2) by striking ``sex,'' each place that term appears and
inserting ``sex (including sexual orientation (as such term is
defined in section 802 of this Act) and gender identity (as
defined in section 802 of this Act)), marital status (as
defined in section 802), source of income (as defined in
section 802), veteran status (as defined in section 802),''.
(d) Rule of Construction.--Nothing in the amendments made by this
section shall be construed to mean that a particular class of
individuals was not protected against discrimination under Federal law
as in effect on the day before the date of enactment of this Act.
SEC. 302. IMPROVING OUTCOMES IN HOUSING ASSISTANCE PROGRAMS.
(a) Indian Housing Assistance.--Section 502 of the Native American
Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 4181)
is amended by adding at the end the following:
``(c) Applicability.--Subsections (a) and (b) shall not apply with
respect to tenant-based assistance provided under section 8(o) of the
United States Housing Act of 1937 (42 U.S.C. 1437f(o)).''.
(b) Supplemental Administrative Fee.--Section 8(q)(2)(B) of the
United States Housing Act of 1937 (42 U.S.C. 1437f(q)(2)(B)) is amended
by inserting ``, including the cost of assisting families with children
or families with a member with a disability that move to lower poverty,
higher opportunity neighborhoods (as determined by the Secretary based
on objective, evidence-based criteria)'' after ``programs''.
(c) Regional Planning To Increase Access to Higher Opportunity
Areas.--Section 8(o) of the United States Housing Act of 1937 (42
U.S.C. 1437f(o)) is amended by adding at the end the following:
``(23) Increasing access to higher opportunity areas.--
``(A) Location analysis.--
``(i) In general.--A public housing agency
that administers the program under this
subsection in a metropolitan area shall--
``(I) analyze the locations where
the participants in the program of the
public housing agency live; and
``(II) based on the analysis
described in subclause (I), establish
policies and practices to reduce
disparities and barriers to access to
locations throughout the metropolitan
area that evidence indicates are more
likely to improve outcomes for children
or adults.
``(ii) Considerations.--The location
analysis required under this subparagraph
shall--
``(I) consider separately the
locations of families with children,
households that include a person with
disabilities, and other groups
protected under the Fair Housing Act
(42 U.S.C. 3601 et seq.); and
``(II) include an analysis of the
locations in relation to dwelling units
with rents that are potentially
affordable to voucher holders and the
likely impact of key neighborhood
attributes on their well-being and
long-term success, based on Federal and
available local data.
``(iii) Mapping tools.--The Secretary
shall--
``(I) provide mapping tools and
other information necessary for a
public housing agency to perform the
location analysis under this
subparagraph using the demographic data
on participating families submitted to
the Secretary under part 908 of title
24, Code of Federal Regulations, or any
successor regulation;
``(II) publish a notice in the
Federal Register, subject to public
comment, that specifies the data
sources and definitions that will be
incorporated in each mapping tool
required under subclause (I); and
``(III) update the notice required
under subclause (II) as needed based on
changes in the availability of relevant
data or evidence of neighborhood
attributes likely to impact the well-
being and long-term success of
participants in the program under this
subsection.
``(iv) Frequency and availability.--The
location analysis required under this
subparagraph shall--
``(I) be performed by each public
housing agency described in clause (i)
not less frequently than once every 5
years;
``(II) be performed by all public
housing agencies in a metropolitan area
in the same year, as determined by the
Secretary; and
``(III) be made available to the
public in a manner that protects the
privacy of program participants.
``(B) Regional policies to increase access to
higher opportunity neighborhoods.--Each public housing
agency described in subparagraph (A)(i) shall--
``(i) consult with other such public
housing agencies in the same metropolitan area,
or smaller regional area approved by the
Secretary, about the possible barriers and
other reasons for the disparities identified in
the location analysis required under
subparagraph (A);
``(ii) identify policies or practices that
those public housing agencies could adopt
individually or in collaboration, or other
strategies that recipients of grants or other
funding from the Secretary could adopt, to
reduce the barriers and disparities and
increase the share of families with children
and other demographic groups using vouchers in
higher-opportunity neighborhoods in the
metropolitan area or region; and
``(iii) include in the administrative plan
required under section 982.54 of title 24, Code
of Federal Regulations, or any successor
regulation, the policies that the public
housing agency has adopted under this
paragraph.
``(C) Assessment.--The Secretary shall include
public housing agency performance in achieving the goal
described in subparagraph (A)(i)(II) in the periodic
assessment of agency performance in managing the
program under this subsection required under part 985
of title 24, Code of Federal Regulations, or any
successor regulation.''.
(d) Required Regulatory Changes to Public Housing Agency
Consortia.--
(1) Definitions.--In this subsection:
(A) Moving to work demonstration program.--The term
``Moving to Work demonstration program'' means the
program established under section 204 of the
Departments of Veterans Affairs and Housing and Urban
Development, and Independent Agencies Appropriations
Act, 1996 (Public Law 104-134; 110 Stat. 1321-281).
(B) Public housing agency.--The term ``public
housing agency'' has the meaning given the term in
section 3(b)(6) of the United States Housing Act of
1937 (42 U.S.C. 1437a(b)(6)).
(2) Requirement.--Not later than 1 year after the date of
enactment of this Act, the Secretary of Housing and Urban
Development shall establish policies and procedures that--
(A) enable public housing agencies that elect to
operate in consortia under section 13(a) of the United
States Housing Act of 1937 (42 U.S.C. 1437k(a)),
excluding public housing agencies participating in the
Moving to Work demonstration program--
(i) to consolidate their funding contracts
for assistance provided under section 8(o) of
such Act (42 U.S.C. 1437f(o)) into a single
contract;
(ii) to consolidate their funding contracts
for assistance provided under subsections (d)
and (e) of section 9 of such Act (42 U.S.C.
1437g); or
(iii) to exercise the consolidation options
under each of clauses (i) and (ii); and
(B) enable public housing agencies to form partial
consortia under such section 13(a) (42 U.S.C. 1437k(a))
that consolidate the administration of certain aspects
of their housing programs to increase access to higher-
opportunity areas or for other purposes, subject to
such requirements as the Secretary may establish.
(3) Moving to work agencies.--Any flexibility or waiver
applicable to the Moving to Work demonstration program shall
not apply to any activities or funds administered through a
partial consortium formed under paragraph (2)(B) by 1 or more
public housing agencies participating in the Moving to Work
demonstration program.
TITLE IV--ESTATE TAX REFORM
SEC. 401. AMENDMENT TO INTERNAL REVENUE CODE OF 1986.
Except as otherwise expressly provided, whenever in this title an
amendment or repeal is expressed in terms of an amendment to, or repeal
of, a section or other provision, the reference shall be considered to
be made to a section or other provision of the Internal Revenue Code of
1986.
SEC. 402. RATE ADJUSTMENT.
(a) Increase in Estate Tax Rates.--The table contained in section
2001(c) is amended to read as follows:
If the amount with respect to which The tentative tax is:
the tentative tax to be
computed is:
Not over $13,000,000...........
55 percent of such amount.
Over $13,000,000 but not over
$93,000,000.
$7,150,000, plus 60 percent of
the excess of such
amount over
$13,000,000.
Over $93,000,000...............
$55,150,000, plus 65 percent of
the excess of such
amount over
$93,000,000.
(b) Reduction of Basic Exclusion Amount.--Paragraph (3) of section
2010(c) is amended to read as follows:
``(3) Basic exclusion amount.--For purposes of this
subsection, the basic exclusion amount is $3,500,000.''.
(c) Surtax on Billion Dollar Estates.--Section 2001 is amended--
(1) in subsection (b), by striking ``The tax'' and
inserting ``Subject to subsection (h), the tax'', and
(2) by adding at the end the following new subsection:
``(h) Surtax on Billion Dollar Estates.--
``(1) In general.--In the case of a taxable estate for
which the applicable amount is in excess of $1,000,000,000, the
tax determined under subsection (b) shall be increased by an
amount equal to 10 percent of such applicable amount.
``(2) Applicable amount.--For purposes of this subsection,
the applicable amount shall be equal to the sum of the amounts
under subparagraphs (A) and (B) of paragraph (1) of subsection
(b) for the taxable estate.''.
(d) Effective Date.--The amendments made by this section shall
apply to estates of decedents dying, and generation-skipping transfers
and gifts made, after the date of the enactment of this Act.
SEC. 403. REQUIRED MINIMUM 10-YEAR TERM, ETC., FOR GRANTOR RETAINED
ANNUITY TRUSTS.
(a) In General.--Subsection (b) of section 2702 is amended--
(1) by redesignating paragraphs (1), (2), and (3) as
subparagraphs (A), (B), and (C), respectively, and by moving
such subparagraphs (as so redesignated) 2 ems to the right,
(2) by striking ``For purposes of'' and inserting the
following:
``(1) In general.--For purposes of'',
(3) by striking ``paragraph (1) or (2)'' in paragraph
(1)(C) (as so redesignated) and inserting ``subparagraph (A) or
(B)'', and
(4) by adding at the end the following new paragraph:
``(2) Additional requirements with respect to grantor
retained annuities.--For purposes of subsection (a), in the
case of an interest described in paragraph (1)(A) (determined
without regard to this paragraph) which is retained by the
transferor, such interest shall be treated as described in such
paragraph only if--
``(A) the right to receive the fixed amounts
referred to in such paragraph is for a term of not less
than 10 years,
``(B) such fixed amounts, when determined on an
annual basis, do not decrease relative to any prior
year during the first 10 years of the term referred to
in subparagraph (A), and
``(C) the remainder interest has a value equal to
or greater than 10 percent of the value of the assets
transferred to the trust, determined as of the time of
the transfer.''.
(b) Effective Date.--The amendments made by this section shall
apply to transfers made after the date of the enactment of this Act.
SEC. 404. CERTAIN TRANSFER TAX RULES APPLICABLE TO GRANTOR TRUSTS.
(a) In General.--Subtitle B is amended by adding at the end the
following new chapter:
``CHAPTER 16--SPECIAL RULES FOR GRANTOR TRUSTS
``Sec. 2901. Application of transfer taxes.
``SEC. 2901. APPLICATION OF TRANSFER TAXES.
``(a) In General.--In the case of any portion of a trust to which
this section applies--
``(1) the value of the gross estate of the deceased deemed
owner of such portion shall include all assets attributable to
that portion at the time of the death of such owner,
``(2) any distribution from such portion to one or more
beneficiaries during the life of the deemed owner of such
portion shall be treated as a transfer by gift for purposes of
chapter 12, and
``(3) if at any time during the life of the deemed owner of
such portion, such owner ceases to be treated as the owner of
such portion under subpart E of part 1 of subchapter J of
chapter 1, all assets attributable to such portion at such time
shall be treated for purposes of chapter 12 as a transfer by
gift made by the deemed owner.
``(b) Portion of Trust to Which Section Applies.--This section
shall apply to--
``(1) the portion of a trust with respect to which the
grantor is the deemed owner, and
``(2) the portion of the trust to which a person who is not
the grantor is a deemed owner by reason of the rules of subpart
E of part 1 of subchapter J of chapter 1, and such deemed owner
engages in a sale, exchange, or comparable transaction with the
trust that is disregarded for purposes of subtitle A.
For purposes of paragraph (2), the portion of the trust described with
respect to a transaction is the portion of the trust attributable to
the property received by the trust in such transaction, including all
retained income therefrom, appreciation thereon, and reinvestments
thereof, net of the amount of consideration received by the deemed
owner in such transaction.
``(c) Exceptions.--This section shall not apply to--
``(1) any trust that is includible in the gross estate of
the deemed owner (without regard to subsection (a)(1)), and
``(2) any other type of trust that the Secretary determines
by regulations or other guidance does not have as a significant
purpose the avoidance of transfer taxes.
``(d) Deemed Owner Defined.--For purposes of this section, the term
`deemed owner' means any person who is treated as the owner of a
portion of a trust under subpart E of part 1 of subchapter J of chapter
1.
``(e) Reduction for Taxable Gifts to the Trust Made by Owner.--The
amount to which subsection (a) applies shall be reduced by the value of
any transfer by gift by the deemed owner to the trust previously taken
into account by the deemed owner under chapter 12.
``(f) Liability for Payment of Tax.--Any tax imposed pursuant to
subsection (a) shall be a liability of the trust.''.
(b) Clerical Amendment.--The table of chapters for subtitle B is
amended by adding at the end the following new item:
``Chapter 16. Special Rules for Grantor Trusts''.
(c) Effective Date.--The amendments made by this section shall
apply--
(1) to trusts created on or after the date of the enactment
of this Act,
(2) to any portion of a trust established before the date
of the enactment of this Act which is attributable to a
contribution made on or after such date, and
(3) to any portion of a trust established before the date
of the enactment of this Act to which section 2901(a) of the
Internal Revenue Code of 1986 (as added by subsection (a))
applies by reason of a transaction described in section
2901(b)(2) of such Code on or after such date.
SEC. 405. ELIMINATION OF GENERATION-SKIPPING TRANSFER TAX EXEMPTION FOR
TRANSFERS TO CERTAIN PERSONS.
(a) In General.--Section 2642 is amended by adding at the end the
following new subsection:
``(h) Elimination of GST Exemption for Transfers to Certain
Persons.--
``(1) In general.--
``(A) Transfer to non-exempt person.--In the case
of any direct skip or taxable distribution made to any
person who is not an exempt person, the inclusion ratio
shall be 1.
``(B) Taxable termination.--In the case of any
taxable termination which occurs at any time
immediately after no exempt person is a beneficiary of
the trust, the inclusion ratio shall be 1.
``(C) Exempt person.--
``(i) In general.--For purposes of this
subsection, the term `exempt person' means--
``(I) a natural person--
``(aa) who is assigned to a
generation which is 2 or fewer
generations below the
generation assignment of the
transferor, or
``(bb) whose date of birth
precedes the date on which the
trust was created, or
``(II) a trust in which all
interests are held by persons described
in subclause (I).
``(ii) Exception.--For purposes of clause
(i)(II), any interest which is used primarily
to postpone or avoid the application of this
subsection shall be disregarded.
``(2) Date of creation.--
``(A) In general.--For purposes of determining the
date on which a trust was created under paragraph
(1)(C)(i)(I)(bb), if the trust was created before
January 1, 2026, such trust shall be deemed to have
been created on January 1, 2026.
``(B) Date of creation of pour-over trusts.--
``(i) In general.--In the case of any
generation-skipping transfer of property which
involves the transfer of property from one
trust to another trust, the date of the
creation of the transferee trust shall be
treated as being the earlier of--
``(I) the date of the creation of
such transferee trust, or
``(II) the date of the creation of
the transferor trust.
``(ii) Multiple transfers.--In the case of
multiple transfers to which clause (i)
applies--
``(I) the date of the creation of
the transferor trust shall be
determined under such clause, and
``(II) subsequent to the
determination described in subclause
(I), the date of the creation of the
transferee trust shall be determined
under such clause.
``(3) Generation assignment.--For purposes of this
subsection, the provisions of section 2653(a) shall not apply.
``(4) Regulations.--The Secretary may prescribe such
regulations or other guidance as may be necessary or
appropriate to carry out this subsection.''.
(b) Repeal.--Section 1433(b)(2) of the Tax Reform Act of 1986
(Public Law 99-514) is repealed.
(c) Effective Dates.--
(1) In general.--The amendment made by subsection (a) shall
take effect on the date of the enactment of this Act.
(2) Repeal.--The amendment made by subsection (b) shall
apply to generation-skipping transfers (within the meaning of
section 2611 of the Internal Revenue Code of 1986) made after
the date of enactment of this Act.
SEC. 406. SIMPLIFYING GIFT TAX EXCLUSION FOR ANNUAL GIFTS.
(a) In General.--Paragraph (1) of section 2503(b) is amended to
read as follows:
``(1) In general.--
``(A) Limit per donee.--In the case of gifts made
to any person by the donor during the calendar year,
the first $10,000 of such gifts to such person shall
not, for purposes of subsection (a), be included in the
total amount of gifts made during such year.
``(B) Cumulative limit per donor.--
``(i) In general.--The aggregate amount
excluded under subparagraph (A) with respect to
all transfers described in clause (ii) made by
the donor during the calendar year shall not
exceed twice the dollar amount in effect under
such subparagraph for such calendar year.
``(ii) Transfers subject to limitation.--
The transfers described in this clause are--
``(I) a transfer in trust,
``(II) a transfer of an interest in
a passthrough entity,
``(III) a transfer of an interest
subject to a prohibition on sale, and
``(IV) any other transfer of
property that, without regard to
withdrawal, put, or other such rights
in the donee, cannot immediately be
liquidated by the donee.''.
(b) Conforming Amendment.--Section 2503 is amended by striking
subsection (c).
(c) Regulations.--The Secretary of the Treasury, or the Secretary
of the Treasury's delegate, may prescribe such regulations or other
guidance as may be necessary or appropriate to carry out the amendments
made by this section.
(d) Effective Date.--The amendments made by this section shall
apply to any calendar year beginning after the date of the enactment of
this Act.
SEC. 407. CLARIFICATION REGARDING DISALLOWANCE OF STEP-UP IN BASIS FOR
PROPERTY HELD IN CERTAIN GRANTOR TRUSTS.
(a) In General.--Section 1014 is amended--
(1) by redesignating subsection (f) as subsection (g), and
(2) by inserting after subsection (e) the following:
``(f) Property Held in Certain Grantor Trusts.--This section shall
not apply to property--
``(1) held in a trust of which the transferor is considered
the owner under subpart E of part I of subchapter J, and
``(2) if, after the transfer of such property to the trust,
such property is not includible in the gross estate of the
transferor for purposes of chapter 11.''.
(b) Conforming Amendment.--Section 6662(k) is amended by striking
``1014(f)'' and inserting ``1014(g)''.
(c) Effective Date.--The amendments made by this section shall
apply to transfers after the date of the enactment of this Act.
(d) No Inference.--No inference may be drawn from the amendments
made by this section with respect to the application of section 1014 of
the Internal Revenue Code of 1986 to property described in subsection
(f) of such section (as added by subsection (a)) which was transferred
on or before the date of enactment of this Act.
SEC. 408. LIMITATION ON DISCOUNTS; VALUATION RULES FOR CERTAIN
TRANSFERS OF NONBUSINESS ASSETS.
(a) In General.--Chapter 14 of subtitle B is amended by adding at
the end the following new section:
``SEC. 2705. LIMITATION ON DISCOUNTS; VALUATION RULES FOR CERTAIN
TRANSFERS OF NONBUSINESS ASSETS.
``(a) Limitation on Discount by Reason of Family Control.--
``(1) In general.--For purposes of this subtitle, in the
case of the transfer of any interest in an entity other than an
interest which is actively traded (within the meaning of
section 1092), if the transferor, the transferee, and members
of the family of the transferor and transferee have control of
such entity immediately before such transfer, no discount shall
be allowed--
``(A) by reason of the fact that the transferor or
transferee does not have control of such entity,
``(B) by reason of the lack of marketability of the
interest, or
``(C) for any other reason.
``(2) Definitions.--In this subsection, the terms `control'
and `member of the family' have the same meanings given such
terms in section 2704(c).
``(3) Attribution.--For purposes of this section, the rule
of section 2701(e)(3) shall apply for purposes of determining
the interests held by any individual.
``(b) Valuation Rules for Certain Transfers of Nonbusiness
Assets.--
``(1) In general.--For purposes of this subtitle, in the
case of the transfer of any interest in an entity other than an
interest which is actively traded (within the meaning of
section 1092)--
``(A) the value of any nonbusiness assets held by
the entity with respect to such interest shall be
determined as if the transferor had transferred such
assets directly to the transferee (and no valuation
discount shall be allowed with respect to such
nonbusiness assets), and
``(B) such nonbusiness assets shall not be taken
into account in determining the value of the interest
in the entity.
``(2) Nonbusiness assets.--For purposes of this
subsection--
``(A) In general.--The term `nonbusiness asset'
means any asset other than an asset which is used in
the active conduct of a trade or business.
``(B) Passive assets treated as nonbusiness
assets.--
``(i) In general.--For purposes of
subparagraph (A), a passive asset shall be
treated as a nonbusiness asset unless--
``(I) the asset is property
described in paragraph (1) or (4) of
section 1221(a) or is a hedge with
respect to such property, or
``(II) the asset is real property
used in the active conduct of 1 or more
real property trades or businesses
(within the meaning of section
469(c)(7)(C)) in which the transferor
materially participates and with
respect to which the transferor meets
the requirements of section
469(c)(7)(B)(ii).
``(ii) Material participation.--For
purposes of clause (i)(II), material
participation shall be determined under the
rules of section 469(h), except that section
469(h)(3) shall be applied without regard to
the limitation to farming activity.
``(C) Working capital treated as used in trade or
business.--Any asset (including a passive asset) which
is held as a part of the reasonably required working
capital needs of a trade or business shall be treated
as used in the active conduct of a trade or business.
``(3) Passive asset.--For purposes of this subsection, the
term `passive asset' means any--
``(A) cash or cash equivalents,
``(B) stock in a corporation or any other equity,
profits, or capital interest in any entity,
``(C) evidence of indebtedness, option, forward or
futures contract, notional principal contract, or
derivative,
``(D) asset described in clause (iii), (iv), or (v)
of section 351(e)(1)(B),
``(E) annuity,
``(F) real property used in 1 or more real property
trades or businesses (as defined in section
469(c)(7)(C)),
``(G) asset (other than a patent, trademark, or
copyright) which produces royalty income,
``(H) commodity,
``(I) collectible (within the meaning of section
408(m)), or
``(J) any other asset specified in regulations
prescribed by the Secretary.
``(4) Look-thru rule.--
``(A) In general.--If a nonbusiness asset of an
entity described in paragraph (1) consists of a 10-
percent interest in any other entity, this subsection
shall be applied by disregarding the 10-percent
interest and by treating the entity as holding directly
its ratable share of the assets of the other entity.
``(B) 10-percent interest.--The term `10-percent
interest' means--
``(i) in the case of an interest in a
corporation, direct ownership of at least 10
percent (by vote or value) of the stock in such
corporation,
``(ii) in the case of an interest in a
partnership, direct ownership of at least 10
percent of the capital or profits interest in
the partnership, and
``(iii) in any other case, direct ownership
of at least 10 percent of the beneficial
interests in the entity.''.
(b) Conforming Amendments.--
(1) Section 2031(b) of the Internal Revenue Code of 1986 is
amended by inserting ``(after application of section 2705(b))''
after ``shall be determined''.
(2) The table of sections of chapter 14 of subtitle B of
such Code is amended by adding at the end the following:
``Sec. 2705. Limitation on discounts; valuation rules for certain
transfers of nonbusiness assets.''.
(c) Effective Date.--The amendments made by this section shall
apply to transfers after the date of the enactment of this Act.
SEC. 409. SURCHARGE ON HIGH INCOME ESTATES AND TRUSTS.
(a) In General.--Subchapter A of chapter 1 is amended by adding at
the end the following new part:
``PART VIII--SURCHARGE ON HIGH INCOME ESTATES AND TRUSTS
``Sec. 59B. Surcharge on high income estates and trusts.
``SEC. 59B. SURCHARGE ON HIGH INCOME ESTATES AND TRUSTS.
``(a) General Rule.--In the case of an estate or trust, there is
hereby imposed (in addition to any other tax imposed by this subtitle)
a tax equal to the sum of--
``(1) 5 percent of so much of the modified adjusted gross
income of the taxpayer as exceeds $200,000, plus
``(2) 3 percent of so much of the modified adjusted gross
income of the taxpayer as exceeds $500,000.
``(b) Modified Adjusted Gross Income.--For purposes of this
section--
``(1) In general.--The term `modified adjusted gross
income' means adjusted gross income reduced by any deduction
(not taken into account in determining adjusted gross income)
allowed for investment interest (as defined in section 163(d))
or business interest (as defined in section 163(j)).
``(2) Adjusted gross income.--Adjusted gross income shall
be determined as provided in section 67(e) and reduced by the
amount allowed as a deduction under section 642(c).
``(c) Special Rules.--
``(1) Charitable trusts.--Subsection (a) shall not apply to
a trust all the unexpired interests in which are devoted to one
or more of the purposes described in section 170(c)(2)(B).
``(2) Not treated as tax imposed by this chapter for
certain purposes.--The tax imposed under this section shall not
be treated as tax imposed by this chapter for purposes of
determining the amount of any credit under this chapter (other
than sections 27 and 901) or for purposes of section 55.
``(3) Electing small business trusts.--For purposes of the
determination of adjusted gross income, section 641(c)(1)(A)
shall not apply and all portions of any electing small business
trust shall be treated as a single trust.
``(d) Regulations.--The Secretary shall issue such regulations or
other guidance as may be necessary or appropriate to carry out the
purposes of this section, including regulations or other guidance to
prevent the avoidance of the purposes of this section.''.
(b) Coordination With Certain Provisions.--
(1) Interest on certain deferred tax liability.--Section
453A(c) is amended by redesignating paragraph (6) as paragraph
(7) and by inserting after paragraph (5) the following new
paragraph:
``(6) Surcharge on high income estates and trusts taken
into account in determining maximum rate of tax.--For purposes
of paragraph (3)(B), in the case of an estate or trust, the
maximum rate of tax in effect under section 1 shall be treated
as being equal to the sum of such rate and the rates in effect
under paragraphs (1) and (2) of section 59B(a).''.
(2) Limitation on foreign tax credit.--
(A) Section 904(b)(3)(E)(i)(I) is amended by
inserting ``increased, in the case of an estate or
trust, by the sum of the rates set forth in paragraphs
(1) and (2) of section 1A(a)'' after ``(whichever
applies)''.
(B) Section 904(d)(2)(F) is amended by adding at
the end the following: ``For purposes of the first
sentence of this subparagraph, in the case of an estate
or trust, the highest rate of tax specified in section
1 shall be treated as being equal to the sum of such
rate and the rates in effect under paragraphs (1) and
(2) of section 59B(a).''.
(3) Election by individuals to be subject to tax at
corporate rates.--Section 962(a)(1) is amended by striking
``and 55'' and inserting 55``, and 59B''.
(4) Interest on certain tax deferral.--Section 1291(c)(2)
is amended by adding at the end the following: ``For purposes
of the preceding sentence, in the case of an estate or trust,
the highest rate of tax in effect under section 1 shall be
treated as being equal to the sum of such rate and the rates in
effect under paragraphs (1) and (2) of section 59B(a).''.
(5) Withholding of tax on foreign partners' share of
effectively connected income.--Section 1446(b)(2) is amended by
adding at the end the following flush sentence:
``For purposes of subparagraph (A), in the case of a partner
which is an estate or trust, the highest rate of tax in effect
under section 1 shall be treated as being equal to the sum of
such rate and the rates in effect under paragraphs (1) and (2)
of section 59B(a).''.
(6) Partnership adjustments.--
(A) Section 6225(b)(1) is amended by adding at the
end the following flush sentence:
``For purposes of subparagraph (B), in the case of an estate or
trust, the highest rate of tax in effect under section 1 shall
be treated as being equal to the sum of such rate and the rates
in effect under paragraphs (1) and (2) of section 59B(a).''.
(B) Section 6225(c)(4)(A) is amended--
(i) by striking ``subsection (b)(1)(A)''
and inserting ``subsection (b)(1)(B)'', and
(ii) by striking ``or'' at the end of
clause (i), by adding ``or'' at the end of
clause (ii), and by inserting after clause (ii)
the following new clause:
``(iii) is not an estate or trust subject
to one or both of the rates of tax in effect
under paragraphs (1) and (2) of section
59B(a),''.
(7) Required payments for entities electing not to have
required taxable year.--The second sentence of section 7519(b)
is amended by inserting ``and, in the case of an estate or
trust, increased by the sum of the rates in effect under
paragraphs (1) and (2) of section 59B(a)'' before the period at
the end.
(c) Clerical Amendment.--The table of parts for subchapter A of
chapter 1 is amended by adding at the end the following new item:
``PART VIII--Surcharge on High Income Estates and Trusts''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
SEC. 410. MODIFICATION OF RULES FOR VALUE OF CERTAIN FARM, ETC., REAL
PROPERTY.
(a) In General.--Paragraph (2) of section 2032A(a) of the Internal
Revenue Code of 1986 is amended by striking ``$750,000'' and inserting
``$3,000,000''.
(b) Inflation Adjustment.--Paragraph (3) of section 2032A(a) of
such Code is amended--
(1) by striking ``1998'' and inserting ``2026'',
(2) by striking ``$750,000'' each place it appears and
inserting ``$3,000,000'', and
(3) by striking ``calendar year 1997'' and inserting
``calendar year 2025'' in subparagraph (B).
(c) Effective Date.--The amendments made by this section shall
apply to estates of decedents dying, and gifts made, after December 31,
2025.
SEC. 411. MODIFICATION OF ESTATE TAX RULES WITH RESPECT TO LAND SUBJECT
TO CONSERVATION EASEMENTS.
(a) Modification of Exclusion Limitation.--Subparagraph (B) of
section 2031(c)(1) of the Internal Revenue Code of 1986 is amended by
striking ``$500,000'' and inserting ``$2,000,000''.
(b) Modification of Applicable Percentage.--Paragraph (2) of
section 2031(c) of the Internal Revenue Code of 1986 is amended by
striking ``40 percent'' and inserting ``60 percent''.
(c) Effective Date.--The amendments made by this section shall
apply to estates of decedents dying, and gifts made, after December 31,
2025.
TITLE V--ACCESSIBILITY REQUIREMENTS
SEC. 501. ACCESSIBILITY REQUIREMENTS.
In the case of housing that is constructed, altered, or otherwise
assisted using amounts made available to the Secretary of Housing and
Urban Development under this Act or an amendment made by this Act,
sections 8.22 and 8.23 of title 24, Code of Federal Regulations (or any
successor regulations) shall be applied such that the number of
dwelling units required to be accessible under those sections is twice
the number that would otherwise be required to be accessible under
those sections.
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