Bills · H.Res. 1299 · Text
Engrossed in House
Confirmed from the official record
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[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H. Res. 1299 Engrossed in House (EH)]
<DOC>
H. Res. 1299
In the House of Representatives, U. S.,
May 20, 2026.
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.
Attest:
Clerk.