,,ii #aaith ,,congress #ast ,session ,s4 #icd ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,march #aa 7legislative day1 ,march #aj71 #bjbe,ms4 ,warren 7for herself1 ,mr4 ,warnock1 ,mr4 ,markey1 ,mr4 ,sanders1 ,ms4 ,hirono1 ,mr4 ,welch1 ,mr4 ,blumenthal1 ,mr4 ,van ,hollen1 and ,mr4 ,kim7 introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to make housing more affordable1 and for other purposes4 #a4 ,short title2 table of contents 7a7 ,short title ,this ,act may be cited as the ,american ,housing and ,economic ,mobility ,act of #bjbe4 7b7 ,table of contents ,the table of contents for this ,act is as follows3 ,sec4 #a4 ,short title2 table of contents4,,title ,i--,making housing more affordable,sec4 #aja4 ,local housing innovation grants4,sec4 #ajb4 ,investing in affordable housing infrastructure4,sec4 #ajc4 ,conditions for the sale of real estate-owned properties and non-performing loans4,,title ,,ii--,taking the first steps to reverse the legacy of housing discrimination and government negligence,sec4 #bja4 ,down payment assistance program for first-time1 first-generation homebuyers4,sec4 #bjb4 ,formula grant program for communities with an appraisal gap4,sec4 #bjc4 ,strengthening the ,community ,reinvestment ,act of #aigg4,sec4 #bjd4 ,amendments relating to credit union service to underserved areas4,sec4 #bje4 ,raising public welfare caps4,sec4 #bjf4 ,temporary eligibility of certain direct descendants of certain veterans for housing loans guaranteed by the ,secretary of ,veterans ,affairs4,,title ,,iii--,removing barriers that isolate communities,sec4 #cja4 ,expanding rights under the ,fair ,housing ,act4,sec4 #cjb4 ,improving outcomes in housing assistance programs4,,title ,,iv--,estate tax reform,sec4 #dja4 ,amendment to ,internal ,revenue ,code of #aihf4,sec4 #djb4 ,rate adjustment4,sec4 #djc4 ,required minimum #aj-year term1 etc41 for grantor retained annuity trusts4,sec4 #djd4 ,certain transfer tax rules applicable to grantor trusts4,sec4 #dje4 ,elimination of generation-skipping transfer tax exemption for transfers to certain persons4,sec4 #djf4 ,simplifying gift tax exclusion for annual gifts4,sec4 #djg4 ,clarification regarding disallowance of step-up in basis for property held in certain grantor trusts4,sec4 #djh4 ,limitation on discounts2 valuation rules for certain transfers of nonbusiness assets4,sec4 #dji4 ,surcharge on high income estates and trusts4,sec4 #daj4 ,modification of rules for value of certain farm1 etc41 real property4,sec4 #daa4 ,modification of estate tax rules with respect to land subject to conservation easements4,,title ,v--,accessibility requirements,sec4 #eja4 ,accessibility requirements4 ,i ,making housing more affordable #aja4 ,local housing innovation grants 7a7 ,definitions ,in this section3 7#a7 ,elementary school2 secondary school ,the terms elementary school and secondary school have the meanings given those terms in section #haja of the ,elementary and ,secondary ,education ,act of #aife 7#bj ,u4,s4,c4 #ghja74 7#b7 ,eligible entity ,the term eligible entity means-- 7,a7 a ,state2 7,b7 a unit of general local government2 or 7,c7 an ,indian tribe4 7#c7 ,indian tribe ,the term ,indian tribe has the meaning given the term in section #d of the ,native ,american ,housing ,assistance and ,self-,determination ,act of #aiif 7#be ,u4,s4,c4 #dajc74 7#d7 ,institution of higher education ,the term institution of higher education has the meaning given the term in section #aja of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajja74 7#e7 ,metropolitan area2 ,state2 unit of general local government ,the terms metropolitan area1 ,state1 and unit of general local government have the meanings given those terms in section #ajb of the ,housing and ,community ,development ,act of #aigd 7#db ,u4,s4,c4 #ecjb74 7#f7 ,secretary ,the term ,secretary means the ,secretary of ,housing and ,urban ,development4 7b7 ,establishment ,not later than #a year after the date of enactment of this ,act1 the ,secretary shall establish a program to award grants on a competitive basis to eligible entities to-- 7#a7 reform local land use restrictions to bring down the costs of producing affordable housing2 and 7#b7 remove unnecessary barriers to building affordable units in their communities4 7c7 ,eligible activities ,an eligible entity receiving a grant under this section may use funds to-- 7#a7 carry out any of the activities described in section #aje of the ,housing and ,community ,development ,act of #aigd 7#db ,u4,s4,c4 #ecje72 7#b7 carry out any of the activities permitted under the ,local and ,regional ,project ,assistance ,program under section #fgjb of title #di1 ,united ,states ,code2 or 7#c7 modernize1 renovate1 or repair facilities used by public elementary schools1 public secondary schools1 and public institutions of higher education1 including modernization1 renovation1 and repairs that-- 7,a7 promote physical1 sensory1 and environmental accessibility2 and 7,b7 are consistent with a recognized green building rating system4 7d7 ,application 7#a7 ,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 out1 or is in the process of carrying out1 initiatives that facilitate the expansion of the supply of well-located affordable housing4 7#b7 ,activities ,initiatives that meet the criteria described in paragraph 7#a7-- 7,a7 include-- 7i7 establishing by-right development1 which allows jurisdictions to administratively approve new developments that are consistent with their zoning code2 7ii7 revising or eliminating off-street parking requirements to reduce the cost of housing production2 7iii7 instituting measures that incentivize owners of vacant land to redevelop the space into affordable housing or other productive uses2 7iv7 revising minimum lot size requirements and bans or limits on multifamily construction to allow for denser and more affordable development2 7v7 instituting incentives to promote dense development1 such as density bonuses2 7vi7 passing inclusionary zoning ordinances that require a portion of newly developed units to be reserved for low- and moderate-income renters or homebuyers2 7vii7 streamlining regulatory requirements and shortening processes1 reforming zoning codes1 or other initiatives that reduce barriers to housing supply elasticity and affordability2 7viii7 allowing accessory dwelling units2 7ix7 using local tax incentives to promote development of affordable housing2 and 7x7 implementing measures that protect tenants from harassment and displacement1 including-- 7,i7 providing access to counsel for tenants facing eviction2 7,,ii7 the prohibition of eviction except for just cause2 7,,iii7 measures intended to prevent or mitigate sudden increases in rents2 7,,iv7 the repeal of laws that prevent localities from implementing a measure described in subclause 7,i71 7,,ii71 or 7,,iii72 7,v7 protections against constructive eviction2 7,,vi7 tenant right-to-organize laws2 7,,vii7 a cause of action for tenants to sue landlords who threaten or begin an illegal eviction2 and 7,,viii7 landlord-tenant mediation or other non-eviction diversion programs2 and 7,b7 do not include activities that alter ordinances that govern wage and hour laws1 family and medical leave laws1 health and safety requirements1 prevailing wage laws1 or protections for workers' health and safety1 anti-discrimination1 and right to organize4 7#c7 ,relation to consolidated plan ,an eligible entity shall include in an application submitted under paragraph 7#a7 a description of how the planning and development of eligible activities described in subsection 7c7 may advance an objective1 or an aspect of an objective1 included in the comprehensive housing affordability strategy and community development plan of the eligible entity under part #ia of title #bd1 ,code of ,federal ,regulations1 or any successor regulation 7commonly referred to as a consolidated plan74 7e7 ,labor laws 7#a7 ,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 locality1 as determined by the ,secretary of ,labor in accordance with subchapter ,,iv of chapter #ca of title #dj1 ,united ,states ,code 7commonly known as the ,davis-,bacon ,act74 7#b7 ,authority and functions ,with respect to the labor standards specified in paragraph 7#a71 the ,secretary of ,labor shall have the authority and functions set forth in ,reorganization ,plan ,numbered #ad of #aiej 7#fd ,stat4 #abfg2 #e ,u4,s4,c4 ,app47 and section #cade of title #dj1 ,united ,states ,code4 7f7 ,authorization of appropriations ,there is authorized to be appropriated to carry out this section #b1jjj1jjj1jjj for each of fiscal years #bjbe through #bjbi4 #ajb4 ,investing in affordable housing infrastructure 7a7 ,housing ,trust ,fund ,section #acch7;a7 of the ,federal ,housing ,enterprises ,financial ,safety and ,soundness ,act of #aiib 7#ab ,u4,s4,c4 #defh7;a77 is amended by adding at the end the following3 7#c7 ,authorization of appropriations ,there is authorized to be appropriated to the ,housing ,trust ,fund #dh1jjj1jjj1jjj for each of fiscal years #bjbe through #bjcd4 4 7b7 ,capital ,magnet ,fund ,section #acci of the ,federal ,housing ,enterprises ,financial ,safety and ,soundness ,act of #aiib 7#ab ,u4,s4,c4 #defi7 is amended by adding at the end the following3 7k7 ,authorization of appropriations ,there is authorized to be appropriated to the ,capital ,magnet ,fund #c1jjj1jjj1jjj for each of fiscal years #bjbe through #bjcd4 4 7c7 ,public housing capital fund ,section #i7;c77#b77;,a7 of the ,united ,states ,housing ,act of #aicg 7#db ,u4,s4,c4 #adcg;g7c77#b77;,a77 is amended to read as follows3 7,a7 ,capital fund ,for allocations of assistance from the ,capital ,fund1 #gj1jjj1jjj1jjj for fiscal year #bjbe4 4 7d7 ,indian housing block grant program ,section #ajh of the ,native ,american ,housing ,assistance and ,self-,determination ,act of #aiif 7#be ,u4,s4,c4 #daag7 is amended-- 7#a7 by striking such sums as may be necessary for each of fiscal years #bjji through #bjac and inserting #b1ejj1jjj1jjj for fiscal year #bjbe and such sums as may be necessary for each of fiscal years #bjbf through #bjcd2 and 7#b7 by striking the second sentence4 7e7 ,native ,hawaiian housing block grant program ,section #hbd of the ,native ,american ,housing ,assistance and ,self-,determination ,act of #aiif 7#be ,u4,s4,c4 #dbdc7 is amended by striking such sums as may be necessary for each of fiscal years #bjja1 #bjjb1 #bjjc1 #bjjd1 and #bjje and inserting #ej1jjj1jjj for fiscal year #bjbe and such sums as may be necessary for each of fiscal years #bjbf through #bjcd4 7f7 ,rural housing programs ,out of funds in the ,treasury not otherwise appropriated1 there is appropriated for fiscal year #bjbe-- 7#a7 to provide direct loans under section #ejb of the ,housing ,act of #aidi 7#db ,u4,s4,c4 #adgb71 #dbj1jjj1jjj2 7#b7 to provide assistance under section #ead of such ,act 7#db ,u4,s4,c4 #adhd71 #ed1jjj1jjj2 7#c7 to provide assistance under section #eae of such ,act 7#db ,u4,s4,c4 #adhe71 #dbj1jjj1jjj2 7#d7 to provide assistance under section #eaf of such ,act 7#db ,u4,s4,c4 #adhf71 #ge1jjj1jjj2 7#e7 to provide grants under section #ebc of such ,act 7#db ,u4,s4,c4 #adij;c71 #ge1jjj1jjj2 and 7#f7 to provide funding to carry out the ,multifamily ,preservation and ,revitalization ,demonstration ,program of the ,rural ,housing ,service 7as authorized under sections #ead1 #eae1 and #eaf of such ,act 7#db ,u4,s4,c4 #adhd1 #adhe1 #adhf771 #bdj1jjj1jjj4 7g7 ,middle ,class ,housing ,emergency ,fund 7#a7 ,definitions ,in this subsection-- 7,a7 the term affordable rental housing unit means a unit for which monthly rent is not more than #cj percent of the monthly area median income2 and 7,b7 the term ,state has the meaning given the term in section #c7;b77#g7 of the ,united ,states ,housing ,act of #aicg 7#db ,u4,s4,c4 #adcg;a7b77#g774 7#b7 ,establishment ,the ,secretary of ,housing and ,urban ,development shall establish and manage a fund1 to be known as the ,middle ,class ,housing ,emergency ,fund1 which shall be funded with any amounts as may be appropriated1 transferred1 or credited to the ,fund under any provision law4 7#c7 ,grants ,from amounts available in the fund established under paragraph 7#b71 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-- 7,a7 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 #e years substantially faster than the area median income2 or 7,b7 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 #e years substantially faster than the area median income4 7#d7 ,use of funds ,grants received under this subsection shall be used to fund-- 7,a7 the construction or acquisition1 by nonprofit organizations1 ,state or local agencies1 special-purpose units of local government1 resident councils organized to acquire housing1 and other qualified purchasers 7as defined by the ,secretary of ,housing and ,urban ,development71 of rental housing units or units for purchase that are affordable to residents making less than #abj percent of the area median income2 and 7,b7 measures to prevent tenant displacement and harassment1 including-- 7i7 the provision of legal advice and representation for tenants facing eviction2 7ii7 enforcement of anti-harassment laws2 7iii7 emergency rental assistance2 and 7iv7 other measures as specified by the ,secretary of ,housing and ,urban ,development4 7#e7 ,labor laws 7,a7 ,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 #ca of title #dj1 ,united ,states ,code 7commonly known as the ,davis-,bacon ,act74 7,b7 ,authority and functions ,with respect to the labor standards specified in subparagraph 7,a71 the ,secretary of ,labor shall have the authority and functions set forth in ,reorganization ,plan ,numbered #ad of #aiej 7#fd ,stat4 #abfg2 #e ,u4,s4,c4 ,app47 and section #cade of title #dj1 ,united ,states ,code4 7#f7 ,regulations ,the ,secretary of ,housing and ,urban ,development shall promulgate regulations to carry out this subsection that include-- 7,a7 the metrics that the ,secretary will use to determine eligibility for a grant under this subsection2 7,b7 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 7#d77;,a72 and 7,c7 a requirement that all housing units constructed or acquired using grants awarded under the subsection are affordable to residents making less than #abj percent of the area median income in perpetuity4 7#g7 ,appropriations ,out of funds in the ,treasury not otherwise appropriated1 there is appropriated to the fund established under this subsection #d1jjj1jjj1jjj for fiscal year #bjbe4 #ajc4 ,conditions for the sale of real estate-owned properties and non-performing loans 7a7 ,findings ,congress finds that-- 7#a7 the ,federal ,housing ,administration1 the ,federal ,national ,mortgage ,association1 and the ,federal ,home ,loan ,mortgage ,corporation provide critical homeownership opportunities that greatly benefit individuals1 families1 and communities2 and 7#b7 it is the purpose of this section to-- 7,a7 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 homes2 and 7,b7 direct that1 upon the sale of those properties or transfer of those mortgages1 certain percentages of those properties are sold to low- and moderate-income homeowners4 7b7 ,loans insured by the ,federal ,housing ,administration ,title ,,ii of the ,national ,housing ,act 7#ab ,u4,s4,c4 #agjg et seq47 is amended by adding at the end the following3 #bei4 ,sale of real estate-owned properties 7a7 ,definitions ,in this section-- 7#a7 the term ,claim ,without ,conveyance of ,title program means the program of the ,federal ,housing ,administration carried out under section #bjc4cfh of title #bd1 ,code of ,federal ,regulations1 or any successor regulation2 and 7#b7 the term community partner has the meaning given the term nonprofit organization in section #bbi of the ,low-,income ,housing ,preservation and ,resident ,homeownership ,act of #aiij 7#ab ,u4,s4,c4 #daai74 7b7 ,requirement ,not later than #a year after the date of enactment of this section1 the ,secretary shall develop programs within the ,federal ,housing ,administration to ensure that not less than #ge 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-- 7#a7 directly to an owner-occupant2 or 7#b7 to community partners that will-- 7,a7 rehabilitate or develop the property2 and 7,b7 sell the property to an owner-occupant4 7c7 ,guidelines ,not later than #a year after the date of enactment of this section1 the ,secretary shall develop guidelines for the ,claim ,without ,conveyance of ,title program that provide an exclusive listing period during which only eligible governmental entities1 nonprofit organizations approved by the ,department of ,housing and ,urban ,development1 and owner-occupant buyers may submit bids4 7d7 ,anti-,predatory feature ,unless the ,secretary provides prior approval1 the ,secretary shall prohibit any purchaser of a real estate-owned property of the ,federal ,housing ,administration from reselling the property within #ae 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 sale4 #bfj4 ,sale of non-performing loans 7a7 ,definitions ,in this section-- 7#a7 the term community partner has the meaning given the term in section #bei2 and 7#b7 the term covered mortgage-- 7,a7 means any mortgage insured under this title that is secured by a single-family residential property2 and 7,b7 includes the promissory note secured by the mortgage described in subparagraph 7,a74 7b7 ,restriction on sale or transfer ,except as provided in this section1 the ,secretary may not sell or transfer any covered mortgage4 7c7 ,conditions for sale or transfer 7#a7 ,in general ,the ,secretary-- 7,a7 may sell or transfer a covered mortgage only if-- 7i7 the capital level of the ,fund is substantially below the capital ratio required under section #bje7;f77#b72 7ii7 the ,secretary certifies that other reasonable measures are not available to restore the ,fund to that capital ratio2 and 7iii7 the ,secretary complies with paragraph 7#b77;,c71 if applicable2 and 7,b7 may sell or transfer only such covered mortgages as are necessary to assist in restoration of that capital ratio4 7#b7 ,requirements for the ,secretary 7,a7 ,in general ,if the ,secretary intends to sell or transfer a covered mortgage1 the ,secretary shall provide the current borrower and all owners of record of the property securing the covered mortgage1 or require that the current borrower and owners of record be provided1 a separate written notice of the intent to sell the covered mortgage that-- 7i7 is mailed via certified and first class mail not less than #ij days before the date on which the loan is included in any proposed sale2 and 7ii7 includes-- 7,i7 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 options2 7,,ii7 a description of the actions that the servicer of the loan has taken to review and implement those options for the borrower2 and 7,,iii7 a description of the procedures the borrower may use to contest with the ,secretary the compliance by the servicer with that obligation4 7,b7 ,judicial review ,the determination of the ,secretary to authorize the sale of a mortgage insured under this title shall be reviewable under chapter #g of title #e1 ,united ,states ,code1 for abuse of discretion and arbitrary and capricious agency action4 7,c7 ,auctions ,the ,secretary may not sell any covered mortgage through any type of non-performing loan sale auction program until the ,secretary issues rules1 through the notice and comment rulemaking procedures under section #eec of title #e1 ,united ,states ,code1 that address essential aspects of any non-performing loan sale program1 including-- 7i7 the method of selection of loans for sale2 7ii7 notice to borrowers prior to inclusion of the loan in a sale2 and 7iii7 review of loss mitigation status prior to the sale1 selection of eligible bidders1 loss mitigation guidelines applicable to loan purchasers1 and reporting requirements for purchasers4 7#c7 ,certification requirement for lenders and servicers 7,a7 ,certification ,as a condition to payment of an insurance claim under this title in connection with any non-performing loan sale1 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 #djjj4a1 or any successor handbook1 which certification shall include a description of the actions the lender or servicer has taken1 prior to transfer of the loan to the ,secretary1 to-- 7i7 review the borrower for all available loss mitigation options of the ,federal ,housing ,administration2 and 7ii7 implement the options described in clause 7i7 that are appropriate to the borrower4 7,b7 ,false statements 7i7 ,in general ,any false statement provided in a certification described in subparagraph 7,a7 shall be a basis for-- 7,i7 recovery by the ,secretary of any amounts paid under the insurance claim and any other penalties and sanctions authorized under ,federal law2 and 7,,ii7 a private right of action by the borrower against the lender and servicer1 with remedies to include compensatory and punitive damages and an assessment of costs and attorney's fees4 7ii7 ,transfers ,unless a bona fide purchaser has acquired title to the property as a primary residence-- 7,i7 a certification described in subparagraph 7,a7 that contains a false statement shall be a basis for revoking the transfer of the property2 and 7,,ii7 the pre-sale lender and servicer of the property shall-- 7aa7 resume servicing the loan as a loan insured under this title2 and 7bb7 reimburse the ,secretary for any insurance claim paid and all costs related to the sale of the property4 7#d7 ,requirements for purchasers 7,a7 ,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 sold4 7,b7 ,loss mitigation options ,the specific formula1 calculations1 waterfall steps1 and other terms for appropriate loss mitigation options described in subparagraph 7,a7 shall be published by the ,secretary1 made available to the public1 and included in a written notice given to borrowers before any acceleration or foreclosure is initiated after a loan sale4 7#e7 ,requirements for transferees ,with respect to a transferee1 including any subsequent transferee1 of a covered mortgage that is sold under this title-- 7,a7 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 loan2 7,b7 the transferee shall provide to the ,secretary records documenting that the transfers of those properties are in compliance with this section2 and 7,c7 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 foreclosure1 and a transferee may not execute a foreclosure judgment or order of sale1 or conduct a foreclosure sale1 until the transferee has complied with all requirements under this section4 7d7 ,limitations ,with respect to covered mortgages that are sold under this title and acquired by the buyer through foreclosure sale1 not less than #ij percent of the properties that are the subject of the covered mortgages shall be-- 7#a7 sold to owner-occupants2 7#b7 operated or transferred to an entity that will operate the property as affordable rental housing for households below #hj percent of the area median income for a period of not less than #ae years2 or 7#c7 transferred or donated to a nonprofit agency that is certified by the ,secretary and will redevelop the property for owner occupancy or affordable rental housing4 7e7 ,prioritization of sales ,the ,secretary shall implement policies1 procedures1 and controls to-- 7#a7 identify and recruit community partners2 7#b7 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 partners2 and 7#c7 prioritize the sale of pools of single-family mortgages to community partners by-- 7,a7 designing pools of covered mortgages for direct sale to a community partner1 the price of which shall be set by the ,secretary based on a pricing model that considers-- 7i7 the current fair market value of the properties2 and 7ii7 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 tract2 or 7,b7 in the case of an auction1 if the winning bid is not from a community partner1 permitting any community partner that bid during that same auction to have a final opportunity to enter a higher bid on the pool4 4 7c7 ,fannie ,mae ,section #cjb of the ,federal ,national ,mortgage ,association ,charter ,act 7#ab ,u4,s4,c4 #agag7 is amended by adding at the end the following3 7d7 7#a7 ,in this subsection1 the term covered mortgage-- 7,a7 means any mortgage that is secured by a single-family residential property2 and 7,b7 includes the promissory note secured by the mortgage described in subparagraph 7,a74 7#b7 ,the corporation may not sell or transfer any covered mortgage under this section unless the requirements of this subsection are met4 7#c7 7,a7 ,if the corporation intends to sell or transfer a covered mortgage1 the corporation shall provide the current borrower and all owners of record of the property securing the covered mortgage1 or require that the current borrower and owners of record be provided1 a separate written notice of the intent to sell the covered mortgage that-- 7i7 is mailed via certified and first class mail not less than #ij days before the date on which the loan is included in any proposed sale2 and 7ii7 includes-- 7,i7 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 options2 7,,ii7 a description of the actions that the servicer of the loan has taken to review and implement those options for the borrower2 and 7,,iii7 a description of the procedures the borrower may use to contest with the corporation the compliance by the servicer with that obligation4 7,b7 ,the ,federal ,housing ,finance ,agency1 as receiver for the corporation1 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 rules1 through the notice and comment rule making procedures under section #eec of title #e1 ,united ,states ,code1 that address essential aspects of any non-performing loan sale program1 including-- 7i7 the method of selection of loans for sale2 7ii7 notice to borrowers prior to inclusion of the loan in a sale2 and 7iii7 review of loss mitigation status prior to the sale1 selection of eligible bidders1 loss mitigation guidelines applicable to loan purchasers1 and reporting requirements for purchasers4 7#d7 7,a7 ,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 sold4 7,b7 ,the specific formula1 calculations1 waterfall steps1 and other terms for loss mitigation options described in subparagraph 7,a7 shall be published by the corporation1 made available to the public1 and included in a written notice given to borrowers before any acceleration or foreclosure is initiated after a loan sale4 7#e7 ,with respect to a transferee1 including any subsequent transferee1 of a covered mortgage that is sold by the corporation under this section-- 7,a7 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 loan2 7,b7 the transferee shall provide to the corporation records documenting that the transfers of those properties are in compliance with this subsection2 and 7,c7 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 foreclosure1 and a transferee may not execute a foreclosure judgment or order of sale1 or conduct a foreclosure sale1 until the transferee has complied with all requirements under this subsection4 7#f7 ,with respect to covered mortgages that are sold by the corporation under this section and foreclosed upon by the buyer1 not less than #ij percent of the properties that are the subject of the covered mortgages in an auction shall be-- 7,a7 sold to owner-occupants2 7,b7 operated or transferred to an entity that will operate the property as affordable rental housing for households below #hj percent of the area median income for a period of not less than #ae years2 or 7,c7 transferred or donated to a nonprofit agency that is certified by the corporation and will redevelop the property for owner occupancy or affordable rental housing4 7#g7 ,the corporation shall implement policies1 procedures1 and controls to-- 7,a7 identify and recruit community partners2 7,b7 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 partners2 and 7,c7 prioritize the sale of pools of single-family mortgages to community partners by-- 7i7 designing pools of covered mortgages for direct sale to a community partner1 the price of which shall be set by the corporation based on a pricing model that considers-- 7,i7 the current fair market value of the properties2 and 7,,ii7 the potential impact of foreclosures on those properties to the value of other homes in the same census tract2 or 7ii7 in the case of an auction1 if the winning bid is not from a community partner1 permitting any community partner that bid during that same auction to have a final opportunity to enter a higher bid on the pool4 4 7d7 ,freddie ,mac ,section #cje of the ,federal ,home ,loan ,mortgage ,corporation ,act 7#ab ,u4,s4,c4 #aded7 is amended by adding at the end the following3 7e7 7#a7 ,in this subsection1 the term covered mortgage-- 7,a7 means any mortgage that is secured by a single-family residential property2 and 7,b7 includes the promissory note secured by the mortgage described in subparagraph 7,a74 7#b7 ,the ,corporation may not sell or transfer any covered mortgage under this section unless the requirements of this subsection are met4 7#c7 7,a7 ,if the ,corporation intends to sell or transfer a covered mortgage1 the ,corporation shall provide the current borrower and all owners of record of the property securing the covered mortgage1 or require that the current borrower and owners of record be provided1 a separate written notice of the intent to sell the covered mortgage that-- 7i7 is mailed via certified and first class mail not less than #ij days before the date on which the loan is included in any proposed sale2 and 7ii7 includes-- 7,i7 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 options2 7,,ii7 a description of the actions that the servicer of the loan has taken to review and implement those options for the borrower2 and 7,,iii7 a description of the procedures the borrower may use to contest with the ,corporation the compliance by the servicer with that obligation4 7,b7 ,the ,federal ,housing ,finance ,agency1 as receiver for the ,corporation1 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 rules1 through the notice and comment rulemaking procedures under section #eec of title #e1 ,united ,states ,code1 that address essential aspects of any non-performing loan sale program1 including-- 7i7 the method of selection of loans for sale2 7ii7 notice to borrowers prior to inclusion of the loan in a sale2 and 7iii7 review of loss mitigation status prior to the sale1 selection of eligible bidders1 loss mitigation guidelines applicable to loan purchasers1 and reporting requirements for purchasers4 7#d7 7,a7 ,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 sold4 7,b7 ,the specific formula1 calculations1 waterfall steps1 and other terms for loss mitigation options described in subparagraph 7,a7 shall be published by the ,corporation1 made available to the public1 and included in a written notice given to borrowers before any acceleration or foreclosure is initiated after a loan sale4 7#e7 ,with respect to a transferee1 including any subsequent transferee1 of a covered mortgage that is sold by the ,corporation under this section-- 7,a7 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 loan2 7,b7 the transferee shall provide to the ,corporation records documenting that the transfers of those properties are in compliance with this subsection2 and 7,c7 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 foreclosure1 and a transferee may not execute a foreclosure judgment or order of sale1 or conduct a foreclosure sale1 until the transferee has complied with all requirements under this subsection4 7#f7 ,with respect to covered mortgages that are sold by the ,corporation under this section and foreclosed upon by the buyer1 not less than #ij percent of the properties that are the subject of the covered mortgages in an auction shall be-- 7,a7 sold to owner-occupants2 7,b7 operated or transferred to an entity that will operate the property as affordable rental housing for households below #hj percent of the area median income for a period of not less than #ae years2 or 7,c7 transferred or donated to a nonprofit agency that is certified by the ,corporation and will redevelop the property for owner occupancy or affordable rental housing4 7#g7 ,the ,corporation shall implement policies1 procedures1 and controls to-- 7,a7 identify and recruit community partners2 7,b7 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 partners2 and 7,c7 prioritize the sale of pools of single-family mortgages to community partners by-- 7i7 designing pools of covered mortgages for direct sale to a community partner1 the price of which shall be set by the ,corporation based on a pricing model that considers-- 7,i7 the current fair market value of the properties2 and 7,,ii7 the potential impact of foreclosures on those properties to the value of other homes in the same census tract2 or 7ii7 in the case of an auction1 if the winning bid is not from a community partner1 permitting any community partner that bid during that same auction to have a final opportunity to enter a higher bid on the pool4 4 7e7 ,sale of re-,performing loans ,the ,federal ,housing ,enterprises ,financial ,safety and ,soundness ,act of #aiib 7#ab ,u4,s4,c4 #deja et seq47 is amended by inserting after section #acbh 7#ab ,u4,s4,c4 #dedh7 the following3 #acbi4 ,sale of re-performing loans 7a7 ,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 met3 7#a7 ,the enterprise establishes a system that provides priority to ,federal1 ,state1 local1 or ,tribal governments or nonprofit organizations that have the capacity and experience required for buying1 servicing1 and resolving single family mortgage loans in a manner that promotes affordable housing1 fair housing1 affordable homeownership1 provision of housing counseling1 or neighborhood stabilization4 7#b7 ,clear1 written notice is sent by the enterprise or servicer through certified and first-class mail to the borrower and all owners of record1 with a copy sent to the enterprise if sent by the servicer1 not less than #ij days before the inclusion of the loan in any proposed sale-- 7,a7 stating that the loan will be included in a bulk auction or group sale of re-performing loans2 and 7,b7 describing the bulk auction or group sale process1 including-- 7i7 the loss mitigation or other protections available to the borrower and other owners of record both before and after the auction or sale2 and 7ii7 the obligations of the servicer of the loan before and after the auction or sale1 including loss mitigation requirements4 7#c7 ,the enterprise requires in the terms of the bulk auction or group sale that purchasers take loans subject to the following requirements3 7,a7 ,the purchaser is required to offer targeted payment relief options to borrowers that become more than #fj 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 level4 7,b7 ,the purchaser is required to offer a deferral program to borrowers that become more than #fj 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 enterprise1 including the absence of fees1 to borrowers who can afford their pre-hardship mortgage payment4 7,c7 ,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 foreclosure4 7,d7 ,data reporting as provided under subsection 7b77#a74 7,e7 ,if a property becomes vacant1 the purchaser shall not release the lien until the property is sold or donated4 7,f7 ,use of contract for deed1 lease to own1 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 organization4 7b7 ,data and reporting 7#a7 ,purchaser reporting ,during the #d-year period following any auction or sale of single family re-performing residential mortgage loans under subsection 7a71 the ,director shall require the enterprise to collect from each purchaser of such loans1 including any subsequent purchaser of a loan1 quarterly loan-level data regarding the treatment and outcome of the loan1 including-- 7,a7 loan characteristics1 including loan type1 remaining loan term1 loan to value ratio1 number of months in arrears1 and loan status2 7,b7 loss mitigation data1 including whether loss mitigation was provided by the purchaser1 debt-to-income ratio and percent payment reduction for any modified loans1 and performance of modified loans2 7,c7 demographic data for each borrower and any co-borrower1 including race1 national origin1 sex1 ,,zip ,code1 and census tract1 and1 if available1 disability status and veteran status2 and 7,d7 other purchaser actions1 including charge offs and resales of loans and dates for such actions4 7#b7 ,semiannual reports to ,congress ,the ,director shall submit to ,congress1 and make publicly available at no cost to the public in a readily accessible format on the website of the ,agency1 semi-annual reports on-- 7,a7 loans sold in an auction or sale under subsection 7a7 by each enterprise1 disaggregated by pool1 including-- 7i7 the number of loans and types of loans2 7ii7 mean and median delinquency and loan to value ratios at the time of the sale2 7iii7 the number and percentage of loans modified prior to auction or sale2 and 7iv7 demographic and geographic data1 including property locations by census tract or larger geographic location if necessary to protect personally identifiable information2 7,b7 the performance of loans after an auction or sale under subsection 7a71 disaggregated by loan pool1 including the initial purchaser1 current owner1 current servicer1 data summarizing any alternatives to foreclosure offered and enacted1 and data summarizing the data collected under subparagraph 7,a72 and 7,c7 the results of a fair lending analysis conducted based on the data in subparagraphs 7,a7 and 7,b7 to identify any discriminatory impacts or outcomes associated with the auctions or sales4 7c7 ,penalties for noncompliance ,the enterprises may forcibly retain loans or properties1 without providing compensation1 from purchasers that do not meet the requirements under subsection 7a77#c74 7d7 ,regulations ,the ,director shall issue regulations defining the terms of permissible auctions or sales in accordance with the requirements in this section4 4 ,,ii ,taking the first steps to reverse the legacy of housing discrimination and government negligence #bja4 ,down payment assistance program for first-time1 first-generation homebuyers 7a7 ,definitions ,in this section3 7#a7 ,eligible resident ,the term eligible resident means an individual who-- 7,a7 is a first-time homebuyer2 7,b7 is a first-generation homebuyer2 and 7,c7 has an income that is less than-- 7i7 #abj percent of the area median income2 or 7ii7 in the case of a homebuyer acquiring a property for use as a principal residence that is located in a high-cost area1 as determined by the ,secretary1 #adj percent of the area median income4 7#b7 ,first-generation homebuyer ,the term first-generation homebuyer means a homebuyer who is1 as self-attested by the homebuyer1 an individual-- 7,a7 whose parents do not1 or did not at the time of their death1 to the best of the individual's knowledge1 have any present ownership interest in a principal residence in any ,state1 excluding ownership of heir property2 and 7,b7 whose spouse or domestic partner has not1 during the #c-year period ending on the date of purchase of a property using a grant under subsection 7b71 had any present ownership interest in a principal residence in any ,state1 excluding ownership of heir property1 without regard to whether the spouse or domestic partner is a co-borrower on a mortgage for the property being purchased4 7#c7 ,first-time homebuyer ,the term first-time homebuyer means a homebuyer who is1 as self-attested by the homebuyer1 an individual 7and if married or in a domestic partnership1 the spouse or domestic partner of the individual7 who1 during the #c-year period ending on the date of purchase of a property using a grant under subsection 7b7-- 7,a7 has had no present ownership in a principal residence in any ,state1 excluding ownership of heir property2 or 7,b7 surrendered any present ownership interest in a principal residence in any ,state1 excluding ownership of heir property1 as part of a divorce proceeding4 7#d7 ,heir property ,the term heir property means residential property for which title-- 7,a7 passed by operation of law through intestacy2 and 7,b7 is held by #b or more heirs as tenants in common4 7#e7 ,secretary ,the term ,secretary means the ,secretary of ,housing and ,urban ,development4 7#f7 ,state ,the term ,state includes the ,district of ,columbia and any territory or possession of the ,united ,states4 7b7 ,establishment ,there is established in the ,treasury of the ,united ,states a fund that-- 7#a7 shall be administered by the ,secretary1 acting through the ,office of ,housing of the ,department of ,housing and ,urban ,development2 and 7#b7 shall be used-- 7,a7 to provide grants to eligible residents to purchase a property for use as a principal residence2 7,b7 for outreach to financial institutions in targeted areas and eligible residents1 including for the administration of that outreach2 7,c7 for counseling or financial education administered by counseling agencies approved by the ,secretary in order to ensure sustainable homeownership2 and 7,d7 to maintain any records required to implement this section4 7c7 ,grant amount ,an eligible resident may receive a grant under subsection 7b7 in an amount equal to-- 7#a7 not more than #c4e percent of the appraised value of the property to be purchased2 or 7#b7 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 7#ab ,u4,s4,c4 #agjg et seq471 #c4e percent of the maximum principal obligation limitation for the property to be purchased4 7d7 ,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 7#ab ,u4,s4,c4 #agjg et seq47 as a condition of receiving a grant under subsection 7b74 7e7 ,layering of assistance ,receipt by an eligible recipient of assistance for a down payment from a source other than the fund established under subsection 7b71 including assistance from the ,federal ,government1 a ,state or local government1 or any other public1 private1 or nonprofit source1 shall not affect the eligibility of the eligible recipient for assistance under subsection 7b74 7f7 ,regulations and database ,not later than #a year after the date of enactment of this ,act1 the ,secretary shall-- 7#a7 in consultation with interested parties1 including housing counseling agencies approved by the ,secretary and individuals or groups with expertise in fair housing1 promulgate regulations relating to the use of the fund established under subsection 7b72 7#b7 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 resident1 which may include creating a program that allows a lender to be reimbursed by the fund established under subsection 7b7 if the lender-- 7,a7 provides an eligible resident with funds for the closing2 or 7,b7 allows an eligible resident to be preapproved to receive assistance under this section when arranging financing for the home of the eligible resident2 and 7#c7 establish methods to verify that an individual is an eligible resident4 7g7 ,appropriation ,out of funds in the ,treasury not otherwise appropriated1 there is appropriated to the fund established under subsection 7b7 such sums as may be necessary for each of fiscal years #bjbe through #bjcd to carry out the activities under subsection 7b77#b74 7h7 ,inclusion of program in home buying information booklets ,section #e7;b7 of the ,real ,estate ,settlement ,procedures ,act of #aigd 7#ab ,u4,s4,c4 #bfjd7;b77 is amended by inserting after paragraph 7#ad7 the following3 7#ae7 ,information relating to the down payment assistance program established under section #bja of the ,american ,housing and ,economic ,mobility ,act of #bjbe4 4 7i7 ,inclusion of program as mortgage product ,section #bjc7;f77#a7 of the ,national ,housing ,act 7#ab ,u4,s4,c4 #agji7;f77#a77 is amended by inserting 1 including the down payment assistance program established under section #bja of the ,american ,housing and ,economic ,mobility ,act of #bjbe1 after mortgage products4 7j7 ,reliance on borrower attestations ,no additional documentation beyond the borrower's attestation shall be required to demonstrate eligibility under paragraphs 7#b7 and 7#c7 of subsection 7a71 and no creditor shall be subject to liability1 including monetary penalties or requirements to indemnify a ,federal agency or repurchase a loan that has been sold or securitized1 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 paragraphs4 7k7 ,repayment of assistance 7#a7 ,requirement ,an eligible resident who receives a grant under subsection 7b7 to purchase a property for use as a principal residence and does not occupy the property as a principal residence for #e years or more shall repay to the ,secretary a proportional amount of the grant based on the number of years1 if any1 for which the eligible resident has occupied the property as a principal residence4 7#b7 ,limitation ,notwithstanding paragraph 7#a71 an eligible resident who receives a grant under subsection 7b7 to purchase a property for use as a principal residence and does not occupy the property as a principal residence for #e years or more shall not be liable to the ,secretary for repayment under paragraph 7#a7 of this subsection if-- 7,a7 the failure to occupy the property as a principal residence is due at least in part to a hardship2 or 7,b7 the eligible resident sells the property before the expiration of the #e-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 7#a74 #bjb4 ,formula grant program for communities with an appraisal gap 7a7 ,definitions ,in this section-- 7#a7 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 rehabilitate1 or build1 a new dwelling unit2 7#b7 the term ,secretary means the ,secretary of ,housing and ,urban ,development2 and 7#c7 the term ,state has the meaning given the term in section #c7;b77#g7 of the ,united ,states ,housing ,act of #aicg 7#db ,u4,s4,c4 #adcg;a7b77#g774 7b7 ,establishment ,the ,secretary shall establish a formula grant program to provide funding to ,states to support neighborhoods with an appraisal gap1 including borrowers with negative equity in their primary residence in those neighborhoods1 through-- 7#a7 measures that provide funds to borrowers to-- 7,a7 pay down arrears on an otherwise affordable loan2 7,b7 pay down arrears or principal on a loan in order to qualify for a loan modification that will allow the borrower to keep the home2 7,c7 pay off1 or pay down part of1 a second mortgage or home equity line of credit2 7,d7 pay off a small-dollar mortgage2 7,e7 pay delinquent taxes and tax liens2 7,f7 pay off delinquent water or sewer bills and liens2 and 7,g7 pay for home repairs or maintenance or for modifications to bring the home into compliance with any applicable codes2 and 7#b7 programs to purchase or rehabilitate vacant or distressed properties to enhance neighborhood property values4 7c7 ,formula ,the ,secretary shall distribute amounts under this section to ,states based on-- 7#a7 the number of borrowers with a primary residence with negative equity in each ,state2 and 7#b7 the share of neighborhoods with an appraisal gap in each ,state4 7d7 ,authorization of appropriations ,there is authorized to be appropriated to carry out this section #e1jjj1jjj1jjj for fiscal year #bjbe4 #bjc4 ,strengthening the ,community ,reinvestment ,act of #aigg 7a7 ,short title ,this section may be cited as the ,community ,reinvestment ,reform ,act of #bjbe4 7b7 ,amendments to the ,community ,reinvestment ,act of #aigg ,the ,community ,reinvestment ,act of #aigg 7#ab ,u4,s4,c4 #bija et seq47 is amended-- 7#a7 by striking sections #hjb and #hjc 7#ab ,u4,s4,c4 #bija1 #bijb7 and inserting the following3 #hjb4 ,findings and purpose 7a7 ,findings ,congress finds that-- 7#a7 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 business1 in particular low- and moderate-income communities2 7#b7 the convenience and needs of communities include the need for credit services1 deposit services1 transaction services1 other financial services1 and community development loans and investments2 and 7#c7 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 business1 including communities in which-- 7,a7 the institutions make loans and do not accept deposits2 or 7,b7 the institutions accept deposits but do not make loans4 7b7 ,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 institutions4 #hjc4 ,definitions ,in this title3 7#a7 ,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-- 7,a7 a charter for a national bank or ,federal savings and loan association2 7,b7 deposit insurance in connection with a newly chartered ,state bank1 savings bank1 savings and loan association1 or similar institution2 7,c7 the establishment of a domestic branch or other facility with the ability to accept deposits of a regulated financial institution2 7,d7 the relocation of the home office or a branch office of a regulated financial institution2 7,e7 the merger or consolidation with1 the acquisition of the assets of1 or the assumption of the liabilities of a regulated financial institution requiring approval under section #ah7;c7 of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahbh7;c772 or 7,f7 the acquisition of shares in1 or the assets of1 a regulated financial institution requiring approval under section #c of the ,bank ,holding ,company ,act of #aief 7#ab ,u4,s4,c4 #ahdb74 7#b7 ,appropriate ,federal banking agency ,the term appropriate ,federal banking agency has the meaning given the term in section #c of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac74 7#c7 ,appropriate ,federal financial supervisory agency ,the term appropriate ,federal financial supervisory agency means-- 7,a7 the appropriate ,federal banking agency with respect to depository institutions and depository institution holding companies2 and 7,b7 the ,bureau of ,consumer ,financial ,protection with respect to any covered person supervised by the ,bureau pursuant to section #ajbd of the ,dodd-,frank ,wall ,street ,reform and ,consumer ,protection ,act 7#ab ,u4,s4,c4 #eead74 7#d7 ,assessment area ,the term assessment area means1 with respect to a regulated financial institution1 each community1 including a ,state1 metropolitan area1 or urban or rural county1 in which the institution-- 7,a7 maintains deposit-taking branches1 automated teller machines1 or retail offices2 7,b7 is represented by an agent2 or 7,c7 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 market4 7#e7 ,climate resiliency and disaster mitigation ,the term climate resiliency and disaster mitigation means activities that-- 7,a7 assist individuals and communities to prepare for1 adapt to1 and withstand climate-related risks1 natural disasters1 or weather-related disasters2 7,b7 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 residents2 and 7,c7 are done in conjunction with-- 7i7 a plan1 program or initiative of a ,federal1 ,state1 local or ,tribal government2 or 7ii7 a mission-driven nonprofit organization that is focused on benefiting or serving targeted census tracts or climate vulnerable communities4 7#f7 ,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 with1 adapt to1 or recover from climate impacts1 as determined by the appropriate ,federal financial supervisory agencies4 7#g7 ,community benefits plan ,the term community benefits plan means a plan that provides measurable goals for future amounts of safe and sound loans1 investments1 services1 and other financial products for low- and moderate-income communities and other distressed or underserved communities4 7#h7 ,community development ,the term community development includes-- 7,a7 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 areas2 7,b7 community development services1 including counseling and successful mortgage or loan modifications of delinquent loans2 7,c7 activities that promote integration2 7,d7 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 #aba4cja of title #ac1 ,code of ,federal ,regulations1 or any successor regulation1 with an emphasis on small businesses that have gross annual revenues of not more than #a1jjj1jjj2 7,e7 activities that revitalize or stabilize-- 7i7 low- or moderate-income geographies2 7ii7 designated disaster areas2 7iii7 distressed or underserved nonmetropolitan middle-income geographies designated by the ,federal ,financial ,institutions ,examination ,council1 based on-- 7,i7 rates of poverty1 unemployment1 and population loss2 or 7,,ii7 population size1 density1 and dispersion1 if those activities help to meet essential community needs1 including the needs of low- and moderate-income individuals2 or 7iv7 other distressed or underserved communities2 7,f7 activities that promote physical1 environmental1 and sensory accessibility in housing stock that is integrated into the community2 and 7,g7 other activities that promote the objectives of this title1 as determined by the appropriate ,federal financial supervisory agencies4 7#i7 ,depository institution2 depository institution holding company2 insured depository institution ,the terms depository institution1 depository institution holding company1 and insured depository institution have the meanings given those terms in section #c of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac74 7#aj7 ,entire community ,the term entire community means-- 7,a7 all of the assessment areas of a regulated financial institution2 and 7,b7 areas outside of assessment areas described in subparagraph 7,a7 in which a regulated financial institution has made loans or received deposits4 7#aa7 ,enumerated consumer laws ,the term enumerated consumer laws has the meaning given the term in section #ajjb of the ,consumer ,financial ,protection ,act of #bjaj 7#ab ,u4,s4,c4 #edha74 7#ab7 ,fossil fuel ,the term fossil fuel means coal1 petroleum1 methane gas 7often referred to as natural gas71 or any derivative of coal1 petroleum1 or methane gas that is used for fuel directly or indirectly1 such as for generating electricity4 7#ac7 ,fossil fuel company ,the term fossil fuel company means any company that-- 7,a7 is among the #bjj companies with the largest fossil fuel reserves in the world2 7,b7 is among the #cj largest public company owners in the world of coal-fired power plants2 7,c7 has as its core business-- 7i7 the construction or operation of fossil fuel infrastructure2 or 7ii7 the exploration1 extraction1 refining1 processing or distribution of fossil fuels2 or 7,d7 receives more than #ej percent of its gross revenue from companies that meet the definition under subparagraph 7,a71 7,b71 or 7,c74 7#ad7 ,fossil fuel expansion ,the term fossil fuel expansion means financing for new fossil fuel infrastructure projects1 including financing of exploration activities1 that would-- 7,a7 increase greenhouse gas emissions2 and 7,b7 increase the difficulty of achieving ,federal1 ,state1 or local carbon emission reduction goals4 7#ae7 ,fossil fuel infrastructure ,the term fossil fuel infrastructure means oil or gas wells1 oil or gas pipelines and refineries1 oil1 coal or gas-fired power plants1 oil and gas storage tanks1 fossil fuel export terminals1 and any other infrastructure used exclusively for fossil fuels1 including facilities with carbon capture1 utilization1 and storage4 7#af7 ,geography ,the term geography means a census tract delineated by the ,bureau of the ,census in the most recent decennial census4 7#ag7 ,intermediate bank ,the term intermediate bank is a depository institution with assets of not less than #djb1jjj1jjj and less than #a1fji1jjj1jjj1 as adjusted annually for purposes of an examination under section #hjd4 7#ah7 ,large bank ,the term large bank is a depository institution with assets of not less than #a1fji1jjj1jjj1 as adjusted annually for purposes of an examination under section #hjd4 7#ai7 ,other distressed or underserved community ,the term other distressed or underserved community means an area or census tract that1 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 metrics1 such as loans per households or small business1 is experiencing economic hardship or is underserved by financial institutions4 7#bj7 ,other underserved population ,the term other underserved population means a population that is experiencing ongoing effects of discrimination or is relatively underserved by financial institutions1 as measured by loans per households or other similar metrics4 7#ba7 ,regulated financial institution ,the term regulated financial institution means-- 7,a7 an insured depository institution2 7,b7 a depository institution holding company2 and 7,c7 a ,u4,s4 nonbank mortgage originator4 7#bb7 ,retail lending assessment area ,the term retail lending assessment area means a geographical area in which a regulated financial institution-- 7,a7 makes a threshold number of loans1 as determined by the appropriated ,federal supervisory agencies2 7,b7 does not have branches1 deposit-taking automated teller machines1 or offices2 and 7,c7 is not represented by agents4 7#bc7 ,small bank ,the term small bank is a depository institution with assets of less than #djb1jjj1jjj1 as adjusted annually to take into account inflation for purposes of determining which institutions are subject to an examination under section #hjd4 7#bd7 ,u4,s4 nonbank mortgage originator ,the term ,u4,s4 nonbank mortgage originator means a covered person subject to section #ajbd of the ,dodd-,frank ,wall ,street ,reform and ,consumer ,protection ,act 7#ab ,u4,s4,c4 #eead7 that offers or provides-- 7,a7 origination of loans secured by real estate for use by consumers primarily for personal1 family1 or household purposes2 or 7,b7 loan modification or foreclosure relief services in connection with a loan described in subparagraph 7,a74 2 7#b7 in section #hjd 7#ab ,u4,s4,c4 #bijc7-- 7,a7 by redesignating subsections 7c7 and 7d7 as subsections 7f7 and 7g71 respectively2 7,b7 by striking subsections 7a7 and 7b7 and inserting the following3 7a7 ,depository institutions and bank holding companies 7#a7 ,in general ,in connection with its examination of a regulated financial institution other than a ,u4,s4 nonbank mortgage originator1 the appropriate ,federal financial supervisory agency shall perform the following3 7,a7 ,assess the record of the institution in meeting the credit and other financial needs of its entire community1 in particular low- and moderate-income people and communities1 and other distressed or underserved communities1 and other underserved populations consistent with the safe and sound operation of the institution4 7,b7 ,assess the effectiveness of the following activities in meeting the credit and other financial needs of the assessment areas of the institution1 consistent with the safe and sound operation of the institution3 7i7 ,retail lending1 including home1 small business1 consumer1 automobile1 and other lending and financial products1 that responds to credit needs or other financial needs4 7ii7 ,community development lending and investments1 which may include a consideration of-- 7,i7 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 community2 and 7,,ii7 the origination of loans by the institution that result in the construction1 rehabilitation1 or preservation of affordable housing units4 7iii7 ,community development finance tests or similar tests developed by the appropriate ,federal banking agencies shall include separate quantitative measures for community development investments4 ,the evaluation of investments shall positively or negatively affect test scores depending on bank performance1 in community development finance tests or similar tests4 7iv7 ,retail financial services and community development services4 7v7 ,evaluation of the responsiveness1 affordability1 and sustainability of retail financial services including credit and deposit products shall positively or negatively affect tests scores1 depending on bank performance1 in the retail products and service test or similar tests4 7vi7 ,retail lending assessment areas shall be established for large banks and intermediate banks if not more than #ij percent of the retail loans of the bank are in assessment areas containing their branches and deposit-taking automated teller machines4 ,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 machines4 ,evaluations of these loans shall be considered when assigning an institution level rating to the bank4 7,c7 ,with respect to its evaluation of an application for a deposit facility by the institution-- 7i7 consider the record described in subparagraph 7,a71 the effectiveness of the activities described in subparagraph 7,b71 the overall rating of the institution under this section1 and any improvement plans submitted pursuant to this section2 7ii7 provide an opportunity for public comment for a period of not less than #fj days2 7iii7 consider changes in the community reinvestment performance of the institution since the most recent rating under this section by the appropriate ,federal financial supervisory agency2 and 7iv7 require-- 7,i7 a demonstration of public benefit1 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 goals2 7,,ii7 that the institution consult with community-based organizations and other community stakeholders in developing the community benefits plan2 and 7,,iii7 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 examination4 7#b7 ,consideration of lending in partnership with non-depository lenders 7,a7 ,in general ,as part of assessing a financial institution under paragraph 7#a71 the appropriate ,federal financial supervisory agency shall evaluate the performance of the financial institution in originating loans for small farms1 consumer loans 7including residential mortgages1 unsecured installment loans1 advances1 and lines of credit71 and loans for small businesses 7including unsecured installment loans1 advances1 and lines of credit7 in partnership with #a or more non-depository lenders4 7,b7 ,affordability and sustainability ,in making the evaluation described in subparagraph 7,a71 the appropriate ,federal financial supervisory agency shall consider the affordability and sustainability of the loan originations made in partnership with #a or more non-depository lenders4 7,c7 ,definitions ,in this paragraph3 7i7 ,non-depository lender ,the term non-depository lender means a lender that is not an insured depository institution4 7ii7 ,small business2 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 #ajga of the ,dodd ,frank ,wall ,street ,reform and ,consumer ,protection ,act of #bjaj 7,public ,law #aaa-bjc2 #abd ,stat4 #bjef7 under part #ajjb of title #ab1 ,code of ,federal ,regulations1 or any successor regulation4 7#c7 ,deductions for fossil expansion 7,a7 ,in general ,as part of assessing a financial institution under paragraph 7#a71 the appropriate ,federal financial supervisory agency shall-- 7i7 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 #hjd2 and 7ii7 deduct not more than that total dollar amount from the reported community development loans and investments of the financial institution1 both in the aggregate and at the local market1 or assessment area1 level4 7,b7 ,activities ,the deduction described in subparagraph 7,a77ii7 may only be offset by financing by the institution of climate resiliency and disaster mitigation activities specifically targeted to underserved communities1 such as-- 7i7 the development of climate resilient affordable housing1 schools1 and small businesses 7as defined in paragraph 7#b77;,c772 7ii7 clean electricity projects and microgrids2 7iii7 nature-based protective infrastructure2 7iv7 building decarbonization1 which includes holistic home weatherization and health interventions2 7v7 lending to green small businesses and companies with legitimate public decarbonization transition plans1 strategies1 and targets2 7vi7 electric public transit and electric vehicle charging infrastructure2 7vii7 investments in weatherization and climate resilience for local businesses2 7viii7 operational and technical support and capacity building for environmental and climate justice organizations1 including support for community groups active in environmental testing and training of community members to identify climate or environmental risks and opportunities in their communities2 and 7ix7 workforce development related to the transition away from fossil fuels1 including activities to train workers on skills needed to participate in carbon-pollution-free energy sectors4 7#d7 ,penalties for sustained failing performance ,a regulated financial institution other than a ,u4,s4 nonbank mortgage originator that receives overall performance ratings under this section of needs to improve or substantial noncompliance for #b consecutive examinations shall be subject to the following penalties1 as deemed applicable by the appropriate ,federal financial supervisory agency3 7,a7 ,restrictions on the institution's growth 7overall or in discrete areas71 business activities1 or payment of dividends1 including restrictions on ability to sell loans originated by the institution to enterprises1 as defined in section #acjc of the ,federal ,housing ,enterprises ,financial ,safety and ,soundness ,act of #aiib 7#ab ,u4,s4,c4 #dejb74 7,b7 ,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 revocation4 7,c7 ,requiring the institution to simplify or reduce its operations1 including that the institution reduce its asset size1 divest subsidiaries or business lines1 or exit from #a or more markets of operation4 7,d7 ,recovery1 or claw back1 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 noncompliance4 7b7 ,u4,s4 nonbank mortgage originator 7#a7 ,in general ,in connection with its examination of a ,u4,s4 nonbank mortgage originator1 the appropriate ,federal financial supervisory agency shall perform the following3 7,a7 ,assess the record of the ,u4,s4 nonbank mortgage originator in meeting the credit or other financial needs of its entire community1 in particular low-income and moderate-income people and communities and other distressed or underserved communities and other underserved populations1 consistent with the safe and sound operation of the ,u4,s4 nonbank mortgage originator4 7,b7 ,assess1 as appropriate1 the following activities in the assessment areas of the ,u4,s4 nonbank mortgage originator3 7i7 ,retail lending1 including home loans4 7ii7 ,community development services4 7iii7 ,community development lending and investments1 which may include a consideration of-- 7,i7 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 community2 7,,ii7 the origination of loans by the institution that result in the construction1 rehabilitation or preservation of affordable housing units2 and 7,,iii7 investments in1 grants to1 or loans to community development financial institutions 7as defined in section #ajc of the ,community ,development ,banking and ,financial ,institutions ,act of #aiid 7#ab ,u4,s4,c4 #dgjb771 community development corporations 7as defined in section #fac of the ,community ,economic ,development ,act of #aiha 7#db ,u4,s4,c4 #ihjb771 and other nonprofit organizations serving the housing and development needs of the community4 7iv7 ,retail lending assessment areas shall be established if not more than #ij percent of the retail loans of the ,u4,s4 nonbank originator are in containing offices or agents4 ,the evaluations shall also examine lending outside of retail lending assessment areas and assessment areas containing offices or agents4 ,evaluations of these loans shall be considered when assigning an institution level rating to the ,u4,s4 nonbank mortgage originator4 7,c7 ,with respect to its evaluation of an application for a deposit facility by the ,u4,s4 nonbank mortgage originator-- 7i7 consider the record described in subparagraph 7,a71 the activities described in subparagraph 7,b71 the overall rating of the ,u4,s4 nonbank mortgage originator under this section1 and any improvement plans submitted pursuant to this section2 7ii7 provide an opportunity for public comment for a period of not less than #fj days2 7iii7 consider changes in the community reinvestment performance of the ,u4,s4 nonbank mortgage originator since the most recent rating under this section by the appropriate ,federal financial supervisory agency2 and 7iv7 require-- 7,i7 a demonstration that granting the application for a deposit facility is in the public interest1 which shall include a submission of a community benefits plan1 which shall be commensurate with the ability of the institution to accomplish the plan1 by the ,u4,s4 nonbank mortgage originator to the appropriate ,federal financial supervisory agency2 7,,ii7 that the ,u4,s4 nonbank mortgage originator consult with community-based organizations and other community stakeholders in developing the community benefits plan2 and 7,,iii7 a public hearing for any ,u4,s4 nonbank mortgage originator that has a received a need-to-improve or low satisfactory grade in any individual assessment area during the most recent examination4 7#b7 ,penalties and fees ,the appropriate ,federal financial supervisory agency shall have the same authority to assess penalties and fees under subsection 7a77#d7 for the ,u4,s4 nonbank mortgage originator as is the case for regulated financial institutions described in subsection 7a74 7#c7 ,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 fees1 based in part on the rating of institutions under this section4 7c7 ,requirements 7#a7 ,in general ,in connection with its examination of a regulated financial institution under subsection 7a7 or 7b71 the appropriate ,federal financial supervisory agency shall-- 7,a7 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 community1 including low- and moderate-income communities1 and hold not less than #a public hearing to receive comments for large banks with assets of not less than #ej1jjj1jjj1jjj2 and 7,b7 require-- 7i7 an improvement plan for an institution that receives a rating of #8low satisfactory' or lower on the written evaluation of the institution1 or such a rating in any individual assessment area2 and 7ii7 the improvement plan described in clause 7i7 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 examination4 7#b7 ,improvement plan 7,a7 ,in general ,a regulated financial institution that is required to submit an improvement plan required under paragraph 7#a77;,b7 shall submit the plan in writing to the appropriate ,federal financial supervisory agency not later than #ij days after receiving notice that the regulated financial institution is required to submit the plan4 7,b7 ,public comment ,upon receipt of an improvement plan of a regulated financial institution required under paragraph 7#a77;,b71 the appropriate ,federal financial supervisory agency shall-- 7i7 make the plan available to the public for review and comment for a period of not less than #fj days2 and 7ii7 require the regulated financial institution to revise1 as appropriate1 the improvement plan in response to the public comments received under the public review and comment period described in clause 7i7 and submit the plan to the appropriate ,federal financial supervisory agency not later than #fj days after the end of that period4 7#c7 ,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 country1 the institution shall-- 7,a7 be evaluated under subsection 7a7 or 7b71 as applicable-- 7i7 by considering the effectiveness of the institution in serving customers or borrowers1 with a special emphasis on low- and moderate-income individuals and other underserved populations across the country regardless of where the individuals reside2 and 7ii7 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 areas1 which may include low levels of lending or other financial products across ,states or other areas2 and 7,b7 meet the needs of other distressed or underserved communities4 7d7 ,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 7a7 or 7b74 7e7 ,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 subsidiary1 if applicable4 2 7,c7 in subsection 7f71 as so redesignated-- 7i7 by striking paragraph 7#b72 7ii7 by redesignating paragraph 7#c7 as paragraph 7#b72 and 7iii7 in paragraph 7#b71 as so redesignated1 by striking subparagraph 7,c72 and 7,d7 in subsection 7g71 as so redesignated1 by striking subsection 7a7 and inserting subsections 7a7 and 7b72 7#c7 in section #hjg 7#ab ,u4,s4,c4 #bijf7-- 7,a7 in subsection 7a7-- 7i7 by striking an insured depository institution and inserting a regulated financial institution2 and 7ii7 by inserting or financial after credit2 7,b7 in subsection 7b7-- 7i7 in paragraph 7#a7-- 7,i7 in subparagraph 7,a7-- 7aa7 in clause 7ii71 by striking and at the end2 7bb7 by redesignating clause 7iii7 as clause 7iv72 and 7cc7 by inserting after clause 7ii7 the following3 7iii7 disclose whether the institution engaged in acts or practices that the ,bureau of ,consumer ,financial ,protection has determined1 and has publicly disclosed1 violate the enumerated consumer laws2 and 2 and 7,,ii7 by striking subparagraph 7,b7 and inserting the following3 7,b7 ,evaluation on an assessment area basis ,the information required under subsections 7a7 and 7b7 of section #hjd shall be presented separately for each assessment area4 7,c7 ,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 unfair1 deceptive1 or abusive or acts or practices that violate enumerated consumer laws intended to ensure the fair1 equitable1 and nondiscriminatory access to credit for individuals and communities that are enforced by the ,bureau of ,consumer ,financial ,protection or other ,federal or ,state agencies1 the written evaluation shall be negatively influenced in a manner commensurate with the extent of the harm suffered by those individuals and communities4 2 7ii7 in paragraph 7#b7-- 7,i7 by striking subparagraphs 7,a71 7,b71 7,c71 and 7,d7 and inserting the following3 7,a7 ,outstanding record of meeting community credit or other financial needs4 7,b7 ,high ,satisfactory record of meeting community credit or other financial needs4 7,c7 ,low ,satisfactory record of meeting community credit or other financial needs4 7,d7 ,needs to improve record of meeting community credit or other financial needs4 7,e7 ,substantial noncompliance in meeting community credit or other financial needs4 2 and 7iii7 by inserting after the flush text following paragraph 7#b7 the following3 7#c7 ,additional authority ,the appropriate ,federal financial supervisory agencies may-- 7,a7 alter the ratings under this subsection to change or include additional ratings for the overall ratings and subtest ratings2 and 7,b7 develop an accompanying point system that includes ranges for each rating category under paragraph 7#b74 2 7,c7 by redesignating subsection 7e7 as subsection 7f72 and 7,d7 by inserting after subsection 7d7 the following3 7e7 ,appeals of rating ,if a regulated financial institution appeals the assigned rating under this section1 the appropriate ,federal financial supervisory agency shall-- 7#a7 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 title2 and 7#b7 provide an opportunity for public comment on the appeal4 2 7#d7 in section #hjf 7#ab ,u4,s4,c4 #bije7-- 7,a7 by striking ,regulations and inserting the following3 7a7 ,in general ,regulations 2 7,b7 in subsection 7a71 as so designated1 by striking companies11 and inserting companies12 and 7,c7 by adding at the end the following3 7b7 ,periodic review ,not later than #e years after the date of enactment of this subsection and every #e years thereafter1 the appropriate ,federal financial supervisory agencies shall-- 7#a7 review the regulations promulgated to carry out this title2 and 7#b7 report to ,congress any recommendations for updates to the regulations and this title1 which may include consideration of-- 7,a7 data collection under this title2 7,b7 the rigor of evaluations under this title2 7,c7 the assessment area coverage of loans and deposits2 and 7,d7 the extent to which the provisions of this title are reducing disparities in access to credit and capital by income and race4 2 and 7#e7 by adding at the end the following3 #haj4 ,data collection and reporting requirements 7a7 ,data collection 7#a7 ,consumer loans 7,a7 ,in general ,each regulated financial institution shall collect and maintain in machine readable form1 as prescribed by the appropriate ,federal financial supervisory agency1 data for consumer loans originated or purchased by the regulated financial institution1 including motor vehicle loans1 credit cards1 lines of credit1 and other secured or unsecured loans4 ,the regulated financial institution shall maintain data separately for each category of consumer loan1 including the following for each loan3 7i7 ,a unique number or alpha-numeric symbol that can be used to identify the relevant loan4 7ii7 ,the loan amount at origination or purchase4 7iii7 ,the loan location4 7iv7 ,the gross annual income of the borrower that the regulated financial institution considered in making its credit decision4 7,b7 ,exemptions ,the appropriate ,federal financial supervisory agencies may exempt classes of regulated financial institutions from the requirements under subparagraph 7,a7 due to low levels of consumer lending or other factors4 7#b7 ,community development loans and investments 7,a7 ,collection and maintenance of data ,each regulated financial institution shall collect and maintain in machine readable form1 as prescribed by the appropriate ,federal financial supervisory agency1 data on the categories of community development lending and investments1 including data regarding financing affordable housing1 small business development1 and economic development4 7,b7 ,public dissemination ,each regulated financial institution and the appropriate ,federal financial supervisory agencies shall-- 7i7 publicly disseminate the data described in subparagraph 7,a7 on a county level and for categories of census tracts including low- and moderate-income census tracts or other distressed and underserved census tracts2 and 7ii7 consider disseminating the data described in subparagraph 7,a7 by individual census tracts in addition to the categories described in clause 7i74 7#c7 ,assessment area data 7,a7 ,in general ,each regulated financial institution shall collect and report to the appropriate ,federal financial supervisory agency by ,march #a of each year a list for each assessment area showing the geographies within the area4 7,b7 ,publication ,the appropriate ,federal financial supervisory agencies shall make the list of assessment areas reported by each regulated financial institution under subparagraph 7,a7 publicly available on the part of the website of the appropriate ,federal financial supervisory agency that contains information on this title4 7#d7 ,deposits ,the appropriate ,federal financial supervisory agencies shall-- 7,a7 collect data from regulated financial institutions that reflects-- 7i7 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 customers2 and 7ii7 the number of small businesses that are located in the census tract categories described in clause 7i72 and 7,b7 consider the dissemination of the deposit data collected under subparagraph 7,a7 by individual census tracts in addition to the categories described in that subparagraph4 7b7 ,aggregate disclosure statements 7#a7 ,in general ,each appropriate ,federal financial supervisory agency shall prepare annually1 for each assessment area1 a disclosure statement of home1 small business1 small farm1 and consumer lending for each regulated financial institution subject to reporting under this section and an aggregated statement for all reporting institutions combined1 which shall indicate1 for each assessment area1 the number and amount of all small business1 small farm1 and consumer loans originated or purchased sorted by income level of borrowers1 race and ethnicity of borrowers1 revenue size of small businesses and farms1 and categories of census tracts4 7#b7 ,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 7#a74 7#c7 ,adjusted form ,an appropriate ,federal financial supervisory agency may adjust the form of the disclosure statement prepared under paragraph 7#a7 if necessary1 because of special circumstances1 to protect the privacy of a borrower or the competitive position of a regulated financial institution4 7c7 ,central data depositories ,the ,federal ,financial ,institutions ,examination ,council1 in consultation with the appropriate ,federal financial supervisory agencies1 shall implement a system-- 7#a7 to allow the public to access online and in a searchable format the data maintained under paragraphs 7#a7 through 7#d7 of subsection 7a72 and 7#b7 that ensures that personally identifiable financial information is not disclosed to public4 7d7 ,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 consumer4 #haa4 ,community ,advisory ,committees 7a7 ,depository institutions ,each regulated financial institution that is not a ,u4,s4 nonbank mortgage originator shall form a separate ,community ,advisory ,committee 7which shall be composed of a diverse set of consumer1 housing1 community development1 and other stakeholder groups7 in each of the following3 7#a7 ,with respect to a depository institution with consolidated assets equal to or greater than #b1jjj1jjj1jjj the branches of which are located in #a census region1 each metropolitan statistical area where the financial institution or any subsidiaries of the financial institution have a branch or other facility 7including an automated teller machine7 and each metropolitan statistical area where the financial institution has a substantial number of customers who maintain deposit accounts with the financial institution4 7#b7 ,with respect to a depository institution with consolidated assets equal to or greater than #b1jjj1jjj1jjj the branches of which are located in more than #a census region1 each census division within each of the regions4 7#c7 ,with respect to a depository institution with consolidated assets of less than #b1jjj1jjj1jjj1 each ,state where the financial institution or any subsidiaries of the financial institution are located4 7b7 ,u4,s4 nonbank mortgage originators ,each ,u4,s4 nonbank mortgage originator shall form a separate ,community ,advisory ,committee 7which shall be composed of a diverse set of consumer1 housing1 community development1 and other stakeholder groups7 in each of the following3 7#a7 ,with respect to a ,u4,s4 nonbank mortgage originator that is required to make a number of disclosures under the ,home ,mortgage ,disclosure ,act of #aige 7#ab ,u4,s4,c4 #bhja et seq47 that is less than the national median1 each ,state in which the ,u4,s4 nonbank mortgage originator offers loans4 7#b7 ,with respect to a ,u4,s4 nonbank mortgage originator that is required to make a number of disclosures under the ,home ,mortgage ,disclosure ,act of #aige 7#ab ,u4,s4,c4 #bhja et seq47 that is more than the national median1 each census division within the census regions in which the ,u4,s4 nonbank mortgage originator offers loans4 7c7 ,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 7a7 or 7b71 as applicable-- 7#a7 to discuss the financial institution's current work to meet the credit and deposit needs of low- and moderate-income individuals and underserved communities1 persons with disabilities1 ,,lgbtq communities1 and ,chinese1 ,asian ,indian1 ,filipino1 ,japanese1 ,korean1 ,vietnamese1 ,pakistani1 ,cambodian1 ,hmong1 ,laotian1 ,thai1 ,taiwanese1 ,burmese1 ,bangladeshi1 ,nepalese1 ,indonesian1 ,malaysian1 ,hispanic or ,latino1 ,black or ,african ,american1 ,american ,indian and ,alaska ,native1 ,native ,hawaiian1 ,samoan1 ,chamorro1 ,tongan1 i,taukei1 ,marshallese1 and ,other ,pacific ,islander communities1 as applicable to the geographic areas of the financial institution2 7#b7 with respect to an institution described in subsection 7a77#b7 or a ,u4,s4 nonbank mortgage originator described in subsection 7b77#b71 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 community1 including low- and moderate-income neighborhoods2 and 7#c7 to discuss the institution's data 7which shall be disaggregated by ,chinese1 ,asian ,indian1 ,filipino1 ,japanese1 ,korean1 ,vietnamese1 ,pakistani1 ,cambodian1 ,hmong1 ,laotian1 ,thai1 ,taiwanese1 ,burmese1 ,bangladeshi1 ,nepalese1 ,indonesian1 ,malaysian1 ,hispanic or ,latino1 ,black or ,african ,american1 ,american ,indian and ,alaska ,native1 and ,native ,hawaiian1 ,samoan1 ,chamorro1 ,tongan1 i,taukei1 ,marshallese and ,other ,pacific ,islander communities1 as applicable to the institution's geographic areas7 on-- 7,a7 mortgage lending and lending to small businesses and small farms1 as defined in section #hjd7;a77#b77;,c72 7,b7 retail products and services2 7,c7 community development services2 and 7,d7 community development financing4 7d7 ,specific consultations ,in addition to the consultations required under paragraph 7#b71 the executives of a depository institution described in subsection 7a77#b7 shall meet with the ,community ,advisory ,committee of the institution before-- 7#a7 the institution applies for a merger or acquisition2 7#b7 the institution1 or any subsidiary of the institution1 applies for deposit insurance2 7#c7 the institution applies to open a new branch or to relocate an existing branch2 or 7#d7 the institution provides notice that it would close a branch or other facility4 #hab4 ,study on discrimination and disparities in access to credit 7a7 ,study ,not later than the end of the #b-year period beginning on the date of enactment of this section1 and every #b years thereafter1 the appropriate ,federal financial supervisory agencies shall1 jointly1 and in consultation with such other ,federal or ,state agencies as the appropriate ,federal financial supervisory agencies determine appropriate1 complete an interagency statistical study to identify-- 7#a7 metropolitan areas and rural counties that either experience ongoing discrimination or exhibit significant racial disparities in access to credit for any racial or ethnic group2 and 7#b7 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 tract4 7b7 ,use of data ,in carrying out each study required under subsection 7a71 the appropriate ,federal financial supervisory agencies shall make use of data including-- 7#a7 data obtained under the ,home ,mortgage ,disclosure ,act of #aige 7#ab ,u4,s4,c4 #bhja et seq472 7#b7 data obtained under section #gjd;,b of the ,equal ,credit ,opportunity ,act 7#ae ,u4,s4,c4 #afia;c-#b72 7#c7 data obtained under this ,act2 7#d7 available ,state data2 and 7#e7 information contained in public litigation against regulated financial institutions for redlining or lending discrimination 7including litigation initiated by the ,bureau of ,consumer ,financial ,protection1 the ,department of ,housing and ,urban ,affairs1 the ,department of ,justice1 or by private parties74 7c7 ,report ,upon the completion of each study required under subsection 7a71 the appropriate ,federal financial supervisory agencies shall jointly submit to the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate and the ,committee on ,financial ,services of the ,house of ,representatives a report that includes-- 7#a7 all findings and determinations made in carrying out the study2 and 7#b7 policy recommendations to remedy the discrimination and disparities identified in the study4 #hac4 ,public registries ,the appropriate ,federal supervisory financial agencies1 acting through the ,federal ,financial ,institutions ,examination ,council1 shall-- 7#a7 maintain a list of community-based organizations and other stakeholders who wish to be listed and who have commented on examinations conducted under section #hjd and applications regarding community needs and bank performance2 and 7#b7 conduct outreach to community groups and strive for geographical diversity1 gender and racial diversity1 and diversity in terms of various types of needs1 including affordable housing and economic development to community facilities4 4 7c7 ,amendment to the ,bank ,holding ,company ,act of #aief ,section #d7k77#f7 of the ,bank ,holding ,company ,act of #aief 7#ab ,u4,s4,c4 #ahdc7k77#f77 is amended to read as follows3 7#f7 ,notice and opportunity for comment required 7,a7 ,in general ,no financial holding company shall directly or indirectly acquire1 and no company that becomes a financial holding company shall directly or indirectly acquire control of1 any company in the ,united ,states1 including through merger1 consolidation1 or other type of business combination1 that is engaged in activities permitted under this subsection or subsection 7n7 or 7o71 unless-- 7i7 the holding company has provided notice to the ,board1 not later than #fj days prior to the proposed acquisition or prior to becoming a financial holding company1 and during that time period1 or such longer time period not exceeding an additional #fj days1 as established by the ,board2 7ii7 the ,board has provided public notice and opportunity for comment for not less than #fj days2 and 7iii7 the ,board has not issued a notice disapproving the proposed acquisition or retention4 7,b7 ,factors for consideration ,in reviewing any prior notice filed under this paragraph1 the ,board shall-- 7i7 consider the overall rating of the financial holding company under the ,community ,reinvestment ,act of #aigg 7#ab ,u4,s4,c4 #bija et seq47 and any improvement plans submitted pursuant to that ,act2 7ii7 provide opportunity for public comment for a period of not less than #fj days2 7iii7 consider changes in the community reinvestment performance of the financial holding company since the last rating under the ,community ,reinvestment ,act of #aigg 7#ab ,u4,s4,c4 #bija et seq47 by the appropriate ,federal financial supervisory agency2 and 7iv7 require-- 7,i7 a demonstration that granting the application for a deposit facility is in the public interest1 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 plan2 7,,ii7 that the institution consult with community-based organizations and other community stakeholders in developing the community benefits plan2 and 7,,iii7 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 #aigg 7#ab ,u4,s4,c4 #bija et seq474 4 7d7 ,technical and conforming amendment ,section #aj7;c77#b77;,h77i7 of the ,home ,owners' ,loan ,act 7#ab ,u4,s4,c4 #adfg;a7c77#b77;,h77i77 is amended by striking section #hjd7;c7 of the ,community ,reinvestment ,act of #aigg 7#ab ,u4,s4,c4 #bijc7;c77 and inserting section #hjd7;f7 of the ,community ,reinvestment ,act of #aigg 7#ab ,u4,s4,c4 #bijc7;f774 #bjd4 ,amendments relating to credit union service to underserved areas 7a7 ,in general ,the ,federal ,credit ,union ,act 7#ab ,u4,s4,c4 #agea et seq47 is amended-- 7#a7 in section #aja 7#ab ,u4,s4,c4 #ageb7-- 7,a7 in paragraph 7#h71 by striking and at the end2 7,b7 in paragraph 7#i71 by striking the period at the end and inserting 2 and2 and 7,c7 by adding at the end the following3 7#aj7 the term underserved area-- 7,a7 means a local community1 neighborhood1 or rural district that-- 7i7 is an investment area1 as defined in section #ajc of the ,community ,development ,banking and ,financial ,institutions ,act of #aiid 7#ab ,u4,s4,c4 #dgjb71 that meets such additional requirements that the ,board may impose2 and 7ii7 is underserved1 based on data of the ,board and the ,federal banking agencies 7as defined in section #c of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac771 by other depository institutions 7as defined in section #ai7;b77#a77;,a7 of the ,federal ,reserve ,act 7#ab ,u4,s4,c4 #dfa7;b77#a77;,a772 and 7,b7 notwithstanding subparagraph 7,a71 includes1 with respect to any ,federal credit union1 any geographic area within which the credit union-- 7i7 has received approval to provide service as an underserved area before the date of enactment of this paragraph from the ,administration2 and 7ii7 has established a service facility before that date of enactment4 2 7#b7 in section #ajf 7#ab ,u4,s4,c4 #agef7-- 7,a7 in the first sentence1 by striking ,federal and inserting 7a7 ,federal2 and 7,b7 by adding at the end the following3 7b7 ,the ,board shall monitor adherence by a ,federal credit union to a significant unmet needs plan submitted under section #aji7;h7 by that ,federal credit union that describes how the ,federal credit union will serve the deposit and other financial needs of the community4 2 and 7#c7 in section #aji 7#ab ,u4,s4,c4 #agei7-- 7,a7 in subsection 7c71 by amending paragraph 7#b7 to read as follows3 7#b7 ,exception for underserved areas 7,a7 ,in general ,notwithstanding subsection 7b71 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 community1 neighborhood1 or rural district if-- 7i7 the ,board determines-- 7,i7 at any time after ,august #g1 #aiih1 that the local community1 neighborhood1 or rural district taken into account for purposes of this paragraph is an underserved area2 and 7,,ii7 at the time of the approval1 that the credit union is well capitalized or adequately capitalized 7as defined in section #baf7;c77#a772 and 7ii7 before the end of the #bd-month period beginning on the date of the approval1 the credit union has established and maintains an ongoing method to provide services in the local community1 neighborhood1 or rural district4 7,b7 ,termination of approval 7i7 ,in general ,any failure of a ,federal credit union to meet the requirement of clause 7ii7 of subparagraph 7,a7 by the end of the #bd-month period referred to in that clause shall constitute a termination1 as a matter of law1 of any approval of an application under this paragraph by the ,board with respect to the membership of the credit union4 7ii7 ,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 7h77#a74 7,c7 ,credit union reporting requirement ,any ,federal credit union that has an application approved under this paragraph shall1 as part of the ordinary course of the examination cycle and supervision process1 submit a report to the ,administration that includes-- 7i7 the number of members of the credit union who are members by reason of the application2 7ii7 the number of offices or facilities maintained by the credit union in the local community1 neighborhood1 or rural district taken into account by the ,board in approving the application2 and 7iii7 evidence1 as specified by the ,board by regulation1 demonstrating compliance by the credit union with the significant unmet needs plan submitted by the credit union under subsection 7h77#a71 as specified by the ,administration4 7,d7 ,publication by administration ,the ,administration shall publish an annual report containing-- 7i7 a list of all the applications approved under this paragraph before the date on which the report is published2 7ii7 the number and locations of the underserved areas taken into account in approving those applications2 7iii7 the total number of members of credit unions who are members by reason of the approval of those applications2 and 7iv7 evidence demonstrating compliance by credit unions with significant unmet needs plans submitted by the credit unions under subsection 7h77#a71 as specified by the ,administration4 2 7,b7 in subsection 7e77#b71 by inserting subsection 7c77#b7 and after provided in2 and 7,c7 by adding at the end the following3 7h7 ,additional requirements for community credit unions 7#a7 ,in general ,a ,federal credit union desiring a field of membership as a credit union described in subsection 7b77#c7 shall submit to the ,board a business plan1 which shall include1 among other issues1 a marketing plan that identifies-- 7,a7 the unique needs of the various demographic groups in the proposed community2 and 7,b7 how the credit union will market to each group1 particularly underserved groups1 to address those needs4 7#b7 ,public comment and hearing ,with respect to a ,federal credit union desiring a field of membership as a credit union described in subsection 7b77#c7 for an area with multiple political jurisdictions with a population of not less than #b1ejj1jjj1 the ,administration shall-- 7,a7 publish a notice in the ,federal ,register seeking comment from interested parties about the proposed community2 and 7,b7 conduct a public hearing regarding the application of the ,federal credit union4 4 7b7 ,regulations ,not later than #a year after the date of enactment of this ,act1 the ,national ,credit ,union ,administration ,board shall issue final regulations to implement the amendments made by subsection 7a74 #bje4 ,raising public welfare caps 7a7 ,national banks ,the paragraph designated as the ,eleventh4 of section #eacf of the ,revised ,statutes of the ,united ,states 7#ab ,u4,s4,c4 #bd7 is amended to read as follows3 ,eleventh4 ,to make investments directly or indirectly1 each of which promotes the public welfare by benefitting primarily low- and moderate-income communities or families 7such as by providing housing1 services1 or jobs74 ,an association shall not make any such investment if the investment would expose the association to unlimited liability4 ,the ,comptroller of the ,currency shall limit an association's investments in any #a project and an association's aggregate investments under this paragraph4 ,aggregate investments for associations that do not meet the criteria of being well capitalized1 as defined in section #bd4b7;e7 of title #ab1 ,code of ,federal ,regulations1 or any successor regulation1 under this paragraph shall not exceed an amount equal to the sum of #e percent of the association's capital stock actually paid in and unimpaired and #e percent of the association's unimpaired surplus fund1 unless the ,comptroller determines by order that the higher amount will pose no significant risk to the affected deposit insurance fund1 and the association is adequately capitalized4 ,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 #ae percent of the association's capital stock actually paid in and unimpaired and #ae percent of the association's unimpaired surplus fund4 ,aggregate investments of well capitalized associations1 as defined in section #bd4b7;e7 of title #ab1 ,code of ,federal ,regulations1 or any successor regulation1 under this paragraph shall not exceed an amount equal to the sum of #ae percent of the association's capital stock actually paid in and unimpaired and #ae percent of the association's unimpaired surplus fund1 unless the ,comptroller determines by order that the higher amount will pose no significant risk to the affected deposit insurance fund4 ,with respect to any association that meets the criteria for being well capitalized1 as defined in section #bd4b7;e7 of title #ab1 ,code of ,federal ,regulations1 or any successor regulation1 aggregate investments under this paragraph shall not exceed an amount equal to the sum of #be percent of the association's capital stock actually paid in and unimpaired and #be percent of the association's unimpaired surplus fund4 ,the foregoing standards and limitations apply to investments under this paragraph made by a national bank directly and by its subsidiaries44 7b7 ,conforming amendments for ,state member banks ,the #bcrd undesignated paragraph of section #i of the ,federal ,reserve ,act 7#ab ,u4,s4,c4 #cch;a7 is amended to read as follows3 ,a ,state member bank may make investments directly or indirectly1 each of which promotes the public welfare by benefitting primarily low- and moderate-income communities or families 7such as by providing housing1 services1 or jobs71 to the extent permissible under ,state law4 ,a ,state member bank shall not make any such investment if the investment would expose the ,state member bank to unlimited liability4 ,aggregate investments for ,state member banks that do not meet the criteria of being well capitalized1 as defined in section #bjh4dc7;b7 of title #ab1 ,code of ,federal ,regulations1 or any successor regulation1 under this paragraph shall not exceed an amount equal to the sum of #e percent of the association's capital stock actually paid in and unimpaired and #e percent of the association's unimpaired surplus fund1 unless the ,board determines by order that the higher amount will pose no significant risk to the affected deposit insurance fund1 and the association is adequately capitalized4 ,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 #ae percent of the association's capital stock actually paid in and unimpaired and #ae percent of the association's unimpaired surplus fund4 ,aggregate investments of well capitalized ,state member banks1 as defined in section #bjh4dc7;b7 of title #ab1 ,code of ,federal ,regulations1 or any successor regulation1 with an examination rating under section #hjd of the ,community ,reinvestment ,act of #aigg 7#ab ,u4,s4,c4 #bijc7 of outstanding or satisfactory1 under this paragraph shall not exceed an amount equal to the sum of #ae percent of the ,state member bank's capital stock actually paid in and unimpaired and #ae percent of the state member ,bank's unimpaired surplus fund1 unless the ,board determines by order that the higher amount will pose no significant risk to the affected deposit insurance fund4 ,with respect to any ,state member bank that meets meet the criteria for being well capitalized as defined in section #bjh4dc7;b7 of title #ab1 ,code of ,federal ,regulations1 or any successor regulation1 with an examination rating under section #hjd of the ,community ,reinvestment ,act of #aigg 7#ab ,u4,s4,c4 #bijc7 of outstanding or satisfactory1 aggregate investments under this paragraph shall not exceed an amount equal to the sum of #be percent of the ,state member bank's capital stock actually paid in and unimpaired and #be percent of the ,state member bank's unimpaired surplus fund4 ,the foregoing standards and limitations apply to investments under this paragraph made by a ,state member bank directly and by its subsidiaries4 4 #bjf4 ,temporary eligibility of certain direct descendants of certain veterans for housing loans guaranteed by the ,secretary of ,veterans ,affairs 7a7 ,in general ,during the period described in subsection 7b7-- 7#a7 section #cgja7;b7 of title #ch1 ,united ,states ,code1 shall be applied and administered by adding at the end the following new paragraph3 7#h7 7,a7 ,the term veteran also includes1 for purposes of home loans1 any direct descendant of a veteran described in subparagraph 7,b7 if the descendant-- 7i7 is living on the date of the enactment of the ,american ,housing and ,economic ,mobility ,act of #bjbe2 7ii7 is a first-time homebuyer2 and 7iii7 is a first-generation homebuyer4 7,b7 ,a veteran described in this clause is a veteran who-- 7i7 served on active duty at any time during the period between ,june #bb1 #aidd1 and ,april #aa1 #aifh2 7ii7 is deceased2 and 7iii7 did not receive a housing loan benefit under this chapter during his or her lifetime4 7,c7 ,in this paragraph3 7i7 ,the term direct descendant includes a legally adopted descendant4 7ii7 ,the terms first-generation homebuyer and first-time homebuyer have the meanings given those terms in section #bja7;a7 of the ,american ,housing and ,economic ,mobility ,act of #bjbe4 2 and 7#b7 section #cgjb7;a77#b7 of such title shall be applied and administered by adding at the end the following new subparagraph3 7,h7 ,each direct descendant described in section #cgja7;b77#h7 of this title4 4 7b7 ,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 7c74 7c7 ,regulations 7#a7 ,in general ,not later than #ahj days after the date of the enactment of this ,act1 the ,secretary of ,veterans ,affairs shall prescribe regulations to carry out this section4 7#b7 ,elements ,the regulations required by paragraph 7#a7 shall provide rules and procedures for determining-- 7,a7 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 eligibility2 and 7,b7 appropriate implementation of this section if more than one direct descendant of a veteran seeks housing loan benefits under this section4 ,,iii ,removing barriers that isolate communities #cja4 ,expanding rights under the ,fair ,housing ,act 7a7 ,purposes ,the purposes of the amendments made by this section are-- 7#a7 to expand1 as well as clarify1 confirm1 and create greater consistency in1 the protections against discrimination on the basis of all covered characteristics2 and 7#b7 to provide guidance and notice to individuals1 organizations1 corporations1 and agencies regarding their obligations under ,federal law4 7b7 ,amendments to the ,fair ,housing ,act ,the ,fair ,housing ,act 7#db ,u4,s4,c4 #cfja et seq47 is amended-- 7#a7 in section #hjb 7#db ,u4,s4,c4 #cfjb71 by adding at the end the following3 7p7 ,gender identity means the gender-related identity1 appearance1 or mannerisms or other gender-related characteristics of an individual1 regardless of the individual's designated sex at birth4 7q7 ,marital status has the meaning given the term in section #bjb4b of title #ab1 ,code of ,federal ,regulations1 or any successor regulation4 7r7 ,sexual orientation means homosexuality1 heterosexuality1 or bisexuality4 7s7 ,source of income includes income for which there is a reasonable expectation that the income will continue from-- 7#a7 a profession1 occupation1 or job2 7#b7 any government or private assistance1 grant1 loan1 or rental assistance program1 including vouchers issued under the ,united ,states ,housing ,act of #aicg 7#db ,u4,s4,c4 #adcg et seq472 7#c7 a gift1 an inheritance1 a pension1 an annuity1 alimony1 child support1 or other consideration or benefit2 or 7#d7 the sale or pledge of property or an interest in property4 7t7 ,veteran status means-- 7#a7 a member of the uniformed services1 as defined in section #aja of title #aj1 ,united ,states ,code2 or 7#b7 a veteran1 as defined in section #aja of title #ch1 ,united ,states ,code4 2 7#b7 in section #hjd 7#db ,u4,s4,c4 #cfjd7-- 7,a7 by inserting actual or perceived before race1 color each place that term appears2 7,b7 by striking sex1 each place that term appears and inserting sex 7including sexual orientation and gender identity71 marital status1 source of income1 veteran status12 and 7,c7 in subsection 7c7-- 7i7 by inserting 7#a7 before ,to make2 and 7ii7 by adding at the end the following3 7#b7 ,nothing in this title shall be construed to-- 7,a7 prohibit a lender from implementing a loan program for veterans or based upon veteran status2 or 7,b7 prohibit an entity from providing housing assistance under-- 7i7 section #h7o77#ai7 of the ,united ,states ,housing ,act of #aicg 7#db ,u4,s4,c4 #adcg;f7o77#ai772 7ii7 the ,homeless ,providers ,grant and ,per ,diem program of the ,department of ,veterans ,affairs2 or 7iii7 any other ,federal housing assistance program for veterans or based on veteran status4 2 7#c7 in section #hje 7#db ,u4,s4,c4 #cfje7-- 7,a7 by inserting actual or perceived before race1 color each place that term appears2 and 7,b7 by striking sex1 each place that term appears and inserting sex 7including sexual orientation and gender identity71 marital status1 source of income1 veteran status12 7#d7 in section #hjf 7#db ,u4,s4,c4 #cfjf7-- 7,a7 by inserting actual or perceived before race1 color2 and 7,b7 by striking sex1 each place that term appears and inserting sex 7including sexual orientation and gender identity71 marital status1 source of income1 veteran status12 and 7#e7 in section #hjh7;e77#f7 7#db ,u4,s4,c4 #cfjh7;e77#f771 by striking sex1 and inserting sex 7including sexual orientation and gender identity71 marital status1 source of income1 veteran status14 7c7 ,prevention of intimidation ,section #ija of the ,civil ,rights ,act of #aifh 7#db ,u4,s4,c4 #cfca7 is amended-- 7#a7 by inserting actual or perceived before race1 color each place that term appears2 and 7#b7 by striking sex1 each place that term appears and inserting sex 7including sexual orientation 7as such term is defined in section #hjb of this ,act7 and gender identity 7as defined in section #hjb of this ,act771 marital status 7as defined in section #hjb71 source of income 7as defined in section #hjb71 veteran status 7as defined in section #hjb714 7d7 ,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 ,act4 #cjb4 ,improving outcomes in housing assistance programs 7a7 ,indian housing assistance ,section #ejb of the ,native ,american ,housing ,assistance and ,self-,determination ,act of #aiif 7#be ,u4,s4,c4 #daha7 is amended by adding at the end the following3 7c7 ,applicability ,subsections 7a7 and 7b7 shall not apply with respect to tenant-based assistance provided under section #h7o7 of the ,united ,states ,housing ,act of #aicg 7#db ,u4,s4,c4 #adcg;f7o774 4 7b7 ,supplemental administrative fee ,section #h7q77#b77;,b7 of the ,united ,states ,housing ,act of #aicg 7#db ,u4,s4,c4 #adcg;f7q77#b77;,b77 is amended by inserting 1 including the cost of assisting families with children or families with a member with a disability that move to lower poverty1 higher opportunity neighborhoods 7as determined by the ,secretary based on objective1 evidence-based criteria7 after programs4 7c7 ,regional planning ,to increase access to higher opportunity areas ,section #h7o7 of the ,united ,states ,housing ,act of #aicg 7#db ,u4,s4,c4 #adcg;f7o77 is amended by adding at the end the following3 7#bc7 ,increasing access to higher opportunity areas 7,a7 ,location analysis 7i7 ,in general ,a public housing agency that administers the program under this subsection in a metropolitan area shall-- 7,i7 analyze the locations where the participants in the program of the public housing agency live2 and 7,,ii7 based on the analysis described in subclause 7,i71 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 adults4 7ii7 ,considerations ,the location analysis required under this subparagraph shall-- 7,i7 consider separately the locations of families with children1 households that include a person with disabilities1 and other groups protected under the ,fair ,housing ,act 7#db ,u4,s4,c4 #cfja et seq472 and 7,,ii7 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 success1 based on ,federal and available local data4 7iii7 ,mapping tools ,the ,secretary shall-- 7,i7 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 #ijh of title #bd1 ,code of ,federal ,regulations1 or any successor regulation2 7,,ii7 publish a notice in the ,federal ,register1 subject to public comment1 that specifies the data sources and definitions that will be incorporated in each mapping tool required under subclause 7,i72 and 7,,iii7 update the notice required under subclause 7,,ii7 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 subsection4 7iv7 ,frequency and availability ,the location analysis required under this subparagraph shall-- 7,i7 be performed by each public housing agency described in clause 7i7 not less frequently than once every #e years2 7,,ii7 be performed by all public housing agencies in a metropolitan area in the same year1 as determined by the ,secretary2 and 7,,iii7 be made available to the public in a manner that protects the privacy of program participants4 7,b7 ,regional policies to increase access to higher opportunity neighborhoods ,each public housing agency described in subparagraph 7,a77i7 shall-- 7i7 consult with other such public housing agencies in the same metropolitan area1 or smaller regional area approved by the ,secretary1 about the possible barriers and other reasons for the disparities identified in the location analysis required under subparagraph 7,a72 7ii7 identify policies or practices that those public housing agencies could adopt individually or in collaboration1 or other strategies that recipients of grants or other funding from the ,secretary could adopt1 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 region2 and 7iii7 include in the administrative plan required under section #ihb4ed of title #bd1 ,code of ,federal ,regulations1 or any successor regulation1 the policies that the public housing agency has adopted under this paragraph4 7,c7 ,assessment ,the ,secretary shall include public housing agency performance in achieving the goal described in subparagraph 7,a77i77,,ii7 in the periodic assessment of agency performance in managing the program under this subsection required under part #ihe of title #bd1 ,code of ,federal ,regulations1 or any successor regulation4 4 7d7 ,required regulatory changes to public housing agency consortia 7#a7 ,definitions ,in this subsection3 7,a7 ,moving to ,work demonstration program ,the term ,moving to ,work demonstration program means the program established under section #bjd of the ,departments of ,veterans ,affairs and ,housing and ,urban ,development1 and ,independent ,agencies ,appropriations ,act1 #aiif 7,public ,law #ajd-acd2 #aaj ,stat4 #acba-bha74 7,b7 ,public housing agency ,the term public housing agency has the meaning given the term in section #c7;b77#f7 of the ,united ,states ,housing ,act of #aicg 7#db ,u4,s4,c4 #adcg;a7b77#f774 7#b7 ,requirement ,not later than #a year after the date of enactment of this ,act1 the ,secretary of ,housing and ,urban ,development shall establish policies and procedures that-- 7,a7 enable public housing agencies that elect to operate in consortia under section #ac7;a7 of the ,united ,states ,housing ,act of #aicg 7#db ,u4,s4,c4 #adcgk7a771 excluding public housing agencies participating in the ,moving to ,work demonstration program-- 7i7 to consolidate their funding contracts for assistance provided under section #h7o7 of such ,act 7#db ,u4,s4,c4 #adcg;f7o77 into a single contract2 7ii7 to consolidate their funding contracts for assistance provided under subsections 7d7 and 7e7 of section #i of such ,act 7#db ,u4,s4,c4 #adcg;g72 or 7iii7 to exercise the consolidation options under each of clauses 7i7 and 7ii72 and 7,b7 enable public housing agencies to form partial consortia under such section #ac7;a7 7#db ,u4,s4,c4 #adcgk7a77 that consolidate the administration of certain aspects of their housing programs to increase access to higher-opportunity areas or for other purposes1 subject to such requirements as the ,secretary may establish4 7#c7 ,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 7#b77;,b7 by #a or more public housing agencies participating in the ,moving to ,work demonstration program4 ,,iv ,estate tax reform #dja4 ,amendment to ,internal ,revenue ,code of #aihf ,except as otherwise expressly provided1 whenever in this title an amendment or repeal is expressed in terms of an amendment to1 or repeal of1 a section or other provision1 the reference shall be considered to be made to a section or other provision of the ,internal ,revenue ,code of #aihf4 #djb4 ,rate adjustment 7a7 ,increase in estate tax rates ,the table contained in section #bjja7;c7 is amended to read as follows3 ,if the amount with respect to which the tentative tax to be computed is3,the tentative tax is3,not over #ac1jjj1jjjee percent of such amount4,over #ac1jjj1jjj but not over #ic1jjj1jjjg1aej1jjj1 plus #fj percent of the excess of such amount over #ac1jjj1jjj4,over #ic1jjj1jjjee1aej1jjj1 plus #fe percent of the excess of such amount over #ic1jjj1jjj4 7b7 ,reduction of basic exclusion amount ,paragraph 7#c7 of section #bjaj7;c7 is amended to read as follows3 7#c7 ,basic exclusion amount ,for purposes of this subsection1 the basic exclusion amount is #c1ejj1jjj4 4 7c7 ,surtax on billion dollar estates ,section #bjja is amended-- 7#a7 in subsection 7b71 by striking ,the tax and inserting ,subject to subsection 7h71 the tax1 and 7#b7 by adding at the end the following new subsection3 7h7 ,surtax on billion dollar estates 7#a7 ,in general ,in the case of a taxable estate for which the applicable amount is in excess of #a1jjj1jjj1jjj1 the tax determined under subsection 7b7 shall be increased by an amount equal to #aj percent of such applicable amount4 7#b7 ,applicable amount ,for purposes of this subsection1 the applicable amount shall be equal to the sum of the amounts under subparagraphs 7,a7 and 7,b7 of paragraph 7#a7 of subsection 7b7 for the taxable estate4 4 7d7 ,effective date ,the amendments made by this section shall apply to estates of decedents dying1 and generation-skipping transfers and gifts made1 after the date of the enactment of this ,act4 #djc4 ,required minimum #aj-year term1 etc41 for grantor retained annuity trusts 7a7 ,in general ,subsection 7b7 of section #bgjb is amended-- 7#a7 by redesignating paragraphs 7#a71 7#b71 and 7#c7 as subparagraphs 7,a71 7,b71 and 7,c71 respectively1 and by moving such subparagraphs 7as so redesignated7 #b ems to the right1 7#b7 by striking ,for purposes of and inserting the following3 7#a7 ,in general ,for purposes of 1 7#c7 by striking paragraph 7#a7 or 7#b7 in paragraph 7#a77;,c7 7as so redesignated7 and inserting subparagraph 7,a7 or 7,b71 and 7#d7 by adding at the end the following new paragraph3 7#b7 ,additional requirements with respect to grantor retained annuities ,for purposes of subsection 7a71 in the case of an interest described in paragraph 7#a77;,a7 7determined without regard to this paragraph7 which is retained by the transferor1 such interest shall be treated as described in such paragraph only if-- 7,a7 the right to receive the fixed amounts referred to in such paragraph is for a term of not less than #aj years1 7,b7 such fixed amounts1 when determined on an annual basis1 do not decrease relative to any prior year during the first #aj years of the term referred to in subparagraph 7,a71 and 7,c7 the remainder interest has a value equal to or greater than #aj percent of the value of the assets transferred to the trust1 determined as of the time of the transfer4 4 7b7 ,effective date ,the amendments made by this section shall apply to transfers made after the date of the enactment of this ,act4 #djd4 ,certain transfer tax rules applicable to grantor trusts 7a7 ,in general ,subtitle ,b is amended by adding at the end the following new chapter3 #af ,special rules for grantor trusts ,sec4 #bija4 ,application of transfer taxes4 #bija4 ,application of transfer taxes 7a7 ,in general ,in the case of any portion of a trust to which this section applies-- 7#a7 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 owner1 7#b7 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 #ab1 and 7#c7 if at any time during the life of the deemed owner of such portion1 such owner ceases to be treated as the owner of such portion under subpart ,e of part #a of subchapter ,j of chapter #a1 all assets attributable to such portion at such time shall be treated for purposes of chapter #ab as a transfer by gift made by the deemed owner4 7b7 ,portion of trust to which section applies ,this section shall apply to-- 7#a7 the portion of a trust with respect to which the grantor is the deemed owner1 and 7#b7 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 #a of subchapter ,j of chapter #a1 and such deemed owner engages in a sale1 exchange1 or comparable transaction with the trust that is disregarded for purposes of subtitle ,a4 ,for purposes of paragraph 7#b71 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 transaction1 including all retained income therefrom1 appreciation thereon1 and reinvestments thereof1 net of the amount of consideration received by the deemed owner in such transaction4 7c7 ,exceptions ,this section shall not apply to-- 7#a7 any trust that is includible in the gross estate of the deemed owner 7without regard to subsection 7a77#a771 and 7#b7 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 taxes4 7d7 ,deemed owner defined ,for purposes of this section1 the term deemed owner means any person who is treated as the owner of a portion of a trust under subpart ,e of part #a of subchapter ,j of chapter #a4 7e7 ,reduction for taxable gifts to the trust made by owner ,the amount to which subsection 7a7 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 #ab4 7f7 ,liability for payment of tax ,any tax imposed pursuant to subsection 7a7 shall be a liability of the trust4 4 7b7 ,clerical amendment ,the table of chapters for subtitle ,b is amended by adding at the end the following new item3 ,chapter #af4 ,special rules for grantor trusts 4 7c7 ,effective date ,the amendments made by this section shall apply-- 7#a7 to trusts created on or after the date of the enactment of this ,act1 7#b7 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 date1 and 7#c7 to any portion of a trust established before the date of the enactment of this ,act to which section #bija7;a7 of the ,internal ,revenue ,code of #aihf 7as added by subsection 7a77 applies by reason of a transaction described in section #bija7;b77#b7 of such ,code on or after such date4 #dje4 ,elimination of generation-skipping transfer tax exemption for transfers to certain persons 7a7 ,in general ,section #bfdb is amended by adding at the end the following new subsection3 7h7 ,elimination of ,,gst exemption for transfers to certain persons 7#a7 ,in general 7,a7 ,transfer to non-exempt person ,in the case of any direct skip or taxable distribution made to any person who is not an exempt person1 the inclusion ratio shall be #a4 7,b7 ,taxable termination ,in the case of any taxable termination which occurs at any time immediately after no exempt person is a beneficiary of the trust1 the inclusion ratio shall be #a4 7,c7 ,exempt person 7i7 ,in general ,for purposes of this subsection1 the term exempt person means-- 7,i7 a natural person-- 7aa7 who is assigned to a generation which is #b or fewer generations below the generation assignment of the transferor1 or 7bb7 whose date of birth precedes the date on which the trust was created1 or 7,,ii7 a trust in which all interests are held by persons described in subclause 7,i74 7ii7 ,exception ,for purposes of clause 7i77,,ii71 any interest which is used primarily to postpone or avoid the application of this subsection shall be disregarded4 7#b7 ,date of creation 7,a7 ,in general ,for purposes of determining the date on which a trust was created under paragraph 7#a77;,c77i77,i77bb71 if the trust was created before ,january #a1 #bjbf1 such trust shall be deemed to have been created on ,january #a1 #bjbf4 7,b7 ,date of creation of pour-over trusts 7i7 ,in general ,in the case of any generation-skipping transfer of property which involves the transfer of property from one trust to another trust1 the date of the creation of the transferee trust shall be treated as being the earlier of-- 7,i7 the date of the creation of such transferee trust1 or 7,,ii7 the date of the creation of the transferor trust4 7ii7 ,multiple transfers ,in the case of multiple transfers to which clause 7i7 applies-- 7,i7 the date of the creation of the transferor trust shall be determined under such clause1 and 7,,ii7 subsequent to the determination described in subclause 7,i71 the date of the creation of the transferee trust shall be determined under such clause4 7#c7 ,generation assignment ,for purposes of this subsection1 the provisions of section #bfec7;a7 shall not apply4 7#d7 ,regulations ,the ,secretary may prescribe such regulations or other guidance as may be necessary or appropriate to carry out this subsection4 4 7b7 ,repeal ,section #adcc7;b77#b7 of the ,tax ,reform ,act of #aihf 7,public ,law #ii-ead7 is repealed4 7c7 ,effective dates 7#a7 ,in general ,the amendment made by subsection 7a7 shall take effect on the date of the enactment of this ,act4 7#b7 ,repeal ,the amendment made by subsection 7b7 shall apply to generation-skipping transfers 7within the meaning of section #bfaa of the ,internal ,revenue ,code of #aihf7 made after the date of enactment of this ,act4 #djf4 ,simplifying gift tax exclusion for annual gifts 7a7 ,in general ,paragraph 7#a7 of section #bejc7;b7 is amended to read as follows3 7#a7 ,in general 7,a7 ,limit per donee ,in the case of gifts made to any person by the donor during the calendar year1 the first #aj1jjj of such gifts to such person shall not1 for purposes of subsection 7a71 be included in the total amount of gifts made during such year4 7,b7 ,cumulative limit per donor 7i7 ,in general ,the aggregate amount excluded under subparagraph 7,a7 with respect to all transfers described in clause 7ii7 made by the donor during the calendar year shall not exceed twice the dollar amount in effect under such subparagraph for such calendar year4 7ii7 ,transfers subject to limitation ,the transfers described in this clause are-- 7,i7 a transfer in trust1 7,,ii7 a transfer of an interest in a passthrough entity1 7,,iii7 a transfer of an interest subject to a prohibition on sale1 and 7,,iv7 any other transfer of property that1 without regard to withdrawal1 put1 or other such rights in the donee1 cannot immediately be liquidated by the donee4 4 7b7 ,conforming amendment ,section #bejc is amended by striking subsection 7c74 7c7 ,regulations ,the ,secretary of the ,treasury1 or the ,secretary of the ,treasury's delegate1 may prescribe such regulations or other guidance as may be necessary or appropriate to carry out the amendments made by this section4 7d7 ,effective date ,the amendments made by this section shall apply to any calendar year beginning after the date of the enactment of this ,act4 #djg4 ,clarification regarding disallowance of step-up in basis for property held in certain grantor trusts 7a7 ,in general ,section #ajad is amended-- 7#a7 by redesignating subsection 7f7 as subsection 7g71 and 7#b7 by inserting after subsection 7e7 the following3 7f7 ,property held in certain grantor trusts ,this section shall not apply to property-- 7#a7 held in a trust of which the transferor is considered the owner under subpart ,e of part ,i of subchapter ,j1 and 7#b7 if1 after the transfer of such property to the trust1 such property is not includible in the gross estate of the transferor for purposes of chapter #aa4 4 7b7 ,conforming amendment ,section #fffb7k7 is amended by striking #ajad7;f7 and inserting #ajad7;g74 7c7 ,effective date ,the amendments made by this section shall apply to transfers after the date of the enactment of this ,act4 7d7 ,no inference ,no inference may be drawn from the amendments made by this section with respect to the application of section #ajad of the ,internal ,revenue ,code of #aihf to property described in subsection 7f7 of such section 7as added by subsection 7a77 which was transferred on or before the date of enactment of this ,act4 #djh4 ,limitation on discounts2 valuation rules for certain transfers of nonbusiness assets 7a7 ,in general ,chapter #ad of subtitle ,b is amended by adding at the end the following new section3 #bgje4 ,limitation on discounts2 valuation rules for certain transfers of nonbusiness assets 7a7 ,limitation on discount by reason of family control 7#a7 ,in general ,for purposes of this subtitle1 in the case of the transfer of any interest in an entity other than an interest which is actively traded 7within the meaning of section #ajib71 if the transferor1 the transferee1 and members of the family of the transferor and transferee have control of such entity immediately before such transfer1 no discount shall be allowed-- 7,a7 by reason of the fact that the transferor or transferee does not have control of such entity1 7,b7 by reason of the lack of marketability of the interest1 or 7,c7 for any other reason4 7#b7 ,definitions ,in this subsection1 the terms control and member of the family have the same meanings given such terms in section #bgjd7;c74 7#c7 ,attribution ,for purposes of this section1 the rule of section #bgja7;e77#c7 shall apply for purposes of determining the interests held by any individual4 7b7 ,valuation rules for certain transfers of nonbusiness assets 7#a7 ,in general ,for purposes of this subtitle1 in the case of the transfer of any interest in an entity other than an interest which is actively traded 7within the meaning of section #ajib7-- 7,a7 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 7and no valuation discount shall be allowed with respect to such nonbusiness assets71 and 7,b7 such nonbusiness assets shall not be taken into account in determining the value of the interest in the entity4 7#b7 ,nonbusiness assets ,for purposes of this subsection-- 7,a7 ,in general ,the term nonbusiness asset means any asset other than an asset which is used in the active conduct of a trade or business4 7,b7 ,passive assets treated as nonbusiness assets 7i7 ,in general ,for purposes of subparagraph 7,a71 a passive asset shall be treated as a nonbusiness asset unless-- 7,i7 the asset is property described in paragraph 7#a7 or 7#d7 of section #abba7;a7 or is a hedge with respect to such property1 or 7,,ii7 the asset is real property used in the active conduct of #a or more real property trades or businesses 7within the meaning of section #dfi7;c77#g77;,c77 in which the transferor materially participates and with respect to which the transferor meets the requirements of section #dfi7;c77#g77;,b77ii74 7ii7 ,material participation ,for purposes of clause 7i77,,ii71 material participation shall be determined under the rules of section #dfi7;h71 except that section #dfi7;h77#c7 shall be applied without regard to the limitation to farming activity4 7,c7 ,working capital treated as used in trade or business ,any asset 7including a passive asset7 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 business4 7#c7 ,passive asset ,for purposes of this subsection1 the term passive asset means any-- 7,a7 cash or cash equivalents1 7,b7 stock in a corporation or any other equity1 profits1 or capital interest in any entity1 7,c7 evidence of indebtedness1 option1 forward or futures contract1 notional principal contract1 or derivative1 7,d7 asset described in clause 7iii71 7iv71 or 7v7 of section #cea7;e77#a77;,b71 7,e7 annuity1 7,f7 real property used in #a or more real property trades or businesses 7as defined in section #dfi7;c77#g77;,c771 7,g7 asset 7other than a patent1 trademark1 or copyright7 which produces royalty income1 7,h7 commodity1 7,i7 collectible 7within the meaning of section #djh7m771 or 7,j7 any other asset specified in regulations prescribed by the ,secretary4 7#d7 ,look-thru rule 7,a7 ,in general ,if a nonbusiness asset of an entity described in paragraph 7#a7 consists of a #aj-percent interest in any other entity1 this subsection shall be applied by disregarding the #aj-percent interest and by treating the entity as holding directly its ratable share of the assets of the other entity4 7,b7 #aj-percent interest ,the term #aj-percent interest means-- 7i7 in the case of an interest in a corporation1 direct ownership of at least #aj percent 7by vote or value7 of the stock in such corporation1 7ii7 in the case of an interest in a partnership1 direct ownership of at least #aj percent of the capital or profits interest in the partnership1 and 7iii7 in any other case1 direct ownership of at least #aj percent of the beneficial interests in the entity4 4 7b7 ,conforming amendments 7#a7 ,section #bjca7;b7 of the ,internal ,revenue ,code of #aihf is amended by inserting 7after application of section #bgje7;b77 after shall be determined4 7#b7 ,the table of sections of chapter #ad of subtitle ,b of such ,code is amended by adding at the end the following3 ,sec4 #bgje4 ,limitation on discounts2 valuation rules for certain transfers of nonbusiness assets4 4 7c7 ,effective date ,the amendments made by this section shall apply to transfers after the date of the enactment of this ,act4 #dji4 ,surcharge on high income estates and trusts 7a7 ,in general ,subchapter ,a of chapter #a is amended by adding at the end the following new part3 ,,viii ,surcharge on high income estates and trusts ,sec4 #ei;,b4 ,surcharge on high income estates and trusts4 #ei;,b4 ,surcharge on high income estates and trusts 7a7 ,general rule ,in the case of an estate or trust1 there is hereby imposed 7in addition to any other tax imposed by this subtitle7 a tax equal to the sum of-- 7#a7 #e percent of so much of the modified adjusted gross income of the taxpayer as exceeds #bjj1jjj1 plus 7#b7 #c percent of so much of the modified adjusted gross income of the taxpayer as exceeds #ejj1jjj4 7b7 ,modified adjusted gross income ,for purposes of this section-- 7#a7 ,in general ,the term modified adjusted gross income means adjusted gross income reduced by any deduction 7not taken into account in determining adjusted gross income7 allowed for investment interest 7as defined in section #afc7;d77 or business interest 7as defined in section #afc7;j774 7#b7 ,adjusted gross income ,adjusted gross income shall be determined as provided in section #fg7;e7 and reduced by the amount allowed as a deduction under section #fdb7;c74 7c7 ,special rules 7#a7 ,charitable trusts ,subsection 7a7 shall not apply to a trust all the unexpired interests in which are devoted to one or more of the purposes described in section #agj7;c77#b77;,b74 7#b7 ,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 7other than sections #bg and #ija7 or for purposes of section #ee4 7#c7 ,electing small business trusts ,for purposes of the determination of adjusted gross income1 section #fda7;c77#a77;,a7 shall not apply and all portions of any electing small business trust shall be treated as a single trust4 7d7 ,regulations ,the ,secretary shall issue such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section1 including regulations or other guidance to prevent the avoidance of the purposes of this section4 4 7b7 ,coordination with certain provisions 7#a7 ,interest on certain deferred tax liability ,section #dec;,a7c7 is amended by redesignating paragraph 7#f7 as paragraph 7#g7 and by inserting after paragraph 7#e7 the following new paragraph3 7#f7 ,surcharge on high income estates and trusts taken into account in determining maximum rate of tax ,for purposes of paragraph 7#c77;,b71 in the case of an estate or trust1 the maximum rate of tax in effect under section #a shall be treated as being equal to the sum of such rate and the rates in effect under paragraphs 7#a7 and 7#b7 of section #ei;,b7a74 4 7#b7 ,limitation on foreign tax credit 7,a7 ,section #ijd7;b77#c77;,e77i77,i7 is amended by inserting increased1 in the case of an estate or trust1 by the sum of the rates set forth in paragraphs 7#a7 and 7#b7 of section #a;,a7a7 after 7whichever applies74 7,b7 ,section #ijd7;d77#b77;,f7 is amended by adding at the end the following3 ,for purposes of the first sentence of this subparagraph1 in the case of an estate or trust1 the highest rate of tax specified in section #a shall be treated as being equal to the sum of such rate and the rates in effect under paragraphs 7#a7 and 7#b7 of section #ei;,b7a744 7#c7 ,election by individuals to be subject to tax at corporate rates ,section #ifb7;a77#a7 is amended by striking and #ee and inserting #ee1 and #ei;,b4 7#d7 ,interest on certain tax deferral ,section #abia7;c77#b7 is amended by adding at the end the following3 ,for purposes of the preceding sentence1 in the case of an estate or trust1 the highest rate of tax in effect under section #a shall be treated as being equal to the sum of such rate and the rates in effect under paragraphs 7#a7 and 7#b7 of section #ei;,b7a744 7#e7 ,withholding of tax on foreign partners' share of effectively connected income ,section #addf7;b77#b7 is amended by adding at the end the following flush sentence3 ,for purposes of subparagraph 7,a71 in the case of a partner which is an estate or trust1 the highest rate of tax in effect under section #a shall be treated as being equal to the sum of such rate and the rates in effect under paragraphs 7#a7 and 7#b7 of section #ei;,b7a74 4 7#f7 ,partnership adjustments 7,a7 ,section #fbbe7;b77#a7 is amended by adding at the end the following flush sentence3 ,for purposes of subparagraph 7,b71 in the case of an estate or trust1 the highest rate of tax in effect under section #a shall be treated as being equal to the sum of such rate and the rates in effect under paragraphs 7#a7 and 7#b7 of section #ei;,b7a74 4 7,b7 ,section #fbbe7;c77#d77;,a7 is amended-- 7i7 by striking subsection 7b77#a77;,a7 and inserting subsection 7b77#a77;,b71 and 7ii7 by striking or at the end of clause 7i71 by adding or at the end of clause 7ii71 and by inserting after clause 7ii7 the following new clause3 7iii7 is not an estate or trust subject to one or both of the rates of tax in effect under paragraphs 7#a7 and 7#b7 of section #ei;,b7a71 4 7#g7 ,required payments for entities electing not to have required taxable year ,the second sentence of section #geai7;b7 is amended by inserting and1 in the case of an estate or trust1 increased by the sum of the rates in effect under paragraphs 7#a7 and 7#b7 of section #ei;,b7a7 before the period at the end4 7c7 ,clerical amendment ,the table of parts for subchapter ,a of chapter #a is amended by adding at the end the following new item3 ,,part ,,viii--,surcharge on high income estates and trusts 4 7d7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after the date of the enactment of this ,act4 #daj4 ,modification of rules for value of certain farm1 etc41 real property 7a7 ,in general ,paragraph 7#b7 of section #bjcb;,a7a7 of the ,internal ,revenue ,code of #aihf is amended by striking #gej1jjj and inserting #c1jjj1jjj4 7b7 ,inflation adjustment ,paragraph 7#c7 of section #bjcb;,a7a7 of such ,code is amended-- 7#a7 by striking #aiih and inserting #bjbf1 7#b7 by striking #gej1jjj each place it appears and inserting #c1jjj1jjj1 and 7#c7 by striking calendar year #aiig and inserting calendar year #bjbe in subparagraph 7,b74 7c7 ,effective date ,the amendments made by this section shall apply to estates of decedents dying1 and gifts made1 after ,december #ca1 #bjbe4 #daa4 ,modification of estate tax rules with respect to land subject to conservation easements 7a7 ,modification of exclusion limitation ,subparagraph 7,b7 of section #bjca7;c77#a7 of the ,internal ,revenue ,code of #aihf is amended by striking #ejj1jjj and inserting #b1jjj1jjj4 7b7 ,modification of applicable percentage ,paragraph 7#b7 of section #bjca7;c7 of the ,internal ,revenue ,code of #aihf is amended by striking #dj percent and inserting #fj percent4 7c7 ,effective date ,the amendments made by this section shall apply to estates of decedents dying1 and gifts made1 after ,december #ca1 #bjbe4 ,v ,accessibility requirements #eja4 ,accessibility requirements ,in the case of housing that is constructed1 altered1 or otherwise assisted using amounts made available to the ,secretary of ,housing and ,urban ,development under this ,act or an amendment made by this ,act1 sections #h4bb and #h4bc of title #bd1 ,code of ,federal ,regulations 7or any successor regulations7 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 sections4