Official text as published. Use Ctrl+F / Cmd+F to search within the document.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6644 Engrossed in House (EH)]
<DOC>
119th CONGRESS
2d Session
H. R. 6644
_______________________________________________________________________
AN ACT
To increase the supply of housing in America, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Housing for the
21st Century Act''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--BUILDING SMARTER FOR THE 21ST CENTURY
Sec. 101. Housing Supply Frameworks.
Sec. 102. Accelerating home building grant program.
Sec. 103. Federal guidelines for point-access block buildings.
Sec. 104. Unlocking Housing Supply Through Streamlined and Modernized
Reviews.
Sec. 105. Federal Housing Agency Application of Environmental Reviews.
Sec. 106. Multifamily loan limits.
Sec. 107. GAO study on workforce housing.
TITLE II--MODERNIZING LOCAL DEVELOPMENT AND RURAL HOUSING PROGRAMS
Sec. 201. HOME Reform.
Sec. 202. Community Development Fund Amendments.
Sec. 203. Grants for planning and implementation associated with
affordable housing.
Sec. 204. Rural housing service program improvements.
Sec. 205. Choice in Affordable Housing.
TITLE III--EXPANDING MANUFACTURED AND AFFORDABLE HOUSING FINANCE
OPPORTUNITIES
Sec. 301. Manufactured Housing Innovations.
Sec. 302. FHA small-dollar mortgages.
Sec. 303. Community investment and prosperity.
TITLE IV--PROTECTING BORROWERS AND ASSISTED FAMILIES
Sec. 401. Exclusion of certain disability benefits.
Sec. 402. Military service question.
Sec. 403. HUD-USDA-VA Interagency Coordination.
Sec. 404. Family self-sufficiency escrow expansion pilot program.
Sec. 405. Reforms to housing counseling and financial literacy
programs.
Sec. 406. Establishment of eviction helpline.
Sec. 407. Temperature Sensor pilot program.
Sec. 408. GAO studies.
TITLE V--ENHANCING OVERSIGHT OF HOUSING PROVIDERS
Sec. 501. Requirement to testify.
Sec. 502. Improving public housing agency accountability.
TITLE VI--STRENGTHENING COMMUNITY BANKS' ROLE IN HOUSING
Sec. 601. Community Bank Deposit Access.
Sec. 602. Keeping Deposits Local.
Sec. 603. Supervisory Modifications for Appropriate Risk-based Testing.
Sec. 604. Tailored Regulatory Updates for Supervisory Testing.
Sec. 605. Credit Union Board Modernization.
Sec. 606. Systemic Risk Authority Transparency.
Sec. 607. Least cost exception.
Sec. 608. Failing Bank Acquisition Fairness.
Sec. 609. Advancing the Mentor-Protege Program for Small Financial
Institutions.
Sec. 610. American Access to Banking.
Sec. 611. Promoting New Bank Formation.
Sec. 612. Rural Depositories Revitalization Study.
Sec. 613. Discretionary Surplus Fund.
TITLE I--BUILDING SMARTER FOR THE 21ST CENTURY
SEC. 101. HOUSING SUPPLY FRAMEWORKS.
(a) Definitions.--In this section:
(1) Affordable housing.--The term ``affordable housing''
means housing for which the monthly payment is not more than
30-percent of the monthly income of the household.
(2) Assistant secretary.--The term ``Assistant Secretary''
means the Assistant Secretary for Policy Development and
Research of the Department of Housing and Urban Development.
(3) Local zoning framework.--The term ``local zoning
framework'' means the local zoning codes and other ordinances,
procedures, and policies governing zoning and land-use at the
local level.
(4) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
(5) State zoning framework.--The term ``State zoning
framework'' means the State legislation or State agency and
department procedures, or such legislation or procedures in an
insular area of the United States, enabling local planning and
zoning authorities and establishing and guiding related
policies and programs.
(b) Guidelines on State and Local Zoning Frameworks.--
(1) In general.--Not later than 3 years after the date of
enactment of this Act, the Assistant Secretary shall publish
documents outlining guidelines and best practices to support
production of adequate housing to meet the needs of communities
and provide housing opportunities for individuals at every
income level across communities with respect to--
(A) State zoning frameworks; and
(B) local zoning frameworks.
(2) Consultation; public comment.--During the 2-year period
beginning on the date of enactment of this Act, in developing
the guidelines and best practices required under paragraph (1),
the Assistant Secretary shall--
(A) publish draft guidelines and best practices in
the Federal Register for public comment; and
(B) establish a task force for the purpose of
providing consultation to draft the guidelines and best
practices published under subparagraph (A), the members
of which shall include--
(i) urban planners and architects;
(ii) housing developers, including
affordable and market-rate housing developers,
manufactured housing developers, cooperative
housing developers, and other business
interests;
(iii) community engagement experts and
community members impacted by zoning decisions;
(iv) public housing agencies and transit
authorities;
(v) members of local zoning and planning
boards and local and regional transportation
planning organizations;
(vi) State officials responsible for
housing or land use, including members of State
zoning boards of appeals;
(vii) academic researchers; and
(viii) home builders.
(3) Contents.--The guidelines and best practices required
under paragraph (1) shall--
(A) with respect to State zoning frameworks,
outline potential models for updated State enabling
legislation or State agency and department procedures;
(B) include recommendations regarding--
(i) the reduction or elimination of parking
minimums;
(ii) the increase in maximum floor area
ratio requirements and maximum building heights
and the reduction in minimum lot sizes and set-
back requirements;
(iii) the elimination of restrictions
against accessory dwelling units;
(iv) increasing by-right uses, including
duplex, triplex, or quadplex buildings, across
cities or metropolitan areas;
(v) mechanisms, including proximity to
transit, to determine the appropriate scope for
rezoning and ensure development that does not
disproportionately burden residents of
economically distressed areas;
(vi) provisions regarding review of by-
right development proposals to streamline
review and reduce uncertainty, including--
(I) nondiscretionary, ministerial
review; and
(II) entitlement and design review
processes;
(vii) the reduction of obstacles,
regulatory or otherwise, to a range of housing
types at all levels of affordability, including
manufactured and modular housing;
(viii) State model zoning regulations for
directing local reforms, including mechanisms
to encourage adoption;
(ix) provisions to encourage transit-
oriented development, including increased
permissible units per structure and reduced
minimum lot sizes near existing or planned
public transit stations;
(x) potential reforms to strengthen the
public engagement process;
(xi) reforms to protest petition statutes;
(xii) the standardization, reduction, or
elimination of impact fees;
(xiii) cost-effective and appropriate
building codes;
(xiv) models for community benefit
agreements;
(xv) mechanisms to preserve affordability,
limit disruption of low-income communities, and
prevent displacement of existing residents;
(xvi) with respect to State zoning
frameworks--
(I) State model codes for directing
local reforms, including mechanisms to
encourage adoption;
(II) a model for a State zoning
appeals process, which would--
(aa) create a process for
developers or builders
requesting a variance,
conditional use, special
permit, zoning district change,
similar discretionary permit,
or otherwise petitioning a
local zoning or planning board
for a project including a
State-defined amount of
affordable housing to appeal a
rejection to a State body or
regional body empowered by the
State; and
(bb) establish
qualifications for communities
to be exempted from the appeals
process based on their
available stock of affordable
housing; and
(III) streamlining of State
environmental review policies;
(xvii) with respect to local zoning
frameworks--
(I) the simplification and
standardization of existing zoning
codes;
(II) maximum review timelines;
(III) best practices for the
disposition of land owned by local
governments for affordable housing
development;
(IV) differentiations between best
practices for rural, suburban, and
urban communities, and communities with
different levels of density or
population distribution; and
(V) streamlining of local
environmental review policies; and
(xviii) other land use measures that
promote access to new housing opportunities
identified by the Secretary; and
(C) consider--
(i) the effects of adopting any
recommendation on eligibility for Federal
discretionary grants and tax credits for the
purpose of housing or community development;
(ii) coordination between infrastructure
investments and housing planning;
(iii) local housing needs, including ways
to set and measure housing goals and targets;
(iv) a range of affordability for rental
units, with a prioritization of units
attainable to extremely low-, low-, and
moderate-income residents;
(v) a range of affordability for
homeownership;
(vi) accountability measures;
(vii) the long-term cost to residents and
businesses if more housing is not constructed;
(viii) barriers to individuals seeking to
access affordable housing in growing
communities and communities with economic
opportunity;
(ix) with respect to State zoning
frameworks--
(I) distinctions between States
providing constitutional or statutory
home rule authority to municipalities
and States operating under the Dillon
Rule, as articulated in Hunter v.
Pittsburgh, 207 U.S. 161 (1907); and
(II) Statewide mechanisms to
preserve existing affordability over
the long term, including support for
land banks and community land trusts;
(x) public comments elicited under
paragraph (2)(A); and
(xi) other considerations, as identified by
the Assistant Secretary.
(c) Abolishment of the Regulatory Barriers Clearinghouse.--
(1) In general.--The Regulatory Barriers Clearinghouse
established pursuant to section 1205 of the Housing and
Community Development Act of 1992 (42 U.S.C. 12705d) is
abolished.
(2) Repeal.--Section 1205 of the Housing and Community
Development Act of 1992 (42 U.S.C. 12705d) is repealed.
(d) Reporting.--Not later than 5 years after the date on which the
Assistant Secretary publishes the final guidelines and best practices
for State and local zoning frameworks under this section, the Assistant
Secretary shall submit to the Congress a report describing--
(1) the States that have adopted recommendations from the
guidelines and best practices, pursuant to section 4 of this
Act;
(2) a summary of the localities that have adopted
recommendations from the guidelines and best practices,
pursuant to section 4 of this Act;
(3) a list of States that adopted a State zoning framework;
(4) a summary of the modifications that each State has made
in their State zoning framework;
(5) a general summary of the types of updates localities
have made to their local zoning framework;
(6) with respect to the States that have adopted a State
zoning framework or recommendations from the guidelines and
best practices, the effect of such adoptions; and
(7) a summary of any recommendations that were routinely
not adopted by States or by localities.
(e) Rule of Construction.--Nothing in this section may be construed
to permit the Department of Housing and Urban Development to take an
adverse action against or fail to provide otherwise offered actions or
services for any State or locality if the State or locality declines to
adopt a guideline or best practice under subsection (c).
SEC. 102. ACCELERATING HOME BUILDING GRANT PROGRAM.
(a) In General.--The Secretary may establish a pilot program to
award grants to eligible entities to review designs of covered
structures of mixed-income housing and designate such reviewed designs
to be included in pattern books for use in the jurisdiction of the
eligible entity.
(b) Restriction.--Amounts awarded under this section may not be
used for construction, alteration, or repair work.
(c) Considerations.--In reviewing applications submitted by
eligible entities for a grant under this section, the Secretary shall
consider--
(1) the need for affordable housing in the eligible entity;
(2) the presence of high opportunity areas in the eligible
entity;
(3) coordination between the eligible entity and a State
agency; and
(4) coordination between the eligible entity and State,
local, and regional transportation planning authorities.
(d) Set-aside for Rural Areas.--Of the amounts made available in
each fiscal year for grants under this section, the Secretary shall
ensure that not less than 10-percent shall be used for grants to
eligible entities that are located in rural areas.
(e) Report Requirement.--Not later than 3 years after being awarded
a grant under this section, an eligible entity shall submit to the
Secretary a report that--
(1) describes the impacts of the activities carried out
using the amounts provided under this section on improving the
production and supply of affordable housing;
(2) includes a list of any pattern books the eligible
entity has established using amounts provided under this
section, including a description of the designs such pattern
book includes;
(3) identifies the number of permits issued by the eligible
entity for housing development using designs from such pattern
book; and
(4) identifies the number of housing units produced in
developments of the eligible entity using a design from such
pattern book.
(f) Availability of Information.--The Secretary shall--
(1) to the extent possible, encourage eligible entities
awarded grants under this section to make any pattern books
established by such entity, and designs in such pattern book,
publicly available through a website; and
(2) collect, identify, and disseminate best practices
relating to pattern books and make such information publicly
available on a website of the Department of Housing and Urban
Development.
(g) Repayment of Awarded Amounts.--The Secretary may require an
eligible entity to return, to the Secretary, grant amounts awarded
under this section if the Secretary determines that the eligible entity
has not approved a sufficient number of building permits that use
designs included in a pattern book established by the eligible entity,
during the 5-year period following receipt of the grant by the eligible
entity, unless such period is extended by the Secretary.
(h) Sunset.--The pilot program established under this section shall
terminate on the date that is 7 years after the date of the enactment
of this section.
(i) Definitions.--In this section:
(1) Affordable housing.--The term ``affordable housing''
means housing for which the total monthly housing cost payment
is not more than 30-percent of the monthly household income for
a household earning not more than 80-percent of the area-median
income.
(2) Covered structure.--The term ``covered structure''
means a low-rise or mid-rise structure with not more than 25
dwelling units that may include--
(A) an accessory dwelling unit;
(B) infill development;
(C) a duplex;
(D) a triplex;
(E) a fourplex;
(F) a cottage court;
(G) a courtyard building;
(H) a townhouse;
(I) a multiplex; and
(J) any other structure with not less than 2
dwelling units that the Secretary has determined in
advance to be appropriate.
(3) Eligible entity.--The term ``eligible entity'' means--
(A) a unit of general local government, as defined
in section 102(a) of the Housing and Community
Development Act of 1974 (42 U.S.C. 5302(a)); and
(B) an Indian Tribe, as defined in section 102(a)
of the Housing and Community Development Act of 1974
(42 U.S.C. 5302(a)).
(4) High opportunity area.--The term ``high opportunity
area'' has the meaning given the term in section 1282.1 of
title 12, Code of Federal Regulations, or any successor
regulation.
(5) Infill development.--The term ``infill development''
means a residential housing development on small parcels in
previously established areas for replacement by new or
refurbished housing that utilizes existing utilities and
infrastructure.
(6) Mixed-income housing.--The term ``mixed-income
housing'' means a housing development that is comprised of
housing units that promote differing levels of affordability in
the community.
(7) Pattern book.--The term ``pattern book'' means a set of
pre-reviewed, designated designs or construction plans that are
assessed and approved as by-right development by localities for
compliance with local building and permitting standards to
streamline and expedite approval pathways for housing
construction.
(8) Rural area.--The term ``rural area'' means any area
other than a city or town that has a population of less than
50,000 inhabitants.
(9) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
SEC. 103. FEDERAL GUIDELINES FOR POINT-ACCESS BLOCK BUILDINGS.
(a) In General.--Not later than 18 months after the date of
enactment of this section, the Secretary of Housing and Urban
Development shall issue guidelines to provide States, territories,
Tribes, and localities with model code language, best practices, and
technical guidance that could be used to facilitate the permitting of
point-access block residential buildings.
(b) Contents.--When developing the guidelines under subsection (a),
the Secretary shall consider--
(1) fire safety considerations, including sprinkler
coverage, smoke detection, ventilation, and building egress
performance;
(2) construction costs and potential impacts on housing
affordability, including the potential for increasing housing
supply in high-cost jurisdictions;
(3) flexibility for diverse consumer needs, including
family sizes, unit configurations, and accessibility;
(4) examples of single-stair codes adopted or considered by
States and cities in the United States;
(5) examples single-stair codes used in relevant
international standards;
(6) research and model language relating to single-stair
codes produced by organizations that focus on point-access
block building design and building-code reform;
(7) consulting with experts, including developers,
architects, fire marshals, researchers, economists, housing
authorities, and officials in States that have enacted or
piloted single-stair codes; and
(8) alternative methods of safety compliance, including
options that utilize additional passive or active safety
features.
(c) Coordination With the International Code Council.--The
Secretary shall coordinate with the International Code Council to
encourage the International Code Council to incorporate provisions
about point-access block buildings into the International Building
Code.
(d) Grants.--
(1) In general.--The Secretary may establish a program to
award competitive grants to eligible entities to implement
pilot projects that evaluate, demonstrate, or validate the
safety, feasibility, or cost-effectiveness of point-access
block residential buildings.
(2) Sunset.--The program established under paragraph (1)
shall terminate on the date that is 7 years after the date of
the enactment of this subsection.
(e) Rule of Construction.--Nothing in this section may be construed
to preempt a State or local building code.
(f) Definitions.--In this section:
(1) Eligible entity.--The term ``eligible entity'' means a
State, unit of local government, Tribal Government, public
housing agency, nonprofit housing organization, community
development organization, private developer, construction firm,
qualified design firm, engineering firm, academic institution,
research institution, or any partnership or consortium
comprised of 2 or more such types of entities.
(2) Point-access block building.--The term ``point-access
block building'' means a Group R-2 occupancy residential
structure, as such term is defined by the International
Building Code, in which a single internal stairway provides
access and egress for all dwelling units in a building that is
not greater than 6 stories in height.
SEC. 104. UNLOCKING HOUSING SUPPLY THROUGH STREAMLINED AND MODERNIZED
REVIEWS.
(a) NEPA Streamlining for HUD Housing-related Activities.--
(1) In general.--The Secretary of Housing and Urban
Development shall, in accordance with section 553 of title 5,
United States Code, expand and reclassify housing-related
activities under the necessary administrative regulations as
follows:
(A) The following housing-related activities shall
be subject to regulations equivalent or substantially
similar to the regulations entitled ``exempt
activities'' as set forth in section 58.34 of title 24,
Code of Federal Regulations, as in effect on January 1,
2025:
(i) Tenant-based rental assistance, as
defined in section 8(o) of the United States
Housing Act of 1937 (42 U.S.C. 1437f(o)).
(ii) Supportive services, including health
care, housing services, permanent housing
placement, day care, nutritional services,
short-term payment for rent, mortgage, or
utility costs, and assistance in gaining access
to Federal Government and State and local
government benefits and services.
(iii) Operating costs, including
maintenance, security, operation, utilities,
furnishings, equipment, supplies, staff
training, and recruitment and other incidental
costs.
(iv) Economic development activities,
including equipment purchases, inventory
financing, interest subsidies, operating
expenses, and similar costs not associated with
construction or expansion of existing
operations.
(v) Activities to assist homebuyers to
purchase existing dwelling units or dwelling
units under construction, including closing
costs and down payment assistance, interest
rate buydowns, and similar activities that
result in the transfer of title.
(vi) Affordable housing predevelopment
costs related to obtaining site options,
project financing, administrative costs and
fees for loan commitment, zoning approvals, and
other related activities that do not have a
physical impact.
(vii) Approval of supplemental assistance,
including insurance or guarantee, to a project
previously approved by the Secretary.
(viii) Emergency homeowner or renter
assistance for HVAC, hot water heaters, and
other necessary uses of existing utilities
required under applicable law.
(B) The following housing-related activities shall
be subject to regulations equivalent or substantially
similar to the regulations entitled--
(i) ``categorical exclusions not subject to
section 58.5''; and
(ii) ``categorical exclusions not subject
to the Federal laws and authorities cited in
sections 50.4'' in section 58.35(b) and section
50.19, respectively of title 24, Code of
Federal Regulations, as in effect on January 1,
2025, if such activities do not materially
alter environmental conditions and do not
materially exceed the original scope of the
project:
(I) Acquisition, repair,
improvement, reconstruction, or
rehabilitation of public facilities and
improvements (other than buildings) if
the facilities and improvements are in
place and will be retained in the same
use without change in size or capacity
of more than 20-percent, including
replacement of water or sewer lines,
reconstruction of curbs and sidewalks,
and repaving of streets.
(II) Rehabilitation of 1-to-4 unit
residential buildings, and existing
housing-related infrastructure, such as
repairs or rehabilitation of existing
wells, septics, or utility lines that
connect to that housing.
(III) New construction,
development, demolition, acquisition,
or disposition on up to 4 scattered
site existing dwelling units where
there is a maximum of 4 units on any 1
site.
(IV) Acquisitions (including
leasing) or disposition of, or equity
loans on an existing structure, or
acquisition (including leasing) of
vacant land if the structure or land
acquired, financed, or disposed of will
be retained for the same use.
(C) The following housing-related activities shall
be subject to regulations equivalent or substantially
similar to the regulations entitled--
(i) ``categorical exclusions subject to
section 58.5''; and
(ii) ``categorical exclusions subject to
the Federal laws and authorities cited in
sections 50.4'' in section 58.35(a) and section
50.20, respectively, of title 24, Code of
Federal Regulations, as in effect on January 1,
2025, if such activities do not materially
alter environmental conditions and do not
materially exceed the original scope of the
project:
(I) Acquisitions of open space or
residential property, where such
property will be retained for the same
use or will be converted to open space
to help residents relocate out of an
area designated as a high-risk area by
the Secretary.
(II) Conversion of existing office
buildings into residential development,
subject to--
(aa) a maximum number of
units to be determined by the
Secretary; and
(bb) a limitation on the
change in building size to not
more than 20-percent.
(III) New construction,
development, demolition, acquisition,
or disposition on 5 to 15 dwelling
units where there is a maximum of 15
units on any 1 site. The units can be
15 1-unit buildings or 1 15-unit
building, or any combination in
between.
(IV) New construction, development,
demolition, acquisition, or disposition
on 15 or more housing units developed
on scattered sites when there are not
more than 15 housing units on any 1
site, and the sites are more than a set
number of feet apart as determined by
the Secretary.
(V) Rehabilitation of buildings and
improvements in the case of a building
for residential use with 5 to 15 units,
if the density is not increased beyond
15 units and the land use is not
changed.
(VI) Infill projects consisting of
new construction, rehabilitation, or
development of residential housing
units.
(VII) Buyouts, defined as the
voluntary acquisition of properties
located in--
(aa) a floodway;
(bb) a floodplain; or
(cc) an other area, clearly
delineated by the grantee, that
has been impacted by a
predictable environmental
threat to the safety and
wellbeing of program
beneficiaries caused or
exacerbated by a federally
declared disaster.
(2) Report.--The Secretary shall submit to the Committee on
Banking, Housing, and Urban Affairs of the Senate and the
Committee on Financial Services of the House of Representatives
annual reports during the 5-year period beginning on the date
that is 2 years after the date of enactment of this Act that
provide a summary of findings of reductions in review times and
administrative cost reduction, with a particular focus on the
affordable housing sector, as a result of the actions set forth
in this subsection, and any recommendations of the Secretary
for future congressional action with respect to revising
categorical exclusions or exemptions under title 24, Code of
Federal Regulations.
(b) Better Use of Intergovernmental and Local Development for
Housing.--
(1) Designation of environmental review procedure.--The
Department of Housing and Urban Development Act (42 U.S.C. 3531
et seq.) is amended by inserting after section 12 (42 U.S.C.
3537a) the following:
``SEC. 13. DESIGNATION OF ENVIRONMENTAL REVIEW PROCEDURE.
``(a) In General.--Except as provided in subsection (b), the
Secretary may, for purposes of environmental review, decision-making,
and action pursuant to the National Environmental Policy Act of 1969
(42 U.S.C. 4321 et seq.), and other provisions of law that further the
purposes of such Act, designate the treatment of assistance
administered by the Secretary as funds for a special project for
purposes of section 305(c) of the Multifamily Housing Property
Disposition Reform Act of 1994 (42 U.S.C. 3547).
``(b) Exception.--The designation described in subsection (a) shall
not apply to assistance for which a procedure for carrying out the
responsibilities of the Secretary under the National Environmental
Policy Act of 1969 (42 U.S.C. 4321 et seq.), and other provisions of
law that further the purposes of such Act, is otherwise specified in
law.''.
(2) Tribal assumption of environmental review
obligations.--Section 305(c) of the Multifamily Housing
Property Disposition Reform Act of 1994 (42 U.S.C. 3547) is
amended--
(A) by striking ``State or unit of general local
government'' each place it appears and inserting
``State, Indian Tribe, or unit of general local
government'';
(B) in paragraph (1)(C), in the heading, by
striking ``state or unit of general local government''
and inserting ``state, indian tribe, or unit of general
local government''; and
(C) by adding at the end the following:
``(5) Definition of indian tribe.--For purposes of this
subsection, the term `Indian Tribe' means a federally
recognized Tribe, as defined in section 4(13)(B) of the Native
American Housing Assistance and Self-Determination Act of 1996
(25 U.S.C. 4103(13)(B)).''.
(c) Applicability.--Any activity generated under subsections (a) or
(b) would be subject to an authorization of appropriations.
(d) Infill Project Defined.--In this section, the term ``infill
project'' means a project that--
(1) occurs within the geographic limits of a municipality;
(2) is adequately served by existing utilities and public
services as required under applicable law;
(3) is located on a site of previously disturbed land of
not more than 5 acres and substantially surrounded by
residential or commercial development;
(4) will repurpose a vacant or underutilized parcel of
land, or a dilapidated or abandoned structure; and
(5) will serve a residential or commercial purpose.
SEC. 105. FEDERAL HOUSING AGENCY APPLICATION OF ENVIRONMENTAL REVIEWS.
(a) Memorandum of Understanding.--
(1) In general.--Not later than 180 days after the date of
enactment of this Act, the Secretary of Housing and Urban
Development and the Secretary of Agriculture shall enter into a
memorandum of understanding to--
(A) evaluate the use of categorical exclusions (as
defined in section 111 of the National Environmental
Policy Act of 1969 (42 U.S.C. 4336e)) for housing
projects funded by amounts from the Department of the
Housing and Urban Development and the Department of
Agriculture;
(B) develop a process to designate a lead agency
among the Department of Housing and Urban Development
and the Department of Agriculture to streamline the
adoption of environmental impact statements and
environmental assessments approved by the other agency
to construct housing projects funded by amounts from
both agencies;
(C) maintain compliance with environmental
regulations under part 58 of title 24, Code of Federal
Regulations, as in effect on January 1, 2025; and
(D) evaluate the feasibility of a joint physical
inspection process for housing projects funded by
amounts from the Department of the Housing and Urban
Development and the Department of Agriculture.
(2) Report.--Not later than 1 year after the date of
enactment of this Act, the Secretary of Housing and Urban
Development and the Secretary of Agriculture shall submit to
the Committee on Banking, Housing, and Urban Affairs of the
Senate and the Committee on Financial Services of the House of
Representatives a report that includes recommendations for
legislative, regulatory, or administrative actions--
(A) to improve the efficiency and effectiveness of
housing projects funded by amounts from the Department
of the Housing and Urban Development and the Department
of Agriculture; and
(B) that do not materially, with respect to
residents of housing projects described in subparagraph
(A)--
(i) reduce the safety of those residents;
(ii) shift long-term costs onto those
residents; or
(iii) undermine the environmental standards
of those residents.
(b) Study and Review.--
(1) Exemption.--In providing assistance under section 501,
502, 504, 515, 533, or 538 of the Housing Act of 1949 (42
U.S.C. 1471, 1472, 1474, 1485, 1490m, or 1490p-2) for the
construction or modification of residential housing located on
an infill site, the Secretary of Agriculture shall not be
required to carry out any study or report on the environmental
effects of such assistance.
(2) Report.--Not later than the date that is 5 years after
the date of enactment of this section, the Secretary of
Agriculture shall submit, to the Committee on Financial
Services of the House of Representatives and the Committee on
Banking, Housing, and Urban Affairs of the Senate, a report
that--
(A) determines whether the implementation of this
section--
(i) reduced the amount of time it takes to
review an application for assistance under the
sections of the Housing Act of 1949 identified
in paragraph (1); and
(ii) reduced the administrative cost of
providing such assistance;
(B) describes how the implementation of this
section affects the affordable housing sector in rural
America; and
(C) includes any legislative recommendations from
the Secretary of Agriculture.
(2) Definitions.--In this section:
(A) Greenfield.--The term ``greenfield'' means a
site that has not been developed, including a woodland,
farmland, and an open field.
(B) Infill site.--The term ``infill site''--
(i) means a site that is served by existing
infrastructure, including water lines, sewer
lines, and roads; and
(ii) does not include--
(I) a site that is served by
existing infrastructure that only
consists of a road;
(II) a site within a census tract
designated as very high or relatively
high risk for wildfire, coastal
flooding, and riverine flooding under
the National Risk Index of the Federal
Emergency Management Agency pursuant to
section 206 of the Robert T. Stafford
Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5136); and
(III) a greenfield.
SEC. 106. MULTIFAMILY LOAN LIMITS.
(a) In General.--Title II of the National Housing Act (12 U.S.C.
1707 et seq.) is amended--
(1) in section 206A (12 U.S.C. 1712a)--
(A) in subsection (a), in the matter following
paragraph (7), by striking ``(commencing in 2004'' and
all that follows through the period at the end and
inserting the following: ``, commencing on January 1,
2026. The adjustment of the Dollar Amounts shall be
calculated by the Secretary using the percentage change
in the Price Deflator Index of Multifamily Residential
Units Under Construction released by the Bureau of the
Census from March of the previous year to March of the
year in which the adjustment is made, or calculated by
the Secretary using an alternative indicator after
publishing information about such alternative indicator
in the Federal Register for public comment if the Price
Deflator Index of Multifamily Residential Units Under
Construction is not available or published.''; and
(B) by striking subsection (b) and inserting the
following:
``(b) Rounding.--The dollar amount of any adjustment described in
subsection (a) shall be rounded to the next lower dollar.
``(c) Publication.--The Secretary shall publish in the Federal
Register any adjustments made to the Dollar Amounts.'';
(2) in section 207(c)(3)(A) (12 U.S.C. 1713(c)(3)(A))--
(A) by striking ``$38,025'' and inserting
``$167,310'';
(B) by striking ``$42,120'' and inserting
``$185,328'';
(C) by striking ``$50,310'' and inserting
``$221,364'';
(D) by striking ``$62,010'' and inserting
``$272,844'';
(E) by striking ``$70,200'' and inserting
``$308,880'';
(F) by striking ``, or not to exceed $17,460 per
space'';
(G) by striking ``$43,875'' and inserting
``$193,050'';
(H) by striking ``$49,140'' and inserting
``$216,216'';
(I) by striking ``$60,255'' and inserting
``$265,122'';
(J) by striking ``$75,465'' and inserting
``$332,046''; and
(K) by striking ``$85,328'' and inserting
``$375,443'';
(3) in section 213(b)(2) (12 U.S.C. 1715e(b)(2))--
(A) by striking ``$41,207'' and inserting
``$181,311'';
(B) by striking ``$47,511'' and inserting
``$209,048'';
(C) by striking ``$57,300'' and inserting
``$252,120'';
(D) by striking ``$73,343'' and inserting
``$322,709'';
(E) by striking ``$81,708'' and inserting
``$359,515'';
(F) by striking ``$43,875'' and inserting
``$193,050'';
(G) by striking ``$49,710'' and inserting
``$218,724'';
(H) by striking ``$60,446'' and inserting
``$265,962'';
(I) by striking ``$78,197'' and inserting
``$344,067''; and
(J) by striking ``$85,836'' and inserting
``$377,678'';
(4) in section 220(d)(3)(B)(iii)(I) (12 U.S.C.
1715k(d)(3)(B)(iii)(I))--
(A) by striking ``$38,025'' and inserting
``$167,310'';
(B) by striking ``$42,120'' and inserting
``$185,328'';
(C) by striking ``$50,310'' and inserting
``$221,364'';
(D) by striking ``$62,010'' and inserting
``$272,844'';
(E) by striking ``$70,200'' and inserting
``$308,880'';
(F) by striking ``$43,875'' and inserting
``$193,050'';
(G) by striking ``$49,140'' and inserting
``$216,216'';
(H) by striking ``$60,255'' and inserting
``$265,122'';
(I) by striking ``$75,465'' and inserting
``$332,046''; and
(J) by striking ``$85,328'' and inserting
``$375,443'';
(5) in section 221(d)(4)(ii)(I) (12 U.S.C.
1715l(d)(4)(ii)(I))--
(A) by striking ``$37,843'' and inserting
``$166,509'';
(B) by striking ``$42,954'' and inserting
``$188,997'';
(C) by striking ``$51,920'' and inserting
``$228,448'';
(D) by striking ``$65,169'' and inserting
``$286,744'';
(E) by striking ``$73,846'' and inserting
``$324,922'';
(F) by striking ``$40,876'' and inserting
``$179,854'';
(G) by striking ``$46,859'' and inserting
``$206,180'';
(H) by striking ``$56,979'' and inserting
``$250,708'';
(I) by striking ``$73,710'' and inserting
``$324,324''; and
(J) by striking ``$80,913'' and inserting
``$356,017'';
(6) in section 231(c)(2)(A) (12 U.S.C. 1715v(c)(2)(A))--
(A) by striking ``$35,978'' and inserting
``$166,509'';
(B) by striking ``$40,220'' and inserting
``$188,997'';
(C) by striking ``$48,029'' and inserting
``$228,448'';
(D) by striking ``$57,798'' and inserting
``$286,744'';
(E) by striking ``$67,950'' and inserting
``$324,922'';
(F) by striking ``$40,876'' and inserting
``$179,854'';
(G) by striking ``$46,859'' and inserting
``$206,180'';
(H) by striking ``$56,979'' and inserting
``$250,708'';
(I) by striking ``$73,710'' and inserting
``$324,324''; and
(J) by striking ``$80,913'' and inserting
``$356,017''; and
(7) in section 234(e)(3)(A) (12 U.S.C. 1715y(e)(3)(A))--
(A) by striking ``$42,048'' and inserting
``$185,011'';
(B) by striking ``$48,481'' and inserting
``$213,316'';
(C) by striking ``$58,469'' and inserting
``$257,263'';
(D) by striking ``$74,840'' and inserting
``$329,296'';
(E) by striking ``$83,375'' and inserting
``$366,850'';
(F) by striking ``$44,250'' and inserting
``$194,700'';
(G) by striking ``$50,724'' and inserting
``$223,186'';
(H) by striking ``$61,680'' and inserting
``$271,392'';
(I) by striking ``$79,793'' and inserting
``$351,089''; and
(J) by striking ``$87,588'' and inserting
``$385,387''.
(b) Rule of Construction.--Nothing in this section or the
amendments made by this section may be construed to limit the authority
of the Secretary of Housing and Urban Development to revise the
statutory exceptions for high-cost percentage and high-cost areas
annual indexing.
SEC. 107. GAO STUDY ON WORKFORCE HOUSING.
(a) In General.--Not later than 1 year after the date of the
enactment of this section, the Comptroller General of the United States
shall conduct a study and submit to the Congress a report that--
(1) identifies obstacles middle-income households face when
looking to secure affordable housing;
(2) identifies geographic areas where housing is the most
unaffordable and unavailable for middle-income households;
(3) includes a list of Federal housing programs, including
Federal tax credits, grants, and loan programs, that are not
available to middle-income households due to their income
status, including Federal housing programs designed to promote
affordability;
(4) recommends income and other parameters to establish a
clear and consistent Federal definition for the term
``workforce housing'' for use when describing the segment of
housing that could be made available to such middle-income
households in Federal housing programs if funding commensurate
with the additional eligibility were to be made available; and
(5) analyzes how to modify or newly develop new Federal
housing programs and incentives to include ``workforce
housing'' if funding commensurate with the additional
eligibility were to be made available.
(b) Middle-income Household Defined.--In this section, the term
``middle income household'' means a household with an income above 80-
percent but that does not exceed 120-percent of the median family
income of the area, as determined by the Secretary with adjustments for
smaller and larger families.
TITLE II--MODERNIZING LOCAL DEVELOPMENT AND RURAL HOUSING PROGRAMS
SEC. 201. HOME REFORM.
(a) In General.--Section 104 of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 12704) is amended--
(1) in paragraph (6)(B), by striking ``significant''; and
(2) by adding at end the following new paragraph:
``(26) The term `infill housing project' means a
residential housing project that--
``(A) is located within the geographic limits of a
municipality;
``(B) is adequately served by existing utilities
and public services as required under applicable law;
``(C) is located on a site of previously disturbed
land of not more than 5 acres; and
``(D) is substantially surrounded by residential or
commercial development, as determined by the
Secretary.''.
(b) Assistance for Low-Income Families.--Title II of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C. 12721 et seq.) is
amended--
(1) in section 214(2), by striking ``households that
qualify as low-income families'' and inserting ``families with
a household income that does not exceed 100-percent of the
median-family income of the area, as determined by the
Secretary'';
(2) in section 215--
(A) in subsection (b)(2), by striking ``whose
family qualifies as a low-income family'' and inserting
``with a family income that does not exceed 100-percent
of the median-family income of the area as determined
by the Secretary with adjustments for smaller and
larger families''; and
(B) in subsection (b)(3)(A)(ii), by striking ``low-
income homebuyers'' and inserting ``homebuyers with a
household income that does not exceed 100-percent of
the median-family income of the area, as determined by
the Secretary with adjustments for smaller and larger
families''; and
(3) in section 271(c)--
(A) in paragraph (1)(B), by striking ``low-income''
and inserting ``families with a household income that
does not exceed 100-percent of the median-family income
of the area as determined by the Secretary with
adjustments for smaller and larger families''; and
(B) in paragraph (2)(A), by striking ``low-income
families'' and inserting ``families with a household
income that does not exceed 100-percent of the median-
family income of the area as determined by the
Secretary with adjustments for smaller and larger
families''.
(c) Choices Made by Participating Jurisdictions.--Section 212(a)(2)
of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C.
12742) is amended to read as follows:
``(2) Limitation.--The Secretary may not restrict a
participating jurisdiction's choice of rehabilitation,
substantial rehabilitation, new construction, reconstruction,
acquisition, or other eligible housing uses authorized in
paragraph (1) unless such restriction is explicitly authorized
under section 223(2).''.
(d) Use of Amounts by Certain Jurisdictions for Infrastructure
Improvements.--
(1) In general.--Section 212(a) of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12742(a)) is amended
by inserting after paragraph (3) the following:
``(4) Infrastructure improvements in nonentitlement
areas.--
``(A) In general.--A participating jurisdiction may
use funds provided under this subtitle for
infrastructure improvements, including the installation
or repair of water and sewer lines, sidewalks, roads,
and utility connections if--
``(i) such participating jurisdiction does
not receive assistance under title I of the
Housing and Community Development Act of 1974;
and
``(ii) such improvements are directly
related to, and located within or immediately
adjacent to--
``(I) housing assisted under this
subtitle; or
``(II) housing assisted under
section 42 of the Internal Revenue Code
of 1986.
``(B) Application of labor standards.--The labor
standards and requirements set forth in section 110 of
the Housing and Community Development Act of 1974 (42
U.S.C. 5310) shall apply to any infrastructure
improvement conducted using funds provided under this
subtitle.
``(C) Rule of construction.--Nothing in this
paragraph may be construed to impose any requirements
of the HOME Investment Partnerships program on housing
that benefits from an infrastructure improvement
conducted using funds provided under this subtitle but
was not otherwise assisted under the HOME Investment
Partnerships program.''.
(2) Rulemaking.--Not later than 1 year after the date of
the enactment of this section, the Secretary shall issue rules
to carry out the amendment made by paragraph (1).
(e) Per Unit Investment Limitations.--Section 212(e)(1) of the
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C.
12742(e)(1)) is amended by striking the second sentence.
(f) Affordable Rental Housing Qualifications.--Section 215(a) of
the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C.
12745(a)) is amended by adding at the end the following:
``(7) Qualification exception.--Notwithstanding paragraph
(1)(A), a rental unit shall be considered to qualify as
affordable housing under this title if--
``(A) the unit is occupied by a tenant receiving
tenant-based rental assistance under section 8 of the
United States Housing Act of 1937 (42 U.S.C. 1437f);
``(B) the tenant's contribution toward rent does
not exceed the amount permitted under such section 8
assistance; and
``(C) the total rent for the unit does not exceed
the amount approved by the public housing agency
administering the assistance under that program.''.
(g) Affordable Homeownership Housing Qualifications.--Section 215
of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C.
12745(b)) is amended--
(1) in subsection (b)--
(A) in paragraph (1), by striking ``95 percent''
and inserting ``110 percent'';
(B) in paragraph (3)--
(i) in subparagraph (A)(ii), by striking
``or'' at the end;
(ii) in subparagraph (B), by striking
``and'' at the end and inserting ``or''; and
(iii) by adding at the end the following
new subparagraph:
``(C) maintain long-term affordability through a
shared equity ownership model, a community land trust,
a limited equity cooperative, a community development
corporation, or other mechanism approved by the
Secretary, that preserves affordability for future
eligible homebuyers and ensures compliance with the
purposes of this title, including through the use of
purchase options, rights of first refusal or other
preemptive rights to purchase housing; and''; and
(2) by adding at the end the following:
``(c) Qualification Exceptions for Homeownership.--
``(1) Military members.--A participating jurisdiction, in
accordance with terms established by the Secretary, may suspend
or waive the income qualifications described in subsection
(b)(2) with respect to housing that otherwise meets the
criteria described in subsection (b) if the owner of the
housing--
``(A) is a member of a regular component of the
armed forces or a member of the National Guard on full-
time National Guard duty, active Guard and Reserve
duty, or inactive-duty training (as those terms are
defined in section 101(d) of title 10, United States
Code); and
``(B) has received--
``(i) temporary duty orders to deploy with
a military unit or military orders to deploy as
an individual acting in support of a military
operation, to a location that is not within a
reasonable distance from the housing, as
determined by the Secretary, for a period of
not less than 90 days; or
``(ii) orders for a permanent change of
station.
``(2) Heirs and beneficiaries of deceased owners.--Housing
that meets the criteria described in subsection (b)(3) prior to
the death of an owner of such housing shall continue to qualify
as affordable housing under this title if--
``(A) the housing is the principal residence of an
heir or beneficiary of the deceased owner, as defined
by the Secretary; and
``(B) the heir or beneficiary, in accordance with
terms established by the Secretary, assumes the duties
and obligations of the deceased owner with respect to
funds provided under this title.''.
(h) Elimination of Expiration of Right to Draw Home Investment
Trust Funds.--Section 218 of the Cranston-Gonzalez National Affordable
Housing Act (42 U.S.C. 12748) is amended--
(1) by striking subsection (g); and
(2) by redesignating subsection (h) as subsection (g).
(i) Adjusted Recapture and Reuse of Set-aside for Community Housing
Developmental Organizations.--Section 231(b) of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12771(b)) is amended to read
as follows:
``(b) Recapture and Reuse.--If any funds reserved under subsection
(a) remain uninvested for a period of 24 months, the Secretary shall
make such funds available to the participating jurisdiction for any
eligible activities under title II of this Act without regard to
whether a community housing development organization materially
participates in the use of such funds.''.
(j) Asset Recycling Information Dissemination Expansion.--Section
245(b)(2) of the Cranston-Gonzalez National Affordable Housing Act (42
U.S.C. 12785(b)(2)) is amended by striking ``95 percent'' and inserting
``110 percent''.
(k) Environmental Review Requirements.--
(1) In general.--Section 288 of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12838) is amended by
adding at the end the following:
``(e) Categorical Exemptions.--The following categories of
activities carried out under this title shall be statutorily exempt
from environmental review under the National Environmental Policy Act
of 1969 (42 U.S.C. 4321 et seq.), and shall not require further review
under such Act--
``(1) new construction infill housing projects;
``(2) acquisition of real property for affordable housing
purposes;
``(3) rehabilitation projects carried out pursuant to
section 212(a)(1); and
``(4) new construction projects of 15 units or less.
``(f) Removing Duplicative Reviews.--
``(1) In general.--To the extent practicable and permitted
by law, the Secretary shall ensure that a project that has
undergone an environmental review under this section shall not
be subject to a duplicative environmental review solely due to
the addition, substitution, or reallocation of other sources of
Federal assistance, if the scope, scale, and location of the
project remain substantially unchanged.
``(2) Coordination of environmental review
responsibilities.--The Secretary shall, by regulation, provide
for coordination of environmental review responsibilities with
other Federal agencies to streamline inter-agency compliance
and avoid unnecessary duplication of effort under the National
Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) and
other applicable laws.
``(3) Recognition of prior reviews by responsible
entities.--A project may not be subject to an environmental
review under this section if a substantially similar review has
already been completed by an entity designated under section
104(g)(1) of the Housing and Community Development Act of 1974
(42 U.S.C. 5304(g)(1)) or by another entity the Secretary
determines to have equivalent authority, if the scope, scale,
and location of the project remain substantially unchanged.''.
(2) Rulemaking.--Not later than 1 year after the date of
the enactment of this Act, the Secretary shall issue such rules
as the Secretary determines necessary to carry out the
amendment made by this subsection.
(3) Applicability.--Any activity generated under this
subsection would be subject to an authorization of
appropriations.
(l) Application of Build America, Buy America Requirements for HOME
Investment Partnerships Program.--
(1) In general.--Not later than 180 days after the date of
the enactment of this section, the Secretary of Housing and
Urban Development shall complete a review of the implementation
of the Build America, Buy America Act (title IV of division G
of Public Law 117-58; 42 U.S.C. 8301 note) with respect to the
activities assisted under title II of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12721 et seq.).
(2) Updated guidance.--Not later than 90 days after the
review described in subsection (a) is completed, the Secretary
shall issue updated guidance to clarify the application of the
Build America, Buy America Act (title IV of division G of
Public Law 117-58; 42 U.S.C. 8301 note) with respect to the
activities assisted under title II of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12721 et seq.).
(3) Report.--Not later than 270 days after the date of the
enactment of this section, the Secretary shall submit to the
Committee on Financial Services of the House of Representatives
and the Committee on Banking, Housing, and Urban Affairs of the
Senate a report that describes--
(A) the results of the review required under
subsection (a); and
(B) the guidance issued as described in subsection
(b).
(m) Application of Other Specified Statutory Requirements.--Title
II of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C.
12721 et seq.) is amended by adding at the end the following new
section (and by conforming the table of sections in section 1(b),
accordingly):
``SEC. 291. NONAPPLICABILITY OF CERTAIN REQUIREMENTS FOR SMALL
PROJECTS.
``Notwithstanding any other provision of law, the requirements of
section 3 of the Housing and Urban Development Act of 1968 (12 U.S.C.
1701u), and any implementing regulations or guidance, shall not apply
to an activity assisted under this title that involves rehabilitation,
construction, or other development of housing if--
``(1) the recipient of assistance under this title is--
``(A) a State recipient pursuant to section 216; or
``(B) a participating jurisdiction that received a
total allocation of less than $3,000,000 in the most
recent fiscal year pursuant to section 216; and
``(2) the total number of dwelling units assisted as a part
of such activity is 50 or fewer.''.
(n) Technical Amendments.--The Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 12701 et seq.) is amended--
(1) by striking ``Stewart B. McKinney Homeless Assistance
Act'' each place it appears and inserting ``McKinney-Vento
Homeless Assistance Act''; and
(2) by striking ``Committee on Banking, Finance and Urban
Affairs'' each place it appears and inserting ``Committee on
Financial Services''.
(o) Reallocation Not Available for Certain Jurisdictions.--Section
217(d) of the Cranston-Gonzalez National Affordable Housing Act (42
U.S.C. 12747(d)) is amended--
(1) in paragraph (1), by striking the second sentence and
inserting the following: ``Subject to paragraph (4),
jurisdictions eligible for such reallocations shall include
participating jurisdictions and jurisdictions meeting the
requirements of this title, including the requirements in
paragraphs (3), (4), and (5) of section 216.''; and
(2) by adding at the end the following:
``(4) Reallocation not available for certain
jurisdictions.--The Secretary may decline to make a
reallocation available to a jurisdiction eligible for such
reallocation if such jurisdiction has failed to meet or comply
with any requirement under this title.''.
(p) Amendments to Qualification as Affordable Housing.--Section
215(a) of the Cranston-Gonzalez National Affordable Housing Act (42
U.S.C. 12745(a)) is amended--
(1) in paragraph (1)(E), by striking ``except upon a
foreclosure by a lender (or upon other transfer in lieu of
foreclosure) if such action (i) recognizes any contractual or
legal rights of public agencies, nonprofit sponsors, or others
to take actions that would avoid termination of low-income
affordability in the case of foreclosure or transfer in lieu of
foreclosure, and (ii) is not for the purpose of avoiding low
income affordability restrictions, as determined by the
Secretary; and'' and inserting the following: ``except--
``(i) upon a foreclosure by a lender (or
upon other transfer in lieu of foreclosure) if
such action--
``(I) recognizes any contractual or
legal rights of public agencies,
nonprofit sponsors, or others to take
actions that would avoid termination of
low-income affordability in the case of
foreclosure or transfer in lieu of
foreclosure; and
``(II) is not for the purpose of
avoiding low-income affordability
restrictions, as determined by the
Secretary; or
``(ii) where existing affordable housing is
no longer financially viable due to unforeseen
acts or occurrences beyond the reasonable
contemplation or control of the participating
jurisdiction in which the affordable housing is
located or the owner of the affordable housing
that significantly impact the financial or
physical condition of the affordable housing,
as determined by the Secretary; and''; and
(2) by adding at the end the following:
``(8) Small-scale housing.--
``(A) In general.--Small-scale housing shall
qualify as affordable housing under this title if--
``(i) each dwelling unit in such housing
bears rent in an amount that complies with the
requirements described in paragraph (1)(A);
``(ii) each dwelling unit in such housing
is occupied by a low-income family;
``(iii) no dwelling unit in such housing is
refused for leasing to a holder of a voucher
under section 8 of the United States Housing
Act of 1937 (42 U.S.C. 1437f) because of the
status of the prospective tenant as a holder of
such voucher;
``(iv) such housing complies with the
requirement described in paragraph (1)(E); and
``(v) the participating jurisdiction in
which such small-scale housing is located
monitors the compliance of such housing with
the requirements of this title in a manner
consistent with the purposes of section 226(b),
as determined by the Secretary.
``(B) Small-scale housing defined.--In this
paragraph, the term `small-scale housing' means housing
with not more than 4 dwelling units each of which is
made available for rental.''.
(q) Tenant and Participant Protections for Small-scale Affordable
Housing.--Section 225 of the Cranston-Gonzalez National Affordable
Housing Act (42 U.S.C. 12755) is amended by adding at the end the
following:
``(e) Exception.--Paragraphs (2), (3), and (4) shall not apply to
small-scale housing, as such term is defined in section 215(a)(7).''.
(r) Revision of Definition of Community Land Trust.--Section 104 of
the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12704)
is amended by adding at the end the following:
``(27) The term `community land trust' means a
nonprofit entity, a State, a unit of local government
or instrumentality of a State or unit of local
government that--
``(A) is not managed by, or an affiliate
of, a for-profit organization;
``(B) has as a primary purpose of
acquiring, developing, or holding land to
provide housing that is permanently affordable
to low- and moderate-income persons;
``(C) monitors properties to ensure
affordability is preserved;
``(D) provides housing that is permanently
affordable to low- and moderate-income persons
using a ground lease, deed covenant, or other
similar legally enforceable measure, determined
acceptable by the Secretary, that--
``(i) keeps housing affordable to
low- and moderate-income persons for
not less than 30 years; and
``(ii) enables low- and moderate-
income persons to rent or purchase the
housing for homeownership; and
``(E) maintains preemptive purchase options
to purchase the property if such purchase would
allow the housing to remain affordable to low-
and moderate-income persons.''.
(s) Conforming Amendments.--The Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 12701 et seq.) is amended--
(1) in section 233 by striking subsection (f); and
(2) in section 233(b)(6), by striking ``to community land
trusts (as such term is defined in subsection (f))'' and
inserting ``to community land trusts (as such term is defined
in section 104)''.
(t) Minimum Allocations.--Section 217(b) of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12747 (b)) is amended--
(1) in paragraph (2), by striking ``$500,000'' each place
that term appears and inserting ``$750,000'';
(2) in paragraph (3)--
(A) by striking ``jurisdictions that are allocated
an amount of $500,000 or more'' and inserting
``jurisdictions that are allocated an amount of
$750,000 or more'';
(B) by striking ``that are allocated an amount less
than $500,000'' and inserting ``that are allocated an
amount less than $750,000''; and
(C) by striking ``, except as provided in paragraph
(4)''; and
(3) by striking paragraph (4).
(u) Additional Technical Corrections.--The Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12701 et seq.) is amended--
(1) in section 108(a)(1), by striking ``section
105(b)(15)'' and inserting ``section 105(b)(18)''; and
(2) in section 217(b)(1)(F), by striking ``Subcommittee on
Housing and Community Development'' and inserting
``Subcommittee on Housing, Transportation, and Community
Development''.
SEC. 202. COMMUNITY DEVELOPMENT FUND AMENDMENTS.
(a) Identifying Regulatory Barriers to Housing Supply.--Section 104
of the Housing and Community Development Act of 1974 (42 U.S.C. 5304)
is amended by adding at the end the following:
``(n) Plan to Track and Reduce Overly Burdensome Land Use
Policies.--
``(1) In general.--Beginning 1 year after the date of the
enactment of this subsection, prior to receipt in any fiscal
year of a grant from the Secretary under subsection (b),
(d)(1), or (d)(2)(B) of section 106, each recipient shall have
prepared and submitted, not less frequently than once during
the preceding 5-year period, a description of--
``(A) whether the jurisdiction served by the
recipient has adopted any of the types of land use
policies described in paragraph (2) during the
preceding 5-year period;
``(B) the plans the jurisdiction served by the
recipient has to adopt and implement any of the types
of land use policies described in paragraph (2); and
``(C) any ways in which the jurisdiction served by
the recipient expects the planned adoption of any of
the types of land use policies described in paragraph
(2) would benefit the jurisdiction.
``(2) Types of land use policies.--The types of policies to
be considered for the purposes of the submission of information
required under paragraph (1) include the following:
``(A) Expanding by-right multifamily zoned areas.
``(B) Allowing duplexes, triplexes, or fourplexes
in areas zoned primarily for single-family residential
homes.
``(C) Allowing manufactured homes in areas zoned
primarily for single-family residential homes.
``(D) Allowing multifamily development in retail,
office, and light manufacturing zones.
``(E) Allowing single-room occupancy development
wherever multifamily housing is allowed.
``(F) Reducing minimum lot size.
``(G) Ensuring historic preservation requirements
and other land use policies or requirements are
coordinated to encourage creation of housing in
historic buildings and historic districts.
``(H) Increasing the allowable floor area ratio by
allowing a higher ratio of total floor area in a
building in comparison to its lot size.
``(I) Creating transit-oriented development zones.
``(J) Streamlining or shortening permitting
processes and timelines, including through one-stop and
parallel-process permitting.
``(K) Eliminating or reducing off-street parking
requirements.
``(L) Ensuring impact and utility investment fees
accurately reflect required infrastructure needs and
related impacts on housing affordability are otherwise
mitigated.
``(M) Allowing off-site construction, including
prefabricated construction.
``(N) Reducing or eliminating minimum unit square
footage requirements.
``(O) Allowing the conversion of office units to
apartments.
``(P) Allowing the subdivision of single-family
homes into duplexes.
``(Q) Allowing accessory dwelling units, including
detached accessory dwelling units, on all lots with
single-family homes.
``(R) Establishing density bonuses.
``(S) Eliminating or relaxing residential property
height limitations.
``(T) Using property tax abatements to enable
higher density and mixed-income communities.
``(U) Donating vacant land for affordable housing
development.
``(V) Enacting other relevant high-density, single-
family, and multifamily zoning policies that the
recipient chooses to report.
``(3) Effect of submission.--A submission under this
subsection shall not be binding with respect to the use or
distribution of amounts received under section 106.
``(4) Acceptance or nonacceptance of plan.--The acceptance
or nonacceptance of any plan submitted under this subsection in
which the information required under this subsection is
provided may not be considered an endorsement or approval of
the plan, policies, or methodologies, or lack thereof.
``(5) Prohibition on use of information for enforcement.--
Information provided by a recipient to the Secretary under this
subsection may not be used as the basis for any enforcement
action.''.
(b) Addition of Affordable Housing Construction as an Eligible
Activity.--
(1) Eligible activity.--Section 105(a) of the Housing and
Community Development Act of 1974 (42 U.S.C. 5305(a)) is
amended--
(A) in paragraph (25)(D), by striking ``and'' at
the end;
(B) in paragraph (26), by striking the period at
the end and inserting ``; and''; and
(C) by adding at the end the following new
paragraph:
``(27) the new construction of affordable housing, within
the meaning given such term under section 215 of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C. 12745), and
which shall not exceed 20-percent of the amounts allocated to
the recipient.''.
(2) Low- and moderate-income requirement.--Section
105(c)(3) of the Housing and Community Development Act of 1974
(42 U.S.C. 5305(c)(3)) is amended by striking ``or
rehabilitation'' and inserting ``, rehabilitation, or new
construction''.
(3) Applicability.--The amendments made by this subsection
shall apply with respect only to amounts appropriated after the
date of the enactment of this Act.
(c) Databases of Publicly Owned Land.--
(1) In general.--Section 104(b) of the Housing and
Community Development Act of 1974 (42 U.S.C. 5304(b)) is
amended--
(A) in paragraph (5), by striking ``and'' at the
end;
(B) in paragraph (6), by striking the period at the
end and inserting ``; and''; and
(C) by adding at the end the following:
``(7) the grantee maintains, on a publicly accessible
website, a searchable database that identifies all parcels of
undeveloped land owned by the grantee.''.
(2) Effective date.--The amendments made by this subsection
shall take effect on October 1, 2026.
SEC. 203. GRANTS FOR PLANNING AND IMPLEMENTATION ASSOCIATED WITH
AFFORDABLE HOUSING.
(a) In General.--The Secretary of Housing and Urban Development
shall, not later than 1 year after the date of the enactment of this
section, establish a pilot program to award grants on a competitive
basis to eligible entities to assist planning and implementation
activities associated with affordable housing.
(b) Use of Amounts.--
(1) By regional planning agencies.--If an eligible entity
that receives amounts under this section is a regional planning
agency or consortia of regional planning agencies, such
eligible entity shall use such amounts to assist planning
activities with respect to affordable housing, including--
(A) the development of housing plans;
(B) the substantial improvement of State or local
housing strategies;
(C) the development of new regulatory requirements
and processes;
(D) updating zoning codes;
(E) increasing the capacity to conduct housing
inspections;
(F) increasing the capacity to reduce barriers to
housing supply elasticity and housing affordability;
(G) the development of local or regional plans for
community development; and
(H) the substantial improvement of community
development strategies, including strategies designed
to--
(i) increase the availability of affordable
housing and access to affordable housing;
(ii) increase access to public
transportation; and
(iii) advance sustainable or location-
efficient community development goals.
(2) By states, insular areas, metropolitan cities, and
urban counties.--If an eligible entity that receives amounts
under this section is a State, insular area, metropolitan city,
or urban county, such eligible entity shall use such amounts
to--
(A) implement and administer housing strategies and
housing plans;
(B) implement and administer any plans to increase
housing choice, address disparities in housing needs,
and provide greater access to opportunity;
(C) fund any community investments that support
goals identified in a housing strategy or housing plan;
(D) implement and administer regulatory
requirements and processes with respect to reformed
zoning codes;
(E) increase the capacity to conduct housing
inspections;
(F) increase the capacity to reduce barriers to
housing supply elasticity and housing affordability;
(G) implement and administer local or regional
plans for community development; and
(H) fund any planning to increase--
(i) the availability of affordable housing
and access to affordable housing;
(ii) access to public transportation; and
(iii) any location-efficient community
development goals.
(3) Use for administrative costs.--A eligible entity that
receives amounts under this section may not use more than 10-
percent of such amounts for administrative costs.
(c) Coordination.--To the extent practicable, the Secretary shall
coordinate with the Federal Transit Administrator in carrying out this
section.
(d) Additional Uses of Amounts.--
(1) Housing construction.--Expenditures on new construction
of housing shall be an eligible expense under this section.
(2) Buildings for general conduct of government.--
Expenditures on building for the general conduct of government,
other than the Federal Government, shall be eligible under this
section when necessary and appropriate as a part of a natural
hazard mitigation project.
(e) Expiration of Authority.--After the expiration of the 5-year
period beginning on the date of the enactment of this section, the
Secretary may not newly establish a pilot program as described in this
section.
(f) Sunset.--The pilot program established under this section shall
terminate on the date that is 5 years after the date of the enactment
of this section.
(g) Definitions.--In this subsection:
(1) Eligible entity.--The term ``eligible entity'' means--
(A) a State, insular area, metropolitan city, or
urban county, as such terms are defined in section 102
of the Housing and Community Development Act of 1974;
or
(B) a regional planning agency or consortia of
regional planning agencies.
(2) Housing plan.--The term ``housing plan'' means a plan
to, with respect to an area within the jurisdiction of an
eligible entity--
(A) increase the amount of available housing to
meet the demand for such housing and any projected
increase in the demand for such housing;
(B) increase the affordability of housing;
(C) increase the accessibility of housing for
people with disabilities, including location-efficient
housing;
(D) preserve or improve the quality of housing;
(E) reduce barriers to housing development; and
(F) coordinate with transportation-related
agencies.
(3) Housing strategy.--The term ``housing strategy'' means
a housing strategy required under section 105 of the Cranston-
Gonzalez National Affordable Housing Act.
SEC. 204. RURAL HOUSING SERVICE PROGRAM IMPROVEMENTS.
(a) In General.--Section 504(a) of the Housing Act of 1949 (42
U.S.C. 1474(a)) is amended--
(1) in the first sentence, by inserting ``and may make a
loan to an eligible low-income applicant'' after ``applicant'';
and
(2) by striking ``$7,500'' and inserting ``$15,000''.
(b) Annual Report on Rural Housing Programs.--Title V of the
Housing Act of 1949 (42 U.S.C. 1471 et seq.), as amended by this
section, is amended by adding at the end the following:
``SEC. 545. ANNUAL REPORT.
``(a) In General.--The Secretary shall submit to the Committee on
Financial Services of the House of Representatives and the Committee on
Banking, Housing, and Urban Affairs of the Senate and publish on a
website of the Department of Agriculture an annual report on the rural
housing programs carried out under this title.
``(b) Contents.--The report required under subsection (a) shall
include significant details on the information about the health of the
programs carried out by the Rural Housing Service, including--
``(1) raw data about loan performance that can be sorted by
program and region;
``(2) a description of the housing stock of such programs;
``(3) information about why properties end participation in
such programs, including maturation prepayment, foreclosure, or
other servicing issues; and
``(4) risk ratings for properties assisted under such
programs.
``(c) Protection of Information.--Data included in a report
required under subsection (a) may be aggregated or anonymized to
protect the financial information and personal information of program
participants.''.
(c) Application Review.--
(1) Sense of congress.--It is the sense of the Congress,
not later than 90 days after the date on which the Secretary of
Agriculture receives an application for a loan, grant or
combined loan and grant under section 502 or 504 of the Housing
Act of 1949 (42 U.S.C. 1472, 1474), the Secretary of
Agriculture should--
(A) review the application;
(B) complete the underwriting;
(C) make a determination of eligibility with
respect to the application; and
(D) notify the applicant of determination.
(2) Report.--
(A) In general.--Not later than 90 days after the
date of enactment of this Act, and annually thereafter
until the date described in subparagraph (B), the
Secretary of Agriculture shall submit to the Committee
on Banking, Housing, and Urban Affairs of the Senate
and the Committee on Financial Services of the House of
Representatives a report that--
(i) details the timeliness of eligibility
determinations and final determinations with
respect to applications under section 502 and
504 of the Housing Act of 1949 (42 U.S.C. 1472,
1474), including justifications for any
eligibility determinations taking longer than
90 days; and
(ii) includes recommendations to shorten
the timeline for notifications of eligibility
determinations described in subparagraph (A) to
not more than 90 days.
(B) Date described.--The date described in this
paragraph is the date on which, during the preceding 5-
year period, the Secretary of Agriculture provides each
eligibility determination described in subparagraph (A)
during the 90-day period beginning on the date on which
each application is received.
(d) GAO Report on Rural Housing Service Technology.--Not later than
1 year after the date of enactment of this Act, the Comptroller General
of the United States shall submit to the Congress a report that
includes--
(1) an analysis of how the outdated technology used by the
Rural Housing Service impacts participants in the programs of
the Rural Housing Service;
(2) an estimate of the amount of funding that is needed to
modernize the technology used by the Rural Housing Service; and
(3) an estimate of the number and type of new employees the
Rural Housing Service needs to modernize the technology used by
the Rural Housing Service.
SEC. 205. CHOICE IN AFFORDABLE HOUSING.
(a) Preapproval of Units.--Section 8(o)(8)(A) of the United States
Housing Act of 1937 (42 U.S.C. 1437f(o)(8)(A)) is amended by adding at
the end the following:
``(iv) Initial inspection prior to lease
agreement.--
``(I) Definition.--In this clause,
the term `new landlord' means an owner
of a dwelling unit who has not
previously entered into a housing
assistance payment contract with a
public housing agency under this
subsection for any dwelling unit.
``(II) Early inspection.--Upon the
request of a new landlord, a public
housing agency may inspect the dwelling
unit owned by the new landlord to
determine whether the unit meets the
housing quality standards under
subparagraph (B) before the unit is
selected by a family assisted under
this subsection.
``(III) Effect.--An inspection
conducted under subclause (II) that
determines that the dwelling unit meets
the housing quality standards under
subparagraph (B) shall satisfy the
requirements in this subparagraph and
subparagraph (C) if the new landlord
enters into a lease agreement with a
family assisted under this subsection
not later than 60 days after the date
of the inspection.
``(IV) Information when family is
selected.--When a public housing agency
selects a family to participate in the
tenant-based assistance program under
this subsection, the public housing
agency shall include in the information
provided to the family a list of
dwelling units that have been inspected
under subclause (II) and determined to
meet the housing quality standards
under subparagraph (B).''.
(b) Satisfaction of Inspection Requirements Through Participation
in Other Housing Programs.--Section 8(o)(8) of the United States
Housing Act of 1937 (42 U.S.C. 1437f(o)(8)) is amended by adding at the
end the following:
``(I) Satisfaction of inspection requirements
through participation in other housing programs.--
``(i) Low-income housing tax credit-
financed buildings.--A dwelling unit shall be
deemed to meet the inspection requirements
under this paragraph if--
``(I) the dwelling unit is in a
building, the acquisition,
rehabilitation, or construction of
which was financed by a person who
received a low-income housing tax
credit under section 42 of the Internal
Revenue Code of 1986 in exchange for
that financing;
``(II) the dwelling unit was
physically inspected and passed
inspection as part of the low-income
housing tax credit program described in
subclause (I) during the preceding 12-
month period; and
``(III) the applicable public
housing agency is able to obtain the
results of the inspection described in
subclause (II).
``(ii) Home investment partnerships
program.--A dwelling shall be deemed to meet
the inspection requirements under this
paragraph if--
``(I) the dwelling unit is assisted
under the HOME Investment Partnerships
Program under title II of the Cranston-
Gonzalez National Affordable Housing
Act;
``(II) the dwelling unit was
physically inspected and passed
inspection as part of the program
described in subclause (I) during the
preceding 12-month period; and
``(III) the applicable public
housing agency is able to obtain the
results of the inspection described in
subclause (II).
``(iii) Rural housing service.--A dwelling
unit shall be deemed to meet the inspection
requirements under this paragraph if--
``(I) the dwelling unit is assisted
by the Rural Housing Service of the
Department of Agriculture;
``(II) the dwelling unit was
physically inspected and passed
inspection in connection with the
assistance described in subclause (I)
during the preceding 12-month period;
and
``(III) the applicable public
housing agency is able to obtain the
results of the inspection described in
subclause (II).
``(iv) Remote or video inspections.--When
complying with inspection requirements for a
housing unit located in a rural or small area
using assistance under this subtitle, the
Secretary may allow a grantee to conduct a
remote or video inspection of a unit provided
that the remote or video inspection--
``(I) covers a substantially
similar review of the relevant aspects
of the unit compared to an in-person
inspection;
``(II) does not misrepresent the
condition of the unit; and
``(III) provides the information
necessary to fully and accurately
evaluate the conditions of the unit to
ensure that the unit meets the
applicable standards.
``(v) Rule of construction.--Nothing in
clause (i), (ii), (iii), or (iv) may be
construed to affect the operation of a housing
program described in, or authorized under a
provision of law described in, that clause.''.
TITLE III--EXPANDING MANUFACTURED AND AFFORDABLE HOUSING FINANCE
OPPORTUNITIES
SEC. 301. MANUFACTURED HOUSING INNOVATIONS.
(a) In General.--Section 603(6) of the National Manufactured
Housing Construction and Safety Standards Act of 1974 (42 U.S.C.
5402(6)) is amended by striking ``on a permanent chassis'' and
inserting ``with or without a permanent chassis''.
(b) Standards for Manufactured Homes Built Without a Permanent
Chassis.--Section 604(a) of the National Manufactured Housing
Construction and Safety Standards Act of 1974 (42 U.S.C. 5403) is
amended by adding at the end the following:
``(7) Standards for manufactured homes built without a
permanent chassis.--
``(A) In general.--The Secretary shall issue
revised standards for manufactured homes built without
a permanent chassis and shall consult with the
consensus committee in the development of such revised
standards, using the process described in paragraph
(4).
``(B) Creating final standards.--The Secretary
shall, after consulting and conferring with the
consensus committee, establish standards to ensure
manufactured homes without a permanent chassis have--
``(i) a distinct label to be issued by the
Secretary distinguishing manufactured homes
built without a permanent chassis from
manufactured homes built on a permanent
chassis;
``(ii) a data plate, as described in
section 3280.5 of title 24, Code of Federal
Regulations, distinguishing manufactured homes
built without a permanent chassis from
manufactured homes built on a permanent
chassis; and
``(iii) a notation on any invoice produced
by the manufacturer of a manufactured home that
is distinguishable from the invoice for a
manufactured home constructed with a permanent
chassis.''.
(c) Manufactured Home Standards and Certifications.--Section 604 of
the National Manufactured Housing Construction and Safety Standards Act
of 1974 (42 U.S.C. 5403) is amended by adding at the end the following:
``(i) Manufactured Home Standards and Certifications.--
``(1) In general.--
``(A) Initial certification.--Subject to
subparagraph (B), not later than 1 year after the date
of enactment of this subsection, a State shall submit
to the Secretary an initial certification that the laws
and regulations of the State--
``(i) treat a manufactured home without a
chassis in parity with a manufactured home (as
defined and regulated by the State); and
``(ii) subject a manufactured home without
a permanent chassis to the same laws and
regulations of the State as a manufactured home
built on a permanent chassis with respect to
financing, title, insurance, manufacture, sale,
taxes, transportation, installation, and other
areas as the Secretary determines, after
consultation with and approval by the consensus
committee, are necessary to give effect to the
purpose of this section.
``(B) State plan submission.--Any State plan
submitted under section 623(c) of the National
Manufactured Housing Construction and Safety Standards
Act of 1974 (42 U.S.C. 5422(c)) shall contain the
required State certification under subparagraph (A) or
paragraph (3) and, if contained therein, no additional
or State certification under subparagraph (A) or
paragraph (3).
``(C) Extended deadline.--With respect to a State
with a legislature that meets biennially, the deadline
for the submission of the initial certification
required under subparagraph (A) shall be 2 years after
the date of enactment of this subsection.
``(D) Late certification.--
``(i) No waiver.--The Secretary may not
waive the prohibition described in paragraph
(5)(B) with respect to a certification
submitted after the deadline under subparagraph
(A) or paragraph (3) unless the Secretary
approves the late certification.
``(ii) Rule of construction.--Nothing in
this subsection shall be construed to prevent a
State from submitting the initial certification
required under subparagraph (A) after the
required deadline under that subparagraph.
``(2) Form of state certification not presented in a state
plan.--The initial certification required under paragraph
(1)(A), if not submitted with a State plan under paragraph
(1)(B), shall contain, in a form prescribed by the Secretary,
an attestation by an official that the State has taken the
steps necessary to ensure the veracity of the certification
required under paragraph (1)(A), including, as necessary, by--
``(A) amending the definition of `manufactured
home' in the laws and regulations of the State; and
``(B) directing State agencies to amend the
definition of `manufactured home' in regulations.
``(3) Annual recertification.--Not later than a date to be
determined by the Secretary each year, a State shall submit to
the Secretary an additional certification that--
``(A) confirms the accuracy of the initial
certification submitted under subparagraph (A) or (B)
of paragraph (1); and
``(B) certifies that any new laws or regulations
enacted or adopted by the State since the date of the
previous certification do not change the veracity of
the initial certification submitted under paragraph
(1)(A).
``(4) List.--The Secretary shall publish and maintain in
the Federal Register and on the website of the Department of
Housing and Urban Development a list of States that are up-to-
date with the submission of initial and subsequent
certifications required under this subsection.
``(5) Prohibition.--
``(A) Definition.--In this paragraph, the term
`covered manufactured home' means a home that is--
``(i) not considered a manufactured home
under the laws and regulations of a State
because the home is constructed without a
permanent chassis;
``(ii) considered a manufactured home under
the definition of the term in section 603; and
``(iii) constructed after the date of
enactment of this subsection.
``(B) Building, installation, and sale.--If a State
does not submit a certification under paragraph (1)(A)
or paragraph (3) by the date on which those
certifications are required to be submitted--
``(i) with respect to a State in which the
State administers the installation of
manufactured homes, the State shall prohibit
the manufacture, installation, or sale of a
covered manufactured home within the State; and
``(ii) with respect to a State in which the
Secretary administers the installation of
manufactured homes, the State and the Secretary
shall prohibit the manufacture, installation,
or sale of a covered manufactured home within
the State.''.
(d) Other Federal Laws Regulating Manufactured Homes.--The
Secretary of Housing and Urban Development may coordinate with the
heads of other Federal agencies to ensure that Federal agencies treat a
manufactured home (that is defined in Federal laws and regulations
other than section 603 of the National Manufactured Housing
Construction and Safety Standards Act of 1974 (42 U.S.C. 5402)) in the
same manner as a manufactured home (that is defined in section 603 of
the National Manufactured Housing Construction and Safety Standards Act
of 1974 (42 U.S.C. 5402)), as amended by this Act.
(e) Assistance to States.--Section 609 of the National Manufactured
Housing Construction and Safety Standards Act of 1974 (42 U.S.C. 5408)
is amended--
(1) in paragraph (1), by striking ``and'' at the end;
(2) in paragraph (2), by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following:
``(3) model guidance to support the submission of the
certification required under section 604(i).''.
(f) Preemption.--Nothing in this section or the amendments made by
this section may be construed as limiting the scope of Federal
preemption under section 604(d) of the National Manufactured Housing
Construction and Safety Standards Act of 1974 (42 U.S.C. 5403(d)).
(g) Primary Authority to Establish Manufactured Home Construction
and Safety Standards.--The National Manufactured Housing Construction
and Safety Standards Act of 1974 (42 U.S.C. 5401 et seq.) is further
amended--
(1) in section 603(7), by inserting ``energy efficiency,''
after ``design,''; and
(2) in section 604, by adding at the end the following:
``(j) Primary Authority to Establish Standards.--
``(1) In general.--The Secretary shall have the primary
authority to establish Federal manufactured home construction
and safety standards.
``(2) Approval from secretary.--
``(A) In general.--The head of any Federal agency
that seeks to establish a manufactured home
construction and safety standard on or after the date
of the enactment of this subsection--
``(i) shall submit to the Secretary a
proposal describing such standard; and
``(ii) may not establish such standard
without approval from the Secretary.
``(B) Rejection of standards.--The Secretary shall
reject a standard submitted to the Secretary for
approval under subparagraph (A)--
``(i) if the standard would significantly
increase the cost of producing manufactured
homes, as determined by the Secretary;
``(ii) if the standard would conflict with
existing manufactured home construction and
safety standards established by the Secretary;
or
``(iii) for any other reason as determined
appropriate by the Secretary.
``(C) Rule of construction.--Nothing in this
subsection may be construed to require the Secretary to
establish new or revised Federal manufactured home
construction and safety standards.''.
SEC. 302. FHA SMALL-DOLLAR MORTGAGES.
(a) In General.--Not later than 1 year after the date of the
enactment of this section, the Secretary of Housing and Urban
Development, acting through the Federal Housing Commissioner, may
establish a pilot program to increase access to small-dollar mortgages
for mortgagors which may include--
(1) authorizing direct payments to mortgagees to
incentivize the origination of small-dollar mortgages;
(2) adjusting terms and costs imposed by the Federal
Housing Administration with respect to small-dollar mortgages;
(3) providing direct grants for mortgagors who obtain
small-dollar mortgages to cover costs associated with--
(A) down payments;
(B) closing costs;
(C) appraisals; and
(D) title insurance;
(4) conducting outreach to potential mortgagors about the
availability of small-dollar mortgages; and
(5) providing technical assistance for mortgagees that
originate small-dollar mortgages.
(b) Report.--Beginning not later than 1 year after the
establishment of the pilot program under subsection (a) and ending 1
year after the sunset of the pilot program, the Federal Housing
Commissioner shall submit to the Congress an annual report that--
(1) tracks and evaluates the outcomes of small-dollar
mortgages originated by mortgagees as a result of support
provided under subsection (a);
(2) analyzes risks of the pilot program to the solvency of
the Mutual Mortgage Insurance Fund;
(3) includes data with respect to--
(A) the number of small-dollar mortgages originated
in the 10-year period preceding the date of the
enactment of this section, including small-dollar
mortgages insured or guaranteed by the Federal
Government and small-dollar mortgages not insured by
the Federal Government;
(B) the original principal balance of each small-
dollar mortgage identified under subparagraph (A);
(C) demographic information about the mortgagors
associated with each such small-dollar mortgages; and
(D) the number and type of mortgagees that offer
small-dollar mortgages;
(4) provides a description of the fixed costs that are
associated with mortgages and the impact of such costs on the
ability of lenders to earn a market rate return on small-dollar
mortgages; and
(5) includes analysis, by regions of the United States,
including rural regions, that identifies regions with the
greatest need for, and the highest likelihood of, the
origination of small-dollar mortgages and regions that could
benefit the most from increased availability of small-dollar
mortgages.
(c) Sunset.--The pilot program established under subsection (a)
shall terminate on the date that is 4 years after the date on which the
pilot program is established under subsection (a).
(d) Expiration of Authority.--After the expiration of the 3-year
period beginning on the date of enactment of this section, neither the
Federal Housing Commissioner nor the Secretary of Housing and Urban
Development may newly establish a pilot program to increase access to
small-dollar mortgages for mortgagors.
(e) Small-dollar Mortgage Defined.--The term ``small-dollar
mortgage'' means a mortgage that--
(1) has an original principal balance of $100,000 or less;
and
(2) is secured by a 1- to 4-unit property that is the
principal residence of the mortgagor.
SEC. 303. COMMUNITY INVESTMENT AND PROSPERITY.
(a) Revised Statutes.--The paragraph designated as the ``Eleventh''
of section 5136 of the Revised Statutes of the United States (12 U.S.C.
24) is amended, in the fifth sentence, by striking ``15'' each place it
appears and inserting ``20''.
(b) Federal Reserve Act.--Section 9(23) of the Federal Reserve Act
(12 U.S.C. 338a) is amended, in the fifth sentence, by striking ``15''
each place it appears and inserting ``20''.
(c) Study.--Not later than 2 years after the date of the enactment
of this section, and every 2 years thereafter, the Comptroller of the
Currency and the Board of Governors of the Federal Reserve System shall
each submit to the Committee on Financial Services of the House of
Representatives and the Committee on Banking, Housing, and Urban
Affairs of the Senate, a report, after consulting with the other agency
in the development of such report, about public welfare investments
that were made by associations under section 5136 of the Revised
Statutes of the United States and State member banks under section
9(23) of the Federal Reserve Act in the 2 previous calendar years,
that--
(1) identifies the number of such investments, broken down
by--
(A) purpose;
(B) type;
(C) amount of assets of the association or State
member bank that made the investment, using not less
than 4 categories to describe the amount of assets of
the associations and banks; and
(D) State, or other location;
(2) identifies the dollar amounts of such investments,
broken down by--
(A) purpose;
(B) type;
(C) amount of assets of the association or State
member bank that made the investment, using not less
than 4 categories to describe the amount of assets of
the associations and banks; and
(D) State or other location; and
(3) for each type of public welfare investment identified
under paragraphs (1) and (2), a description of the substantive
and procedural requirements that apply to each type of
investment made under--
(A) in the case of a report by the Comptroller of
the Currency, section 5136 of the Revised Statutes of
the United States; or
(B) in the case of a report by the Board of
Governors, section 9(23) of the Federal Reserve Act.
TITLE IV--PROTECTING BORROWERS AND ASSISTED FAMILIES
SEC. 401. EXCLUSION OF CERTAIN DISABILITY BENEFITS.
(a) In General.--Section 3(b)(4)(B) of the United States Housing
Act of 1937 (42 U.S.C. 1437a(b)(4)(B)) is amended--
(1) by redesignating clauses (iv) and (v) as clauses (vi)
and (vii), respectively; and
(2) by inserting after clause (iii) the following:
``(iv) with respect to the supported
housing program under section 8(o)(19), any
disability benefits received under chapter 11
or chapter 15 of title 38, United States Code,
received by a veteran, except that this
exclusion may not apply to the definition of
adjusted income;
``(v) with respect to any household
receiving rental assistance under the supported
housing program under section 8(o)(19) as it
relates to eligibility for other types of
housing assistance, any disability benefits
received under chapter 11 or chapter 15 of
title 38, United States Code, received by a
veteran, except that this exclusion may not
apply to the definition of adjusted income;''.
(b) Treatment of Certain Disability Benefits.--When determining the
eligibility of a veteran to rent a residential dwelling unit
constructed on Department property on or after the date of the
enactment of this Act, for which assistance is provided as part of a
housing assistance program administered by the Secretary of Housing and
Urban Development and not yet in existence at the time of the enactment
of this section, the Secretary shall exclude from income any disability
benefits received under chapter 11 or chapter 15 of title 38, United
States Code, by such person.
(c) Department Property Defined.--In this section, the term
``Department property'' has the meaning given the term in section 901
of title 38, United States Code.
SEC. 402. MILITARY SERVICE QUESTION.
(a) In General.--Subpart A of part 2 of the Federal Housing
Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4541
et seq.) is amended by adding at the end the following:
``SEC. 1329. UNIFORM RESIDENTIAL LOAN APPLICATION.
``Not later than 6 months after the date of enactment of this
section, the Director shall, by regulation or order, require each
enterprise to include a disclosure below the military service question
which shall be above the signature line on the form known as the
Uniform Residential Loan Application stating, `If yes, you may qualify
for a VA Home Loan. Consult your lender regarding eligibility.'.''.
(b) GAO Study.--Not later than 18 months after the date of
enactment of this Act, the Comptroller General of the United States
shall conduct a study and submit to the Congress a report on whether or
not less than 80-percent of lenders using the Uniform Residential Loan
Application have included on that form the disclaimer required under
section 1329 of the Federal Housing Enterprises Financial Safety and
Soundness Act of 1992, as added by subsection (a).
SEC. 403. HUD-USDA-VA INTERAGENCY COORDINATION.
(a) Memorandum of Understanding.--Not later than 180 days after the
date of enactment of this Act, the Secretary of Housing and Urban
Development, the Secretary of Agriculture, and the Secretary of
Veterans Affairs shall establish a memorandum of understanding, or
other appropriate interagency agreement, to share relevant housing-
related research and market data that facilitates evidence-based
policymaking.
(b) Interagency Report.--
(1) Report.--Not later than 1 year after the date of
enactment of this Act, the Secretary of Housing and Urban
Development, the Secretary of Agriculture, and the Secretary of
Veterans Affairs shall jointly submit to the Committee on
Banking, Housing, and Urban Affairs, the Committee on
Agriculture, Nutrition, and Forestry, and the Committee on
Veterans' Affairs of the Senate and the Committee on Financial
Services, the Committee on Agriculture, and the Committee on
Veterans' Affairs of the House of Representatives a report that
describes opportunities for increased collaboration between the
Secretary of Housing and Urban Development, the Secretary of
Agriculture, and the Secretary of Veterans Affairs to improve
efficiencies in housing programs.
(2) Publication.--The report required under paragraph (1)
shall, prior to submission, be published in the Federal
Register and open for comment for a period of 30 days.
SEC. 404. FAMILY SELF-SUFFICIENCY ESCROW EXPANSION PILOT PROGRAM.
Title I of the United States Housing Act of 1937 (42 U.S.C. 1437 et
seq.) is amended by adding at the end the following:
``SEC. 39. ESCROW EXPANSION PILOT PROGRAM.
``(a) Definitions.--In this section:
``(1) Covered family.--The term `covered family' means a
family that--
``(A) receives assistance under section 8 or 9 of
this Act;
``(B) is enrolled in the pilot program; and
``(C) has an adjusted income that does not exceed
80-percent of the area-median income at the time of
enrollment in the pilot program.
``(2) Eligible entity.--The term `eligible entity' means an
entity described in subsection (c)(2) of section 23.
``(3) Pilot program.--The term `pilot program' means the
pilot program established under this section.
``(4) Welfare assistance.--The term `welfare assistance'
has the meaning given the term in section 984.103 of title 24,
Code of Federal Regulations, or any successor regulation.
``(b) Program Establishment.--The Secretary shall, not later than 1
year after the date of the enactment of this section, establish a pilot
program under which the Secretary shall select not more than 25
eligible entities to establish and manage escrow accounts for not more
than a total of 5,000 covered families, in accordance with this
section.
``(c) Escrow Accounts.--
``(1) In general.--An eligible entity selected to
participate in the pilot program--
``(A) shall establish an interest-bearing escrow
account and place into the account an amount equal to
any increase in the amount of rent paid by each covered
family in accordance with the provisions of section 3,
8(o), or 8(y), as applicable, that is attributable to
increases in earned income by the covered family during
the participation of such covered family in the pilot
program; and
``(B) notwithstanding any other provision of law,
may use existing funds made available to such entity at
any time under section 8 or 9 for the purposes of
making the escrow deposit for a covered family assisted
under, or residing in a unit assisted under, section 8
or 9 provided that such amounts are offset by the
increase in the amount of rent paid by the covered
family.
``(2) Withdrawals.--A covered family may withdraw funds,
including any interest earned, from an escrow account
established by an eligible entity under the pilot program for
such covered family--
``(A) after the covered family ceases to receive
welfare assistance; and
``(B)(i) not earlier than the date that is 5 years
after the date on which the eligible entity establishes
the escrow account under this subsection;
``(ii) not later than the date that is 7 years
after the date on which the eligible entity establishes
the escrow account under this subsection, if the
covered family chooses to continue to participate in
the pilot program after the date that is 5 years after
the date on which the eligible entity establishes the
escrow account;
``(iii) on the date the covered family ceases to
receive housing assistance under section 8 or 9, if
such date is earlier than 5 years after the date on
which the eligible entity establishes the escrow
account;
``(iv) earlier than 5 years after the date on which
the eligible entity establishes the escrow account, if
the covered family is using the funds to advance a
self-sufficiency goal as approved by the eligible
entity; or
``(v) under other circumstances for good cause as
determined by the Secretary.
``(3) Interim recertification.--For the purposes of the
pilot program established under this section, a covered family
shall recertify the income of such family not less than once
each year.
``(4) Contract or plan.--An eligible entity may not require
a covered family to--
``(A) complete a contract that requires the
participation of the covered family in the pilot
program established under this section; or
``(B) participate in any individual training or
services plan as a condition for participating in the
pilot program.
``(d) Effect of Increases in Family Income.--The amount equal to
any increase in the earned income of a covered family from the date of
enrollment of the covered family in the pilot program established under
this section through the date all funds are withdrawn from the escrow
account established for such family under this section may not be
considered as income or a resource for purposes of eligibility of the
covered family for other benefits, or amount of benefits payable to the
family, under any program administered by the Secretary.
``(e) Application.--
``(1) In general.--An eligible entity seeking to
participate in the pilot program shall submit to the Secretary
an application--
``(A) at such time, in such manner, and containing
such information as the Secretary may require by
notice; and
``(B) that includes the number of covered families
to which the eligible entity intends to provide escrow
accounts under this section.
``(2) Geographic and entity variety.--The Secretary shall
ensure that eligible entities selected to participate in the
pilot program--
``(A) are located across various States and in both
urban and rural areas; and
``(B) vary by size and type, including both public
housing agencies and private owners of projects
receiving project-based rental assistance under section
8.
``(f) Notification and Opt-out.--An eligible entity participating
in the pilot program shall--
``(1) notify each covered family of their enrollment in the
pilot program;
``(2) provide each covered family with a detailed
description of the pilot program, including how the pilot
program will impact their rent and finances;
``(3) inform each covered family that the family may not
simultaneously participate in the pilot program and the Family
Self-Sufficiency program under this section; and
``(4) provide each covered family with the ability to elect
not to participate in the pilot program--
``(A) not less than 2 weeks before the date on
which the escrow account is established under
subsection (c); and
``(B) at any point during the duration of the pilot
program.
``(g) Maximum Rents.--During the term of participation by a covered
family in the pilot program, the amount of rent paid by the covered
family shall be calculated under the section 3 or 8(o), as applicable.
``(h) Pilot Program Timeline.--
``(1) Awards.--Not later than 18 months after the date of
enactment of this section, the Secretary shall select the
eligible entities to participate in the pilot program.
``(2) Establishment and terms of accounts.--An eligible
entity selected to participate in the pilot program shall--
``(A) not later than 6 months after selection,
establish escrow accounts under subsection (c) for
covered families; and
``(B) maintain those escrow accounts for not less
than 5 years, or until the date the family ceases to
receive assistance under section 8 or 9, and, at the
discretion of the covered family, not more than 7 years
after the date on which the escrow account is
established.
``(i) Nonparticipation and Housing Assistance.--
``(1) In general.--A family that elects not to participate
in the pilot program may not be delayed or denied assistance
under section 8 or 9 for reason of such election.
``(2) No termination.--Housing assistance may not be
terminated as a consequence of participating, or not
participating, in the pilot program under this section for any
period of time.
``(j) Study.--Not later than 8 years after the date the Secretary
selects eligible entities to participate in the pilot program under
this section, the Secretary shall conduct a study and submit to the
Committee on Banking, Housing, and Urban Affairs of the Senate and the
Committee on Financial Services of the House of Representatives a
report on outcomes for covered families that participated in the pilot
program, which shall evaluate the effectiveness of the pilot program in
assisting families to achieve economic independence and self-
sufficiency, and the impact coaching and supportive services, or the
lack thereof, had on individual incomes.
``(k) Waivers.--The Secretary may, upon the written request of an
eligible entity receiving amounts under this section, waive
requirements under this section that relate to the administration of
the pilot program for the eligible entity that submitted the request if
such waiver would allow such eligible entity to effectively administer
the pilot program and make the required escrow account deposits under
this section.
``(l) Termination.--The pilot program established under this
section shall terminate on the date that is 7 years after the date of
enactment of this section.''.
SEC. 405. REFORMS TO HOUSING COUNSELING AND FINANCIAL LITERACY
PROGRAMS.
(a) In General.--Section 106 of the Housing and Urban Development
Act of 1968 (12 U.S.C. 1701x) is amended--
(1) in subsection (a)(4)(C), by striking ``adequate
distribution'' and all that follows through ``foreclosure
rates'' and inserting ``that the recipients are geographically
diverse and include organizations that serve urban or rural
areas'';
(2) in subsection (e), by adding at the end the following:
``(6) Performance review.--The Secretary--
``(A) may conduct periodic reviews; and
``(B) shall conduct performance reviews of all
organizations receiving assistance under this section
that--
``(i) consist of a review of the
organization's or entity's compliance with all
program requirements; and
``(ii) may take into account the
organization's or entity's aggregate counselor
performance under paragraph (7)(B).
``(7) Considerations.--
``(A) Covered mortgage loan defined.--In this
paragraph, the term `covered mortgage loan' means any
loan which is secured by a first or subordinate lien on
residential real property (including individual units
of condominiums and cooperatives) designed principally
for the occupancy of between 1 and 4 families that is--
``(i) insured by the Federal Housing
Administration under title II of the National
Housing Act (12 U.S.C. 1707 et seq.); or
``(ii) guaranteed under section 184 or 184A
of the Housing and Community Development Act of
1992 (12 U.S.C. 1715z-13a, 1715z-13b).
``(B) Comparison.--For each counselor employed by
an organization receiving assistance under this section
for pre-purchase housing counseling, the Secretary may
consider the performance of the counselor compared to
the default rate of all counseled borrowers of a
covered mortgage loan in comparable markets and such
other factors as the Secretary determines appropriate
to further the purposes of this section.
``(8) Certification.--If, based on the comparison required
under paragraph (7)(B), the Secretary determines that a
counselor lacks competence to provide counseling in the areas
described in subsection (e)(2) and such action will not create
a significant loss of capacity for housing counseling services
in the service area, the Secretary may--
``(A) require continued education coupled with
successful completion of a probationary period;
``(B) require retesting if the counselor continues
to demonstrate a lack of competence under paragraph
(7)(B); and
``(C) suspend an individual certification if a
counselor fails to demonstrate competence after not
fewer than 2 retesting opportunities under subparagraph
(B).'';
(3) in subsection (i)--
(A) by redesignating paragraph (3) as paragraph
(4); and
(B) by inserting after paragraph (2) the following:
``(3) Termination of assistance.--
``(A) In general.--The Secretary may deny renewal
of covered assistance to an organization or entity
receiving covered assistance if the Secretary
determines that the organization or entity, or the
individual through which the organization or entity
provides counseling, is not in compliance with program
requirements--
``(i) based on the performance review
described in subsection (e)(6); and
``(ii) in accordance with existing
regulations issued by the Secretary.
``(B) Notice.--The Secretary shall give an
organization or entity receiving covered assistance not
less than 60 days prior written notice of any denial of
renewal under this paragraph, and the determination of
renewal shall not be finalized until the end of that
notice period.
``(C) Informal conference.--If requested in writing
by the organization or entity within the notice period
described in subparagraph (B), the organization or
entity shall be entitled to an informal conference with
the Deputy Assistant Secretary of Housing Counseling on
behalf of the Secretary at which the organization or
entity may present for consideration specific factors
that the organization or entity believes were beyond
the control of the organization or entity and that
caused the failure to comply with program requirements,
such as a lack of lender or servicer coordination or
communication with housing counseling agencies and
individual counselors.''; and
(4) by adding at the end the following:
``(j) Offering Foreclosure Mitigation Counseling.--
``(1) Covered mortgage loan defined.--In this subsection,
the term `covered mortgage loan' means any loan which is
secured by a first or subordinate lien on residential real
property (including individual units of condominiums and
housing cooperatives) or stock or membership in a cooperative
ownership housing corporation designed principally for the
occupancy of between 1 and 4 families that is--
``(A) insured by the Federal Housing Administration
under title II of the National Housing Act (12 U.S.C.
1707 et seq.);
``(B) guaranteed under section 184 or 184A of the
Housing and Community Development Act of 1992 (12
U.S.C. 1715z-13a, 1715z-13b);
``(C) made, guaranteed, or insured by the
Department of Veterans Affairs; or
``(D) made, guaranteed, or insured by the
Department of Agriculture.
``(2) Opportunity for borrowers.--A borrower with respect
to a covered mortgage loan who is 30 days or more delinquent on
payments for the covered mortgage loan shall be given an
opportunity to participate in available housing counseling.
``(3) Cost.--If the requirements of sections 202(a)(3) and
205(f) of the National Housing Act (12 U.S.C. 1708(a)(3),
1711(f)) are met, the fair market rate cost of counseling for
delinquent borrowers described in paragraph (2) with respect to
a covered mortgage loan described in paragraph (1)(A) shall be
paid for by the Mutual Mortgage Insurance Fund, as authorized
under section 203(r)(4) of the National Housing Act (12 U.S.C.
1709(r)(4)).''.
SEC. 406. ESTABLISHMENT OF EVICTION HELPLINE.
(a) In General.--The Secretary of Housing and Urban Development
shall, not later than 1 year after the date of the enactment of this
Act, establish a program--
(1) to establish a hotline to provide tenants of covered
federally assisted rental dwelling units with counseling,
resources, and referrals to available assistance relating to
eviction-related matters; and
(2) to provide information about such hotline to tenants of
covered federally assisted rental dwelling units by publishing
information about such hotline in common areas of each
federally assisted rental dwellings and through other means
determined appropriate by the Secretary.
(b) Sunset.--The program established under this section shall
terminate on the date that is 7 years after the date of the enactment
of this section.
(c) Definitions.--In this section:
(1) Assistance.--The term ``assistance'' means any grant,
loan, subsidy, contract, cooperative agreement, or other form
of financial assistance, but such term does not include the
insurance or guarantee of a loan, mortgage, or pool of loans or
mortgages.
(2) Covered federally assisted rental dwelling unit.--The
term ``covered federally assisted rental dwelling unit'' means
a residential dwelling unit--
(A) that is made available for rental; and
(B)(i) for which assistance is provided, or that is
part of a housing project for which assistance is
provided, under any program administered by the
Secretary of Housing and Urban Development, including--
(I) the public housing program under the
United States Housing Act of 1937 (42 U.S.C.
1437 et seq.);
(II) the program for rental assistance
under section 8 of the United States Housing
Act of 1937 (42 U.S.C. 1437f);
(III) the HOME Investment Partnerships
program under title II of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C.
12721 et seq.);
(IV) title IV of the McKinney-Vento
Homeless Assistance Act (42 U.S.C. 11360 et
seq.);
(V) the Housing Trust Fund program under
section 1338 of the Housing and Community
Development Act of 1992 (12 U.S.C. 4568);
(VI) the program for supportive housing for
the elderly under section 202 of the Housing
Act of 1959 (12 U.S.C. 1701q);
(VII) the program for supportive housing
for persons with disabilities under section 811
of the Cranston-Gonzalez National Affordable
Housing Act (42 U.S.C. 8013);
(VIII) the AIDS Housing Opportunities
program under subtitle D of title VIII of the
Cranston-Gonzalez National Affordable Housing
Act (42 U.S.C. 12901 et seq.);
(IX) the program for Native American
housing under the Native American Housing
Assistance and Self-Determination Act of 1996
(25 U.S.C. 4101 et seq.); and
(X) the program for housing assistance for
Native Hawaiians under title VIII of the Native
American Housing Assistance and Self-
Determination Act of 1996 (25 U.S.C. 4221 et
seq.); or
(ii) that is a property, or is on or in a property,
that has a federally backed mortgage loan or federally
backed multifamily mortgage loan, as such terms are
defined in section 4024(a) of the CARES Act (15 U.S.C.
9058(a)).
SEC. 407. TEMPERATURE SENSOR PILOT PROGRAM.
(a) In General.--The Secretary of Housing and Urban Development
shall establish a temperature sensor pilot program to provide grants to
public housing agencies and owners of covered federally assisted rental
dwelling units to acquire, install, and test the efficacy of approved
temperature sensors in residential dwelling units to ensure such units
remain in compliance with temperature requirements.
(b) Eligibility.--
(1) In general.--The Secretary shall, not later than 180
days after the date of the enactment of this Act, establish
eligibility criteria for public housing agencies and owners of
covered federally assisted rental dwelling units to participate
in the pilot program established pursuant to subsection (a).
(2) Criteria.--In establishing the eligibility criteria
described in paragraph (1), the Secretary shall ensure--
(A) the pilot program includes a diverse range of
participants that represent different geographic
regions, climate regions, unit sizes, and types of
housing; and
(B) that the functionality of an approved
temperature sensor will be installed and tested using
amounts awarded under this section, including internet
connectivity requirements.
(c) Installation.--Each public housing agency or owner of a covered
federally assisted rental dwelling unit that acquires 1 or more
approved temperature sensors under this section shall, after receiving
written permission from the resident of a dwelling unit, install such
temperature sensor and monitor the data from such temperature sensor.
(d) Collection of Complaint Records.--
(1) In general.--Each public housing agency or owner of a
covered federally assisted rental dwelling unit that installs 1
or more approved temperature sensors under this section shall
collect and retain information about temperature-related
complaints and violations.
(2) Definitions.--The Secretary shall, not later than 180
days after the date of the enactment of this Act, define the
terms ``temperature-related complaints'' and ``temperature-
related violations'' for the purposes of this section.
(e) Data Collection.--
(1) In general.--Data collected from temperature sensors
acquired and installed by public housing agencies and owners of
covered federally assisted rental dwelling units under this
section shall be retained until the Secretary notifies the
public housing agency or owner that the pilot program and the
evaluation of the pilot program are complete.
(2) Personally identifiable information.--The Secretary
shall, not later than 180 days after the date of the enactment
of this Act, establish standards for the protection of
personally identifiably information collected during the pilot
program by public housing agencies, owners of federally
assisted rental dwelling units, and the Secretary.
(f) Pilot Program Evaluation.--
(1) Interim evaluation.--Not later than 12 months after the
establishment of the pilot program under this section, the
Secretary shall publicly publish and submit to the Congress a
report that--
(A) examines the number of temperature-related
complaints and violations in federally assisted rental
dwelling units with temperature sensors, disaggregated
by temperature sensor technology and climate region--
(i) that occurred before the installation
of such sensor, if known; and
(ii) that occurred after the installation
of such sensor; and
(B) identifies any barriers to full utility of
temperature sensor capabilities, including broadband
internet access and tenant participation.
(2) Final evaluation.--Not later than 36 months after the
conclusion of the pilot program established by the Secretary
under this section, the Secretary shall publicly publish and
submit to the Congress a report that--
(A) examines the number of temperature-related
complaints and violations in federally assisted rental
dwelling units with temperature sensors, disaggregated
by temperature sensor technology and climate region--
(i) that occurred before the installation
of such sensor; and
(ii) that occurred after the installation
of such sensor;
(B) identifies any barriers to full utility of
temperature sensor capabilities, including broadband
internet access and tenant participation; and
(C) compares the utility of various temperature
sensor technologies based on--
(i) climate zones;
(ii) cost;
(iii) features; and
(iv) any other factors identified by the
Secretary.
(g) Sunset.--The pilot program established under this section shall
terminate on the date that is 3 years after the date of the enactment
of this section.
(h) Definitions.--For the purposes of this section:
(1) Approved temperature sensor.--The term ``approved
temperature sensor'' means an internet capable temperature
reporting device able to measure ambient air temperature to the
tenth degree Fahrenheit and Celsius selected from a list of
such devices approved in advance by the Secretary.
(2) Assistance.--The term ``assistance'' means any grant,
loan, subsidy, contract, cooperative agreement, or other form
of financial assistance, but such term does not include the
insurance or guarantee of a loan, mortgage, or pool of loans or
mortgages.
(3) Covered federally assisted rental dwelling unit.--The
term ``covered federally assisted rental dwelling unit'' means
a residential dwelling unit that is made available for rental
and for which assistance is provided, or that is part of a
housing project for which assistance is provided, under--
(A) the program for project-based rental assistance
under section 8 of the United States Housing Act of
1937 (42 U.S.C. 1437f);
(B) the public housing program under the United
States Housing Act of 1937 (42 U.S.C. 1437 et seq.);
(C) the program for supportive housing for the
elderly under section 202 of the Housing Act of 1959
(12 U.S.C. 1701q); or
(D) the program for supportive housing for persons
with disabilities under section 811 of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C.
8013).
(4) Owner.--The term ``owner'' means--
(A) with respect to the program for project-based
rental assistance under section 8 of the United States
Housing Act of 1937 (42 U.S.C. 1437f), any private
person or entity, including a cooperative, an agency of
the Federal Government, or a public housing agency,
having the legal right to lease or sublease dwelling
units;
(B) with respect to the public housing program
under the United States Housing Act of 1937 (42 U.S.C.
1437 et seq.), a public housing agency or an owner
entity of public housing units as defined in section
905.108 of title 24, Code of Federal Regulations;
(C) with respect to the program for supportive
housing for the elderly under section 202 of the
Housing Act of 1959 (12 U.S.C. 1701q), a private
nonprofit organization as defined under section
202(k)(4) of the Housing Act of 1959; and
(D) with respect to the program for supportive
housing for persons with disabilities under section 811
of the Cranston-Gonzalez National Affordable Housing
Act (42 U.S.C. 8013), a private nonprofit organization
as defined under section 811(k)(5) of the Cranston-
Gonzalez National Affordable Housing Act.
SEC. 408. GAO STUDIES.
(a) Report to Congress.--Not later than 1 year after the date of
the enactment of this Act, the Comptroller General of the United States
shall carry out a study and submit to the Congress a report that
identifies options to remove barriers and improve housing for persons
who are elderly or disabled, including any potential impacts of
providing capital advances for--
(1) the program for supportive housing for the elderly
under section 202 of the Housing Act of 1959 (12 U.S.C. 1701q);
and
(2) the program for supportive housing for persons with
disabilities under section 811 of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 8013).
(b) GAO Study to Determine Proximity of Housing to Superfund
Sites.--Not later than 1 year after the date of the enactment of this
section, the Comptroller General of the United States shall carry out a
study and submit to the Congress a report that identifies how many
residential dwelling units, and how many dwelling units that are a part
of public housing (as such term is defined in section 3(b) of the
United States Housing Act of 1937 (42 U.S.C. 1437a(b))), are located
less than 1 mile from a site that is included on the National
Priorities List established pursuant to section 105 of the
Comprehensive Environmental Response, Compensation, and Liability Act
of 1980 (42 U.S.C. 9605).
(c) Report to Congress.--Not later than 1 year after the date of
the enactment of this Act, the Comptroller General of the United States
shall carry out a study and submit to the Committee on Financial
Services of the House of Representatives and the Committee on Banking,
Housing, and Urban Affairs of the Senate a report that--
(1) establishes a comprehensive definition of residential
heirs property, or family land inherited without a will or
legal documentation of ownership;
(2) examines the occurrence of and consequences to owners
of residential heirs property, and provides an estimate
regarding the number of current residential heirs properties;
(3) describes the objectives and requirements of the
Uniform Partition of Heirs Property Act as approved by the
National Conference of Commissioners on Uniform State Laws in
2010;
(4) details the various resources that may be available to
the owners of residential heirs properties, including housing
counseling, legal services, and financial assistance to resolve
residential heirs property title issues from the Federal
Government, nonprofits, and institutes of higher education; and
(5) makes recommendations with respect to how to reduce the
number of residential heirs properties, including--
(A) by incentivizing States and other jurisdictions
which enact or adopt the Uniform Partition of Heirs
Property Act or similar such reforms;
(B) by awarding grants to States and other
jurisdictions to assist residents of such States and
jurisdictions to establish and document property
ownership rights or settle a decedent's estate;
(C) by awarding grants to entities which provide
housing counseling, legal assistance, and financial
assistance to homeowners and their heirs relating to
title clearing and home retention efforts of heirs'
property and which target services to low- and
moderate-income persons or provide services in
neighborhoods that have a high concentration of low-
and moderate-income persons; and
(D) by conducting other activities that assist
individuals to clear title with respect to heirs'
property and with general estate planning.
TITLE V--ENHANCING OVERSIGHT OF HOUSING PROVIDERS
SEC. 501. REQUIREMENT TO TESTIFY.
Section 7 of the Department of Housing and Urban Development Act
(42 U.S.C. 3535) is amended by adding at the end the following new
subsection:
``(u) Annual Testimony.--The Secretary shall appear before the
Committee on Financial Services of the House of Representatives and the
Committee on Banking, Housing, and Urban Affairs of the Senate at an
annual hearing and present testimony regarding the operations of the
Department during the preceding year, including--
``(1) the current programs and operations of the
Department;
``(2) the physical condition of all public housing and
other housing assisted by the Department;
``(3) the financial health of the mortgage insurance funds
of the Federal Housing Agency;
``(4) oversight by the Department of grantees and
subgrantees for purposes of preventing waste, fraud, and abuse;
``(5) the progress made by the Federal Government in ending
the affordable housing and homelessness crises;
``(6) the capacity of the Department to deliver on its
statutory mission; and
``(7) other ongoing activities of the Department, as
appropriate.''.
SEC. 502. IMPROVING PUBLIC HOUSING AGENCY ACCOUNTABILITY.
(a) In General.--The Secretary shall require each covered public
housing agency to provide a notice each year to the Secretary that--
(1) indicates that if a receiver or Federal monitor remains
appointed for the covered public housing agency as of October 1
of the calendar year to which such notice relates;
(2) provides the date on which the receiver or Federal
monitor was first appointed and the projected date, if known,
the appointment of the receiver or Federal monitor will be
terminated; and
(3) identifies the current receiver or Federal monitor
appointed to oversee the public housing agency.
(b) Federal Monitor and Receiver Transparency.--
(1) Notwithstanding any other provision of law, not later
than October 1 of each year, each receiver or Federal monitor
that is currently appointed to oversee a covered public housing
agency shall provide to the Committee on Financial Services of
the House of Representatives and the Committee on Banking,
Housing, and Urban Affairs of the Senate a written assessment
that--
(A) describes the management and oversight
activities of the receiver or Federal monitor for the
covered public housing agency;
(B) identifies the significant factors that led to
the appointment of the receiver or Federal monitor for
the covered public housing agency;
(C) identifies the factors that remain unresolved
at the covered public housing agency that have led to
the continued oversight of the receiver or Federal
monitor; and
(D) includes a timeline developed by the receiver
or Federal monitor that projects when the factors
identified under subparagraphs (B) and (C) will be
resolved.
(2) In addition to the written assessment required in
paragraph (1), upon written request by the Committee on
Financial Services of the House of Representatives or the
Committee on Banking, Housing, and Urban Affairs of the Senate,
each receiver or Federal monitor appointed to oversee a covered
public housing agency shall promptly furnish additional or
supplemental information requested by the Committee on
Financial Services of the House of Representatives or the
Committee on Banking, Housing, and Urban Affairs of the Senate
with respect to the covered public housing agency which such
receiver or Federal monitor is appointed to oversee, including
presenting testimony upon request.
(c) Disclosure Required.--The Secretary shall, not later than 1
year after the date of the enactment of this section, require each
covered public housing agency to publicly disclose, on the website of
the covered public housing agency, with respect to each contract
entered into by such covered public housing agency in the preceding
year, the following information:
(1) All material information about the contract, including
the goods and service provided.
(2) The identity of the vendor selected to receive the
contract.
(3) The date of the solicitation of the contract.
(4) The relevant information pertaining to the bids and
quotes solicited for the contract.
(5) The name of the official who solicited the contract.
(d) Inspector General Review.--Not later than 180 days after
receiving a written request from the Committee on Financial Services of
the House of Representatives or the Committee on Banking, Housing, and
Urban Affairs of the Senate, the inspector general shall provide to the
requesting committee an analysis of--
(1) the status of any covered public housing agency's
compliance with any agreements entered into between the covered
public housing agency and the Department of Housing and Urban
Development, including specific areas of deficiency and
progress toward compliance;
(2) a review of actions taken by the receiver or Federal
monitor appointed to oversee a covered public housing agency
and any private sector housing development partners pursuant to
such agreement, including any gaps in oversight by the receiver
or Federal monitor;
(3) an assessment of the physical conditions of housing
provided by the covered public housing agency, including the
status of the covered public housing agency's compliance with
relevant health and safety requirements;
(4) an examination of any allegations of waste, fraud,
abuse or violations of Federal law committed by employees or
contractors of the covered public housing agency;
(5) any additional pertinent information, as determined
necessary and appropriate by the inspector general; and
(6) any recommendations of the inspector general that
relate to how to improve the compliance of the covered public
housing agency with any agreements entered into with the
Department of Housing and Urban Development or enhance the
oversight of the receiver or Federal monitor over such covered
public housing agency.
(e) Definitions.--
(1) Covered public housing agency.--The term ``covered
public housing agency'' means a public housing agency (as such
term is defined in section 3(b) of the United States Housing
Act of 1937 (42 U.S.C. 1437a(b))) for which an administrative
or judicial receiver or Federal monitor was appointed.
(2) Inspector general.--The term ``inspector general''
means the inspector general of the Department of Housing and
Urban Development.
(3) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
TITLE VI--STRENGTHENING COMMUNITY BANKS' ROLE IN HOUSING
SEC. 601. COMMUNITY BANK DEPOSIT ACCESS.
(a) In General.--Section 29 of the Federal Deposit Insurance Act
(12 U.S.C. 1831f) is amended by adding at the end the following:
``(j) Limited Exception for Custodial Deposits.--
``(1) In general.--Custodial deposits of an eligible
institution shall not be considered to be funds obtained,
directly or indirectly, by or through a deposit broker to the
extent that the total amount of such custodial deposits does
not exceed an amount equal to 20 percent of the total
liabilities of the eligible institution.
``(2) Definitions.--In this subsection:
``(A) Custodial deposit.--The term `custodial
deposit' means a deposit that is not deposited at an
insured depository institution in return for fees paid
by the insured depository institution pursuant to an
agreement with a third party and that would otherwise
be considered to be obtained, directly or indirectly,
by or through a deposit broker, if the deposit is
deposited at 1 or more insured depository institutions,
for the purpose of providing or maintaining deposit
insurance for the benefit of a third party, by or
through any of the following, each acting in a formal
custodial or fiduciary capacity for the benefit of a
third party:
``(i) An insured depository institution
serving as agent, trustee, or custodian.
``(ii) A trust entity controlled by an
insured depository institution serving as
agent, trustee, or custodian.
``(iii) A State-chartered trust company
serving as agent, trustee, or custodian.
``(iv) A plan administrator or investment
advisor, acting in a formal custodial or
fiduciary capacity for the benefit of a plan.
``(B) Eligible institution.--The term `eligible
institution' means an insured depository institution
that accepts custodial deposits, if the insured
depository institution has less than $10,000,000,000 in
total assets as reported on the consolidated report of
condition and income as reported quarterly to the
appropriate Federal banking agency and--
``(i)(I) when most recently examined under
section 10(d) was assigned a composite rating
of 1, 2, or 3 under the Uniform Financial
Institutions Rating System (or an equivalent
rating under a comparable rating system); and
``(II) is well capitalized; or
``(ii) has obtained a waiver pursuant to
subsection (c).
``(C) Plan.--The term `plan' has the meaning given
the term in section 3 of the Employee Retirement Income
Security Act of 1974 (29 U.S.C. 1002).
``(D) Plan administrator.--The term `plan
administrator' has the meaning given the term
`administrator' in section 3 of the Employee Retirement
Income Security Act of 1974 (29 U.S.C. 1002).
``(E) Well capitalized.--The term `well
capitalized' has the meaning given the term in section
38(b).''.
(b) Interest Rate Restriction.--Section 29 of the Federal Deposit
Insurance Act (12 U.S.C. 1831f), as amended by subsection (a), is
further amended by adding at the end the following:
``(k) Restriction on Interest Rate Paid on Certain Custodial
Deposits.--
``(1) Definitions.--In this subsection--
``(A) the terms `custodial deposit', `eligible
institution', and `well capitalized' have the meanings
given those terms in subsection (j); and
``(B) the term `covered insured depository
institution' means an insured depository institution
that while acting as an eligible institution under
subsection (j), accepts custodial deposits while not
well capitalized.
``(2) Prohibition.--A covered insured depository
institution may not pay a rate of interest on custodial
deposits that are accepted while not well capitalized that, at
the time the funds or custodial deposits are accepted,
significantly exceeds the limit set forth in paragraph (3).
``(3) Limit on interest rates.--The limit on the rate of
interest referred to in paragraph (2) shall be not greater
than--
``(A) the rate paid on deposits of similar maturity
in the normal market area of the covered insured
depository institution for deposits accepted in the
normal market area of the covered insured depository
institution; or
``(B) the national rate paid on deposits of
comparable maturity, as established by the Corporation,
for deposits accepted outside the normal market area of
the covered insured depository institution.''.
SEC. 602. KEEPING DEPOSITS LOCAL.
(a) Amount of Reciprocal Deposits That Are Not Considered to Be
Funds Obtained by or Through a Deposit Broker.--Section 29(i) of the
Federal Deposit Insurance Act (12 U.S.C. 1831f(i)) is amended by
striking paragraph (1) and inserting the following:
``(1) In general.--The sum of the following amounts of
reciprocal deposits of an agent institution shall not be
considered to be funds obtained, directly or indirectly, by or
through a deposit broker:
``(A) An amount equal to 50 percent of the portion
of the total liabilities of the agent institution that
is less than or equal to $1,000,000,000.
``(B) An amount equal to 40 percent of the portion,
if any, of the total liabilities of the agent
institution that is greater than $1,000,000,000, but
less than or equal to $10,000,000,000.
``(C) An amount equal to 30 percent of the portion,
if any, of the total liabilities of the agent
institution that is greater than $10,000,000,000, but
less than or equal to $250,000,000,000.''.
(b) Definition of Agent Institution.--Section 29(i)(2)(A)(i) of the
Federal Deposit Insurance Act (12 U.S.C. 1831f(i)(2)(A)(i)) is amended
by striking subclause (I) and inserting the following:
``(I) when most recently examined
under section 10(d) was assigned a
CAMELS rating of 1, 2, or 3 under the
Uniform Financial Institutions Rating
System (or an equivalent rating under a
comparable rating system); and''.
(c) Reciprocal Deposits Study.--
(1) In general.--The Federal Deposit Insurance Corporation,
in consultation with the Board of Governors of the Federal
Reserve System, shall carry out a study on reciprocal deposits.
(2) Contents.--The study required under paragraph (1) shall
include--
(A) an analysis of how reciprocal deposits have
performed since 2018, which shall include--
(i) the use of quantitative and qualitative
data;
(ii) a breakdown of the usage of reciprocal
deposits by size of insured depository
institution;
(iii) the usage of reciprocal deposits
during periods of stress; and
(iv) an analysis, to the extent
practicable, of end-user depositors, such as
municipalities, businesses, and non-profit
organizations, that drive demand for reciprocal
products;
(B) an analysis, to the extent practicable, of how
reciprocal deposits compare to other deposit
arrangements; and
(C) an analysis of the benefits and potential risks
of reciprocal deposits.
(3) Report.--Not later than 6 months after the date of
enactment of this Act, the Federal Deposit Insurance
Corporation shall issue a report to the Committee on Financial
Services of the House of Representatives and the Committee on
Banking, Housing, and Urban Affairs of the Senate containing
all findings and determinations made in carrying out the study
required under paragraph (1).
SEC. 603. SUPERVISORY MODIFICATIONS FOR APPROPRIATE RISK-BASED TESTING.
(a) Examination Relief for Certain Well Managed and Well
Capitalized Financial Institutions.--
(1) Insured depository institutions.--Section 10(d) of the
Federal Deposit Insurance Act (12 U.S.C. 1820(d)) is amended by
adding at the end the following:
``(11) Examination relief for certain well managed and well
capitalized insured depository institutions.--
``(A) In general.--The following shall apply to a
well managed and well capitalized insured depository
institution with $6,000,000,000 or less in consolidated
assets:
``(i) Alternating limited-scope
examinations.--After an insured depository
institution receives a full-scope, on-site
examination from the appropriate Federal
banking agency, the next examination of the
insured depository institution by the
appropriate Federal banking agency shall be a
limited-scope examination, as determined by the
appropriate Federal banking agency.
``(ii) Combined examinations.--If an
insured depository institution is otherwise
subject to separate safety and soundness
examinations, consumer compliance examinations,
and information technology and cybersecurity
examinations, the appropriate Federal banking
agency shall, upon request of the insured
depository institution, combine two or three
such examinations, as specified by the insured
depository institution, and carry them out at
the same time.
``(B) Exception.--Subparagraph (A) shall not apply
to an insured depository institution if--
``(i) the insured depository institution is
currently subject to a formal enforcement
proceeding or order by the Corporation or the
appropriate Federal banking agency; or
``(ii) a person acquired control of the
insured depository institution since the most
recent full-scope, on-site examination of the
insured depository institution from the
appropriate Federal banking agency.
``(C) Rulemaking.--Not later than 12 months after
the date of enactment of this paragraph, the Federal
banking agencies shall issue rules to carry out
subparagraph (A), including, with respect to an insured
depository institution described under subparagraph
(A), to--
``(i) establish procedures for the limited-
scope examinations described in subparagraph
(A)(i);
``(ii) establish procedures for reviewing
insured depository institutions that--
``(I) experience material changes
in financial condition or operational
risk profile between scheduled
examinations; or
``(II) have failed to comply with
Federal or State banking laws and
regulations; and
``(iii) balance the goals of streamlining
the examination cycle for individual insured
depository institutions and reducing
unnecessary regulatory burdens while
maintaining sufficient oversight to ensure the
continued safety and soundness of the insured
depository institutions and compliance with all
applicable laws and regulations.
``(D) Rule of construction.--Nothing in this
paragraph may be construed to limit the authority of a
Federal banking agency to conduct off-site monitoring,
targeted reviews, or additional full-scope, on-site
examinations of an insured depository institution if
the Federal banking agency determines such monitoring,
reviews, or examinations are necessary to ensure safety
and soundness or compliance with applicable laws.
``(E) Definitions.--In this paragraph:
``(i) Consumer compliance examination.--The
term `consumer compliance examination' means an
examination to assess compliance with the
requirements of Federal consumer financial law
(as such term is defined in section 1002 of the
Consumer Financial Protection Act of 2010).
``(ii) Well capitalized.--The term `well
capitalized' has the meaning given that term in
section 38(b).
``(iii) Well managed.--With respect to an
insured depository institution, the term `well
managed' means that, when the institution was
most recently examined by the appropriate
Federal banking agency, the institution was
found to be well managed, and the institution's
composite condition was found to be
satisfactory or outstanding.''.
(2) Insured credit unions.--Section 204 of the Federal
Credit Union Act (12 U.S.C. 1784) is amended by adding at the
end the following:
``(h) Examination Relief for Certain Well Managed and Well
Capitalized Insured Credit Unions.--
``(1) In general.--The following shall apply to a well
managed and well capitalized insured credit union with
$6,000,000,000 or less in consolidated assets:
``(A) Alternating limited-scope examinations.--
After an insured credit union receives a full-scope,
on-site examination from the National Credit Union
Administration, the next examination of the insured
credit union by the National Credit Union
Administration shall be a limited-scope examination, as
determined by the National Credit Union Administration.
``(B) Combined examinations.--If an insured credit
union is otherwise subject to separate safety and
soundness examinations, consumer compliance
examinations, and information technology and
cybersecurity examinations, the National Credit Union
Administration shall, upon request of the insured
credit union, combine two or three such examinations,
as specified by the insured credit union, and carry
them out at the same time.
``(2) Exception.--Paragraph (1) shall not apply to an
insured credit union if the insured credit union is currently
subject to a formal enforcement proceeding or order by the
National Credit Union Administration.
``(3) Rulemaking.--Not later than 12 months after the date
of enactment of this subsection, the National Credit Union
Administration shall issue rules to carry out paragraph (1),
including, with respect to an insured credit union described
under paragraph (1), to--
``(A) establish procedures for the limited-scope
examinations described in paragraph (1)(A);
``(B) establish procedures for reviewing insured
credit unions that--
``(i) experience material changes in
financial condition or operational risk profile
between scheduled examinations; or
``(ii) have failed to comply with Federal
or State banking laws and regulations; and
``(C) balance the goals of streamlining the
examination cycle for individual insured credit unions
and reducing unnecessary regulatory burdens while
maintaining sufficient oversight to ensure the
continued safety and soundness of the insured credit
unions and compliance with all applicable laws and
regulations.
``(4) Rule of construction.--Nothing in this subsection may
be construed to limit the authority of the National Credit
Union Administration to conduct off-site monitoring, targeted
reviews, or additional full-scope, on-site examinations of an
insured credit union if the National Credit Union
Administration determines such monitoring, reviews, or
examinations are necessary to ensure safety and soundness or
compliance with applicable laws.
``(5) Definitions.--In this paragraph:
``(A) Consumer compliance examination.--The term
`consumer compliance examination' means an examination
to assess compliance with the requirements of Federal
consumer financial law (as such term is defined in
section 1002 of the Consumer Financial Protection Act
of 2010).
``(B) Well capitalized.--The term `well
capitalized' has the meaning given that term in section
216(c).
``(C) Well managed.--With respect to an insured
credit union, the term `well managed' means that, when
the credit union was most recently examined by the
National Credit Union Administration, the credit union
was found to be well managed, and the credit union's
composite condition was found to be satisfactory or
outstanding.''.
(b) Examination Practices.--
(1) Insured depository institutions.--Section 10(d) of the
Federal Deposit Insurance Act (12 U.S.C. 1820(d)), as amended
by subsection (a)(1), is further amended by adding at the end
the following:
``(12) Examination practices.--With respect to on-site
examination of an insured depository institution with less than
$6,000,000,000 in total assets, the appropriate Federal banking
agency shall--
``(A) ensure the examination is led by, to the
maximum extent practicable, an examiner with
significant experience as an examiner;
``(B) make every effort, to the maximum extent
practicable, to minimize the number of examiners
utilized and the amount of time spent at the
institution to carry out the examination;
``(C) make every effort, to the maximum extent
practicable, to schedule the examination at a time that
is convenient for the institution; and
``(D) to the maximum extent practicable, give the
institution advance notice of issues expected to be
covered in the examination.
``(13) Report.--In its annual report to Congress, each
Federal banking agency shall include--
``(A) information on how the agency is complying
with paragraphs (11) and (12); and
``(B) aggregate data summarizing the agency's
examination practices with respect to insured
depository institutions with less than $6,000,000,000
in total assets, including--
``(i) the average experience of examiners,
including the average number of years of
examiner experience of those who lead on-site
examinations;
``(ii) the average number of examiners
utilized; and
``(iii) the average amount of time the
agency spends visiting such institutions for
on-site examinations.''.
(2) Insured credit unions.--Section 204 of the Federal
Credit Union Act (12 U.S.C. 1784), as amended by subsection
(a)(2), is further amended by adding at the end the following:
``(i) Examination Practices.--With respect to on-site examination
of an insured credit union with less than $6,000,000,000 in total
assets, the National Credit Union Administration shall--
``(1) ensure the examination is led by, to the maximum
extent practicable, an examiner with significant experience as
an examiner;
``(2) make every effort, to the maximum extent practicable,
to minimize the number of examiners utilized and the amount of
time spent at the credit union to carry out the examination;
``(3) make every effort, to the maximum extent practicable,
to schedule the examination at a time that is convenient for
the credit union; and
``(4) to the maximum extent practicable, give the credit
union advance notice of issues expected to be covered in the
examination.
``(j) Report.--In its annual report to Congress, the National
Credit Union Administration shall include--
``(1) information on how the Administration is complying
with subsections (h) and (i); and
``(2) aggregate data summarizing the Administration's
examination practices with respect to insured credit unions
with less than $6,000,000,000 in total assets, including--
``(A) the average experience of examiners,
including the average number of years of examiner
experience of those who lead on-site examinations;
``(B) the average number of examiners utilized; and
``(C) the average amount of time the Administration
spends visiting such credit unions for on-site
examinations.''.
SEC. 604. TAILORED REGULATORY UPDATES FOR SUPERVISORY TESTING.
Section 10(d) of the Federal Deposit Insurance Act (12 U.S.C.
1820(d)) is amended--
(1) in paragraph (4)(A), by striking ``$3,000,000,000'' and
inserting ``$6,000,000,000''; and
(2) in paragraph (10), by striking ``$3,000,000,000'' and
inserting ``$6,000,000,000''.
SEC. 605. CREDIT UNION BOARD MODERNIZATION.
Section 113 of the Federal Credit Union Act (12 U.S.C. 1761b) is
amended--
(1) by striking ``monthly'' each place such term appears;
(2) in the matter preceding paragraph (1), by striking
``The board of directors'' and inserting the following:
``(a) In General.--The board of directors'';
(3) in subsection (a) (as so designated), by striking
``shall meet at least once a month and''; and
(4) by adding at the end the following:
``(b) Meetings.--The board of directors of a Federal credit union
shall meet as follows:
``(1) With respect to a de novo Federal credit union, not
less frequently than monthly during each of the first five
years of the existence of such Federal credit union.
``(2) Not less than six times annually, with at least one
meeting held during each fiscal quarter, with respect to a
Federal credit union--
``(A) with composite rating of either 1 or 2 under
the Uniform Financial Institutions Rating System (or an
equivalent rating under a comparable rating system);
and
``(B) with a capability of management rating under
such composite rating of either 1 or 2.
``(3) Not less frequently than once a month, with respect
to a Federal credit union--
``(A) with composite rating of either 3, 4, or 5
under the Uniform Financial Institutions Rating System
(or an equivalent rating under a comparable rating
system); or
``(B) with a capability of management rating under
such composite rating of either 3, 4, or 5.''.
SEC. 606. SYSTEMIC RISK AUTHORITY TRANSPARENCY.
(a) GAO Review.--Section 13(c)(4)(G)(iv) of the Federal Deposit
Insurance Act (12 U.S.C. 1823(c)(4)(G)(iv)) is amended to read as
follows:
``(iv) GAO review.--
``(I) In general.--The Comptroller
General of the United States shall, not
later than 60 days after a
determination is made under clause (i),
and again 180 days thereafter, review
and report to the Congress on the
determination under clause (i),
including--
``(aa) the basis for the
determination;
``(bb) the purpose for
which any action was taken
pursuant to such clause;
``(cc) the likely effect of
the determination and such
action on the incentives and
conduct of insured depository
institutions and uninsured
depositors;
``(dd) any mismanagement by
the executives and board of the
insured depository institution
that contributed to the failure
of the insured depository
institution;
``(ee) a review of the
compensation practices of the
insured depository institution;
``(ff) any supervisory or
regulatory shortcomings with
respect to the appropriate
Federal banking agency of the
insured depository institution;
``(gg) any actions taken by
the Federal banking regulators,
Financial Stability Oversight
Council, Department of the
Treasury, and other relevant
financial regulators in
relation to the failure of the
insured depository institution;
and
``(hh) any additional
relevant entities or activities
that may have contributed to
the failure of the insured
depository institution,
including with respect to
auditing, accounting, credit
rating agencies, investment
bank underwriters, and
emergency liquidity options
such as loans from the Federal
reserve banks or advances
through the Federal Home Loan
Bank system.
``(II) Rule of construction.--
Nothing in this clause or a report
issued pursuant to this clause may be
construed to limit the authority of a
Federal agency to enforce violations of
Federal statutes, rules, or orders.''.
(b) Appropriate Federal Banking Agency Report.--Section 13(c) of
the Federal Deposit Insurance Act (12 U.S.C. 1823(c)) is amended by
adding at the end the following:
``(12) Appropriate federal banking agency report.--
``(A) In general.--The appropriate Federal banking
agency of an insured depository institution about which
a determination is made under paragraph (4)(G)(i)
shall, not later than 90 days after the date of such
determination, and again 210 days thereafter, submit a
report to the Congress that discloses the following:
``(i) Subject to such redactions as the
appropriate Federal banking agency determines
appropriate to protect personally identifiable
information about customers and other financial
institutions (as such term is defined under
section 11(e)(9)(D)), all--
``(I) reports of examination and
inspection that relate to the failed
insured depository institution in the
previous 3-year period;
``(II) formal communications of a
material supervisory determination
conveyed to the failed insured
depository institution in the previous
3-year period; and
``(III) any additional exam reports
and correspondence that the appropriate
Federal banking agency determines may
be relevant to the failure of the
insured depository institution.
``(ii) An examination of any mismanagement
by the executives and board of the insured
depository institution that contributed to the
failure of the insured depository institution.
``(iii) Any supervisory or regulatory
shortcomings by such appropriate Federal
banking agency with respect to the insured
depository institution.
``(iv) Any dynamics that the appropriate
Federal banking agency determines may have
contributed to the failure of the insured
depository institution.
``(v) Any supervisory, regulatory, or
legislative recommendations such appropriate
Federal banking agency may have to improve the
safety and soundness of similarly situated
insured depository institutions, the banking
system, and financial stability.
``(B) Protection of sensitive information.--
``(i) Effect on privilege.--The provision
of any information by a Federal banking agency
under this paragraph may not be construed as--
``(I) waiving, destroying, or
otherwise affecting any privilege
applicable to the information; or
``(II) waiving any exemption
applicable to the information under
section 552 of title 5, United States
Code (commonly known as the `Freedom of
Information Act').
``(ii) Transparency.--
``(I) In general.--A Federal
banking agency shall publish materials
contained in a report required under
subparagraph (A) to the fullest extent
possible to promote transparency.
``(II) Consultation on omitting
materials.--If a Federal banking agency
determines particular materials
described under subclause (I) should
not be published, the Federal banking
agency shall consult with the chair and
ranking member of the Committee on
Financial Services of the House of
Representatives and the chair and
ranking member of the Committee on
Banking, Housing, and Urban Affairs of
the Senate.
``(III) Omitting materials.--If,
after the consultation required under
subclause (II), the Federal banking
agency determines there is a
substantial public interest in not
publishing such materials, the Federal
banking agency shall provide those
materials to the Committee on Financial
Services of the House of
Representatives and the Committee on
Banking, Housing, and Urban Affairs of
the Senate with a written explanation
describing the reasons for not
publishing those materials.
``(iii) Privilege.--For purposes of this
subparagraph, the term `privilege' includes any
work-product, attorney-client, or other
privilege recognized under Federal or State
law.
``(C) Report extension.--A Federal banking agency
may extend a deadline described under subparagraph (A)
for an additional 60 days, if the Federal banking
agency--
``(i) faces ongoing circumstances that
require the Federal banking agency to
prioritize activities to promote stability of
the U.S. banking system; and
``(ii) notifies the Congress of such
extension and the reasons for such extension.
``(D) Consolidated reports.--A Federal banking
agency may consolidate multiple reports required under
this paragraph so long as the individual reports being
consolidated all meet the timing requirements under
this paragraph.
``(E) Rule of construction.--Nothing in this
paragraph or reports or materials provided pursuant to
this paragraph may be construed to limit the authority
of a Federal agency to enforce violations of Federal
statutes, rules, or orders.''.
SEC. 607. LEAST COST EXCEPTION.
(a) In General.--Section 13(c)(4) of the Federal Deposit Insurance
Act (12 U.S.C. 1823(c)(4)) is amended--
(1) in subparagraph (A)(ii), by inserting ``except as
provided in subparagraph (I),'' before ``the total amount'';
(2) in subparagraph (E)(i), by inserting ``and except as
provided in subparagraph (I),'' after ``appropriate,''; and
(3) by adding at the end the following:
``(I) Least cost resolution exception.--
``(i) In general.--With respect to an
exercise of authority by the Corporation
described in subparagraph (A), the Corporation
may, at the discretion of the Corporation,
select an alternative method of exercising such
authority that is not the least costly to the
Deposit Insurance Fund, if--
``(I) the Corporation determines
that the selected alternative complies
with the requirements of clause (iii);
and
``(II) the Corporation and the
Board of Governors of the Federal
Reserve System, after consultation with
the Secretary of the Treasury,
determine that the potential additional
risks to the Deposit Insurance Fund of
the selected alternative are outweighed
by the reasonably expected benefits of
limiting further concentration of the
United States banking system in global
systemically important banking
organizations.
``(ii) Maximum cost to the deposit
insurance fund.--Not later than 1 year after
the date of enactment of this subparagraph, the
Corporation, by rule, shall establish criteria
for determining on a case-by-case basis the
maximum allowable cost against the net worth of
the Deposit Insurance Fund that may be utilized
to account for any determination under clause
(i).
``(iii) Requirements described.--The
requirements for the selected alternative
described in clause (i) are as follows:
``(I) The selected alternative is
the least costly to the Deposit
Insurance Fund of all alternatives that
do not involve a transaction with a
global systemically important banking
organization and that do not exceed the
cost of liquidating the insured
depository institution.
``(II) The difference between the
cost of the selected alternative and
the cost of a covered alternative is
less than or equal to the maximum cost
to the Deposit Insurance Fund specified
pursuant to the rule adopted under
clause (ii).
``(III) In the case of a selected
alternative that involves another
person purchasing assets of the insured
depository institution or assuming
deposit liabilities of the insured
depository institution, such person
agrees to pay an assessment to the
Corporation comprised of payments--
``(aa) made over a period
to be determined by the
Corporation, but which may not
be less than 5 years; and
``(bb) in an amount that
takes into account, on a case-
by-case basis, criteria the
Corporation, by rule, shall
establish, including a
realistic discount rate, the
aggregate amount equal to the
difference calculated in
subclause (II), and any bid
inconsistent with the purposes
of this Act, with such rule to
be established by the
Corporation not later than 1
year after the date of
enactment of this subparagraph.
``(iv) Report to congress.--Not later than
30 days after selecting an alternative
described in clause (i), the Corporation shall
issue a report to the Committee on Financial
Services of the House of Representatives and
the Committee on Banking, Housing, and Urban
Affairs of the Senate containing an analysis of
the economic difference between the cost to the
Deposit Insurance Fund of the selected
alternative and the cost to the Deposit
Insurance Fund of the least costly alternative
that would have been selected absent the
application of this subparagraph.
``(v) Cost determinations.--All cost
determinations required under this subparagraph
shall be made in accordance with subparagraphs
(B) and (C).
``(vi) Definitions.--In this subparagraph:
``(I) Covered alternative.--The
term `covered alternative' means a
method of exercising authority
described in subparagraph (A) that is
the least costly to the Deposit
Insurance Fund of all such methods that
involve a sale of all or substantially
all assets of the insured depository
institution to, and assumption of all
or substantially all deposit
liabilities of the insured depository
institution by, a global systemically
important banking organization.
``(II) Global systemically
important banking organization.--The
term `global systemically important
banking organization' means a global
systemically important BHC (as such
term is defined in section 217.402 of
title 12, Code of Federal Regulations,
or any successor thereto) and any
affiliate thereof.''.
(b) Rule of Construction.--Section 13(c)(4)(H) of the Federal
Deposit Insurance Act (12 U.S.C. 1823(c)(4)(H)) does not apply to the
amendments made by subsection (a).
SEC. 608. FAILING BANK ACQUISITION FAIRNESS.
(a) Concentration Limit Exceptions Only Available to Avoid Serious
Adverse Economic or Financial Effects.--
(1) Concentration limits with respect to deposits.--
(A) Federal deposit insurance act.--The Federal
Deposit Insurance Act (12 U.S.C. 1811 et seq.) is
amended--
(i) in section 18(c)(13)--
(I) by amending subparagraph (B) to
read as follows:
``(B) Subparagraph (A) shall not apply to an interstate merger
transaction if--
``(i) such interstate merger transaction involves 1 or more
insured depository institutions in default or in danger of
default and the responsible agency determines, based on clear
and convincing evidence, that consummation of the proposed
interstate merger transaction is necessary to prevent
significant economic disruption or significant adverse effects
on financial stability, and the Corporation has not received
any qualified bid from a company that is not subject to the
prohibition in subparagraph (A); or
``(ii) the Corporation provides assistance under section 13
to facilitate such interstate merger transaction and the
responsible agency determines, based on clear and convincing
evidence, that consummation of the proposed interstate merger
transaction is necessary to prevent significant economic
disruption or significant adverse effects on financial
stability, and the Corporation has not received any qualified
bid from a company that is not subject to the prohibition in
subparagraph (A).''; and
(II) in subparagraph (C)--
(aa) in clause (i), by
striking ``and'' at the end;
(bb) in clause (ii), by
striking the period at the end
and inserting a semicolon; and
(cc) by adding at the end
the following:
``(iii) the term `qualified bid' means an application,
proposed application, or bid from a company where--
``(I) if applicable, the company, any affiliate
insured depository institution, and any affiliate
depository institution holding company are well
capitalized and well managed, as of the date of the
application, proposed application, or bid; and
``(II) upon consummation of the transaction, the
resulting insured depository institution is well
capitalized;
``(iv) the term `well capitalized'--
``(I) with respect to an insured depository
institution, has the meaning given such term in section
38(b) (12 U.S.C. 1831o(b));
``(II) with respect to a bank holding company, has
the meaning given such term in section 2(o)(1)(B) of
the Bank Holding Company Act of 1956 (12 U.S.C.
1841(o)(1)(B));
``(III) with respect to a savings and loan holding
company, has the meaning given such term in section
238.2 of title 12, Code of Federal Regulations; and
``(IV) with respect to a company that is not an
insured depository institution, bank holding company,
or savings and loan holding company, means maintaining
equity capital that the Corporation determines is
commensurate with the capital maintained by an insured
depository institution that is well capitalized; and
``(v) the term `well managed' has the meaning given such
term in section 2(o)(9) of the Bank Holding Company Act of 1956
(12 U.S.C. 1841(o)(9)).''; and
(ii) in section 44, by amending subsection
(e) to read as follows:
``(e) Exception for Banks in Default or in Danger of Default.--
``(1) General exception.--The responsible agency may,
without regard to paragraph (1), (3), (4), or (5) of subsection
(b) or paragraph (2), (4), or (5) of subsection (a), approve an
application under subsection (a)(1) for approval of a merger
transaction if--
``(A) the merger transaction involves 1 or more
banks in default or in danger of default; or
``(B) the Corporation provides assistance under
section 13(c) to facilitate such merger transaction.
``(2) Concentration limit exception.--The responsible
agency may, without regard to subsection (b)(2), approve an
application under subsection (a)(1) for approval of a merger
transaction if--
``(A) the merger transaction involves 1 or more
banks in default or in danger of default and the
responsible agency determines, based on clear and
convincing evidence, that consummation of the proposed
interstate merger transaction is necessary to prevent
significant economic disruption or significant adverse
effects on financial stability, and the Corporation has
not received any qualified bid from another institution
that is not subject to the prohibition in subsection
(b)(2); or
``(B) the Corporation provides assistance under
section 13(c) to facilitate such merger transaction and
the responsible agency determines, based on clear and
convincing evidence, that consummation of the proposed
interstate merger transaction is necessary to prevent
significant economic disruption or significant adverse
effects on financial stability, and the Corporation has
not received any qualified bid from another institution
that is not subject to the prohibition in subsection
(b)(2).
``(3) Qualified bid defined.--In this subsection, the term
`qualified bid' has the meaning given that term in section
18(c)(13)(C).''.
(B) Bank holding company act of 1956.--The Bank
Holding Company Act of 1956 (12 U.S.C. 1841 et seq.) is
amended--
(i) in section 3(d), by amending paragraph
(5) to read as follows:
``(5) Exception for banks in default or in danger of
default.--
``(A) General exception.--The Board may, without
regard to subparagraph (B) or (D) of paragraph (1) or
paragraph (3), approve an application pursuant to
paragraph (1)(A) if--
``(i) the application is for an acquisition
of 1 or more banks in default or in danger of
default; or
``(ii) the application is for an
acquisition with respect to which assistance is
provided under section 13(c) of the Federal
Deposit Insurance Act.
``(B) Concentration limit exception.--The Board
may, without regard to paragraph (2), approve an
application pursuant to paragraph (1)(A) if--
``(i) the application is for the
acquisition of 1 or more banks in default or in
danger of default and the Board determines,
based on clear and convincing evidence, that
consummation of the proposed acquisition is
necessary to prevent significant economic
disruption or significant adverse effects on
financial stability, and the Corporation has
not received any qualified bid from another
institution that is not subject to the
prohibition in paragraph (2); or
``(ii) the application is for an
acquisition with respect to which assistance is
provided under section 13(c) of the Federal
Deposit Insurance Act and the Board determines,
based on clear and convincing evidence, that
consummation of the proposed acquisition is
necessary to prevent significant economic
disruption or significant adverse effects on
financial stability, and the Corporation has
not received any qualified bid from another
institution that is not subject to the
prohibition in paragraph (2).
``(C) Qualified bid defined.--In this paragraph,
the term `qualified bid' has the meaning given that
term in section 18(c)(13)(C) of the Federal Deposit
Insurance Act.''; and
(ii) in section 4(i)(8), by amending
subparagraph (B) to read as follows:
``(B) Exception.--Subparagraph (A) shall not apply
to an acquisition if--
``(i) such acquisition involves an insured
depository institution in default or in danger
of default and the Board determines, based on
clear and convincing evidence, that
consummation of the proposed acquisition is
necessary to prevent significant economic
disruption or significant adverse effects on
financial stability, and the Corporation has
not received any qualified bid (as defined in
section 18(c)(13)(C) of the Federal Deposit
Insurance Act) from another institution that is
not subject to the prohibition in paragraph
(2); or
``(ii) the Federal Deposit Insurance
Corporation provides assistance under section
13 of the Federal Deposit Insurance Act to
facilitate such acquisition and the Board
determines, based on clear and convincing
evidence, that consummation of the proposed
acquisition is necessary to prevent significant
economic disruption or significant adverse
effects on financial stability, and the
Corporation has not received any qualified bid
(as defined in section 18(c)(13)(C) of the
Federal Deposit Insurance Act) from another
institution that is not subject to the
prohibition in paragraph (2).''.
(2) Concentration limit with respect to consolidated
liabilities.--Section 14(c) of the Bank Holding Company Act of
1956 (12 U.S.C. 1852(c)) is amended--
(A) by redesignating paragraphs (1), (2), and (3)
as subparagraphs (A), (B), and (C), respectively;
(B) by striking ``With the'' and inserting the
following:
``(1) In general.--With the''; and
(C) by adding at the end the following:
``(2) Limitation.--The Board may provide written consent
for an acquisition described in paragraph (1)(A) or in
paragraph (1)(B) only if the Board determines, based on clear
and convincing evidence, that consummation of the proposed
acquisition is necessary to prevent significant economic
disruption or significant adverse effects on financial
stability, and the Corporation has not received any qualified
bid (as defined in section 18(c)(13)(C) of the Federal Deposit
Insurance Act) from another institution that is not subject to
the prohibition in subsection (b).''.
(b) Congressional Notification and Justification for Waivers.--
(1) In general.--Whenever the Board of Governors of the
Federal Reserve System, the Comptroller of the Currency, or the
Federal Deposit Insurance Corporation waives a concentration
limit under section 18(c)(13)(B) or section 44(e) of the
Federal Deposit Insurance Act or under section 3(d)(5), section
4(i)(8)(B), or section 14(c)(2) of the Bank Holding Company Act
of 1956, in connection with the acquisition of a bank or
insured depository institution in default or in danger of
default, or in connection with an acquisition with respect to
which the Federal Deposit Insurance Corporation provides
assistance under section 13 of the Federal Deposit Insurance
Act, the waiving agency and the Federal Deposit Insurance
Corporation, jointly, shall, not later than 30 days after such
waiver, submit a written report to the Committee on Financial
Services of the House of Representatives and the Committee on
Banking, Housing, and Urban Affairs in the Senate containing--
(A) a justification for the waiver, including an
analysis of why it was necessary to prevent significant
economic disruption or significant adverse effects on
financial stability;
(B) a description of alternative bids or outcomes
considered, including efforts to solicit and encourage
bids from entities that would not require a waiver;
(C) an explanation of why alternative bids were not
selected, if applicable; and
(D) any recommendations for legislative or
regulatory changes to improve competition in future
insured depository institution resolutions.
(2) Public disclosure.--The waiving agency submitting a
report under paragraph (1) and the Federal Deposit Insurance
Corporation shall make the report publicly available on their
respective websites, subject to redactions for confidential
supervisory information and any other information described
under section 552(b) of title 5, United States Code.
(c) Limitation on Considering Bad Faith Bids in Least Cost
Determination.--Section 13(c)(4) of the Federal Deposit Insurance Act
(12 U.S.C. 1823(c)(4)), as amended by section 607(a)(3), is further
amended by adding at the end the following:
``(J) Limitation on considering bad faith bids.--In
making a determination under this paragraph of whether
an exercise of authority is the least costly to the
Deposit Insurance Fund, the Corporation may not
consider any application, proposed application, or bid
from a company, if such application, proposed
application, or bid would result in violation of--
``(i) section 18(c)(13) or 44(b)(2); or
``(ii) section 3(d)(2), 4(i)(8), or 14 of
the Bank Holding Company Act of 1956.''.
SEC. 609. ADVANCING THE MENTOR-PROTEGE PROGRAM FOR SMALL FINANCIAL
INSTITUTIONS.
(a) In General.--Section 308 of the Financial Institutions Reform,
Recovery, and Enforcement Act of 1989 (12 U.S.C. 1463 note) is amended
by adding at the end the following new subsection:
``(d) Financial Agent Mentor-Protege Program.--
``(1) In general.--The Secretary of the Treasury shall
establish a program to be known as the `Financial Agent Mentor-
Protege Program' (in this subsection referred to as the
`Program') under which a financial agent designated by the
Secretary or a large financial institution may serve as a
mentor, under guidance or regulations prescribed by the
Secretary, to a small financial institution to allow such small
financial institution--
``(A) to be prepared to perform as a financial
agent; or
``(B) to improve capacity to provide services to
the customers of the small financial institution.
``(2) Outreach.--The Secretary shall hold outreach events
to promote the participation of financial agents, large
financial institutions, and small financial institutions in the
Program at least once a year.
``(3) Exclusion.--The Secretary shall issue guidance or
regulations to establish a process under which a financial
agent, large financial institution, or small financial
institution may be excluded from participation in the Program.
``(4) Report.--The Secretary shall report to Congress
information pertaining to the Program, including--
``(A) the number of financial agents, large
financial institutions, and small financial
institutions participating in such Program; and
``(B) the number of outreach events described in
paragraph (2) held during the year covered by such
report.
``(5) Definitions.--In this subsection:
``(A) Financial agent.--The term `financial agent'
means any national banking association designated by
the Secretary of the Treasury to be employed as a
financial agent of the Government.
``(B) Large financial institution.--The term `large
financial institution' means any entity regulated by
the Comptroller of the Currency, the Board of Governors
of the Federal Reserve System, the Federal Deposit
Insurance Corporation, or the National Credit Union
Administration that has total consolidated assets
greater than or equal to $50,000,000,000.
``(C) Rural depository institution.--The term
`rural depository institution' means a depository
institution (as defined in section 3 of the Federal
Deposit Insurance Act)--
``(i) with total consolidated assets of
less than $10,000,000,000; and
``(ii) located in a rural area, as defined
under section 1026.35(b)(2)(iv)(A) of title 12,
Code of Federal Regulations.
``(D) Small financial institution.--The term `small
financial institution' means--
``(i) any entity regulated by the
Comptroller of the Currency, the Board of
Governors of the Federal Reserve System, the
Federal Deposit Insurance Corporation, or the
National Credit Union Administration that has
total consolidated assets less than or equal to
$2,000,000,000;
``(ii) a minority depository institution;
or
``(iii) a rural depository institution.''.
(b) Effective Date.--This section and the amendment made by this
section shall take effect 90 days after the date of the enactment of
this Act.
SEC. 610. AMERICAN ACCESS TO BANKING.
(a) Streamlining Application Process and Review of Capital Raising
by De Novo Regulated Institutions.--
(1) In general.--Each of the Federal financial institutions
regulatory agencies shall--
(A) for the purpose of streamlining the process of
applying to become a de novo regulated institution,
conduct a review of any application forms related to
such process;
(B) to the extent practicable, gather information
needed from applicants seeking to become a de novo
regulated institution from other Federal Government
agencies or public sources to minimize information
requests of such applicants; and
(C) in consultation with the Securities and
Exchange Commission, review how de novo regulated
institutions raise capital while maintaining investor
protections, including the impact of--
(i) general capital raising restrictions;
and
(ii) capital raising restrictions related
to individuals who are not accredited
investors.
(2) Report.--Not later than 1 year after the date of the
enactment of this section, and annually for 5 years thereafter,
each of the Federal financial institutions regulatory agencies
shall submit to the Committee on Financial Services of the
House of Representatives and the Committee on Banking, Housing,
and Urban Affairs of the Senate and publish on a public website
of such agency a report that contains--
(A) a description of the actions taken by such
agency pursuant to paragraph (1); and
(B) as appropriate, any administrative or
legislative recommendations with respect to the purpose
described in paragraph (1)(C).
(b) Improving Communication With De Novo Regulated Institutions.--
(1) In general.--Each of the Federal financial institutions
regulatory agencies shall, at the request of an applicant to
become a de novo regulated institution, designate an employee
of the agency as a caseworker, who may perform such duty in
addition to the other duties of the employee.
(2) Caseworker duties.--Each caseworker described in
paragraph (1) shall, to the maximum extent practicable--
(A) meet with the lead organizers applying to
become a de novo regulated institution to provide a
tutorial with respect to the application process; and
(B) be the primary point of contact of the
respective Federal financial institutions regulatory
agency for such organizers during the application
process.
(3) New caseworker.--Each agency described in paragraph (1)
may designate a new caseworker, as appropriate, to support
continuity based on staffing and responsibilities assigned to
the current caseworker.
(c) De Novo Mentor-Protege Partnerships.--
(1) In general.--At the request of an institution that
seeks to become a de novo regulated institution, each of the
Federal financial institutions regulatory agencies shall, to
the maximum extent practicable, provide a list to such
institution of similar types of institutions that--
(A) were recently approved to become a de novo
regulated institution; and
(B) are interested in volunteering to serve as a
mentor to provide advice about the de novo application
process.
(2) Mentorship information.--Not later than 1 year after
the date of the enactment of this section, each of the Federal
financial institutions regulatory agencies shall provide public
information and directions on how an institution may request a
mentor or serve as a mentor as described in paragraph (1).
(d) State and Stakeholder Engagement Plan.--
(1) In general.--Each of the Federal financial institutions
regulatory agencies shall develop a plan to--
(A) regularly consult with State regulators to
promote cooperation between State and Federal banking
and credit union agencies in the creation of de novo
regulated institutions, including responding to any
State regulator that requests assistance on how a
State-chartered financial institution can request
Federal insurance;
(B) regularly consult with stakeholders, including
applicants to become de novo regulated institutions and
recently approved regulated institutions, to inform any
reforms that may support the creation of de novo
regulated institutions, including rural institutions,
community development financial institutions, and
minority depository institutions; and
(C) provide guidance, training material, and
regular workshops to assist any interested parties to
understand such agencies' processes.
(2) Submission to congress.--
(A) In general.--Not later than 2 years after the
date of the enactment of this section, and every 5
years thereafter, each of the Federal financial
institutions regulatory agencies shall submit to the
Committee on Financial Services of the House of
Representatives and the Committee on Banking, Housing,
and Urban Affairs of the Senate the respective plan of
such agency described in paragraph (1).
(B) Public comment.--With respect to developing the
plan described in paragraph (1), each of the Federal
financial institutions regulatory agencies shall--
(i) provide an opportunity for public
comments; and
(ii) take such public comments into
consideration.
(e) Definitions.--
(1) In general.--In this section:
(A) Federal banking agency.--The term ``Federal
banking agency'' has the meaning given the term in
section 3 of the Federal Deposit Insurance Act (12
U.S.C. 1813).
(B) Federal financial institutions regulatory
agencies.--The term ``Federal financial institutions
regulatory agencies'' has the meaning given the term in
section 1003 of the Federal Financial Institutions
Examination Council Act of 1978 (12 U.S.C. 3302).
(C) Regulated institution.--The term ``regulated
institution'' means--
(i) with respect to a Federal banking
agency, a depository institution (as such term
is defined in section 3 of the Federal Deposit
Insurance Act (12 U.S.C. 1813)) for which the
Federal banking agency is the appropriate
Federal banking agency (as such term is defined
in such section 3); and
(ii) with respect to the National Credit
Union Administration, an insured credit union
(as such term is defined in section 101 of the
Federal Credit Union Act (12 U.S.C. 1752)).
(D) State.--The term ``State'' means each of the
several States, the District of Columbia, and each
territory of the United States.
(E) State regulator.--The term ``State regulator''
means--
(i) with respect to a Federal banking
agency, a State banking regulator; and
(ii) with respect to the National Credit
Union Administration, the State regulatory
agency having jurisdiction over a State credit
union (as such term is defined in section 101
of the Federal Credit Union Act (12 U.S.C.
1752)).
(2) Rule of construction.--For purposes of this section,
the process of applying to become a de novo regulated
institution shall include the process of applying for Federal
deposit insurance, Federal share insurance, or membership in
the Federal Reserve System.
SEC. 611. PROMOTING NEW BANK FORMATION.
(a) Pilot Phase-in of Capital Standards.--The Federal banking
agencies may issue rules that provide for a 2-year phase-in period for
a qualifying community bank or its depository institution holding
company to meet any Federal capital requirements that would otherwise
be applicable to the qualifying community bank or its depository
institution holding company, beginning on--
(1) the date on which the qualifying community bank became
an insured depository institution; or
(2) in the case of its depository institution holding
company, the date on which the qualifying community bank of the
depository institution holding company became an insured
depository institution.
(b) Pilot Changes to Business Plans.--
(1) In general.--During the 2-year period beginning on the
date on which a qualifying community bank became an insured
depository institution, the qualifying community bank or its
depository institution holding company may request to deviate
from a business plan that has been approved by the appropriate
Federal banking agency by submitting a request to such agency
pursuant to this section.
(2) Review of changes.--The appropriate Federal banking
agency shall, not later than the end of the 90-day period
beginning on the receipt of a request under paragraph (1)--
(A) approve, conditionally approve, or deny such
request; and
(B) notify the applicant of such decision and, if
the agency denies the request--
(i) provide the applicant with the reason
for such denial; and
(ii) suggest changes to the request that,
if adopted, would allow the agency to approve
such request.
(3) Result of failure to act.--If the appropriate Federal
banking agency fails to approve or deny a request within the
90-day period required under paragraph (2), such request shall
be deemed to be approved.
(c) Pilot Program Study.--
(1) Study.--The Federal banking agencies shall, jointly,
carry out a study on the impact of the pilot program carried
out pursuant to subsections (a) and (b) of this section on the
formation of de novo insured depository institutions, including
such institutions which are rural depository institutions,
community development financial institutions, and minority
depository institutions, taking into account safety and
soundness, promoting competition, and expanding access to
affordable financial products and services to underserved
communities.
(2) Report to congress.--Not later than December 31, 2031,
the Federal banking agencies shall, jointly, issue a report to
the Committee on Financial Services of the House of
Representatives and the Committee on Banking, Housing, and
Urban Affairs of the Senate containing all findings and
determinations made in carrying out the study required under
paragraph (1).
(d) Study on De Novo Insured Depository Institutions.--
(1) Study.--The Federal banking agencies shall, jointly,
carry out a study on--
(A) the principal causes for the low number of de
novo insured depository institutions in the 10-year
period ending on the date of enactment of this
subsection;
(B) ways to promote more de novo insured depository
institutions in areas currently underserved by insured
depository institutions; and
(C) ways to ensure de novo depository institutions,
including institutions which are rural depository
institutions, community development financial
institutions, and minority depository institutions, can
utilize the Community Bank Leverage Ratio.
(2) Report to congress.--Not later than the end of the 1-
year period beginning on the date of enactment of this Act, the
Federal banking agencies shall, jointly, issue a report to the
Committee on Financial Services of the House of Representatives
and the Committee on Banking, Housing, and Urban Affairs of the
Senate containing all findings and determinations made in
carrying out the study required under paragraph (1).
(e) Definitions.--In this section:
(1) Appropriate federal banking agency.--The term
``appropriate Federal banking agency'' has the meaning given
the term in section 3 of the Federal Deposit Insurance Act (12
U.S.C. 1813).
(2) Depository institution.--The term ``depository
institution'' has the meaning given the term in section 3 of
the Federal Deposit Insurance Act (12 U.S.C. 1813).
(3) Depository institution holding company.--The term
``depository institution holding company'' has the meaning
given the term in section 3 of the Federal Deposit Insurance
Act (12 U.S.C. 1813).
(4) Federal banking agency.--The term ``Federal banking
agency'' has the meaning given the term in section 3 of the
Federal Deposit Insurance Act (12 U.S.C. 1813).
(5) Insured depository institution.--The term ``insured
depository institution'' has the meaning given the term in
section 3 of the Federal Deposit Insurance Act (12 U.S.C.
1813).
(6) Qualifying community bank.--The term ``qualifying
community bank'' means a depository institution that--
(A) including its holding company and all of its
subsidiaries and affiliates, has total combined assets
of less than $10,000,000,000; and
(B) became an insured depository institution
between January 1, 2026, and December 31, 2028.
SEC. 612. RURAL DEPOSITORIES REVITALIZATION STUDY.
(a) Study.--The Federal banking agencies shall, jointly, carry out
a study--
(1) to identify methods to improve the growth, capital
adequacy, and profitability of depository institutions in the
United States that primarily serve rural areas; and
(2) to identify Federal statutes (other than appropriations
Acts) or regulations of the Federal banking agencies that
limit--
(A) the methods identified under paragraph (1); or
(B) the establishment of de novo depository
institutions in rural areas.
(b) Report.--Not later than 1 year after the date of enactment of
this Act, the Federal banking agencies shall, jointly, issue a report
to Congress containing all findings and determinations made in carrying
out the study required under subsection (a).
(c) Study on Rural Credit Unions.--The National Credit Union
Administration shall carry out a study--
(1) to identify methods to improve the growth, capital
adequacy, and profitability of credit unions in the United
States that primarily serve rural areas; and
(2) to identify Federal statutes (other than appropriations
Acts) or regulations of the National Credit Union
Administration that limit--
(A) the methods identified under paragraph (1); or
(B) the establishment of de novo credit unions in
rural areas.
(d) Report on Rural Credit Unions.--Not later than 1 year after the
date of enactment of this Act, the National Credit Union Administration
shall issue a report to Congress containing all findings and
determinations made in carrying out the study required under subsection
(c).
(c) Definitions.--In this section:
(1) Depository institution.--The term ``depository
institution'' has the meaning given that term in section 3 of
the Federal Deposit Insurance Act (12 U.S.C. 1813).
(2) Federal banking agencies.--The term ``Federal banking
agencies'' means the Board of Governors of the Federal Reserve
System, the Comptroller of the Currency, and the Federal
Deposit Insurance Corporation.
(3) Rural.--With respect to an area, the term ``rural'' has
the meaning given that term in section 1026.35(b)(2)(iv)(A) of
title 12, Code of Federal Regulations.
SEC. 613. DISCRETIONARY SURPLUS FUND.
(a) In General.--The dollar amount specified under section
7(a)(3)(A) of the Federal Reserve Act (12 U.S.C. 289(a)(3)(A)) is
reduced by $115,000,000.
(b) Effective Date.--The amendment made by subsection (a) shall
take effect on September 30, 2035.
Passed the House of Representatives February 9, 2026.
Attest:
Clerk.
119th CONGRESS
2d Session
H. R. 6644
_______________________________________________________________________
AN ACT
To increase the supply of housing in America, and for other purposes.