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[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H. Res. 1299 Introduced in House (IH)]
<DOC>
119th CONGRESS
2d Session
H. RES. 1299
Providing for the concurrence by the House in the Senate amendment to
H.R. 6644, with amendment.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 19, 2026
Mr. Hill of Arkansas (for himself and Ms. Waters) submitted the
following resolution; which was referred to the Committee on Rules
May 19, 2026
The Committee on Rules discharged
_______________________________________________________________________
RESOLUTION
Providing for the concurrence by the House in the Senate amendment to
H.R. 6644, with amendment.
Resolved, That upon the adoption of this resolution the House shall
be considered to have taken from the Speaker's table the bill, H.R.
6644, with the Senate amendment thereto, and to have concurred in the
Senate amendment with the following amendment:
In lieu of the matter proposed to be inserted by the
amendment of the Senate to the text of the bill, insert the
following:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``21st Century ROAD
to Housing Act''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--OPPORTUNITIES FOR HOUSING
Sec. 101. Reforms to housing counseling and financial literacy
programs.
Sec. 102. Federal guidelines for point access block buildings.
Sec. 103. Exemption on construction or modification of residential
housing located on an infill site.
Sec. 104. Database of publicly owned land.
Sec. 105. FHA Small-Dollar Mortgages.
Sec. 106. Temperature Sensor Pilot Program.
Sec. 107. Housing supply frameworks.
TITLE II--BUILDING MORE IN AMERICA
Sec. 201. Increasing housing in opportunity zones.
Sec. 202. Whole-Home Repairs Act.
Sec. 203. Community Investment and Prosperity Act.
Sec. 204. Addition of affordable housing construction as an eligible
activity.
Sec. 205. Better Use of Intergovernmental and Local Development (BUILD)
Housing Act.
Sec. 206. Unlocking Housing Supply Through Streamlined and Modernized
Reviews Act.
Sec. 207. Grants for planning and implementation associated with
affordable housing.
Sec. 208. Innovation Fund.
Sec. 209. Accelerating Home Building Act.
Sec. 210. Revitalizing Empty Structures Into Desirable Environments
(RESIDE) Act.
Sec. 211. Housing Affordability Act.
TITLE III--MANUFACTURED HOUSING FOR AMERICA
Sec. 301. Housing Supply Expansion Act.
Sec. 302. Modular Housing Production Act.
Sec. 303. Property Improvement and Manufactured Housing Loan
Modernization Act.
TITLE IV--ACCESSING THE AMERICAN DREAM
Sec. 401. Creating incentives for small-dollar loan originators.
Sec. 402. Small-dollar mortgage points and fees.
Sec. 403. Appraisal Industry Improvement Act.
Sec. 404. Helping More Families Save Act.
Sec. 405. Choice in Affordable Housing Act.
TITLE V--PROGRAM REFORM
Sec. 501. HOME Investment Partnerships Reauthorization and Reform Act.
Sec. 502. Rural Housing Service Reform Act.
Sec. 503. Incentivizing local solutions to homelessness.
TITLE VI--VETERANS AND HOUSING
Sec. 601. Military Service Question.
Sec. 602. Housing Unhoused Disabled Veterans Act.
TITLE VII--OVERSIGHT AND ACCOUNTABILITY
Sec. 701. Requiring annual testimony and oversight from housing
regulators.
Sec. 702. FHA reporting requirements on safety and soundness.
Sec. 703. United States Interagency Council on Homelessness oversight.
Sec. 704. Appraisal Modernization Act.
TITLE VIII--ACCOUNTABILITY, COORDINATION, STUDIES, AND REPORTING
Sec. 801. HUD-USDA-VA Interagency Coordination Act.
Sec. 802. Streamlining Rural Housing Act.
Sec. 803. Improving self-sufficiency of families in HUD-subsidized
housing.
Sec. 804. GAO studies.
Sec. 805. Improving public housing agency accountability.
TITLE IX--STRENGTHENING COMMUNITY BANKS' ROLE IN HOUSING
Sec. 901. Community bank deposit access.
Sec. 902. Keeping deposits local.
Sec. 903. Tailored regulatory updates for supervisory testing.
Sec. 904. Credit union board modernization.
Sec. 905. Systemic risk authority transparency.
Sec. 906. Least cost exception.
Sec. 907. Failing bank acquisition fairness.
Sec. 908. Advancing the mentor-protege program for small financial
institutions.
Sec. 909. American access to banking.
Sec. 910. Promoting new bank formation.
Sec. 911. Rural depositories revitalization study.
Sec. 912. Discretionary surplus fund.
TITLE X--HOME-OWNERSHIP FOR MAIN STREET AMERICA
Sec. 1001. Homes are for people, not corporations.
TITLE XI--CENTRAL BANK DIGITAL CURRENCY
Sec. 1101. Central bank digital currency.
TITLE XII--MISCELLANEOUS
Sec. 1201. Severability.
Sec. 1202. No additional funds authorized.
TITLE I--OPPORTUNITIES FOR HOUSING
SEC. 101. REFORMS TO HOUSING COUNSELING AND FINANCIAL LITERACY
PROGRAMS.
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) Reviews.--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 compliance with all program
requirements; and
``(ii) may take into account the
organization'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 housing 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 prepurchase 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 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. 102. 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 of 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) Treatment of Projects.--Projects assisted under this section
shall be treated as projects assisted under the Community Development
Block Grant program under title I of the Housing and Community
Development Act of 1974 (42 U.S.C. 5301 et seq.).
(f) Rule of Construction.--Nothing in this section may be construed
to preempt a State or local building code.
(g) 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. 103. EXEMPTION ON CONSTRUCTION OR MODIFICATION OF RESIDENTIAL
HOUSING LOCATED ON AN INFILL SITE.
(a) 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.
(b) 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--
(1) determines whether the implementation of this section--
(A) reduced the amount of time it takes to review
an application for assistance under the sections of the
Housing Act of 1949 identified in subsection (a); and
(B) reduced the administrative cost of providing
such assistance;
(2) describes how the implementation of this section
affects the affordable housing sector in rural America; and
(3) includes any legislative recommendations from the
Secretary of Agriculture.
(c) Definitions.--In this section:
(1) Greenfield.--The term ``greenfield'' means a site that
has not been developed, including a woodland, farmland, and an
open field.
(2) Infill site.--The term ``infill site''--
(A) means a site that is served by existing
infrastructure, including water lines, sewer lines, and
roads; and
(B) 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. 104. DATABASE OF PUBLICLY OWNED LAND.
(a) In General.--Section 104(b) of the Housing and Community
Development Act of 1974 (42 U.S.C. 5304(b)) is amended--
(1) in paragraph (5), by striking ``and'' at the end;
(2) in paragraph (6), by striking the period at the end and
inserting ``; and''; and
(3) 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.''.
(b) Effective Date.--The amendment made by this subsection shall
take effect on October 1, 2026.
SEC. 105. 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. 106. 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) Treatment of Projects.--Projects assisted under this section
shall be treated as projects assisted under the Community Development
Block Grant program under title I of the Housing and Community
Development Act of 1974 (42 U.S.C. 5301 et seq.).
(h) 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.
(i) 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 (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.
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 (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. 107. 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 subsection (b);
(2) a summary of the localities that have adopted
recommendations from the guidelines and best practices,
pursuant to subsection (b);
(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 (b).
TITLE II--BUILDING MORE IN AMERICA
SEC. 201. INCREASING HOUSING IN OPPORTUNITY ZONES.
(a) Covered Grant Defined.--In this section, the term ``covered
grant'' means any competitive grant relating to the construction,
modification, rehabilitation, or preservation of housing, as determined
by the Secretary of Housing and Urban Development.
(b) Priority.--When awarding a covered grant, the Secretary of
Housing and Urban Development may give additional weight to applicants
with proposed activities or projects that are located in or
substantially and directly benefit a community designated as a
qualified opportunity zone under section 1400Z-1 of the Internal
Revenue Code of 1986.
SEC. 202. WHOLE-HOME REPAIRS ACT.
(a) Definitions.--In this section:
(1) Affordable unit.--The term ``affordable unit'' means a
unit for which the monthly rental payment is not more than 30
percent of the gross income of an individual earning at or
below 80 percent of the area median income, as defined by the
Secretary.
(2) Assisted unit.--The term ``assisted unit'' means a unit
that undergoes repair or rehabilitation work through a whole-
home repairs program administered by an implementing
organization under this section.
(3) Eligible home-owner.--The term ``eligible home-owner''
means a home-owner--
(A) with a household income that--
(i) is not more than 80 percent of the area
median income; or
(ii) meets the income eligibility
requirements for receiving assistance or
benefits under a specified program, as defined
in paragraph (11); and
(B) who is--
(i) an owner of record as evidenced by a
publicly recorded deed, or other document
recorded by the Bureau of Indian Affairs, and
occupies the home on which repairs are to be
conducted as their principal residence;
(ii) an owner-occupant of the manufactured
home on which repairs are to be conducted;
(iii) an owner-occupant of the cooperative
housing unit on which repairs are to be
conducted; or
(iv) an owner who can demonstrate an
ownership interest in the property, or trust
land leasehold, on which repairs are to be
conducted, including a person who has inherited
an interest in that property.
(4) Eligible landlord.--The term ``eligible landlord''
means an individual--
(A) who owns, as determined by the relevant
implementing organization, fewer than 10 eligible
rental properties, with a majority of affordable units
and not more than 25 total units, operated as primary
residences in which a majority ownership interest is
held by the individual, the spouse of the individual,
or the dependent children of the individual, or any
closely held legal entity controlled by the individual,
the spouse of the individual, or the dependent children
of the individual, either individually or collectively;
and
(B) who agrees to the provisions described in
subsection (b)(3).
(5) Eligible rental property.--The term ``eligible rental
property'' means a residential property that--
(A) is leased, or offered exclusively for lease, as
a primary residence by an eligible landlord; and
(B) includes affordable units.
(6) Forgivable loan.--The term ``forgivable loan'' means a
loan--
(A) made to an eligible landlord;
(B) that is secured by a lien recorded against a
residential property; and
(C) that may be forgiven by the implementing
organization not later than the date that is 3 years
after the completion of the repairs if the eligible
landlord has maintained compliance with the loan
agreement described in subsection (b)(3).
(7) Implementing organization.--The term ``implementing
organization''--
(A) means a unit of general local government or a
State that--
(i) will administer a whole-home repairs
program through an agency, department, or other
entity; or
(ii) enters into agreements with 1 or more
local governments, Indian Tribes, municipal
authorities, other governmental authorities,
including a tribally designated housing entity,
or qualified nonprofit organizations, to
administer a whole-home repairs program as a
subrecipient; and
(B) does not include a redundant entity in a
jurisdiction already served by a grantee under
subsection (b).
(8) Indian tribe.--The term ``Indian Tribe'' has the
meaning given the term in section 4 of the Native American
Housing Assistance and Self-Determination Act of 1996 (25
U.S.C. 4103).
(9) Qualified nonprofit.--The term ``qualified nonprofit''
means a nonprofit organization that--
(A) has received funding, as a recipient or
subrecipient, through--
(i) the Community Development Block Grant
program under title I of the Housing and
Community Development Act of 1974 (42 U.S.C.
5301 et seq.);
(ii) the HOME Investment Partnerships
program under subtitle A of title II of the
Cranston-Gonzalez National Affordable Housing
Act (42 U.S.C. 12741 et seq.);
(iii) the Lead-Based Paint Hazard Reduction
grant program under section 1011 of the
Residential Lead-Based Paint Hazard Reduction
Act of 1992 (42 U.S.C. 4852), a grant under the
Healthy Homes Initiative administered by the
Secretary pursuant to sections 501 and 502 of
the Housing and Urban Development Act of 1970
(12 U.S.C. 1701z-1, 1701z-2), or a grant under
the Older Adult Home Modification Grants
Program authorized under the Consolidated
Appropriations Act, 2024 (Public Law 118-42),
or any successor Act, to make safety and
functional home modification repairs and
renovations to meet the needs of low-income
seniors to enable them to remain in their
primary residence;
(iv) the Self-Help and Assisted home-
ownership Opportunity program authorized under
section 11 of the Housing Opportunity Program
Extension Act of 1996 (42 U.S.C. 12805 note);
(v) a rural housing program under title V
of the Housing Act of 1949 (42 U.S.C. 1471 et
seq.); or
(vi) the Neighborhood Reinvestment
Corporation established under the Neighborhood
Reinvestment Corporation Act (42 U.S.C. 8101 et
seq.);
(B) has coordinated, performed, or otherwise been
engaged in weatherization, lead remediation, or home-
repair work for not less than 2 years;
(C) has been certified by the Environmental
Protection Agency, or by a State authorized by the
Environmental Protection Agency to administer a
certification program, as--
(i) eligible to carry out activities under
the lead renovation, repair, and painting
program under section 402(c) or 404 of the
Toxic Substances Control Act (15 U.S.C.
2682(c), 2684); or
(ii) a Home Certification Organization
under the Energy Star program established by
section 324A of the Energy Policy and
Conservation Act (42 U.S.C. 6294a) or the
WaterSense program under section 324B of that
Act (42 U.S.C. 6294b), or recognized or
otherwise approved by the Environmental
Protection Agency as a Home Certification
Organization under either of those programs; or
(D) is a community development financial
institution, as defined in section 103 of the Community
Development Banking and Financial Institutions Act of
1994 (12 U.S.C. 4702).
(10) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
(11) Specified program.--For purposes of paragraph
(3)(A)(ii), the term ``specified program'' means any of the
following:
(A) The Medicaid program established under title
XIX of the Social Security Act (42 U.S.C. 1396 et
seq.).
(B) The State Children's Health Insurance Program
established under title XXI of the Social Security Act
(42 U.S.C. 1397aa et seq.).
(C) The supplemental security income benefits
program established under title XVI of the Social
Security Act (42 U.S.C. 1381 et seq.).
(D) The supplemental nutrition assistance program
established under the Food and Nutrition Act of 2008 (7
U.S.C. 2011 et seq.).
(E) The temporary assistance for needy families
program established under part A of title IV of the
Social Security Act (42 U.S.C. 601 et seq.).
(12) State.--The term ``State'' means--
(A) each State of the United States;
(B) the District of Columbia;
(C) the Commonwealth of Puerto Rico;
(D) any territory or possession of the United
States; and
(E) an Indian Tribe.
(13) Tribally designated housing entity.--The term
``tribally designated housing entity'' has the meaning given
the term in section 4 of the Native American Housing Assistance
and Self-Determination Act of 1996 (25 U.S.C. 4103).
(14) Whole-home repairs.--The term ``whole-home repairs''
means modifications, repairs, or updates to home-owner or
renter-occupied units to address--
(A) physical and sensory accessibility for
individuals with disabilities and older adults, such as
bathroom and kitchen modifications, installation of
grab bars and handrails, guards and guardrails, lifting
devices, ramp additions or repairs, sidewalk addition
or repair, or doorway or hallway widening;
(B) habitability and safety concerns, such as
repairs needed to ensure residential units are fit for
human habitation and free from defective conditions or
health and safety hazards; or
(C) energy and water efficiency, resilience, and
weatherization.
(b) Pilot Program.--
(1) Establishment.--There is authorized a Pilot Program to
provide grants to implementing organizations to administer a
whole-home repairs program for eligible home-owners and
eligible landlords.
(2) Use of funds.--An implementing organization that
receives a grant from appropriated funds made available for
this subsection--
(A) shall provide grants to eligible home-owners to
implement whole-home repairs not covered by other
Federal home repair programs up to a maximum amount per
unit, which maximum amount should--
(i) reflect local construction costs and
the level of repairs needed in each unit; and
(ii) be calculated and approved by the
Secretary;
(B) shall provide loans, which may be forgivable,
to eligible landlords to implement whole-home repairs
not covered by other Federal home repair programs for
individual affordable units, public and common use
areas within the property, and common structural
elements up to a maximum amount per unit, area, or
element, as applicable, which maximum amount should--
(i) reflect local construction costs; and
(ii) be calculated and approved by the
Secretary;
(C) shall evaluate, or provide assistance to
eligible home-owners and eligible landlords to
evaluate, whole-home repair program funds provided
under this subsection with Federal, State, Tribal, and
local home repair programs to provide the greatest
benefit to the greatest number of eligible landlords
and eligible home-owners and avoid duplication of
benefits and redundancies for the same home repairs;
(D) shall require that--
(i) all repairs funded or facilitated
through an award under this subsection have
been completed;
(ii) if repairs are not completed and the
plan for whole-home repairs is not updated to
reflect the new scope of work, that the loan or
grant is repaid on a prorated basis based on
completed work; and
(iii) any unused grant or loan balance is
returned to the implementing organization, and
is reused by the implementing organization for
a new whole-home repair grant or loan under
this subsection;
(E) may use not more than 5 percent of the awarded
funds to carry out related functions, including
workforce training for home repair professions, which
shall be related to efforts to increase the number of
home repairs performed and approved by the Secretary;
(F) may use not more than 10 percent of the awarded
funds for administrative expenses;
(G) shall comply with Federal accessibility
requirements and standards under applicable Federal
fair housing and civil rights laws and regulations,
including section 504 of the Rehabilitation Act of 1973
(29 U.S.C. 794); and
(H) shall ensure that rental properties assisted
under subparagraph (B) shall be treated as projects
assisted under title I of the Housing and Community
Development Act of 1974 (42 U.S.C. 5301 et seq.).
(3) Loan agreement.--In a loan agreement with an eligible
landlord under this subsection, an implementing organization
shall include provisions establishing that the eligible
landlord shall, for each eligible rental property for which a
loan is used to fund repairs under this subsection--
(A) comply with Federal accessibility requirements
and standards under applicable Federal fair housing and
civil rights laws and regulations, including section
504 of the Rehabilitation Act of 1973 (29 U.S.C. 794);
and
(B)(i) if the landlord is renting the assisted
units available in the eligible rental property to
tenants receiving tenant-based rental assistance under
section 8(o) of the United States Housing Act of 1937
(42 U.S.C. 1437f(o)), under another tenant-based rental
assistance program administered by the Secretary or the
Secretary of Agriculture, or under a tenant-based
rental subsidy provided by a State or local government,
comply with the program requirements under the relevant
tenant-based rental assistance program; or
(ii) if the eligible landlord is not renting to
tenants receiving rental-based assistance as described
in clause (i)--
(I)(aa) offer to extend the lease of
current tenants on current terms, other than
the terms described in subclause (iv) for not
less than 3 years beginning after the
completion of the repairs, unless the lease is
terminated due to failure to pay rent,
performance of an illegal act within the rental
unit, or a violation of an obligation of
tenancy that the tenants failed to correct
after notice; and
(bb) if the tenant of an assisted unit
moves out of the assisted unit at any point in
the 3-year period following the loan agreement,
maintain the unit as an affordable unit for the
remainder of the 3-year period;
(II) provide documentation verifying that
the property, upon completion of approved
renovations, has met all applicable State and
local housing and building codes;
(III) attest that the landlord has no known
serious violations of renter protections that
have resulted in fines, penalties, or judgments
during the preceding 10 years; and
(IV) cap annual rent increases for each
assisted unit at 5 percent of base rent or at
the rate of inflation, whichever is lower, for
not less than 3 years beginning after the
completion of the repairs.
(4) Application.--
(A) In general.--An implementing organization
desiring an award under this subsection shall submit to
the Secretary an application that includes--
(i) the geographic scope of the whole-home
repairs program to be administered by the
implementing organization, including the plan
to address need in any rural, Tribal, suburban,
or urban area within a jurisdiction;
(ii) a plan for selecting subrecipients, if
applicable;
(iii) a description of how the implementing
organization plans to execute the coordination
of Federal, State, Tribal, and local home
repair programs, including programs
administered by the Department of Energy, the
Department of the Interior, the Department of
Veteran Affairs, or the Department of
Agriculture, to increase efficiency and reduce
redundancy;
(iv) available data on the need for
affordable and quality housing within the
geographic scope of the whole-home repairs
program, and any plans to preserve
affordability through the term of the award;
(v) a description of how the implementing
organization plans to process and verify
applications for grants from eligible home-
owners and applications for loans from eligible
landlords; and
(vi) such other information as the
Secretary requires to determine the ability of
an applicant to carry out a program under this
subsection.
(B) Considerations.--In making awards under this
subsection, the Secretary shall--
(i) with respect to applications submitted
by States other than the District of Columbia
and the territories of the United States,
prioritize those applications with a
demonstrated plan to--
(I) make a good-faith effort to
implement the Pilot Program in every
jurisdiction; and
(II) provide nonmetropolitan areas,
or subrecipients serving non-
metropolitan areas if applicable, with
a share of total funds commensurate
with their population;
(ii) aim to select applicants so that the
awardees collectively span diverse geographies,
with an intent to understand the impact of the
Pilot Program under this subsection in urban,
suburban, rural, and Tribal settings; and
(iii) not disqualify implementing
organizations that were awarded grants under
the Pilot Program in prior application cycles.
(5) Program information.--The Secretary shall make
available to grant recipients under this subsection information
regarding existing Federal programs for which grant recipients
may coordinate or provide assistance in coordinating
applications for those programs in accordance with paragraph
(2)(C).
(6) Grant number.--In each year in which an award is made
under this subsection, the Secretary shall award assistance
to--
(A) not less than 2, and not more than 10,
implementing organizations, as application numbers and
funding permit; and
(B) not more than 1 implementing organization in
any State.
(7) Loans that are not forgiven.--If a loan made by an
implementing organization under paragraph (2)(B) is not
forgiven, the loan repayment funds shall be reused by the
implementing organization for a new whole-home repair grant or
loan under this subsection, which shall remain subject to the
original terms of the assistance awarded under this subsection.
(8) Supplement, not supplant.--Amounts awarded under this
subsection to implementing organizations shall supplement, not
supplant, other Federal, State, Tribal, and local funds made
available to those entities.
(9) Streamlining program delivery and ensuring
efficiency.--To the extent possible, in carrying out the Pilot
Program under this subsection, the Secretary shall--
(A) endeavor to improve efficiency of service
delivery, as well as the experience of and impact on
the taxpayer, by encouraging programmatic collaboration
and information sharing across Federal, State, Tribal,
and local programs for home repair or improvement,
including programs administered by the Department of
Agriculture, the Department of the Interior, the
Department of Veterans Affairs, or the Department of
Energy; and
(B) enhance collaboration and cross-agency
streamlining efforts that reduce the burden of multiple
income verification processes and applications on the
eligible home-owner, the eligible landlord, the
implementing organization, and the Federal Government,
including by establishing assistance application
procedures for income eligibility under this subsection
that recognize income eligibility determinations for
assistance using any of the criteria under subsection
(a)(3)(A) that have been used for assistance
applications during the 1-year period preceding the
date on which an eligible home-owner or eligible
landlord applies for assistance under this subsection.
(10) Reporting requirements.--
(A) Annual report.--An implementing organization
that receives a grant under this subsection shall
submit to the Secretary an annual report on initial
funding that includes--
(i) the number of units served, including
reporting on both home-ownership and rental
units, as well as accessible units;
(ii) the average cost per unit for
modifications or repairs and the nature of
those modifications or repairs, including
reporting on accessibility in both home-
ownership and rental units;
(iii) the number of applications received,
served, denied, or not completed, disaggregated
by geographic area;
(iv) the aggregated demographic data of
grant recipients, which may include data on
income range, urban, suburban, and rural
residency, age, and racial and ethnic identity;
(v) the aggregated demographic data of loan
recipients, which may include data on income
range, urban, suburban, and rural residency,
age, and racial and ethnic identity;
(vi) an affirmation that the implementation
organization has complied with the applicable
regulations, including compliance with Federal
accessibility requirements;
(vii) in the first year of receiving a
grant, and as certified in subsequent reports,
a comprehensive plan to prevent waste, fraud,
and abuse in the administration of the Pilot
Program, which shall include, at a minimum--
(I) a policy enacted and enforced
by the implementing organization to
monitor ongoing expenditures under this
subsection and ensure compliance with
applicable regulations;
(II) a policy enacted and enforced
by the implementing organization to
detect and deter fraudulent activity,
including fraud occurring in individual
projects and patterns of fraud by
parties involved in the expenditure of
funds under this subsection;
(III) a statement setting forth any
violations detected by the implementing
organization during the previous
calendar year, including details about
steps taken to achieve compliance and
any remedial measures; and
(IV) a certification by the chief
executive or most senior compliance
officer of the organization that the
organization maintains sufficient staff
and resources to effectively carry out
the above-mentioned policies; and
(viii) such other information as the
Secretary may require.
(B) Reporting requirement alignment.--To limit the
costs of implementing the Pilot Program under this
subsection, the Secretary shall endeavor, to the extent
possible, to structure reporting requirements such that
they align with the data reporting requirements in
place for funding streams that implementing
organizations are likely to use together with funding
from this subsection, including the reporting
requirements under--
(i) the Community Development Block Grant
program under title I of the Housing and
Community Development Act of 1974 (42 U.S.C.
5301 et seq.);
(ii) the HOME Investment Partnerships
program under subtitle A of title II of the
Cranston-Gonzalez National Affordable Housing
Act (42 U.S.C. 12741 et seq.);
(iii) the Weatherization Assistance Program
for low-income persons established under part A
of title IV of the Energy Conservation and
Production Act (42 U.S.C. 6861 et seq.); and
(iv) the Native American Housing Assistance
and Self-Determination Act of 1996 (25 U.S.C.
4101 et seq.).
(C) Pilot program period reports.--Not less
frequently than twice during the period in which the
Pilot Program established under this subsection
operates, the Office of Inspector General of the
Department of Housing and Urban Development shall
complete an assessment of the implementation of
measures to ensure the fair and legitimate use of the
Pilot Program.
(D) Summary to congress.--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 an annual
report providing a summary of the data provided under
subparagraphs (A) and (C) during the 1-year period
preceding the report and all data previously provided
under those subparagraphs.
(11) Environmental review.--A grant under this subsection
shall be--
(A) treated as assistance 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); and
(B) subject to the regulations promulgated by the
Secretary to implement such section.
(12) Termination.--The Pilot Program established under this
subsection shall terminate on October 1, 2031.
SEC. 203. COMMUNITY INVESTMENT AND PROSPERITY ACT.
(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
the term 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 the term 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.
SEC. 204. ADDITION OF AFFORDABLE HOUSING CONSTRUCTION AS AN ELIGIBLE
ACTIVITY.
(a) Eligible Activity.--Section 105(a) of the Housing and Community
Development Act of 1974 (42 U.S.C. 5305(a)) is amended--
(1) in paragraph (25)(D), by striking ``and'' at the end;
(2) in paragraph (26), by striking the period at the end
and inserting ``; and''; and
(3) by adding at the end the following:
``(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.''.
(b) 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''.
(c) Applicability.--The amendments made by this section shall apply
with respect only to amounts appropriated after the date of enactment
of this Act.
SEC. 205. BETTER USE OF INTERGOVERNMENTAL AND LOCAL DEVELOPMENT (BUILD)
HOUSING ACT.
(a) 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.''.
(b) 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--
(1) by striking ``State or unit of general local
government'' each place it appears and inserting ``State,
Indian Tribe, or unit of general local government'';
(2) 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
(3) 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) Implementation.--
(1) In general.--Except as provided in paragraph (2), a
designation of assistance under section 13 of the Department of
Housing and Urban Development Act, as added by subsection (a),
shall only apply with respect to funds appropriated after the
date of enactment of this Act.
(2) Exception.--If a grantee of assistance administered by
the Secretary of Housing and Urban Development combines funds
appropriated before and after the date of enactment of this Act
to carry out a project, section 13 of the Department of and
Urban Development Act, as added by subsection (a), shall not
apply to that assistance.
SEC. 206. UNLOCKING HOUSING SUPPLY THROUGH STREAMLINED AND MODERNIZED
REVIEWS ACT.
(a) Definitions.--In this section:
(1) Infill project.--The term ``infill project'' means a
project that--
(A) occurs 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 substantially
surrounded by residential or commercial development;
(D) will repurpose a vacant or underutilized parcel
of land, or a dilapidated or abandoned structure; and
(E) will serve a residential or commercial purpose.
(2) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
(b) NEPA Streamlining for HUD Housing-related Activities.--
(1) In general.--The Secretary shall, in accordance with
section 553 of title 5, United States Code, and section 103 of
the National Environmental Policy Act of 1969 (42 U.S.C. 4333),
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.
(ii) Supportive services, including health
care, housing services, permanent housing
placement, day care, nutritional services,
short-term payments 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 home-buyers in the
purchase of 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 home-owner or renter
assistance for the repair or replacement of
HVAC, hot water heaters, and other necessary
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 section 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 of up
to 4 scattered site existing dwelling units
where there is a maximum of 4 units on any 1
site.
(iv) Acquisitions (including leasing) of,
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 section 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--
(I) a maximum number of units to be
determined by the Secretary; and
(II) a limitation on the change in
building size of not more than 20
percent.
(iii) New construction, development,
demolition, acquisition, or disposition of 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 of 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) The voluntary acquisition of
properties--
(I) located in--
(aa) a floodway;
(bb) a floodplain; or
(cc) any other area,
clearly delineated by the
grantee; and
(II) that have been impacted by a
predictable environmental threat to the
safety and well-being of program
beneficiaries caused or exacerbated by
a federally declared disaster.
(c) Implementation.--For purposes of implementing the streamlining
of environmental review for housing-related activities under subsection
(b), the agency actions carried out under that subsection--
(1) shall only apply with respect to funds appropriated
after the effective date of those actions; and
(2) shall not apply with respect to a grantee that combines
funds appropriated before and after the effective date of those
actions to carry out a project.
(d) 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 an annual report
during the 5-year period beginning on the date that is 2 years after
the date of enactment of this Act that provides 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 section, 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.
SEC. 207. GRANTS FOR PLANNING AND IMPLEMENTATION ASSOCIATED WITH
AFFORDABLE HOUSING.
(a) Definitions.--In this section:
(1) Eligible entity.--The term ``eligible entity'' means--
(A) a State, insular area, metropolitan city, or
urban county, as those terms are defined in section 102
of the Housing and Community Development Act of 1974
(42 U.S.C. 5302); 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 (42 U.S.C. 12705).
(4) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
(b) Establishment.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall establish a program to award
grants on a competitive basis to eligible entities to assist planning
and implementation activities associated with affordable housing,
except that such grant awards may not be used for construction,
alteration, or repair work.
(c) Use of Amounts.--
(1) By regional planning agencies.--If an eligible entity
that receives amounts under this section is an eligible entity
described in subsection (a)(1)(B), the eligible entity shall
use those 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 an eligible entity described in
subsection (a)(1)(A), the eligible entity shall use those
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 those amounts for administrative costs.
(d) Coordination.--To the extent practicable, the Secretary shall
coordinate with the Administrator of the Federal Transit Administration
in carrying out this section.
(e) Expiration of Authority.--After the expiration of the 5-year
period beginning on the date of enactment of this Act, the Secretary
may not newly establish a program as described in this section.
(f) Sunset.--The program established under this section shall
terminate on the date that is 5 years after the date of enactment of
this Act.
SEC. 208. INNOVATION FUND.
(a) Definitions.--In this section:
(1) Attainable housing.--The term ``attainable housing''
means housing that serves households earning not more than 120
percent of the area median income, if the majority of the
housing units are affordable to households earning not more
than 60 percent of the area median income.
(2) Eligible entity.--The term ``eligible entity'' means--
(A) a metropolitan city or urban county, as those
terms are defined in section 102 of the Housing and
Community Development Act of 1974 (42 U.S.C. 5302),
that has demonstrated an objective improvement in
housing supply growth, as determined by the Secretary,
whose methodology for determining such growth is
published in the Federal Register to allow for public
comment not less than 90 days before the date on which
the notice of funding opportunity is made available; or
(B) a unit of general local government or an Indian
Tribe, as those terms are defined in section 102 of the
Housing and Community Development Act of 1974 (42
U.S.C. 5302), that has demonstrated an objective
improvement in housing supply growth, as determined by
the Secretary, whose methodology for determining such
improvement is published in the Federal Register to
allow for public comment not less than 90 days before
the date on which the notice of funding opportunity is
made available.
(3) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
(b) Establishment of a Grant Program.--
(1) Establishment.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall establish a program
to award grants on a competitive basis to eligible entities
that have increased their local housing supply.
(2) List of eligible entities.--The Secretary shall make a
list of eligible entities publicly available on the website of
the Department of Housing and Urban Development.
(3) Eligible purposes.--An eligible entity receiving a
grant under this section may use funds to--
(A) carry out any of the activities described in
section 105 of the Housing and Community Development
Act of 1974 (42 U.S.C. 5305);
(B) carry out any of the activities permitted under
the Local and Regional Project Assistance Program
established under section 6702 of title 49, United
States Code; and
(C) carry out initiatives of the eligible entity
that facilitate the expansion of the supply of
attainable housing and that supplement initiatives the
eligible entity has carried out, or is in the process
of carrying out, as specified in the application
submitted under paragraph (4).
(4) Application.--
(A) In general.--An eligible entity seeking a grant
under this section shall submit to the Secretary an
application that provides--
(i) a description of each purpose for which
the eligible entity will use the grant, and an
attestation that the grant will be used only
for 1 or more eligible purposes described in
paragraph (3);
(ii) data on characteristics of increased
housing supply during the 3-year period ending
on the date on which the application is
submitted, which may include whether such
housing--
(I) serves households at a range of
income levels; and
(II) has improved the quality and
affordability of housing in the
jurisdiction of the eligible entity;
(iii) a description of how each eligible
purpose described in clause (i) may address a
community need or advance an objective, or an
aspect of an objective, included in the
comprehensive housing affordability strategy
and community development plan of the eligible
entity under part 91 of title 24, Code of
Federal Regulations, or any successor
regulation (commonly referred to as a
``consolidated plan''); and
(iv) a description of how the eligible
entity has carried out, or is in the process of
carrying out, initiatives that facilitate the
expansion of the supply of housing.
(B) Initiatives.--Initiatives that meet the
criteria described in paragraph (3)(C) include, but
shall not be limited to--
(i) increasing by-right uses, including
duplex, triplex, quadplex, and multifamily
buildings, in areas of opportunity;
(ii) revising or eliminating off-street
parking requirements to reduce the cost of
housing production;
(iii) revising minimum lot size
requirements, floor area ratio requirements,
set-back requirements, building heights, and
bans or limits on construction that allow for
denser and more affordable development;
(iv) instituting incentives to promote
dense development for communities where
increased density is needed;
(v) passing zoning overlays or other
ordinances that enable the development of
mixed-income housing;
(vi) streamlining regulatory requirements
and shortening processes, increasing code
enforcement and permitting capacity, reforming
zoning codes, or other initiatives that reduce
barriers to increasing housing supply and
affordability;
(vii) eliminating restrictions against
accessory dwelling units and expanding their
by-right use;
(viii) using local tax incentives or public
financing to promote development of attainable
housing;
(ix) streamlining environmental
regulations;
(x) eliminating unnecessary manufactured-
housing or cooperative housing regulations and
restrictions;
(xi) minimizing the impact of
overburdensome energy and water efficiency
standards on housing costs; and
(xii) other activities that reduce the cost
of construction, as determined by the
Secretary.
(5) Grants.--
(A) In general.--The Secretary shall make not fewer
than 25 grants on an annual basis (unless amounts
appropriated to provide grant amounts consistent with
subsection (b) are insufficient, in which case fewer
grants may be awarded), with strong consideration of
different geographical areas and a relatively even
spread of rural, suburban, and urban communities.
(B) Limitations on awards.--No grant awarded under
this paragraph may be--
(i) more than $10,000,000; or
(ii) less than $250,000.
(C) Priority.--When awarding grants under this
paragraph, the Secretary shall give priority to an
eligible entity that has--
(i) demonstrated the use of innovative
policies, interventions, or programs for
increasing housing supply; and
(ii) demonstrated a marked improvement in
housing supply growth, as needed.
(D) Grant administration and terms.--Projects
assisted under this section for activities described in
sector 23 of the North American Industry Classification
System shall be treated as projects assisted under the
Community Development Block Grant program under title I
of the Housing and Community Development Act of 1974
(42 U.S.C. 5301 et seq.).
(c) Rules of Construction.--Nothing in this section shall be
construed--
(1) to authorize the Secretary to mandate, supersede, or
preempt any local zoning or land use policy; or
(2) to affect the requirements of section 105(c)(1) of the
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C.
12705(c)(1)).
(d) Sunset.--The program established under this section shall
terminate on the date that is 7 years after the date of enactment of
this Act.
(e) Authorization of Appropriations.--
(1) In general.--There is authorized to be appropriated to
carry out this section $200,000,000 for each of fiscal years
2027 through 2031.
(2) Adjustment.--The amount authorized to be appropriated
under paragraph (1) shall be adjusted for inflation based on
the Consumer Price Index for all Urban Customers published by
the Bureau of Labor Statistics of the Department of Labor.
SEC. 209. ACCELERATING HOME BUILDING ACT.
(a) 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) a low-rise or mid-rise structure with not more
than 25 dwelling units; and
(B) includes--
(i) an accessory dwelling unit;
(ii) infill development;
(iii) a duplex;
(iv) a triplex;
(v) a fourplex;
(vi) a cottage court;
(vii) a courtyard building;
(viii) a townhouse;
(ix) a multiplex; and
(x) any other structure with not less than
2 dwelling units that the Secretary considers
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));
(B) a municipal membership organization; and
(C) 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 residential development on small parcels in previously
established areas for replacement with 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) Prereviewed designs.--The term ``prereviewed designs'',
also known as pattern books, means sets of construction plans
that are assessed and approved 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.
(b) Authority.--The Secretary is authorized to award grants to
eligible entities utilizing funds appropriated for such purpose to
select prereviewed designs of covered structures of mixed-income
housing for use in the jurisdiction of the eligible entity, except that
such grant awards 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 service area of
the eligible entity;
(2) the presence of high opportunity areas in the
jurisdiction of 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 amount 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) Reports.--The Secretary shall require eligible entities
receiving grants under this section to report on--
(1) the impacts of the activities carried out using the
grant amounts in improving the production and supply of
affordable housing;
(2) the prereviewed designs selected using the grant
amounts in their communities;
(3) the number of permits issued for housing development
utilizing prereviewed designs; and
(4) the number of housing units produced in developments
utilizing the prereviewed designs.
(f) Availability of Information.--The Secretary shall--
(1) to the extent possible, encourage localities to make
publicly available through a website information on the
prereviewed designs selected and submitted to the Secretary by
eligible entities receiving grants under this section,
including information on the benefits of use of those designs;
and
(2) collect, identify, and disseminate best practices
regarding such designs and make such information publicly
available on the website of the Department of Housing and Urban
Development.
(g) Design Adoption and Repayment.--The Secretary may require an
eligible entity to return to the Secretary any grant funds received
under this section if the selected prereviewed designs submitted under
this section have not been adopted during the 5-year period following
receipt of the grant, unless that period is extended by the Secretary.
(h) Technical Assistance.--The Secretary may set aside not more
than 5 percent of amounts appropriated in a fiscal year to provide
technical assistance to grant recipients under this section and
pregrant technical assistance to prospective applicants.
SEC. 210. REVITALIZING EMPTY STRUCTURES INTO DESIRABLE ENVIRONMENTS
(RESIDE) ACT.
(a) In General.--Subtitle A of title II of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12741 et seq.) is amended by
adding at the end the following:
``SEC. 227. REVITALIZING EMPTY STRUCTURES INTO DESIRABLE ENVIRONMENTS.
``(a) Definitions.--In this section:
``(1) Attainable housing.--The term `attainable housing'
means housing that serves households earning not more than 120
percent of the area median income, if the majority of the
housing units are affordable to households earning not more
than 60 percent of the area median income.
``(2) Converted housing unit.--The term `converted housing
unit' means a housing unit that is created using a covered
grant.
``(3) Covered grant.--The term `covered grant' means a
grant awarded under the Pilot Program.
``(4) Eligible entity.--The term `eligible entity' means a
participating jurisdiction.
``(5) Pilot program.--The term `Pilot Program' means the
Pilot Program established under subsection (b).
``(6) Vacant and abandoned building.--The term `vacant and
abandoned building' means a property--
``(A) that was constructed for use as a warehouse,
factory, mall, strip mall, or hotel, or for another
industrial or commercial use; and
``(B)(i) with respect to which--
``(I) a code enforcement inspection has
determined that the property is not safe; and
``(II) not less than 90 days have elapsed
since the owner was notified of the
deficiencies in the property and the owner has
taken no corrective action; or
``(ii) that is subject to a court-ordered
receivership or nuisance abatement related to
abandonment pursuant to State or local law or otherwise
meets the definition of an abandoned property under
State law.
``(b) Purpose of Grant Program.--Subject to the availability of
funds appropriated for this subsection, the Secretary is authorized to
establish a Pilot Program, spanning from fiscal years 2027 through
2031, which shall have the purpose of awarding grants on a competitive
basis to eligible entities to convert vacant and abandoned buildings
into attainable housing.
``(c) Amount of Grant.--
``(1) In general.--For any fiscal year for which not less
than $100,000,000 is made available to carry out the Pilot
Program, the amount of a covered grant shall be not less than
$1,000,000 and not more than $10,000,000.
``(2) Fiscal years with lower funding.--For any fiscal year
for which less than $100,000,000 is made available to carry out
the Pilot Program pursuant to subsection (b), the Secretary
shall seek to maximize the number of covered grants awarded.
``(d) Relation to Formula Allocation.--A covered grant awarded to
an eligible entity shall be in addition to, and shall not affect, the
formula allocation for the eligible entity under section 217.
``(e) Priority.--In awarding covered grants, the Secretary shall
give priority to an eligible entity that--
``(1) will use the covered grant in a community that is
experiencing economic distress;
``(2) will use the covered grant in a qualified opportunity
zone (as defined in section 1400Z-1(a) of the Internal Revenue
Code of 1986);
``(3) will use the covered grant to construct housing that
will serve a need identified in the comprehensive housing
affordability strategy and community development plan of the
eligible entity under part 91 of title 24, Code of Federal
Regulations, or any successor regulation (commonly referred to
as a `consolidated plan'); or
``(4) has enacted ordinances to reduce regulatory barriers
to conversion of vacant and abandoned buildings to housing,
which shall not include any alteration of an ordinance that
governs safety and habitability.
``(f) Use of Funds.--An eligible entity may use a covered grant
for--
``(1) property acquisition;
``(2) demolition;
``(3) health hazard remediation;
``(4) site preparation;
``(5) construction, renovation, or rehabilitation; or
``(6) the establishment, maintenance, or expansion of
community land trusts or housing cooperatives.
``(g) Waiver Authority.--In administering covered grants, the
Secretary may waive, or specify alternative requirements for, any
statute or regulation that the Secretary administers in connection with
the obligation by the Secretary or the use by eligible entities of
covered grant funds (except for requirements related to fair housing,
nondiscrimination, labor standards, or the environment) if the
Secretary makes a public finding that good cause exists for the waiver
or alternative requirement.
``(h) Study; Report.--Not later than 180 days after the termination
of the Pilot Program, the Secretary shall study and submit to Congress
a report on the impact of the Pilot Program on--
``(1) improving the tax base of local communities;
``(2) increasing access to affordable housing, especially
for elderly individuals, disabled individuals, and veterans;
``(3) increasing home-ownership; and
``(4) removing blight.''.
(b) Technical and Conforming Amendment.--The table of contents in
section 1(b) of the Cranston-Gonzalez National Affordable Housing Act
(Public Law 101-625; 104 Stat. 4079) is amended by inserting after the
item relating to section 226 the following:
``Sec. 227. Revitalizing empty structures into desirable
environments.''.
SEC. 211. HOUSING AFFORDABILITY ACT.
(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 July 1,
2025. 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 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 amending subsection (b) to read as follows:
``(b) Publication.--
``(1) In general.--The Secretary shall publish in the
Federal Register any adjustments made to the Dollar Amounts.
``(2) Rounding.--The dollar amount of any adjustment
described in paragraph (1) shall be rounded to the next lower
dollar.'';
(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.
TITLE III--MANUFACTURED HOUSING FOR AMERICA
SEC. 301. HOUSING SUPPLY EXPANSION ACT.
(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(a)) is
amended by adding the following:
``(7) Standards for manufactured homes built without a
permanent chassis.--
``(A) In general.--The Secretary, in consultation
with the consensus committee, shall issue revised
standards for manufactured homes built without a
permanent chassis 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 that
manufactured homes without a permanent chassis have--
``(i) a distinct label, with revenue
generated to be deposited into the Manufactured
Housing Fees Trust Fund established under
section 620(e)(1), to be issued by the
Secretary distinguishing manufactured home
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 (or any successor regulation),
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 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 Certifications.--
``(1) In general.--
``(A) Initial certification.--Subject to
subparagraph (B), not later than 1 year after the date
of enactment of the 21st Century ROAD to Housing Act, a
State shall submit to the Secretary an initial
certification that the laws and regulations of the
State--
``(i) treat any manufactured home 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, including 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(b) shall contain the
required State certification under subparagraph (A)
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 the 21st Century ROAD to
Housing Act.
``(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 the 21st Century ROAD to Housing
Act.
``(B) Building, installation, and sale.--If a State
does not submit a certification under paragraph (1)(A)
or (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 (as 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 (as 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. MODULAR HOUSING PRODUCTION ACT.
(a) Definitions.--In this section:
(1) Manufactured home.--The term ``manufactured home'' has
the meaning given the term in section 603 of the National
Manufactured Housing Construction and Safety Standards Act of
1974 (42 U.S.C. 5402).
(2) Modular home.--The term ``modular home'' means a home
that is constructed in a factory in 1 or more modules, each of
which meets applicable State and local building codes of the
area in which the home will be located, and that are
transported to the home building site, installed on
foundations, and completed.
(3) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
(b) FHA Construction Financing Programs.--
(1) In general.--The Secretary shall conduct a review of
Federal Housing Administration construction financing programs
to identify barriers to the use of modular home methods.
(2) Requirements.--In conducting the review under paragraph
(1), the Secretary shall--
(A) identify and evaluate regulatory and
programmatic features that restrict participation in
construction financing programs by modular home
developers, including construction draw schedules; and
(B) identify administrative measures authorized
under section 525 of the National Housing Act (12
U.S.C. 1735f-3) to facilitate program utilization by
modular home developers.
(3) Report.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall publish a report
that describes the results of the review conducted under
paragraph (1), which shall include a description of
programmatic and policy changes that the Secretary recommends
to reduce or eliminate identified barriers to the use of
modular home methods in Federal Housing Administration
construction financing programs.
(4) Rulemaking.--
(A) In general.--Not later than 120 days after the
date on which the Secretary publishes the report under
paragraph (3), the Secretary shall initiate a
rulemaking to examine an alternative draw schedule for
construction financing loans provided to modular and
manufactured home developers, which shall include the
ability for interested stakeholders to provide robust
public comment.
(B) Determination.--Following the period for public
comment under subparagraph (A), the Secretary shall--
(i) issue a final rule regarding an
alternative draw schedule described in
subparagraph (A); or
(ii) provide an explanation as to why the
rule shall not become final.
(c) Standardized Uniform Commercial Code for Modular Homes.--The
Secretary may award a grant to study the design and feasibility of a
standardized uniform commercial code for modular homes, which shall
evaluate--
(1) the utility of a standardized coding system for
serializing and securing modules, streamlining design and
construction, and improving modular home innovation; and
(2) a means to coordinate a standardized code with
financing incentives.
SEC. 303. PROPERTY IMPROVEMENT AND MANUFACTURED HOUSING LOAN
MODERNIZATION ACT.
(a) National Housing Act Amendments.--
(1) In general.--Section 2 of the National Housing Act (12
U.S.C. 1703) is amended--
(A) in subsection (a), by inserting ``construction
of additional or accessory dwelling units, as defined
by the Secretary,'' after ``energy conserving
improvements,''; and
(B) in subsection (b)--
(i) in paragraph (1)--
(I) by striking subparagraph (A)
and inserting the following:
``(A) $75,000 if made for the purpose of financing
alterations, repairs, and improvements upon or in connection
with an existing single-family structure, including a
manufactured home;'';
(II) in subparagraph (B)--
(aa) by striking
``$60,000'' and inserting
``$150,000'';
(bb) by striking
``$12,000'' and inserting
``$37,500''; and
(cc) by striking ``an
apartment house or'';
(III) by striking subparagraphs (C)
and (D) and inserting the following:
``(C)(i) $106,405 if made for the purpose of financing the
purchase of a single-section manufactured home; and
``(ii) $195,322 if made for the purpose of financing the
purchase of a multi-section manufactured home;
``(D)(i) $149,782 if made for the purpose of financing the
purchase of a single-section manufactured home and a suitably
developed lot on which to place the home; and
``(ii) $238,699 if made for the purpose of financing the
purchase of a multi-section manufactured home and a suitably
developed lot on which to place the home;'';
(IV) in subparagraph (E)--
(aa) by striking
``$23,226'' and inserting
``$43,377''; and
(bb) by striking the period
at the end and inserting a
semicolon;
(V) in subparagraph (F), by
striking ``and'' at the end;
(VI) in subparagraph (G), by
striking the period at the end and
inserting ``; and''; and
(VII) by inserting after
subparagraph (G) the following:
``(H) such principal amount as the Secretary may prescribe
if made for the purpose of financing the construction of an
accessory dwelling unit.'';
(ii) in the matter immediately preceding
paragraph (2)--
(I) by striking ``regulation'' and
inserting ``notice'';
(II) by striking ``increase'' and
inserting ``set'';
(III) by striking ``(A)(ii), (C),
(D), and (E)'' and inserting ``(A)
through (H)'';
(IV) by inserting ``, or as
necessary to achieve the goals of the
Federal Housing Administration,
periodically reset the dollar amount
limitations in subparagraphs (A)
through (H) based on justification and
methodology set forth in advance by
regulation'' before the period at the
end; and
(V) by adjusting the margins
appropriately;
(iii) in paragraph (3), by striking
``exceeds--'' and all that follows through the
period at the end and inserting ``exceeds such
period of time as determined by the Secretary,
not to exceed 30 years.'';
(iv) by striking paragraph (9) and
inserting the following:
``(9) Annual indexing of certain dollar amount
limitations.--The Secretary shall develop or choose 1 or more
methods of indexing in order to annually set the loan limits
established in paragraph (1), based on data the Secretary
determines is appropriate for purposes of this section.''; and
(v) in paragraph (11), by striking
``lease--'' and all that follows through the
period at the end and inserting ``lease meets
the terms and conditions established by the
Secretary''.
(2) Deadline for development or choice of new index;
interim index.--
(A) Deadline for development or choice of new
index.--Not later than 1 year after the date of
enactment of this Act, the Secretary of Housing and
Urban Development shall develop or choose 1 or more
methods of indexing as required under section 2(b)(9)
of the National Housing Act (12 U.S.C. 1703(b)(9)), as
amended by paragraph (1) of this subsection.
(B) Interim index.--During the period beginning on
the date of enactment of this Act and ending on the
date on which the Secretary of Housing and Urban
Development develops or chooses 1 or more methods of
indexing as required under section 2(b)(9) of the
National Housing Act (12 U.S.C. 1703(b)(9)), as amended
by paragraph (1) of this subsection, the method of
indexing established by the Secretary under such
section 2(b)(9) before the date of enactment of this
Act shall apply.
(b) HUD Study of Offsite Construction.--
(1) Definitions.--In this subsection:
(A) Offsite construction housing.--The term
``offsite construction housing'' includes manufactured
homes and modular homes.
(B) Manufactured home.--The term ``manufactured
home'' means any home constructed in accordance with
the construction and safety standards established under
the National Manufactured Housing Construction and
Safety Standards Act of 1974 (42 U.S.C. 5401 et seq.).
(C) Modular home.--The term ``modular home'' means
a home that is constructed in a factory in 1 or more
modules, each of which meets applicable State and local
building codes of the area in which the home will be
located, and that are transported to the home building
site, installed on foundations, and completed.
(2) Study.--Not later than 1 year after the date of the
enactment of this section the Secretary of Housing and Urban
Development shall conduct a study and submit to Congress a
report on the cost effectiveness of offsite construction
housing, that includes--
(A) an analysis of the advantages and the impact of
centralization in a factory and transportation to a
construction site on cost, precision, and materials
waste;
(B) the extent to which offsite construction
housing meets housing quality standards under the
National Standards for the Physical Inspection of Real
Estate, or other standards as the Secretary may
prescribe, compared to the extent for site-built homes,
for such standards;
(C) the expected replacement and maintenance costs
over the first 40 years of life of offsite construction
homes compared to those costs for site-built homes; and
(D) opportunities for use beyond single-family
housing, such as applications in accessory dwelling
units, two- to four-unit housing, and large multifamily
housing.
TITLE IV--ACCESSING THE AMERICAN DREAM
SEC. 401. CREATING INCENTIVES FOR SMALL-DOLLAR LOAN ORIGINATORS.
(a) Definitions.--In this section:
(1) Director.--The term ``Director'' means the Director of
the Bureau of Consumer Financial Protection.
(2) Small-dollar mortgage.--The term ``small-dollar
mortgage'' means a mortgage loan having an original principal
obligation of not more than $100,000 that is--
(A) secured by real property designed for 1 to 4
dwelling units; and
(B)(i) insured by the Federal Housing
Administration under title II of the National Housing
Act (12 U.S.C. 1707 et seq.);
(ii) made, guaranteed, or insured by the Department
of Veterans Affairs;
(iii) made, guaranteed, or insured by the
Department of Agriculture; or
(iv) eligible to be purchased or securitized by the
Federal Home Loan Mortgage Corporation or the Federal
National Mortgage Association.
(b) Requirement Regarding Loan Originator Compensation Practices.--
Not later than 270 days after the date of enactment of this Act, the
Director 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 on loan originator compensation
practices throughout the residential mortgage market, including the
relative frequency of loan originators being compensated--
(1) with a salary;
(2) with a commission reflecting a fixed percentage of the
amount of credit extended;
(3) with a commission based on a factor other than a fixed
percentage of the amount of credit extended;
(4) with a combination of salary and commission;
(5) on a loan volume basis; and
(6) with a commission reflecting a percentage of the amount
of credit extended, for which a minimum or maximum compensation
amount is set.
(c) Community Development Financial Institution Loan Originators.--
In performing the study required under subsection (b), the Secretary
shall, in coordination with relevant Federal agencies that regulate
federally backed small-dollar mortgages and in consultation with the
Director of the Community Development Financial Institutions Fund
established under section 104 of the Community Development Banking and
Financial Institutions Act of 1994 (12 U.S.C. 4703), give due
consideration to the practices for compensating loan originators that
are employed by or originate loans on behalf of community development
financial institutions.
(d) Contents.--The report required under subsection (b) shall
include--
(1) data and other analyses regarding the effect of the
approaches to loan originator compensation described in
subsection (b) on the availability of small-dollar mortgage
loans; and
(2) an analysis and a discussion regarding potential
barriers to small-dollar mortgage lending.
SEC. 402. SMALL-DOLLAR MORTGAGE POINTS AND FEES.
(a) Small-dollar Mortgage Defined.--In this section, the term
``small-dollar mortgage'' means a mortgage with an original principal
obligation of less than $100,000.
(b) Amendments.--Not later than 270 days after the date of
enactment of this Act, the Director of the Bureau of Consumer Financial
Protection, in consultation with the Secretary of Housing and Urban
Development and the Director of the Federal Housing Finance Agency,
shall evaluate the impact of the thresholds under section 1026.43 of
title 12, Code of Federal Regulations (as in effect on the date of
enactment of this Act), on small-dollar mortgage originations.
SEC. 403. APPRAISAL INDUSTRY IMPROVEMENT ACT.
(a) Appraisal Standards.--
(1) Certification or licensing.--
(A) In general.--Section 202(g)(5) of the National
Housing Act (12 U.S.C. 1708(g)(5)) is amended--
(i) by moving the paragraph two ems to the
left; and
(ii) by striking subparagraphs (A) and (B)
and inserting the following:
``(A) be certified or licensed by the State in which the
property to be appraised is located, except that an appraiser
who has as their primary duty conducting appraisal-related
activities and who chooses to become a State-licensed or
certified real estate appraiser need only to be licensed or
certified in 1 State or territory to perform appraisals on
mortgages insured by the Federal Housing Administration in all
States and territories;
``(B) meet the requirements under the competency rule set
forth in the Uniform Standards of Professional Appraisal
Practice before accepting an assignment; and
``(C) have demonstrated verifiable education in the
appraisal requirements established by the Federal Housing
Administration under this subsection, which shall include the
completion of a course or seminar that educates appraisers on
those appraisal requirements, which shall be provided by--
``(i) the Federal Housing Administration; or
``(ii) a third party, if the course is approved by
the Secretary or a State appraiser certifying or
licensing agency.''.
(B) Application.--Subparagraph (C) of section
202(g)(5) of the National Housing Act (12 U.S.C.
1708(g)(5)), as added by subparagraph (A), shall not
apply with respect to any certified appraiser approved
by the Federal Housing Administration to conduct
appraisals on property securing a mortgage to be
insured by the Federal Housing Administration on or
before the effective date described in paragraph
(3)(C).
(2) Compliance with verifiable education and competency
requirements.--On and after the effective date described in
paragraph (3)(C), no appraiser may conduct an appraisal on a
property securing a mortgage to be insured by the Federal
Housing Administration unless--
(A) the appraiser is in compliance with the
requirements of subparagraphs (A) and (B) of section
202(g)(5) of the National Housing Act (12 U.S.C.
1708(g)(5)), as amended by paragraph (1); and
(B) if the appraiser was not approved by the
Federal Housing Administration to conduct appraisals on
mortgages insured by the Federal Housing Administration
before the date on which the mortgagee letter or
guidance takes effect under paragraph (3)(C), the
appraiser is in compliance with subparagraph (C) of
such section 202(g)(5).
(3) Implementation.--Not later than the 240 days after the
date of enactment of this Act, the Secretary of Housing and
Urban Development shall issue a mortgagee letter or guidance
that--
(A) implements the amendments made by paragraph
(1);
(B) clearly sets forth all of the specific
requirements under section 202(g)(5) of the National
Housing Act (12 U.S.C. 1708(g)(5)), as amended by
paragraph (1), for approval to conduct appraisals on
property secured by a mortgage to be insured by the
Federal Housing Administration, which shall include--
(i) providing that, before the effective
date of the mortgagee letter or guidance,
compliance with the requirements under
subparagraphs (A), (B), and (C) of such section
202(g)(5), as amended by paragraph (1), shall
be considered to fulfill the requirements under
such subparagraphs; and
(ii) providing a method for appraisers to
demonstrate such prior compliance; and
(C) takes effect not later than the date that is
180 days after the date on which the Secretary issues
the mortgagee letter or guidance.
(b) Annual Registry Fees for Appraisal Management Companies.--
Section 1109(a) of the Financial Institutions Reform, Recovery, and
Enforcement Act of 1989 (12 U.S.C. 3338(a)) is amended, in the matter
following clause (ii) of paragraph (4)(B), by adding at the end the
following: ``Subject to the approval of the Council, the Appraisal
Subcommittee may adjust fees established under clause (i) or (ii) to
carry out its functions under this Act.''.
(c) State Credentialed Trainees.--
(1) Maintenance on national registry.--Section 1103(a) of
the Financial Institutions Reform, Recovery, and Enforcement
Act of 1989 (12 U.S.C. 3332(a)) is amended--
(A) in paragraph (3)--
(i) by inserting ``and State credentialed
trainee appraisers'' after ``licensed
appraisers''; and
(ii) by striking ``and'' at the end;
(B) by striking paragraph (4);
(C) by redesignating paragraphs (5) and (6) as
paragraphs (4) and (5), respectively; and
(D) in paragraph (4), as so redesignated--
(i) by striking ``year. The report shall
also detail'' and inserting ``year,
detailing'';
(ii) by striking ``provide'' and inserting
``provides''; and
(iii) by striking the period at the end and
inserting ``; and''.
(2) Annual registry fees.--
(A) In general.--Section 1109 of the Financial
Institutions Reform, Recovery, and Enforcement Act of
1989 (12 U.S.C. 3338) is amended--
(i) in the section heading, by striking
``certified or licensed'' and inserting ``,
certified, licensed, and credentialed
trainee''; and
(ii) in subsection (a)--
(I) in paragraph (1), by inserting
``, and in the case of a State with a
supervisory or trainee program, a
roster listing individuals who have
received a State trainee credential''
after ``this title''; and
(II) by striking paragraph (2) and
inserting the following:
``(2) transmit reports on the issuance and renewal of
licenses, certifications, credentials, sanctions, and
disciplinary actions, including license, credential, and
certification revocations, on a timely basis to the national
registry of the Appraisal Subcommittee;''.
(B) Rule of construction.--Nothing in the
amendments made by subparagraph (A) shall require a
State to establish or operate a program for State
credentialed trainee appraisers, as defined in
paragraph (12) of section 1121 of the Financial
Institutions Reform, Recovery, and Enforcement Act of
1989, as added by paragraph (4) of this subsection.
(3) Transactions requiring the services of a state
certified appraiser.--Section 1113 of the Financial
Institutions Reform, Recovery, and Enforcement Act of 1989 (12
U.S.C. 3342) is amended--
(A) by striking ``In determining'' and inserting
``(a) In General.--In determining''; and
(B) by adding at the end the following:
``(b) Use of State Credentialed Trainee Appraisers.--In performing
an appraisal under this section, a State certified appraiser may use
the assistance of a State credentialed trainee appraiser or an
unlicensed trainee appraiser, except that the State certified appraiser
assisted by a trainee shall be liable for appraisal and valuation
work.''.
(4) Definition.--Section 1121 of the Financial Institutions
Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 3350)
is amended by adding at the end the following:
``(12) State credentialed trainee appraiser.--The term
`State credentialed trainee appraiser' means an individual
who--
``(A) meets the minimum criteria established by the
Appraiser Qualification Board for a trainee appraiser
credential; and
``(B) is credentialed by a State appraiser
certifying and licensing agency.''.
(d) Grants for Workforce and Training.--Section 1109(b) of the
Financial Institutions Reform, Recovery, and Enforcement Act of 1989
(12 U.S.C. 3338(b)) is amended--
(1) in paragraph (5)(B), by striking ``and'' at the end;
(2) in paragraph (6), by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following:
``(7) to make grants to State appraiser certifying and
licensing agencies to support the carrying out of education and
training activities or other activities related to addressing
appraiser industry workforce needs, including recruiting and
retaining workforce talent, such as through scholarship
assistance and career pipeline development, and such agencies
shall report on the use of funds and outcomes.''.
(e) Appraisal Subcommittee.--Section 1011 of the Federal Financial
Institutions Examination Council Act of 1978 (12 U.S.C. 3310) is
amended, in the first sentence, by inserting ``the Department of
Veterans Affairs, the Rural Housing Service of the Department of
Agriculture, the Department of Housing and Urban Development,'' after
``Financial Protection,''.
SEC. 404. HELPING MORE FAMILIES SAVE ACT.
Section 23 of the United States Housing Act of 1937 (42 U.S.C.
1437u) is amended by adding at the end the following:
``(p) Escrow Expansion Pilot Program.--
``(1) Definitions.--In this subsection:
``(A) Covered family.--The term `covered family'
means a family that receives assistance under section 8
or 9 of this Act and is enrolled in the Pilot Program.
``(B) Eligible entity.--The term `eligible entity'
means an entity described in subsection (c)(2).
``(C) Pilot program.--The term `Pilot Program'
means the Pilot Program established under paragraph
(2).
``(D) 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.
``(2) Establishment.--The Secretary may 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 5,000 covered families, in accordance with this
subsection.
``(3) Escrow accounts.--
``(A) In general.--An eligible entity selected to
participate in the Pilot Program--
``(i) 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
families during the participation of each
covered family in the Pilot Program; and
``(ii) notwithstanding any other provision
of law, may use funds it controls under section
8 or 9 for purposes of making the escrow
deposit for covered families assisted under, or
residing in units assisted under, section 8 or
9, respectively, provided such funds are offset
by the increase in the amount of rent paid by
the covered family.
``(B) Income limitation.--An eligible entity may
not escrow any amounts for any covered family whose
adjusted income exceeds 80 percent of the area median
income at the time of enrollment.
``(C) Withdrawals.--A covered family may withdraw
funds, including interest earned, from an escrow
account established by an eligible entity under the
Pilot Program--
``(i) after the covered family ceases to
receive welfare assistance; and
``(ii)(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;
``(V) for any reason listed under section
984.303(k) of title 24, Code of Federal
Regulations; or
``(VI) under other circumstances in which
the Secretary determines an exemption for good
cause is warranted.
``(D) Interim recertification.--For purposes of the
Pilot Program, a covered family may recertify the
income of the covered family multiple times per year at
the request of the participating family, as determined
by the Secretary, and not less frequently than once per
year, unless the eligible entity has established an
alternative rent structure with approval from the
Secretary.
``(E) Contract or plan.--A covered family is not
required to complete a standard contract of
participation or an individual training and services
plan in order to participate in the Pilot Program.
``(4) Effect of increases in family income.--Any increase
in the earned income of a covered family during the enrollment
of the family in the Pilot Program may not be considered as
income or a resource for purposes of eligibility of the family
for other benefits, or amount of benefits payable to the
family, under any program administered by the Secretary.
``(5) Application.--
``(A) In general.--An eligible entity seeking to
participate in the Pilot Program shall submit to the
Secretary an application--
``(i) at such time, in such manner, and
containing such information as the Secretary
may require by notice; and
``(ii) that includes the number of proposed
covered families to be served by the eligible
entity under this subsection.
``(B) Geographic and entity variety.--The Secretary
shall ensure that eligible entities selected to
participate in the Pilot Program--
``(i) are located across various States and
in both urban and rural areas; and
``(ii) vary by size and type, including
both public housing agencies and private owners
of projects receiving project-based rental
assistance under section 8.
``(6) Notification and opt-out.--An eligible entity
participating in the Pilot Program shall--
``(A) notify covered families of their enrollment
in the Pilot Program;
``(B) provide covered families with a detailed
description of the Pilot Program, including how the
Pilot Program will impact their rent and finances;
``(C) inform covered families that the families
cannot simultaneously participate in the Pilot Program
and the Family Self-Sufficiency program under this
section; and
``(D) provide covered families with the ability to
elect not to participate in the Pilot Program--
``(i) not less than 2 weeks before the date
on which the escrow account is established
under paragraph (3); and
``(ii) at any point during the duration of
the Pilot Program.
``(7) 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 rental
provisions of section 3 or 8(o), as applicable.
``(8) Pilot program timeline.--
``(A) Awards.--Not later than 1 year after
establishing the Pilot Program, the Secretary shall
select the eligible entities to participate in the
Pilot Program.
``(B) Establishment and term of accounts.--An
eligible entity selected to participate in the Pilot
Program shall--
``(i) not later than 6 months after
selection, establish escrow accounts under
paragraph (3) for covered families; and
``(ii) maintain those escrow accounts for
not less than 5 years, or until a determination
is made for termination with FSS escrow
disbursement under section 984.303(k) of title
24, Code of Federal Regulations, 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.
``(9) Nonparticipation and housing assistance.--
``(A) In general.--Assistance under section 8 or 9
for a family that elects not to participate in the
Pilot Program shall not be delayed or denied by reason
of such election.
``(B) No termination.--Housing assistance may not
be terminated as a consequence of participating, or not
participating, in the Pilot Program under this
subsection for any period.
``(10) Study.--Not later than 10 years after the date the
Secretary selects eligible entities to participate in the Pilot
Program under this subsection, the Secretary shall, if awards
were made, 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 under 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.
``(11) Waivers.--To allow selected eligible entities to
effectively administer the Pilot Program and make the required
escrow account deposits under this subsection, the Secretary
may waive requirements under this section.
``(12) Termination.--The Pilot Program under this
subsection shall terminate on the date that is 10 years after
the date of enactment of this subsection.
``(13) Eligible uses of appropriations.--Subject to the
appropriation of funds, the Secretary may use funds--
``(A) for technical assistance related to
implementation of the Pilot Program; and
``(B) to carry out an evaluation of the Pilot
Program under paragraph (10).''.
SEC. 405. CHOICE IN AFFORDABLE HOUSING ACT.
(a) 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 done by a building owner who
may be eligible for low-income housing
credits because the building had been
allocated a housing credit dollar
amount under section 42(h) of the
Internal Revenue Code of 1986 or is
described in section 42(h)(4) of such
Code (concerning buildings that meet a
criterion for a certain amount of tax-
exempt financing);
``(II) the dwelling unit, during
the preceding 12-month period, was
physically inspected and satisfied the
suitability-for-occupancy requirement
in section 42(i)(3)(B)(ii) of such
Code; and
``(III) the applicable public
housing agency performed the inspection
itself or 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 (42 U.S.C. 12721 et seq.);
``(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 section, the
Secretary may allow a grantee to conduct a
remote or video inspection of a unit if the
remote or video inspection--
``(I) is thorough;
``(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 relevant
standards.
``(v) Rule of construction.--Nothing in
clause (i), (ii), (iii), or (iv) shall be
construed to affect the operation of a housing
program described in, or authorized under a
provision of law described in, that clause.''.
(b) Pre-approval 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 tenant 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 this
subparagraph and subparagraph (C) if
the new landlord enters into a lease
agreement with a tenant 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).''.
TITLE V--PROGRAM REFORM
SEC. 501. HOME INVESTMENT PARTNERSHIPS REAUTHORIZATION AND REFORM ACT.
(a) Authorization.--Section 205 of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 12724) is amended to read as follows:
``SEC. 205. AUTHORIZATION OF PROGRAM.
``The HOME Investment Partnerships Program under subtitle A is
hereby authorized.''.
(b) Definition of Community Housing Development Organization.--
Section 104(6)(B) of the Cranston-Gonzalez National Affordable Housing
Act (42 U.S.C. 12704(6)(B)) is amended by striking ``significant''.
(c) 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) (42 U.S.C. 12742(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''; and
(2) in section 271(c) (42 U.S.C. 12821(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''.
(d) Choices Made by Participating Jurisdictions.--Section 212(a)(2)
of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C.
12742(a)(2)) is amended to read as follows:
``(2) Limitation.--The Secretary may not restrict the
choice by a participating jurisdiction of rehabilitation,
substantial rehabilitation, new construction, reconstruction,
acquisition, or other eligible housing uses authorized in
paragraph (1) unless the restriction is explicitly authorized
under section 223(2).''.
(e) 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
(42 U.S.C. 5310); 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
enactment of this Act, the Secretary of Housing and Urban
Development shall issue rules to carry out the amendment made
by paragraph (1).
(f) 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.
(g) 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 contribution of the tenant toward rent
does not exceed the amount permitted under the
assistance described in subparagraph (A); and
``(C) the total rent for the unit does not exceed
the amount approved by the public housing agency
administering the assistance described in subparagraph
(A).''.
(h) Affordable Home-ownership Housing Qualifications.--Section 215
of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C.
12745) is amended--
(1) in subsection (b)--
(A) in paragraph (2), by redesignating
subparagraphs (A), (B), and (C) as clauses (i), (ii),
and (iii), respectively, and adjusting the margins
accordingly;
(B) in paragraph (3)--
(i) in subparagraph (A), by redesignating
clauses (i) and (ii) as subclauses (I) and
(II), respectively, and adjusting the margins
accordingly; and
(ii) by redesignating subparagraphs (A) and
(B) as clauses (i) and (ii), respectively, and
adjusting the margins accordingly;
(C) by redesignating paragraphs (1) through (4) as
subparagraphs (A) through (D), respectively, and
adjusting the margins accordingly;
(D) by striking ``Housing that is for home-
ownership'' and inserting the following:
``(1) Qualification.--Housing that is for home-ownership'';
(E) in paragraph (1), as so designated--
(i) in subparagraph (A), as so
redesignated--
(I) by striking ``95 percent'' and
inserting ``110 percent''; and
(II) by inserting ``(defined as the
amount borrowed by the homebuyer to
purchase the home, or the estimated
value after rehabilitation, which may
be adjusted to account for the limits
on future value imposed by the resale
restriction)'' after ``purchase
price'';
(ii) in subparagraph (B), as so
redesignated, in the matter preceding clause
(i), 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'';
(iii) in subparagraph (C), as so
redesignated--
(I) in clause (i)(II)--
(aa) by striking ``low-
income home-buyers'' and
inserting ``home-buyers 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
(bb) by striking ``or'' at
the end;
(II) in clause (ii), by striking
``and'' at the end and inserting
``or''; and
(III) by adding at the end the
following:
``(iii) 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 home-buyers 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;'';
(iv) in subparagraph (D), as so
redesignated, by striking the period at the end
and inserting ``; and''; and
(v) by adding at the end the following:
``(E) is subject to restrictions that are
established by the participating jurisdiction and
determined by the Secretary to be appropriate,
including with respect to the useful life of the
property, to--
``(i) require that any subsequent purchase
of the property be--
``(I) only by a person who meets
the qualifications specified under
subparagraph (B); and
``(II) at a price that is
determined by a formula or method
established by the participating
jurisdiction that provides the owner
with a reasonable return on investment,
which may include a percentage of the
cost of any improvements; or
``(ii) recapture the investment provided
under this title in order to assist other
persons in accordance with the requirements of
this title, except where there are no net
proceeds or where the net proceeds are
insufficient to repay the full amount of the
assistance.''; and
(F) by adding at the end the following:
``(2) Purchase by community land trust or cooperative
housing corporation.--Notwithstanding subparagraph (C)(i) of
paragraph (1) and under terms determined by the Secretary, the
Secretary may permit a participating jurisdiction to allow a
community land trust, housing cooperative, or a community
development corporation that used assistance provided under
this subtitle for the development of housing that meets the
criteria under paragraph (1), to acquire the housing--
``(A) in accordance with the terms of the
preemptive purchase option, lease, covenant on the
land, or other similar legal instrument of the
community land trust or housing cooperative when the
terms and rights in the preemptive purchase option,
lease, covenant, or legal instrument are and remain
subject to the requirements of this title;
``(B) when the purchase is for--
``(i) the purpose of--
``(I) entering into the chain of
title;
``(II) enabling a purchase by a
person who meets the qualifications
specified under paragraph (1)(B) and is
on a waitlist maintained by the
community land trust or housing
cooperative, subject to enforcement by
the participating jurisdiction of all
applicable requirements of this title,
as determined by the Secretary;
``(III) performing necessary
rehabilitation and improvements; or
``(IV) adding a subsidy to preserve
affordability, which may be from
Federal or non-Federal sources; or
``(ii) another purpose determined
appropriate by the Secretary; and
``(C) if, within a reasonable period of time after
the applicable purpose under subparagraph (B) of this
paragraph is fulfilled, as determined by the Secretary,
the housing is then sold to a person who meets the
qualifications specified under paragraph (1)(B).''; and
(2) by adding at the end the following:
``(c) Qualification Exceptions for Home-ownership.--
``(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)(1)(B) with respect to housing that otherwise meets the
criteria described in subsection (b)(1) 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 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)(1)(C) 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.''.
(i) 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).
(j) 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 this title without regard to whether a
community housing development organization materially participates in
the use of such funds.''.
(k) 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''.
(l) 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 interagency 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.
(4) Definition.--Section 104 of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12704) is amended by
adding at end the following new paragraph:
``(27) 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.''.
(m) 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).
(n) 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:
``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 not more than 50.''.
(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)(1)(E) of the Cranston-Gonzalez National Affordable Housing Act
(42 U.S.C. 12745(a)) is amended 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''.
(q) Tenant and Participant Protections for 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) of subsection (d)
shall not apply to housing under this section that meets the following
criteria:
``(1) The housing is affordable housing with not more than
4 dwelling units, each of which is made available for rental.
``(2) Each dwelling unit in the housing bears rent in an
amount that complies with the requirements described in
paragraph (1)(A).
``(3) Each dwelling unit in the housing is accompanied by a
low-income family.
``(4) No dwelling in the 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 that voucher.
``(5) The housing complies with the requirement described
in paragraph (1)(E).
``(6) The participating jurisdiction in which the housing
is located monitors the compliance of the housing with the
requirements of this title in a manner consistent with the
purposes of section 226(b), as determined by the Secretary.''.
(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:
``(26) The term `community land trust' means a nonprofit
entity, a State, a unit of local government, or an
instrumentality of a State or unit of local government that--
``(A) is not managed by, or an affiliate of, a
forprofit 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
home-ownership; 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) Set-aside for Community Housing Development Organizations.--
Section 231(a) of the Cranston-Gonzalez National Affordable Housing Act
(42 U.S.C. 12771(a)) is amended, in the first sentence, by striking
``to be developed, sponsored, or owned by community housing development
organizations'' and inserting ``when a community housing development
organization materially participates in the ownership or development of
that housing, as determined by the Secretary''.
(t) Administrative Reforms.--
(1) Increase in program administration resources.--Section
220(b) of the Cranston-Gonzalez National Affordable Housing Act
(42 U.S.C. 12750(b)) is amended--
(A) by striking ``Recognition.--'' and all that
follows through ``A contribution'' and inserting
``Recognition.--A contribution'';
(B) by redesignating subparagraphs (A) and (B) as
paragraphs (1) and (2), respectively and
(C) by striking paragraph (2).
(2) Modification of jurisdictions eligible for
reallocations.--Section 217(d)(3) of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12747(d)(3)) is
amended--
(A) in the paragraph heading, by striking
``Limitation'' and inserting ``Limitations''; and
(B) by striking ``Unless otherwise specified'' and
inserting the following:
``(A) Removal of participating jurisdictions from
reallocation.--The Secretary may, upon a finding that
the participating jurisdiction has failed to meet or
comply with the requirements of this title, remove a
participating jurisdiction from participation in
reallocations of funds made available under this title.
``(B) Reallocation to same type of entity.--Unless
otherwise specified''.
(3) Home property inspections.--Section 226(b) of the
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C.
12756(b)) is amended--
(A) by striking ``Each participating jurisdiction''
and inserting the following:
``(1) In general.--Each participating jurisdiction''; and
(B) by striking ``Such review shall include'' and
all that follows and inserting the following:
``(2) Onsite inspections.--
``(A) Inspections by units of general local
government.--A review conducted under paragraph (1) by
a participating jurisdiction that is a unit of general
local government shall include an onsite inspection to
determine compliance with housing codes and other
applicable regulations.
``(B) Inspections by states.--A review conducted
under paragraph (1) by a participating jurisdiction
that is a State shall include an onsite inspection to
determine compliance with a national standard as
determined by the Secretary.
``(3) Inclusion in performance report and publication.--A
participating jurisdiction shall include in the performance
report of the participating jurisdiction submitted to the
Secretary under section 108(a), and make available to the
public, the results of each review conducted under paragraph
(1).''.
(4) Revisions to strengthen enforcement and penalties for
noncompliance.--Section 223 of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 12753) is amended--
(A) in the section heading, by striking ``penalties
for misuse of funds'' and inserting ``program
enforcement and penalties for noncompliance'';
(B) in the matter preceding paragraph (1), by
inserting after ``any provision of this subtitle'' the
following: ``, including any provision applicable
throughout the period required by section 215(a)(1)(E)
and applicable regulations,'';
(C) in paragraph (2), by striking ``or'' at the
end;
(D) in paragraph (3), by striking the period at the
end and inserting ``; or''; and
(E) by adding at the end the following:
``(4) reduce payments to the participating jurisdiction
under this subtitle by an amount equal to the amount of such
payments that were not expended by the participating
jurisdiction in accordance with this title.''.
(u) 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 $500,000 before the date of enactment
of the 21st Century ROAD to Housing Act or less than
$750,000 on or after the date of enactment of the 21st
Century ROAD to Housing Act''; and
(C) by striking ``, except as provided in paragraph
(4)''; and
(3) by striking paragraph (4).
(v) Technical and Conforming 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 that term appears and inserting ``McKinney-
Vento Homeless Assistance Act'';
(2) by striking ``Committee on Banking, Finance and Urban
Affairs'' each place that term appears and inserting
``Committee on Financial Services'';
(3) in the table of contents in section 1(b) (Public Law
101-625; 104 Stat. 4079)--
(A) by striking the item relating to section 205
and inserting the following:
``Sec. 205. Authorization of program.'';
(B) by striking the item relating to section 223
and inserting the following:
``Sec. 223. Program enforcement and penalties for noncompliance.''; and
(C) by inserting after the item relating to section
290 the following:
``Sec. 291. Nonapplicability of certain requirements for small
projects.'';
(4) in section 104 (42 U.S.C. 12704)--
(A) by redesignating paragraph (23) (relating to
the definition of the term ``to demonstrate to the
Secretary'') as paragraph (22); and
(B) by redesignating paragraph (24) (relating to
the definition of the term ``insular area'', as added
by section 2(2) of Public Law 102-230) as paragraph
(23);
(5) in section 105(b)(8) (42 U.S.C. 12705(b)(8)), by
striking ``subparagraphs'' and inserting ``paragraphs'';
(6) in section 108(a)(1) (42 U.S.C. 12708(a)(1)), by
striking ``section 105(b)(15)'' and inserting ``section
105(b)(18)'';
(7) in section 212 (42 U.S.C. 12742)--
(A) in subsection (a)(3)(A)(ii), by inserting
``United States'' before ``Housing Act'';
(B) in subsection (d)(5), by inserting ``United
States'' before ``Housing Act''; and
(C) in subsection (e)(1)--
(i) by striking ``section 221(d)(3)(ii)''
and inserting ``section 221(d)(4)''; and
(ii) by striking ``not to exceed 140
percent'' and inserting ``as determined by the
Secretary'';
(8) in section 215(a)(6)(B) (42 U.S.C. 12745(a)(6)(B)), by
striking ``grand children'' and inserting ``grandchildren'';
(9) in section 217 (42 U.S.C. 12747)--
(A) in subsection (a)--
(i) in paragraph (1), by striking ``(3)''
and inserting ``(2)'';
(ii) by striking paragraph (3), as added by
section 211(a)(2)(D) of the Housing and
Community Development Act of 1992 (Public Law
102-550; 106 Stat. 3756); and
(iii) by redesignating the remaining
paragraph (3), as added by the matter under the
heading ``home investment partnerships
program'' under the heading ``Housing
Programs'' in title II of the Departments of
Veterans Affairs and Housing and Urban
Development, and Independent Agencies
Appropriations Act, 1993 (Public Law 102-389;
106 Stat. 1581), as paragraph (2); and
(B) in subsection (b)(1)--
(i) in subparagraph (A), in the first
sentence--
(I) by striking ``in regulation''
and inserting ``, by regulation,''; and
(II) by striking ``eligible
jurisdiction'' and inserting ``eligible
jurisdictions''; and
(ii) in subparagraph (F), in the first
sentence--
(I) in clause (i), by striking
``Subcommittee on Housing and Urban
Affairs'' and inserting ``Subcommittee
on Housing, Transportation, and
Community Development''; and
(II) in clause (ii), by striking
``Subcommittee on Housing and Community
Development'' and inserting
``Subcommittee on Housing and
Insurance'';
(10) in section 220(c) (42 U.S.C. 12750(c))--
(A) in paragraph (3), by striking ``Secretary'' and
all that follows and inserting ``Secretary;'';
(B) in paragraph (4), by striking ``under this
title'' and all that follows and inserting ``under this
title;''; and
(C) by redesignating paragraphs (6), (7), and (8)
as paragraphs (5), (6), and (7), respectively;
(11) in section 225(d)(4)(B) (42 U.S.C. 12755(d)(4)(B)), by
striking ``for'' the first place that term appears; and
(12) in section 233 (42 U.S.C. 12773)--
(A) in subsection (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)''; and
(B) by striking subsection (f).
SEC. 502. RURAL HOUSING SERVICE REFORM ACT.
(a) Application of Multifamily Mortgage Foreclosure Procedures to
Multifamily Mortgages Held by the Secretary of Agriculture and
Preservation of the Rental Assistance Contract Upon Foreclosure.--
(1) Multifamily mortgage procedures.--Section 363(2) of the
Multifamily Mortgage Foreclosure Act of 1981 (12 U.S.C.
3702(2)) is amended--
(A) in subparagraph (E), by striking ``and'' at the
end;
(B) in subparagraph (F), by striking the period at
the end and inserting ``; or''; and
(C) by adding at the end the following:
``(F) section 514, 515, or 538 of the Housing Act
of 1949 (42 U.S.C. 1484, 1485, 1490p-2).''.
(2) Preservation of contract.--Section 521(d) of the
Housing Act of 1949 (42 U.S.C. 1490a(d)) is amended by adding
at the end the following:
``(3) Notwithstanding any other provision of law, in managing and
disposing of any multifamily property that is owned or has a mortgage
held by the Secretary, and during the process of foreclosure on any
property with a contract for rental assistance under this section--
``(A) the Secretary shall maintain any rental assistance
payments that are attached to any dwelling units in the
property; and
``(B) the rental assistance contract may be used to provide
further assistance to existing projects under 514, 515, or
516.''.
(b) Study on Rural Housing Loans for Housing for Low- and Moderate-
income Families.--Not later than 6 months after the date of enactment
of this Act, the Secretary of Agriculture shall conduct a study and
submit to Congress a publicly available report on the loan program
under section 521 of the Housing Act of 1949 (42 U.S.C. 1490a),
including--
(1) the total amount provided by the Secretary in subsidies
under such section 521 to borrowers with loans made pursuant to
section 502 of such Act (42 U.S.C. 1472);
(2) how much of the subsidies described in paragraph (1)
are being recaptured; and
(3) the amount of time and costs associated with
recapturing those subsidies.
(c) Staffing and Information Technology Upgrades.--Utilizing funds
appropriated for such purposes, the Secretary of Agriculture may
increase staffing capacity and upgrade information technology to
support all Rural Housing Service programs.
(d) Technical Improvements.--
(1) Authorization of appropriations.--Utilizing funds
appropriated for such purposes, the Secretary of Agriculture
may make improvements to the technology of the Rural Housing
Service of the Department of Agriculture used to process and
manage housing loans.
(2) Availability.--Amounts appropriated pursuant to
paragraph (1) shall remain available until the date that is 5
years after the date of the appropriation.
(3) Timeline.--The Secretary of Agriculture shall make the
improvements described in paragraph (1) during the 5-year
period beginning on the date on which amounts are appropriated
under paragraph (1).
(e) Permanent Establishment of Housing Preservation and
Revitalization Program.--Title V of the Housing Act of 1949 (42 U.S.C.
1471 et seq.) is amended by adding at the end the following:
``SEC. 545. HOUSING PRESERVATION AND REVITALIZATION PROGRAM.
``(a) Establishment.--The Secretary shall carry out a program under
this section for the preservation and revitalization of multifamily
rental housing projects financed under section 514, 515, or 516.
``(b) Notice of Maturing Loans.--
``(1) To owners.--On an annual basis, the Secretary shall
provide written notice to each owner of a property financed
under section 514, 515, or 516 that will mature within the 4-
year period beginning upon the provision of the notice, setting
forth the options and financial incentives that are available
to facilitate the extension of the loan term or the option to
decouple a rental assistance contract pursuant to subsection
(f).
``(2) To tenants.--
``(A) In general.--On an annual basis, for each
property financed under section 514, 515, or 516, not
later than the date that is 2 years before the date
that the loan will mature, the Secretary shall provide
written notice to each household residing in the
property that informs them of--
``(i) the date of the loan maturity;
``(ii) the possible actions that may happen
with respect to the property upon that
maturity; and
``(iii) how to protect their right to
reside in federally assisted housing, or how to
secure housing voucher, after that maturity.
``(B) Language.--Notice under this paragraph shall
be provided in plain English and shall be translated to
other languages in the case of any property located in
an area in which a significant number of residents
speak such other languages.
``(c) Loan Restructuring.--Under the program under this section, in
any circumstance in which the Secretary proposes a restructuring to an
owner or an owner proposes a restructuring to the Secretary, the
Secretary may restructure such existing housing loans, as the Secretary
considers appropriate, for the purpose of ensuring that those projects
have sufficient resources to preserve the projects to provide safe and
affordable housing for low-income residents and farm laborers, by--
``(1) reducing or eliminating interest;
``(2) deferring loan payments;
``(3) subordinating, reducing, or reamortizing loan debt;
``(4) providing other financial assistance, including
advances, payments, and incentives (including the ability of
owners to obtain reasonable returns on investment) required by
the Secretary; and
``(5) permanently removing a portion of the housing units
from income restrictions when sustained vacancies have
occurred.
``(d) Renewal of Rental Assistance.--
``(1) In general.--When the Secretary proposes to
restructure a loan or agrees to the proposal of an owner to
restructure a loan pursuant to subsection (c), the Secretary
shall offer to renew the rental assistance contract under
section 521(a)(2) for a term that is the shorter of 20 years
and the term of the restructured loan, subject to annual
appropriations, provided that the owner agrees to bring the
property up to such standards that will ensure maintenance of
the property as decent, safe, and sanitary housing for the full
term of the rental assistance contract.
``(2) Additional rental assistance.--With respect to a
project described in paragraph (1), if rental assistance is not
available for all households in the project for which the loan
is being restructured pursuant to subsection (c), the Secretary
may extend such additional rental assistance to unassisted
households at that project as is necessary to make the project
safe and affordable to low-income households.
``(e) Restrictive Use Agreements.--
``(1) Requirement.--As part of the preservation and
revitalization agreement for a project, the Secretary shall
obtain a restrictive use agreement that is recorded and
obligates the owner to operate the project in accordance with
this title.
``(2) Term.--
``(A) No extension of rental assistance contract.--
Except when the Secretary enters into a 20-year
extension of the rental assistance contract for a
project, the term of the restrictive use agreement for
the project shall be consistent with the term of the
restructured loan for the project.
``(B) Extension of rental assistance contract.--If
the Secretary enters into a 20-year extension of the
rental assistance contract for a project, the term of
the restrictive use agreement for the project shall be
for the longer of--
``(i) 20 years; or
``(ii) the remaining term of the loan for
that project.
``(C) Termination.--The Secretary may terminate the
20-year restrictive use agreement for a project before
the end of the term of the agreement if the 20-year
rental assistance contract for the project with the
owner is terminated at any time for reasons outside the
control of the owner.
``(f) Decoupling of Rental Assistance.--
``(1) Renewal of rental assistance contract.--If the
Secretary determines that a loan maturing during the 4-year
period beginning upon the provision of the notice required
under subsection (b)(1) for a project cannot reasonably be
restructured in accordance with subsection (c) because it is
not financially feasible or the owner does not agree with the
proposed restructuring, and the project was operating with
rental assistance under section 521 and the recipient is a
borrower under section 514 or 515, the Secretary may renew the
rental assistance contract, notwithstanding any requirement
under section 521 that the recipient be a current borrower
under section 514 or 515, for a term of 20 years, subject to
annual appropriations.
``(2) Additional rental assistance.--With respect to a
project described in paragraph (1), if rental assistance is not
available for all households in the project for which the loan
is being restructured pursuant to subsection (c), the Secretary
may extend such additional rental assistance to unassisted
households at that project as is necessary to make the project
safe and affordable to low-income households.
``(3) Rents.--
``(A) In general.--Any agreement to extend the term
of the rental assistance contract under section 521 for
a project shall obligate the owner to continue to
maintain the project as decent, safe, and sanitary
housing and to operate the development as affordable
housing in a manner that meets the goals of this title.
``(B) Rent amounts.--Subject to subparagraph (C),
in setting rents, the Secretary--
``(i) shall determine the maximum initial
rent based on current fair market rents
established under section 8 of the United
States Housing Act of 1937 (42 U.S.C. 1437f);
and
``(ii) may annually adjust the rent
determined under clause (i) by the operating
cost adjustment factor as provided under
section 524 of the Multifamily Assisted Housing
Reform and Affordability Act of 1997 (42 U.S.C.
1437f note).
``(C) Higher rent.--
``(i) In general.--Subparagraph (B) shall
not apply if the Secretary determines that the
budget-based needs of a project require a
higher rent than the rent described in
subparagraph (B).
``(ii) Rent.--If the Secretary makes a
positive determination under clause (i), the
Secretary may approve a budget-based rent level
for the project.
``(4) Conditions for approval.--Before the approval of a
rental assistance contract authorized under this section, the
Secretary shall require, through an annual notice in the
Federal Register, the owner to submit to the Secretary a plan
that identifies financing sources and a timetable for
renovations and improvements determined to be necessary by the
Secretary to maintain and preserve the project.
``(g) Multifamily Housing Transfer Technical Assistance.--Under the
program under this section, the Secretary may provide grants to
qualified nonprofit organizations, housing cooperative corporations,
and public housing agencies to provide technical assistance, including
financial and legal services, to borrowers under loans under this title
for multifamily housing to facilitate the acquisition or preservation
of such multifamily housing properties in areas where the Secretary
determines there is a risk of loss of affordable housing.
``(h) Administrative Expenses.--Of any amounts made available for
the program under this section for any fiscal year, the Secretary may
use not more than $1,000,000 for administrative expenses for carrying
out such program.
``(i) Rulemaking.--
``(1) In general.--Not later than 180 days after the date
of enactment of the 21st Century ROAD to Housing Act, the
Secretary shall--
``(A) publish an advance notice of proposed
rulemaking; and
``(B) consult with appropriate stakeholders.
``(2) Interim final rule.--Not later than 1 year after the
date of enactment of the 21st Century ROAD to Housing Act, the
Secretary shall publish an interim final rule to carry out this
section.''.
(f) Rental Assistance Contract Authority.--Section 521(d) of the
Housing Act of 1949 (42 U.S.C. 1490a(d)), as amended by this section,
is amended--
(1) in paragraph (1)--
(A) by redesignating subparagraphs (B) and (C) as
subparagraphs (C) and (D), respectively;
(B) by inserting after subparagraph (A) the
following:
``(B) upon request of an owner of a project financed under
section 514 or 515, the Secretary is authorized to enter into
renewal of such agreements for a period of 20 years or the term
of the loan, whichever is shorter, subject to amounts made
available in appropriations Acts;'';
(C) in subparagraph (C), as so redesignated, by
striking ``subparagraph (A)'' and inserting
``subparagraphs (A) and (B)''; and
(D) in subparagraph (D), as so redesignated, by
striking ``subparagraphs (A) and (B)'' and inserting
``subparagraphs (A), (B), and (C)'';
(2) in paragraph (2), by striking ``shall'' and inserting
``may''; and
(3) by adding at the end the following:
``(4) In the case of any rental assistance contract authority that
becomes available because of the termination of assistance on behalf of
an assisted family--
``(A) at the option of the owner of the rental project, the
Secretary shall provide the owner a period of not more than 6
months before unused assistance is made available pursuant to
subparagraph (B) during which the owner may use such authority
to provide assistance on behalf of an eligible unassisted
family that--
``(i) is residing in the same rental project in
which the assisted family resided before the
termination; or
``(ii) newly occupies a dwelling unit in the rental
project during that 6-month period; and
``(B) except for assistance used as provided in
subparagraph (A), the Secretary shall use such remaining
authority to provide assistance on behalf of eligible families
residing in other rental projects originally financed under
section 514, 515, or 516.''.
(g) Modifications to Loans and Grants for Minor Improvements to
Farm Housing and Buildings; Income Eligibility.--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''.
(h) Rural Community Development Initiative.--Subtitle E of the
Consolidated Farm and Rural Development Act (7 U.S.C. 2009 et seq.) is
amended by adding at the end the following:
``SEC. 381O. RURAL COMMUNITY DEVELOPMENT INITIATIVE.
``(a) Definitions.--In this section:
``(1) Eligible entity.--The term `eligible entity' means--
``(A) a private, nonprofit community-based housing
or community development organization;
``(B) a rural community; or
``(C) a federally recognized Indian Tribe.
``(2) Eligible intermediary.--The term `eligible
intermediary' means a qualified--
``(A) private, nonprofit organization; or
``(B) public organization.
``(b) Establishment.--The Secretary shall establish a Rural
Community Development Initiative, under which the Secretary shall
provide grants, subject to the availability of appropriations, to
eligible intermediaries to carry out programs to provide financial and
technical assistance to eligible entities to develop the capacity and
ability of eligible entities to carry out projects to improve housing,
community facilities, and community and economic development projects
in rural areas.
``(c) Amount of Grants.--The amount of a grant provided to an
eligible intermediary under this section shall be not more than
$500,000.
``(d) Matching Funds.--
``(1) In general.--An eligible intermediary receiving a
grant under this section shall provide matching funds from
other sources, including Federal funds for related activities,
in an amount not less than the amount of the grant.
``(2) Waiver.--The Secretary may waive paragraph (1) with
respect to a project that would be carried out in a
persistently poor rural region, as determined by the
Secretary.''.
(i) 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. 546. ANNUAL REPORT.
``(a) In General.--The Secretary shall submit to the appropriate
committees of Congress and publish on the website of the Department of
Agriculture an annual report on rural housing programs carried out
under this title, which shall include significant details on the health
of Rural Housing Service programs, including--
``(1) raw data sortable by programs and by region regarding
loan performance;
``(2) the housing stock of those programs, including
information on why properties end participation in those
programs, such as for maturation, prepayment, foreclosure, or
other servicing issues; and
``(3) risk ratings for properties assisted under those
programs.
``(b) Protection of Information.--The data included in each report
required under subsection (a) may be aggregated or anonymized to
protect participant financial or personal information.''.
(j) 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 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.
(k) Adjustment to Rural Development Voucher Amount.--
(1) In general.--Not later than 2 years after the date of
enactment of this Act, the Secretary of Agriculture shall issue
regulations to establish a process for adjusting the voucher
amount provided under section 542 of the Housing Act of 1949
(42 U.S.C. 1490r) after the issuance of the voucher following
an interim or annual review of the amount of the voucher.
(2) Interim review.--The interim review described in
paragraph (1) shall, at the request of a tenant, allow for a
recalculation of the voucher amount when the tenant experiences
a reduction in income, change in family composition, or change
in rental rate.
(3) Annual review.--
(A) In general.--The annual review described in
paragraph (1) shall require tenants to annually
recertify the family composition of the household and
that the family income of the household does not exceed
80 percent of the area median income at a time
determined by the Secretary of Agriculture.
(B) Considerations.--If a tenant does not recertify
the family composition and family income of the
household within the time frame required under
subparagraph (A), the Secretary of Agriculture--
(i) shall consider whether extenuating
circumstances caused the delay in
recertification; and
(ii) may alter associated consequences for
the failure to recertify based on those
circumstances.
(C) Effective date.--Following the annual review of
a voucher under paragraph (1), the updated voucher
amount shall be effective on the 1st day of the month
following the expiration of the voucher.
(4) Deadline.--The process established under paragraph (1)
shall require the Secretary of Agriculture to review and update
the voucher amount described in paragraph (1) for a tenant not
later than 60 days before the end of the voucher term.
(l) Eligibility for Rural Housing Vouchers.--Section 542 of the
Housing Act of 1949 (42 U.S.C. 1490r) is amended by adding at the end
the following:
``(c) Eligibility of Households in Sections 514, 515, and 516
Projects.--The Secretary may provide rural housing vouchers under this
section for any low-income household (including those not receiving
rental assistance) residing for a term longer than the remaining term
of their lease that is in effect on the date of prepayment,
foreclosure, or mortgage maturity, in a property financed with a loan
under section 514 or 515 or a grant under section 516 that has--
``(1) been prepaid with or without restrictions imposed by
the Secretary pursuant to section 502(c)(5)(G)(ii)(I);
``(2) been foreclosed; or
``(3) matured after September 30, 2005.''.
(m) Amount of Voucher Assistance.--Notwithstanding any other
provision of law, in the case of any rural housing voucher provided
pursuant to section 542 of the Housing Act of 1949 (42 U.S.C. 1490r),
the amount of the monthly assistance payment for the household on whose
behalf the assistance is provided shall be determined as provided in
subsection (a) of such section 542, including providing for interim and
annual review of the voucher amount in the event of a change in
household composition or income or rental rate.
(n) Transfer of Multifamily Rural Housing Projects.--Section 515 of
the Housing Act of 1949 (42 U.S.C. 1485) is amended--
(1) in subsection (h), by adding at the end the following:
``(3) Transfer to nonprofit organizations.--A nonprofit or
public body purchaser, including a limited partnership with a
general partner with the principal purpose of providing
affordable housing, may purchase a property for which a loan is
made or insured under this section that has received a market
value appraisal, without addressing rehabilitation needs at the
time of purchase, if the purchaser--
``(A) makes a commitment to address rehabilitation
needs during ownership and long-term use restrictions
on the property; and
``(B) at the time of purchase, accepts long-term
use restrictions on the property.''; and
(2) in subsection (w)(1), in the first sentence in the
matter preceding subparagraph (A), by striking ``9 percent''
and inserting ``25 percent''.
(o) Extension of Loan Term.--
(1) In general.--Section 502(a)(2) of the Housing Act of
1949 (42 U.S.C. 1472(a)(2)) is amended--
(A) by inserting ``(A)'' before ``The Secretary'';
(B) in subparagraph (A), as so designated, by
striking ``paragraph'' and inserting ``subparagraph'';
and
(C) by adding at the end the following:
``(B) The Secretary may refinance or modify the period of
any loan, including any refinanced loan, made under this
section in accordance with terms and conditions as the
Secretary shall prescribe, but in no event shall the total term
of the loan from the date of the refinance or modification
exceed 40 years.''.
(2) Application.--The amendment made under paragraph (1)
shall apply with respect to loans made under section 502 of the
Housing Act of 1949 (42 U.S.C. 1472) before, on, or after the
date of enactment of this Act.
(p) Release of Liability for Section 502 Guaranteed Borrower Upon
Assumption of Original Loan by New Borrower.--Section 502(h) of the
Housing Act of 1949 (42 U.S.C. 1472(h)) is amended--
(1) by striking paragraph (10) and inserting the following:
``(10) Transfer and assumption.--Upon the transfer of
property for which a guaranteed loan under this subsection was
made, and the assumption of the guaranteed loan by an approved
eligible borrower, the original borrower of a guaranteed loan
under this subsection shall be relieved of liability with
respect to the loan.'';
(2) by redesignating paragraph (16) as paragraph (17); and
(3) by inserting after paragraph (15) the following:
``(16) Fee.--
``(A) In general.--The mortgagee may charge an
assuming borrower a reasonable and customary processing
fee for an assumption request made under this
subsection.
``(B) Maximum fee.--The Secretary shall set a
maximum allowable fee described in subparagraph (A),
which may be indexed for inflation.''.
(q) Department of Agriculture Loan Restrictions.--
(1) Definitions.--In this subsection, the terms ``State''
and ``tribal organization'' have the meanings given those terms
in section 658P of the Child Care and Development Block Grant
Act of 1990 (42 U.S.C. 9858n).
(2) Revision.--The Secretary of Agriculture shall revise
section 3555.102(c) of title 7, Code of Federal Regulations, to
exclude from the restriction under that section--
(A) a home-based business that is a licensed,
registered, or regulated child care provider under
State law or by a tribal organization; and
(B) an applicant that has applied to become a
licensed, registered, or regulated child care provider
under State law or by a tribal organization.
(r) Loan Guarantees.--Section 502(h)(4) of the Housing Act of 1949
(42 U.S.C. 1472(h)(4)) is amended--
(1) by redesignating subparagraphs (A), (B), and (C) as
clauses (i), (ii), and (iii), respectively, and adjusting the
margins accordingly;
(2) by striking ``Loans may be guaranteed'' and inserting
the following:
``(A) Definition.--In this paragraph, the term
`accessory dwelling unit' means a single, habitable
living unit--
``(i) with means of separate ingress and
egress;
``(ii) that is usually subordinate in size;
``(iii) that can be added to, created
within, or detached from a primary 1-unit,
single-family dwelling; and
``(iv) in combination with a primary 1-
unit, single-family dwelling, constitutes a
single interest in real estate.
``(B) Single-family requirement.--Loans may be
guaranteed''; and
(3) by adding at the end the following:
``(C) Rule of construction.--Nothing in this
paragraph shall be construed to prohibit the leasing of
an accessory dwelling unit or the use of rental income
derived from such a lease to qualify for a loan
guaranteed under this subsection--
``(i) after the date of enactment of the
21st Century ROAD to Housing Act; and
``(ii) if the property that is the subject
of the loan was constructed before the date of
enactment of the 21st Century ROAD to Housing
Act.''.
(s) Application Review.--
(1) Sense of congress.--It is the sense of 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--
(i) detailing the timeliness of eligibility
determinations and final determinations with
respect to applications under sections 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) that includes recommendations to
shorten the timeline for notifications of
eligibility determinations described in clause
(i) to not more than 90 days.
(B) Date described.--The date described in this
subparagraph 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.
SEC. 503. INCENTIVIZING LOCAL SOLUTIONS TO HOMELESSNESS.
Section 414 of the McKinney-Vento Homeless Assistance Act (42
U.S.C. 11373) is amended by adding at the end the following:
``(f) Funding Cap Waiver Authority.--
``(1) In general.--Notwithstanding any other provision of
law or regulation, a recipient may request a waiver to the
expenditure limit established pursuant to section 415(b) for
amounts provided for each of fiscal years 2027 through 2030.
``(2) Waiver request.--
``(A) In general.--A recipient seeking a waiver
described in paragraph (1) shall submit to the
Secretary a waiver request that includes not more than
the following:
``(i) A demonstration of local needs and
circumstances that necessitate a waiver.
``(ii) A detailed plan for how the
recipient intends to use funds.
``(iii) A justification for how the
proposed use of funds supports the most recent
Consolidated Plan submitted by the recipient.
``(iv) Any public input solicited under
subparagraph (B)(ii).
``(B) Notification.--Each recipient shall--
``(i) notify all subrecipients and local
Continuums of Care that serve the recipient's
geographic area of the availability of waivers
under this subsection; and
``(ii) prior to the submission of a waiver
request under subparagraph (A), solicit public
input regarding the potential need for and
proposed uses of such waiver.
``(C) Approval; publication.--The Secretary shall--
``(i) make all waiver requests submitted
under subparagraph (A) publicly available on
the website of the Department of Housing and
Urban Development;
``(ii) not later than 60 days after the
date on which the Secretary receives a waiver
request under subparagraph (A), approve or deny
the request; and
``(iii) deny any waiver request submitted
under subparagraph (A) by a recipient that
relocates or threaten to relocate individuals
or their property without providing emergency
shelter, rapid rehousing, transitional housing,
permanent supportive housing, or other
permanent housing options.
``(3) Revocation.--
``(A) In general.--A waiver approved under this
subsection shall remain in effect for the duration of
the period of performance of fiscal year 2027 through
2030 grants, unless the recipient notifies the
Secretary in writing that the recipient wishes to
revoke the waiver.
``(B) Notification.--If a recipient intends to
revoke a waiver under subparagraph (A), the recipient
shall--
``(i) solicit input from subrecipients
regarding the revocation before submitting the
revocation; and
``(ii) provide subrecipients with a summary
of the input and the justification for the
revocation in its submittal prior to notifying
the Secretary in writing.
``(C) Publication.--The Secretary shall publish any
revocation of a waiver under subparagraph (A) and the
justification of the recipient for the waiver on the
website of the Department of Housing and Urban
Development.''.
TITLE VI--VETERANS AND HOUSING
SEC. 601. 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. 602. HOUSING UNHOUSED DISABLED VETERANS ACT.
(a) Exclusion of Certain Disability Benefits.--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) for the purpose of determining
income eligibility 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 shall not apply to
the income in the definition of adjusted
income;
``(v) for the purpose of determining income
eligibility 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, but such amounts shall not be excluded
from income when determining adjusted
income;''.
(b) Treatment of Certain Disability Benefits.--
(1) In general.--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, 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.
(2) Definitions.--In this subsection:
(A) Secretary.--The term ``Secretary'' means the
Secretary of Housing and Urban Development.
(B) Department property.--The term ``Department
property'' has the meaning given the term in section
901 of title 38, United States Code.
TITLE VII--OVERSIGHT AND ACCOUNTABILITY
SEC. 701. REQUIRING ANNUAL TESTIMONY AND OVERSIGHT FROM HOUSING
REGULATORS.
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:
``(u) Annual Testimony.--The Secretary shall appear before the
Committee on Banking, Housing, and Urban Affairs of the Senate and the
Committee on Financial Services of the House of Representatives 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. 702. FHA REPORTING REQUIREMENTS ON SAFETY AND SOUNDNESS.
Section 202(a) of the National Housing Act (12 U.S.C. 1708(a)) is
amended by adding at the end the following:
``(8) Other required reporting.--The Secretary shall--
``(A) submit to Congress monthly reports on the
capital ratio required under section 205(f)(2); and
``(B) notify Congress as soon as practicable after
the Fund falls below the capital ratio required under
section 205(f)(2).''.
SEC. 703. UNITED STATES INTERAGENCY COUNCIL ON HOMELESSNESS OVERSIGHT.
Section 203(a) of the McKinney-Vento Homeless Assistance Act (42
U.S.C. 11313(a)) is amended--
(1) in paragraph (1)--
(A) by striking ``Homeless Emergency Assistance and
Rapid Transition to Housing Act of 2009'' and inserting
``21st Century ROAD to Housing Act''; and
(B) by striking ``update such plan annually'' and
inserting ``submit to the President and Congress a
report every year thereafter that includes--
``(A) the status of completion of the plan; and
``(B) any modifications that were made to the plan
and the reasons for those modifications;'';
(2) by redesignating paragraphs (10) through (13) as
paragraphs (11) through (14), respectively;
(3) by redesignating the second paragraph (9) (relating to
collecting and disseminating information) as paragraph (10);
(4) in paragraph (13), as so redesignated, by striking
``and'' at the end;
(5) in paragraph (14), as so redesignated, by striking the
period at the end and inserting ``; and''; and
(6) by adding at the end the following:
``(15) testify annually before Congress, if requested.''.
SEC. 704. APPRAISAL MODERNIZATION ACT.
(a) Reconsideration of Value.--
(1) Federally backed mortgage loan defined.--In this
subsection, the term ``federally backed mortgage loan'' has the
meaning given the term in section 4022 of the CARES Act (15
U.S.C. 9056).
(2) Requirement.--The Secretary of Agriculture, the
Secretary of Veterans Affairs, the Commissioner of the Federal
Housing Administration, and the Director of the Federal Housing
Finance Agency shall each implement and maintain requirements
that creditors of a federally backed mortgage loan have a
review and resolution procedure for a consumer-initiated
reconsideration of value or subsequent appraisal in connection
with a consumer credit transaction secured by a consumer's
principal dwelling.
(b) Public Appraisal Database.--
(1) Covered agencies defined.--In this subsection, the term
``covered agencies'' means--
(A) the Federal Housing Finance Agency, on behalf
of the Federal National Mortgage Association and the
Federal Home Loan Mortgage Corporation;
(B) the Department of Housing and Urban
Development, including the Federal Housing
Administration;
(C) the Department of Agriculture; and
(D) the Department of Veterans Affairs.
(2) Feasibility report.--No later than 240 days after the
date of enactment of this Act, the Comptroller General of the
United States shall submit to Congress a public report
assessing the feasibility of creating a publicly available
appraisal database that consists of a searchable and
downloadable appraisal-level public use file that consolidates
appraisal data held or aggregated by covered agencies,
including--
(A) the costs and benefits associated with
establishing and maintaining the public database;
(B) the benefits and risks associated with the
Federal Housing Finance Agency or the Bureau of
Consumer Financial Protection being responsible for the
public database and whether there is another Federal
agency best suited for implementing and administering
such database;
(C) any safety and soundness, antitrust, or
consumer privacy-related risks associated with making
certain appraisal data factors publicly available,
including whether--
(i) there are any existing legal
requirements, including under the Home Mortgage
Disclosure Act of 1975 (12 U.S.C. 2801 et seq.)
and section 552 of title 5, United States Code
(commonly known as the ``Freedom of Information
Act''), or additional actions Federal agencies
could take to mitigate such risks, such as
modifying or aggregating data or eliminating
personally identifiable information; and
(ii) there are any data factors that, if
made public, may violate conduct, ethics, or
other professional standards as they relate to
appraisals and appraisal or valuation
professionals;
(D) the feasibility of consolidating or matching
appraisal data held by covered agencies with
corresponding data that are required and made public
under the Home Mortgage Disclosure Act of 1975 (12
U.S.C. 2801 et seq.);
(E) whether the publication of any appraisal data
factors may pose unfair business advantages within the
valuation industry;
(F) the feasibility of including all valuation data
held by covered agencies, including data produced by
automated valuation models;
(G) the feasibility and benefits of making the full
appraisal dataset, including any modified fields,
available to--
(i) Federal agencies, including for
purposes related to enforcement and supervision
responsibilities;
(ii) relevant State licensing, supervision,
and enforcement agencies and State attorneys
general;
(iii) approved researchers, including
academics and nonprofit organizations that, in
connection with their mission, work to ensure
the fairness and consistency of home
valuations, including appraisals; and
(iv) any other entities identified by the
Comptroller General as having a compelling use
for disaggregated data;
(H) what appraisal data are already available in
the public domain; and
(I) the feasibility of incorporating legacy data
held by covered agencies during the period beginning on
January 1, 2017, and ending on the date of enactment of
this Act, and whether there are specific data points
not easily consolidated or matched, as described in
subparagraph (D), with more recent data.
(3) Purpose.--The database described in paragraph (2) shall
be used to provide the public, the Federal Government, and
State governments with residential real estate appraisal data
to help determine whether financial institutions, appraisal
management companies, appraisers, valuation technologies, such
as automated valuation models, and other valuation
professionals are effectively serving the entire housing
market.
(4) Consultation.--As part of the information used in the
report required under paragraph (2), the Comptroller General of
the United States shall conduct interviews with--
(A) relevant Federal agencies;
(B) relevant State licensing, supervision, and
enforcement agencies and State attorneys general;
(C) appraisers and other home valuation industry
professionals;
(D) mortgage lending institutions;
(E) fair housing and fair lending experts; and
(F) any other relevant stakeholders as determined
by the Comptroller General.
(5) Hearing.--Upon the completion of the report under
paragraph (2), the Committee on Banking, Housing, and Urban
Affairs of the Senate and the Committee on Financial Services
of the House of Representatives shall each hold a hearing on
the findings of the report and the feasibility of establishing
a public appraisal-level appraisal database.
TITLE VIII--ACCOUNTABILITY, COORDINATION, STUDIES, AND REPORTING
SEC. 801. HUD-USDA-VA INTERAGENCY COORDINATION ACT.
(a) Memorandum of Understanding.--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 facilitate evidence-based
policymaking.
(b) Interagency Report.--
(1) Report.--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 jointly submit to the Committee on
Banking, Housing, and Urban Affairs of the Senate and the
Committee on Financial Services of the House of Representatives
a report containing--
(A) a description of opportunities for increased
collaboration between the Secretary of Housing and
Urban Development, the Secretary of Agriculture, and
the Secretary of Veterans Affairs to reduce
inefficiencies in housing programs;
(B) a list of Federal laws (including regulations)
that adversely affect the availability and
affordability of new construction of assisted housing
and single-family and multifamily residential housing
subject to mortgages insured under title II of the
National Housing Act (12 U.S.C. 1707 et seq.), insured,
guaranteed, or made by the Secretary of Agriculture
under title V of the Housing Act of 1949 (42 U.S.C.
1471 et seq.), or insured, guaranteed, or made by the
Secretary of Veterans Affairs under chapter 37 of title
38, United States Code; and
(C) recommendations for Congress regarding the
Federal laws (including regulations) described in
subparagraph (B).
(2) Publication.--The report required under paragraph (1)
shall, prior to submission under this subsection, be published
in the Federal Register and open for comment for a period of 30
days.
SEC. 802. STREAMLINING RURAL HOUSING ACT.
(a) 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--
(1) evaluate categorical exclusions under the environmental
review process for housing projects funded by amounts from the
Department of Housing and Urban Development and the Department
of Agriculture;
(2) develop a process to designate a lead agency and
streamline adoption of environmental impact statements and
environmental assessments approved by the other Department to
construct housing projects funded by both agencies;
(3) maintain compliance with environmental regulations
under part 58 of title 24, Code of Federal Regulations, as in
effect on January 1, 2025, except as required to amend, add, or
remove categorical exclusions identified under section 58.35 of
title 24, Code of Federal Regulations, through standard
rulemaking procedures; and
(4) evaluate the feasibility of a joint physical inspection
process for housing projects funded by amounts from the
Department of Housing and Urban Development and the Department
of Agriculture.
(b) 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--
(1) to improve the efficiency and effectiveness of housing
projects funded by amounts from the Department of Housing and
Urban Development and the Department of Agriculture; and
(2) that do not materially, with respect to residents of
housing projects described in paragraph (1)--
(A) reduce the safety of those residents;
(B) shift long-term costs onto those residents; or
(C) undermine the environmental standards of those
residents.
SEC. 803. IMPROVING SELF-SUFFICIENCY OF FAMILIES IN HUD-SUBSIDIZED
HOUSING.
(a) In General.--
(1) Study.--Subject to subsection (b), the Secretary of
Housing and Urban Development shall conduct a study on the
implementation of work requirements implemented prior to the
date of enactment of this Act by public housing agencies
described in paragraph (4) participating in the Moving to Work
demonstration authorized under section 204 of the Departments
of Veterans Affairs and Housing and Urban Development, and
Independent Agencies Appropriations Act, 1996 (42 U.S.C. 1437f
note).
(2) Scope.--The study required under paragraph (1) shall--
(A) consider the short-, medium-, and long-term
benefits and challenges of work requirements on public
housing agencies described in paragraph (4) and on
program participants who are subject to such
requirements, including the effects work requirements
have on homelessness rates, poverty rates, asset
building, earnings growth, job attainment and
retention, and public housing agencies' administrative
capacity; and
(B) include quantitative and qualitative evidence,
including interviews with program participants
described in subparagraph (A) and their respective
resident councils.
(3) Report.--Not later than 1 year after the date of
enactment of this Act, 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 a report on the initial findings of the study
required under paragraph (1).
(4) Public housing agencies described.--The public housing
agencies described in this paragraph are public housing
agencies that, as part of an application to participate in the
demonstration authorized under section 204 of the Departments
of Veterans Affairs and Housing and Urban Development, and
Independent Agencies Appropriations Act, 1996 (42 U.S.C. 1437f
note), submit a proposal identifying work requirements as an
innovative proposal.
(b) Determination.--The requirement under subsection (a) shall
apply if the Secretary of Housing and Urban Development determines
that--
(1) there are a sufficient number of public housing
agencies described in subsection (a)(4) such that the Secretary
of Housing and Urban Development can rigorously evaluate the
impact of the implementation of work requirements described in
that subsection; and
(2) the study would not negatively impact low-income
families receiving assistance through a public housing agency
described in subsection (a)(4).
SEC. 804. GAO STUDIES.
(a) Workforce Housing Study.--
(1) Middle-income household defined.--In this subsection,
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 of Housing and Urban Development with adjustments for
smaller and larger families.
(2) Study.--Not later than 1 year after the date of
enactment of this Act, the Comptroller General of the United
States shall conduct a study and submit to Congress a report
that--
(A) identifies obstacles middle-income households
face when looking to secure affordable housing;
(B) identifies geographic areas where housing is
the most unaffordable and unavailable for middle-income
households;
(C) 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;
(D) 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
those middle-income households in Federal housing
programs if funding commensurate with the additional
eligibility were to be made available; and
(E) 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) Housing for Elderly or Disabled.--Not later than 1 year after
the date of enactment of this Act, the Comptroller General of the
United States shall carry out a study and submit to 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).
(c) Proximity of Housing to Superfund Sites.--Not later than 1 year
after the date of enactment of this Act, the Comptroller General of the
United States shall carry out a study and submit to Congress a report
that identifies how many residential dwelling units, and how many
dwelling units that are a part of public housing (as 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).
(d) Residential Heirs Property.--Not later than 1 year after the
date of enactment of this Act, the Comptroller General of the United
States shall carry out 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 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, nonprofit organizations, and institutions 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 those States and
jurisdictions to establish and document property
ownership rights or settle a decedent's estate;
(C) by awarding grants to entities that--
(i) provide housing counseling, legal
assistance, and financial assistance to home-
owners and their heirs relating to title
clearing and home retention efforts of heirs'
property; and
(ii) 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.
SEC. 805. 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 IX--STRENGTHENING COMMUNITY BANKS' ROLE IN HOUSING
SEC. 901. 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. 902. 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 nonprofit
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. 903. 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. 904. 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 a 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 a 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. 905. 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))--
``(I) all reports of examination
and inspection that relate to the
failed insured depository institution
in the previous 3-year period;
``(II) all 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 United States 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. 906. 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. 907. 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) of the
Federal Deposit Insurance Act (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 of 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 906(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. 908. ADVANCING THE MENTOR-PROTEGE PROGRAM FOR SMALL FINANCIAL
INSTITUTIONS.
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.''.
SEC. 909. 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. 910. 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. 911. 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).
(e) 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. 912. 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.
TITLE X--HOME-OWNERSHIP FOR MAIN STREET AMERICA
SEC. 1001. HOMES ARE FOR PEOPLE, NOT CORPORATIONS.
(a) Definitions.--In this section:
(1) Consumer reporting agency.--The term ``consumer
reporting agency'' has the meaning given the term in section
603 of the Fair Credit Reporting Act (15 U.S.C. 1681a)).
(2) Excepted purchase.--The term ``excepted purchase''
means any purchase of a single-family home that is--
(A) newly constructed, renovated, or a rental
conversion for sale by a large institutional investor
and not as a residence rented pending sale;
(B) pursuant to a build-to-rent program where the
large institutional investor purchases, constructs, or
constructs and retains a newly constructed single-
family homes to be managed as a rental property,
whether as part of a community made up exclusively of
renter-occupied single-family homes or as part of a
community made up of single-family homes that are both
owner- and renter-occupied;
(C) pursuant to a renovate-to-rent program that--
(i) substantially rehabilitates single-
family homes that do not meet structural or
core system elements of local building codes;
and
(ii) makes improvements in an aggregate
dollar amount of not less than 15 percent of
the purchase price of the single-family home;
(D) pursuant to a homeownership program that--
(i) requires rental payments and any other
fees that are not greater than those collected
by the large institutional investor on other
similarly situated single-family homes not
covered by the eligible homeownership program;
(ii) is subject to a contract between the
large institutional investor and renter that
shall be considered a consumer credit
transaction secured by a dwelling or real
property;
(iii) provides for positive reporting of
rental payments to consumer reporting agencies
for any renter, who shall be informed of and
opts into such reporting; and
(iv) requires contribution of meaningful
financial support from the large institutional
investor, including price concessions, for the
purchase of the single-family home by the
renter;
(E) pursuant to a program to boost homeownership
that--
(i) provides for positive reporting of
rental payments to consumer reporting agencies
for any renter, who shall be informed of and
opts into such reporting;
(ii) provides for the right of first
refusal and a 30-day ``first look'' period; and
(iii) may entail the meaningful financial
support from the large institutional investor,
including price concessions, for the purchase
of a single-family home by the renter (whether
it is the home the renter occupies or another
home);
(F) in connection with the satisfaction of debts
previously contracted in good faith and where the large
institutional investor has the right to repossess the
single-family home under such contract;
(G) undertaken by a mortgage servicer, lender, or
other entity that has a legal right to a single-family
home, for the purpose of loss mitigation or compliance
with servicing or investor obligations, and not as a
long-term investment strategy, and is solely as a
result of--
(i) a foreclosure;
(ii) a deed-in-lieu of foreclosure;
(iii) enforcement of a mortgage, deed of
trust, or other security interest; or
(iv) operation of law following borrower
default;
(H) purchased from another large institutional
investor that either owned the single-family home on
the date of enactment of this Act or purchased the
single-family home in compliance with this section;
(I) purchased from an investor not covered under
this section, so long as the purchase occurred not more
than 2 years after the effective date under subsection
(f);
(J) newly constructed, renovated, or a rental
conversion that is intended and operated for occupancy
as part of a community for households with 1 or more
members aged 55 years or older, and satisfies
visitability standards established by the Secretary of
Housing and Urban Development; or
(K) purchased through a single purchase or
combination or series of purchases described in
subparagraphs (A) through (J).
(3) Single-family home.--The term ``single-family home''--
(A) means a structure that contains 2 or fewer
dwelling units that are each intended for residential
occupancy by a single household; and
(B) does not include a manufactured home, as
defined in section 603 of the National Manufactured
Housing Construction and Safety Standards Act of 1974
(42 U.S.C. 5402).
(4) Large institutional investor.--
(A) In general.--The term ``large institutional
investor''--
(i) means an investment fund, corporation,
general or limited partnership, limited
liability company, joint venture, association,
or other for-profit entity that is a legal
entity structured in a manner that is not
aforementioned that--
(I) is engaged, in whole or in
part, in the business of investing in,
owning, renting, managing, or holding
single-family homes; and
(II) alone or in concert with 1 or
more other entities, beginning after
the date of enactment of this Act,
directly or indirectly has investment
control of not less than 350 single-
family homes in the aggregate, not
including any single-family home
purchased in an excepted purchase made
after the date of enactment of this
Act; and
(ii) does not include any local, State,
Tribal, or Federal government entity or
instrumentality thereof.
(B) Rule of construction.--For purposes of this
paragraph, an entity has direct or indirect investment
control over a single-family home if the entity--
(i) owns, or has primary authority or
fiduciary responsibility to make material
investment or management decisions relating to,
the single-family home;
(ii) is, or directly or indirectly
controls, the general partner or managing
member of the entity that owns the single-
family home;
(iii) is or controls the investment
manager, management company, or investment
advisor of the entity that owns the single-
family home;
(iv) owns or controls more than 25 percent
of any class of equity interests of the entity
that owns the single-family home, unless such
entity is a passive investor; or
(v) otherwise controls the entity that owns
the single-family home.
(5) Purchase.--The term ``purchase'' includes any purchase,
transfer, or other acquisition of a single family home,
including through mergers, acquisitions, construction,
foreclosures, or bulk purchases, whether or not for cash
consideration.
(b) Prohibition on Purchases by Large Institutional Investors.--
(1) In general.--No large institutional investor may
purchase, or enter into a contract to directly or indirectly
purchase, any single-family home.
(2) Exceptions.--The prohibition under paragraph (1) shall
not apply to--
(A) any excepted purchase; or
(B) any purchase of a single-family home in
connection with a restructuring or other reorganization
of ownership of single-family homes that were owned or
purchased on or before the date of enactment of this
Act.
(3) Rule of construction.--Nothing in this section may be
construed to--
(A) require any large institutional investor to
divest or otherwise sell any single-family home
purchased before the date of enactment of this Act; or
(B) prevent the filing of a petition, or otherwise
affect any bankruptcy proceeding, under title 11,
United States Code.
(4) Implementation.--
(A) In general.--In consultation with the Secretary
of Housing and Urban Development, the Director of
Federal Housing Finance Agency, and the Chair of the
Securities and Exchange Commission, the Secretary of
the Treasury may issue regulations in accordance with
the notice and comment rulemaking procedures under
section 553 of title 5, United States Code, to carry
out the purposes of this section, including regulations
to--
(i) minimize market disruptions upon
identifying a risk of material negative impact
on the housing market, including an impact on
the ability of market participants to dispose
of single-family homes in an orderly fashion;
and
(ii) mitigate, to the extent possible,
negative impacts on consumers and communities.
(B) Rule of construction.--For the avoidance of
doubt, no regulation issued under subparagraph (A) may
amend the definitions of the terms defined under
subsection (a), including to--
(i) alter the scope of excepted purchases
in a manner that would undermine the goal of
expanding the number of single-family homes
available to individual households for
purchase;
(ii) alter any type of excepted purchase in
a manner that would undermine the goal of
expanding the number of single-family homes
available to individual households for
purchase;
(iii) add any category of large
institutional investor as an eligible class if
not determined by this section; or
(iv) alter the quantitative threshold in
the definition of ``large institutional
investor''.
(c) Renter Outreach Resource Established.--
(1) In general.--The Secretary shall, not later than 180
days after the date of the enactment of this section, establish
a renter outreach resource that consists of a toll-free
telephone number and a public website designed to assist
renters of residential properties owned by a large
institutional investor in--
(A) notifying Federal agencies about disputes
relating to the rental of such properties, including
disputes about potential violations of Federal law;
(B) sharing information about such disputes with
other Federal agencies, including other Federal
agencies that manage similar disputes;
(C) monitoring such disputes; and
(D) resolving such disputes, to the extent
practicable.
(2) Response to outreach.--
(A) In general.--The Secretary shall establish
reasonable procedures to--
(i) promptly respond, in writing where
appropriate, to a renter who provides
information to the Secretary about a dispute
using the renter outreach resource established
under paragraph (1); and
(ii) document such responses.
(B) Contents.--Responses provided under
subparagraph (A) shall include, where appropriate,
information about--
(i) steps that have been taken by the
Secretary or another Federal agency in response
to the information about the dispute provided
by the renter, including determining the
appropriate large institutional investor
involved as described in paragraph (3);
(ii) any responses received by the
Secretary or another Federal agency from the
large institutional investor related to such
dispute; and
(iii) any outcome of the dispute, to the
extent practicable.
(3) Investigation of potential violations of federal law.--
(A) In general.--The Secretary shall promptly
process and investigate any information relating to a
dispute received through the renter outreach resource
established under paragraph (1) about a potential
violation of Federal law that is received from a renter
of a residential property owned by a large
institutional investor through the renter outreach
resource established under paragraph (1), including:
(i) Requesting information from a large
institutional investor;
(ii) Determining the appropriate large
institutional investor involved in the dispute;
and
(iii) Sharing information about such
potential violation of Federal law with any
relevant Federal agencies, as the Secretary may
determine appropriate.
(B) Responses to requests for information.--Upon
request for information made pursuant to subparagraph
(A), the Secretary shall provide a large institutional
investor the opportunity to respond, including
regarding whether such large institutional investor
currently owns the property described in such request
for information.
(4) Information for appropriate state authority.--When the
Secretary receives information about a potential violation of
State law or about a dispute received through the renter
outreach resource, from a renter of a residential property
owned by a large institutional investor through the renter
outreach resource established under paragraph (1), the
Secretary shall, at a minimum, provide the renter with contact
information for the appropriate, State-specific, State
authority authorized to process and investigate such
information.
(5) Notice about renter outreach resource.--Each large
institutional investor shall--
(A) provide to each renter of a residential
property owned by such investor at the time such renter
first occupies such home and annually thereafter--
(i) written notice about the renter
outreach resource established under paragraph
(1); and
(ii) the name, phone number, and email
address of the person or entity responsible for
receiving and addressing renter disputes for
the large institutional investor, and update
the name, phone number, and email address
within 30 days if such information changes
prior to the subsequent time at which such
notice is required to be provided; and
(B) prominently feature information about the
renter outreach resource established under paragraph
(1) on a public website of such investor that is
accessible by such renter.
(6) Annual report to the congress.--
(A) In general.--The Secretary shall, not later
than March 31 of each year, submit to the Congress a
public report which analyzes and aggregates the
information received or obtained pursuant to this
subsection during the prior year that includes--
(i) information about the types and the
number of disputes received about potential
violations of Federal law;
(ii) information about the types and the
number of disputes received about potential
violations of State law;
(iii) where practicable, information about
the resolution of such disputes; and
(iv) information provided to the Secretary
of Housing and Urban Development under
paragraph (8).
(B) Anonymization of data.--Any data included in a
report that is submitted under this paragraph shall be
aggregated or anonymized so as to protect any
individual dispute or personally identifiable
information received through the renter outreach
resource.
(7) Protection of personal information.--In complying with
the requirements of this subsection, the Secretary shall take
such measures as the Secretary determines are necessary to
provide for the protection of personally identifiable
information received through the renter outreach resource in a
manner that conforms with existing standards for protection of
the confidentiality of personally identifiable information.
(8) Annual notification.--Not later than 180 days after the
date of the enactment of this Act, and not later than December
31st of each year thereafter, each person or entity that
satisfies the definition of a large institutional investor, as
such term is defined in subsection (a) shall--
(A) notify the Secretary each year whether such
owner is a large institutional investor as defined in
subsection (a); and
(B) in such notification, identify how many single-
family homes such large institutional investor has
direct or indirect investment control of as of the date
of the submission of such notice, and the city and
State where each such single-family home is located,
unless such large institutional investor owns 10 or
fewer single-family homes in such city.
(d) Enforcement.--
(1) Civil penalties.--The Secretary of the Treasury, or the
Attorney General at the request of the Secretary of the
Treasury, may bring an action against a large institutional
investor that violates subsection (b) for a civil penalty in an
amount that is not more than $1,000,000 per violation, or 3
times the purchase price of the property involved, whichever is
greater.
(2) Transfer to hud for homeownership expansion
activities.--For fiscal year 2027 and each fiscal year
thereafter, to the extent and in the amounts provided in
advance in appropriations Acts, civil penalties assessed under
this section shall be transferred to and available to the
Secretary of Housing and Urban Development to provide
additional funding for the HOME Investment Partnerships program
under subtitle A of title II of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 12741 et seq.), to be
allocated in accordance with the formula under that program,
for new construction, acquisition, and rehabilitation of
single-family homes and to provide assistance grants to first-
time homebuyers, which may be for downpayments, closing costs,
and interest rate buydowns.
(e) Studies on Large Institutional Investors.--
(1) Gao report.--Not later than 2 years after the date on
which the prohibition under subsection (b)(1) takes effect, and
again not later than 10 years after that date, the Comptroller
General of the United States shall submit to the Senate
Committee on Banking, Housing and Urban Affairs and the House
Committee on Financial Services a report on--
(A) the impact of the ownership by large
institutional investors of single-family homes on
housing availability and affordability for renters and
homebuyers; and
(B) the effectiveness of this section in reducing
demand by large institutional investors for single-
family homes and expanding homeownership for renters
and homebuyers.
(2) Hud report.--Not later than 2 years after the date on
which the prohibition under subsection (b)(1) takes effect, and
again not later than 10 years after that date, the Secretary of
the Housing and Urban Development, in consultation with the
Secretary of the Treasury, the Administrator of the Rural
Housing Service, the Executive Director of the Loan Guaranty
Service of the Department of Veterans Affairs, the Chair of
Securities and Exchange Commission, and the Director of the
Federal Housing Finance Agency, 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 on--
(A) whether there should be adjustments to the
definition of the term ``large institutional
investor'';
(B) the financial impact of this section on large
institutional investors, renters, and homebuyers; and
(C) any legislative recommendations regarding ways
to improve the authorities provided under this section
to increase the supply and affordability of single-
family homes for purchase by individual homebuyers.
(3) Sense of congress.--It is the sense of Congress that--
(A) this section is intended to expand the number
of single-family homes available to individuals for
purchase and is aimed at preserving and expanding the
supply of single-family homes available to individuals;
and
(B) any further study on the effectiveness of this
section and any legislative recommendations therefrom
should consider this sense of Congress.
(f) Effective Date.--The requirements and prohibitions under
subsections (b) and (d) of this section--
(1) shall take effect on the date that is 180 days after
the date of enactment of this Act; and
(2) are repealed on the date that is 15 years after the
effective date under paragraph (1).
TITLE XI--CENTRAL BANK DIGITAL CURRENCY
SEC. 1101. CENTRAL BANK DIGITAL CURRENCY.
The Federal Reserve Act (12 U.S.C. 221 et seq.) is amended by
inserting after section 16 (12 U.S.C. 411 et seq.) the following:
``SEC. 16A. CENTRAL BANK DIGITAL CURRENCY.
``(a) Definitions.--In this section:
``(1) Central bank digital currency.--The term `central
bank digital currency' means a digital asset that--
``(A) is denominated in United States dollars;
``(B) is a United States currency;
``(C) is a direct liability of the Federal Reserve
System; and
``(D) is widely available to the general public.
``(2) Digital asset.--The term `digital asset' has the
meaning given the term in section 2 of the GENIUS Act (12
U.S.C. 5901).
``(b) Prohibition.--Except as provided in subsection (c), the Board
of Governors of the Federal Reserve System or a Federal reserve bank
may not issue or create a central bank digital currency or any digital
asset that is substantially similar to a central bank digital currency
directly or indirectly through a financial institution or other
intermediary.
``(c) Exception.--Subsection (b) shall not prohibit any dollar-
denominated currency that is open, permissionless, and private, and
fully preserves the privacy protections of United States coins and
physical currency.
``(d) Sunset.--This provisions of this section shall cease to be
effective on December 31, 2030.
``(e) Rule of Construction.--Nothing in this section shall be
construed to allow the Board of Governors of the Federal Reserve to
issue a central bank digital currency or any digital asset that is
substantially similar to a central bank digital currency directly or
indirectly absent authorization by an Act of Congress.''.
TITLE XII--MISCELLANEOUS
SEC. 1201. SEVERABILITY.
If any provision of this Act, or the application thereof to any
person or circumstance, is held invalid, the remainder of the Act, and
the application of such provisions to other persons or circumstances,
shall not be affected thereby.
SEC. 1202. NO ADDITIONAL FUNDS AUTHORIZED.
No additional funds are authorized to be appropriated to carry out
the requirements of this Act or any amendment made by this Act.
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