PROVIDING FOR THE CONCURRENCE BY THE HOUSE IN THE SENATE AMENDMENT TO H.R. 6644, WITH AMENDMENT

Quick facts

Record: House Floor
Section type: Floor speeches
Chamber: House
Date: May 19, 2026
Congress: 119th Congress
Why this source matters: This section came from the House floor portion of the record.

Linked context

People mentioned: Hill, J. French, Waters, Maxine, Flood, Mike
Bills and resolutions: S. 1003 (119th Congress), H.Res. 1299 (119th Congress), H.R. 6644 (119th Congress)
Committees: Committee on Financial Services, Committee on Banking, Housing, and Urban Affairs, Committee on the Budget

Readable version of the official text

PROVIDING FOR THE CONCURRENCE BY THE HOUSE IN THE SENATE AMENDMENT TO

H.R. 6644, WITH AMENDMENT

Mr. HILL of Arkansas. Mr. Speaker, I move to suspend the rules and agree to the resolution (H. Res. 1299) providing for the concurrence by the House in the Senate amendment to H.R. 6644, with amendment.

The Clerk read the title of the resolution.

The text of the resolution is as follows:

H. Res. 1299

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.

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.

(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;

(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);

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.

(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.

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

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.);

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;

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

(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.

(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;

(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

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;

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.).

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;

(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

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;

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.).

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”.

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;

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;

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”.

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)).”.

(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;

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.

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.

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;

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.

(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;

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;

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

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

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.

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.).

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

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.

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');

“(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”;

(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”;

(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”;

(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”;

(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”;

(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”;

(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.”.

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.

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.).

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;

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.

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

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.”.

(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);

(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”.

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;

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;

“(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

(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,”;

(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

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

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

(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

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

“(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.

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;”;

“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.

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

“(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;

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;

(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;

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;

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

(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

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;

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).

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;

(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;

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.

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”.

(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

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

“(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;

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.

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

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.

(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

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).

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.

(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

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).

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;

(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”.

(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;

(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

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.

The SPEAKER pro tempore. Pursuant to the rule, the gentleman from Arkansas (Mr. Hill) and the gentlewoman from California (Ms. Waters) each will control 20 minutes.

The Chair recognizes the gentleman from Arkansas.

General Leave

Mr. HILL of Arkansas. Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days in which to revise and extend their remarks and include extraneous material on this resolution.

The SPEAKER pro tempore. Is there objection to the request of the gentleman from Arkansas?

There was no objection.

Mr. HILL of Arkansas. Mr. Speaker, I yield myself such time as I may consume.

Mr. Speaker, I include in the Record the Congressional Budget Office estimate for this bill.

Legislation Considered Under Suspension of the Rules

The Majority Leader of the House of Representatives

announces bills that will be considered under suspension of

the rules in that chamber. Under suspension, floor debate is

limited, all floor amendments are prohibited. points of order

against the bill are waived, and anal passage requires a two-

thirds majority vote.

At the request of the Majority Leader and the House

Committee on the Budget, CBO estimates the effects of those

bills on direct spending and revenues. CBO has limited time

to review the legislation before consideration. Although it

is possible in most cases to determine whether the

legislation would affect direct spending or revenues, time

may be insufficient to estimate the magnitude of those

effects. If CBO has prepared estimates for similar or

identical legislation, a more detailed assessment of

budgetary effects, including effects on spending subject to

appropriation, may be included.

EFFECTS ON DIRECT SPENDING AND REVENUES OF LEGISLATION CONSIDERED UNDER SUSPENSION OF THE RULES IN THE HOUSE OF REPRESENTATIVES

Week of May 18, 2026

————————————————————————————————————————————————————————————————————————————

Additional

Effect on Direct Information on Direct Link to Published

Bill Number Title Spending Effect on Revenues Spending and Revenue Estimates

Effects

———————————————————————————————————————————————————————————————————————————— H. Res. 6644....................... 21st Century ROAD to Increase by at Least Increase by at Least Would reduce the N/A

Housing Act, as $500K. $500K. deficit by tens of

amended. millions. ———————————————————————————————————————————————————————————————————————————— On May 18, 2026, this table was updated to include the addition of S. 1003, LuLu's Law, to the list of bills that may be considered under suspension of

the rules in the House of Representatives during the week of May 18, 2026. On May 18, 2026, the text for H. Res. 6644, 21st Century ROAD to Housing Act, as amended, was revised. The changes to the legislation did not affect

CBO's assessment of the effects of the resolution on direct spending and revenues.
Sources: Congressional Budget Office; staff of the Joint Committee on Taxation.

Mr. HILL of Arkansas. Mr. Speaker, I rise today in strong support of the House amendment to the 21st Century ROAD to Housing Act.

that puts American families first and expands access to American homeownership.

Over the last couple of months, we have heard clear concerns from

literally hundreds of bipartisan Members and stakeholders expressing concerns with some of the provisions that were contained in the Senate- passed version of the housing bill.

For Ranking Member Waters and me, Ranking Member Cleaver and Chairman

Flood on the Subcommittee on Housing and Insurance, this has been years of work in the making and months of intensive work in this 119th Congress to find a path that improves accessibility to housing for the American people, and affordability for the American people, that could be a bicameral, bipartisan housing measure.

This amendment that is before us today, which amends the good work of

the Senate, is exactly that: hours and hours of listening to the American people across our cities, hours of testimony in our Subcommittee on Housing and Insurance, led by the gentleman from Nebraska. We have that feedback.

That feedback, Mr. Speaker, informs this amendment. It informs this debate. Ranking Member Waters and I have collaborated together today on several revisions that ensure that these reforms are narrowly tailored and do not, in any way, in some unintentional way, reduce housing supply, disrupt housing markets, or harm those in the rental community.

The focus of the bill in the House and the Senate, and the focus of

our work today in the amendment, is to continue to cut unnecessary barriers to new home construction, modernize HUD programs, and allow our community banks to more freely deploy funding into their communities that aid in the development of new housing products, whether it is single-family housing or housing for rent.

This bill has a provision in it that also meets the request of

President Trump, which he outlined in this room in his State of the Union Address, that we limit institutional investors from competing with Moms and Dads and Americans out there trying to buy a house.

It removes some of the legal challenges that we felt were in the

structure of the Senate's approach. Ultimately, in my view, and I believe the view of Chairman Flood, Ranking Member Cleaver, and Ranking Member Waters, this delivers on that goal of not having a young family buying their first home, being informed by their Realtor that somehow they missed that opportunity because the house was bought out from under them by some big-shot institutional investor. That is what President Trump talked about here in this House Chamber at the State of the Union Address.

I believe, Mr. Speaker, that the changes that we made in a collaborative, bipartisan way deliver on the President's goal and, in fact, help this bill.

Additionally, this bill modernizes outdated banking regulations so

that community banks can focus on doing what they do best: lending and providing loans to families who are looking to buy a home and companies looking to finance construction.

Together, these changes strengthen our joint, bicameral focus on

expanding housing access and affordability without discouraging investment in new housing development.

The amendment we are voting on advances practical, bipartisan

solutions to modernizing the Federal housing programs, reducing regulatory burdens, streamlining the development process, and building more homes to meet growing demand.

Congress has a responsibility to pursue reforms that expand

opportunity and keep this great American Dream within reach.

Mr. Speaker, I thank the ranking member. I thank Mr. Flood and Mr. Cleaver for their tireless effort over

the last year and a half, and I am proud to support this effort. I urge my colleagues to do the same.

Mr. Speaker, I reserve the balance of my time.

Ms. WATERS. Mr. Speaker, I yield myself such time as I may consume.

Mr. Speaker, I rise in support of H. Res. 1299, amending H.R. 6644, the 21st Century ROAD to Housing Act, sponsored by Chairman Hill and me.

Tomorrow, the House has a historic opportunity to pass an improved

bipartisan housing package, negotiated in partnership with Chairman Hill and me, and with the input of many House Democrats.

Mr. Speaker, our housing bill is the most comprehensive housing reform bill in a generation and is a huge step toward finally addressing the affordable housing and homelessness crises in our country.

Let me make it clear, and let me take a moment to remind everyone

what is at stake or who we are trying to help. The age of a median first-time homebuyer is now 40 years old. That is largely because the average cost of a single-family home has skyrocketed, and wages have not kept pace. In fact, 22 million households spend over 30 percent of their paycheck on rent, and 12 million spend over 50 percent on housing. What is most shameful is that nearly 800,000 people experience homelessness on any given night. This is unacceptable, and we must act now.

The House first passed H.R. 6644 back in February. A month later, the Senate amended our bill, stripping out numerous House provisions that would address real problems in the housing market. However, the Senate also added a poorly drafted ban on large institutional investors buying new single-family homes.

I say this not as someone who is a fan of private equity ownership of

these homes, but as someone who was concerned that the Senate's drafting was unconstitutional and could lead to thousands of families and persons living with disabilities being evicted, students and servicemembers without housing options, and private equity being incentivized to use certain types of contracts with tenants that have been rife with abuses.

{time} 1750

For this reason, I called on the Senate to join us in a conference to

resolve our differences. While I am disappointed that our Senate colleagues chose not to conference with us, Chairman Hill and I just kept on going. We pressed on, making those critical improvements to restore the legislation to its intent to address the housing crisis.

To be clear, the consequences of simply passing the Senate's bill

were stark. The Urban Institute concluded that 72,000 housing units would not be built as a result of the Senate's bill.

Even more alarming, the Senate's language also threatened tens of

thousands of families with eviction.

Mr. Speaker, before I go on, I must say that the process to get here today has been less than ideal. That is an understatement. Chairman Hill, the Speaker, the White House, and I were making changes to this text right up until the last minute.

While I support our final agreement, we must inform our colleagues

about how this bill has changed since it was posted on Friday, as they will be voting on it tomorrow, so I am going to describe those changes here.

First, the bill removes section 204, which was the Build Now Act.

Second, we added a new section 107, called Housing Supply Frameworks.

Third, section 208, the Housing Innovation Fund, now sunsets after 7

years instead of 5 years.

Fourth, we added language ensuring prevailing wage requirements under

the Davis-Bacon Act apply to sections 102 and 106 of this bill.

Fifth, we are revising section 1001 of the bill, which relates to

private equity ownership of single-family homes, by replacing our text with the Senate-based language while removing the divestment requirement, changing the definition of build-to-rent, and inserting a renter hotline that requires HUD to respond to renter complaints.

Mr. Speaker, this revised House package of needed housing reforms preserves more than 90 percent of the Senate's bill, while strengthening it by adding numerous, critical House-passed, Democratic- led housing and community banking provisions. As a result, we will be providing more relief and support to millions of families and communities all across the Nation.

Mr. Speaker, there is broad recognition in this Chamber of the problems in our housing markets. We need comprehensive reforms at the Federal, State, and local levels, along with a commitment by everyone to get America building housing again.

How do we do this? We do this by: creating a pilot to increase access to small-dollar mortgages, especially in rural areas; allowing housing cooperatives, a type of affordable housing option, to participate in Federal programs; creating local databases about unused, government- owned land—very important; increasing access to more family-sized affordable housing units; and adding in community bank and credit union reforms so that these small institutions can help.

These and so many other reforms in this bill are a huge first step

toward finally addressing the housing crisis in this country.

Finally, the Senate had a temporary ban on central bank digital

currencies, that is the CBDC. This is the status quo we have in effect today as Trump's new Fed Chair has stated that he will not issue a CBDC during his tenure. More importantly, this temporary ban is only partial and will still allow the Fed to study other forms of CBDC, like the ones that more closely parallel how currency is used in our economy.

Mr. Speaker, I urge Members to join me in passing this bill. I will just say that we have learned an awful lot over a number of years about what we could do to create some real opportunities. We are now using our experiences working on housing bills to interject into how we are going to be able to get more housing for all of those who are in desperate need and to get the homeless off of our streets.

We have learned a lot. You are going to hear in this bill about how we are learning about land that is owned by cities and counties for years that they could get rid of and don't have to do it for market value, on and on and on.

Mr. Speaker, I am very proud, even though this has been a real, real labor—I want to say of love, but it has been a real labor, maybe not of love but something that really had to be done.

I think we have finally made these meaningful steps to our Nation's

housing crisis and strengthened our community banks.

Mr. Speaker, I ask everyone to please support this bill. I reserve the balance of my time.

Mr. HILL of Arkansas. Mr. Speaker, I yield myself such time as I may consume.

Mr. Speaker, when I think about the ranking member, she knows the respect I have for her, and she has, I am sure, no less than four decades as one of the Nation's most strong and effective advocates for housing and housing solutions in our country. To say she supports a bill is high praise, and we are grateful to her.

Mr. Speaker, I have to say that I started what is a modest career in D.C. as a youngster in my twenties, and I was a staffer on the Senate Committee on Banking, Housing, and Urban Affairs during the first term of President Ronald Reagan.

President Reagan was trying to restart the economy after the grim

decade of the 1970s. It was bad. President Carter had struggled with it. We were in two back-to-back recessions. One of his ideas was: What could we do in housing? Interest rates were at 20 percent. It is a little hard to buy a house when interest rates are 20 percent.

But he had a commission on housing; and one of his top ideas was to change the building codes, make them more modern, make them more competitive, both in manufactured housing and in modular construction techniques for resiliency and for energy efficiency.

Guess what, Mr. Speaker. We are going to do that today, 40 years later. We wouldn't be doing it if we didn't have the hard work of Mike Flood, the chairman of the Subcommittee on Housing and Insurance in this Congress, and his partner in this effort, Emanuel Cleaver of Missouri.

Mr. Speaker, I yield 4 minutes to the gentleman from Nebraska (Mr.
Flood), the chair of the Housing and Insurance Subcommittee.

Mr. FLOOD. Mr. Speaker, I thank Chairman Hill and Ranking Member Waters for supporting this bill.

When I got the privilege of leading this subcommittee given to me by

our chairman, the first order of business, after I found out where my office was, was to go meet Emanuel Cleaver for dinner. We shared a prime rib, and I knew that night that we had something special.

Housing is personal. Housing is not a building or a garage. It is where you bring home your first baby, and the first bath is under the sink faucet. It is where you tuck your little 7-year-old into bed, and you say: I am doing my part as a parent to protect her from being homeless or living a better life.

When I met Emanuel Cleaver, I could see in his eyes that this was

personal to him. I thought, I am a Republican. He is a Democrat. God has placed us in these spots to try and fix something for the American people, to make it easier to get that first house, to buy a manufactured home that doesn't have a chassis and save $25,000, and to do it for all the right reasons.

Last Sunday, as I was coming back to Omaha, we were flying. Because of storms, I was flying over Kansas City and I looked at the lights of Kansas City, and I thought to myself: I want this as much for him as I want it for Lincoln or Waverly or Papillion.

Mr. Speaker, because of our chairman, our ranking member, our Speaker, our leader, and the leadership in both parties, we have a product that the American people can look at tonight on this floor and say: Congress did its job. They worked together. They compromised.

Did we get everything we wanted? No. Have you ever met the ranking member? She drives a hard bargain. Yet, did we move the ball forward for the American people? The answer is yes.

People send us to this town because they want solutions. They don't want what they get too often at 9 o'clock eastern. They want to wake up and know that their kids have a chance to get into a home, to park their car in a garage, go to work at the factory the next day, and build a better life for the next generation.

{time} 1800

What do we have in this bill? We have a bicameral, bipartisan solution.

The institutional investor ban language by the Senate created massive

unintended consequences for the market. We know that. However, the Senate impressed us with sending a truly bipartisan bill over here.

What the American people need to know is this is what the Founders

envisioned, House versus Senate, Republicans and Democrats united in the House, Republicans and Democrats united in the Senate behind an issue, not a personality. I credit the leadership for working the way they did that allowed Mr. Cleaver and I to set a table and listen to the Habitat for Humanity folks from Huntsville, Alabama, to welcome in the mayor of San Diego, to talk to the mayor of Lincoln, who is high up on the United States Conference of Mayors, and find out what her priorities are.

People are going to get into homes, and they are going to get into

homes easier because of this. I, for one, want the people I signed up to represent to know this is exactly why I want to be in Congress.

I would like to take a moment to highlight a few provisions that I

feel will make a difference. Sections 205 and 206 of the bill work to rightsize environmental reviews on both HUD and USDA housing projects. Mr. Nunn of Iowa is a big fan of that.

This legislation ensures these environmental reviews are properly

tailored to the real impact of the project going forward, not just a box that needs to be checked. I worked with Mr. Cleaver on this section of the bill for a long time as it relates to the reform of the HOME Investment Partnerships Program, the largest block grant program at HUD dedicated to building affordable housing.

What does it do? It slashes the environmental review requirements and eases labor cost burdens like the ones created by Section 3.

The SPEAKER pro tempore. The time of the gentleman has expired.

Mr. HILL of Arkansas. Mr. Speaker, I yield an additional 1 minute to the gentleman from Nebraska.

Mr. FLOOD. Mr. Speaker, in addition, it provides greater flexibility for cities and towns across the country to utilize HOME dollars to promote homeownership. Sometimes it is as easy as extending the wastewater and the water system another 15 blocks. Think how far that goes in California or a small town in Nebraska where they only have two blocks, and another block means you get 10 more houses there. That is 10 more families. That is 50 more kids for a school that is on life support. Now they have housing.

I am very proud of the committee I serve on. I am proud of the way we work in a bipartisan manner. I want my career in Congress to be experiences like this, and I thank Mr. Cleaver for everything that he has accomplished in Congress and look forward to a continued great relationship.

Ms. WATERS. Mr. Speaker, I yield 3 minutes to the gentleman from Missouri (Mr. Cleaver), the ranking member of the Housing and Insurance Subcommittee and coauthor of this bill. He is someone who worked very hard to make some changes in the HOME program and that when some questions were raised about Davis-Bacon, he was right there to ensure that they were protected. I thank him so very much.

Mr. CLEAVER. Mr. Speaker, I rise in support of the revision of H.R. 6644, the 21st Century ROAD to Housing Act introduced by Chairman Hill, Ranking Member Waters, Chairman Flood, and myself.

I appreciate very much the leadership of Ranking Member Waters and

Chairman Hill in negotiating this very important revision. To quote Chairman Hill: “This is how Congress is supposed to work.” I could not agree more. I might add, this is how the vast majority of the American public would like to see us conduct business.

Housing remains the single largest expense for the Americans who sent

us to Washington. Rising housing costs are consuming an increasing share of household income. Families are struggling to cover necessities and are increasingly unable to save enough to transition into homeownership.

The legislation we will be voting on is extraordinary. The underlying concept—updating Federal housing programs—is a matter, really, of common sense.

What sets this moment apart is not just the concept of the bill, but

the bipartisan, open, and deliberative process. The process in the House has made the bill appealing legislatively and politically. It reflects a monthslong and difficult effort to do what our constituents sent us here to do. Chairman Hill did not get everything he wanted. Ranking Member Waters did not get everything she wanted. Chairman Flood did not get everything he wanted, and I can say very clearly I did not get everything I wanted. However, I understand that democracy demands deliberation, and we have a bill that is supported by housing stakeholders and will deliver for the American people.

I thank Chairman Flood for working with me to reform the HOME

program. I thank Chairman Flood and Representative Rose for working with me to expand access to manufactured housing. I thank Representative Nunn for working with me to reform USDA rural housing programs. I thank Representative Lawler for working with me on HUD oversight and to improve Section 8. Finally, I thank Ranking Member Warren for her partnership in working with me on the innovation piece. I also thank Ranking Member Warren and Chairman Scott in the Senate, who I greatly respect.

The revised bill, negotiated by Chairman Hill and Ranking Member

Waters, is an effort to advance the priorities of the House, Senate, and White House. The constituents in my district, like those all around this country, want to see this bill passed and signed into law. This was one of the greatest opportunities I have had since I have been in Congress.

Mr. HILL of Arkansas. Mr. Speaker, I yield 2 minutes to the gentleman from Pennsylvania (Mr. Meuser), the chair of our Oversight and Investigations Subcommittee.

Mr. MEUSER. Mr. Speaker, I am very honored to rise in support of the 21st Century ROAD to Housing Act. I congratulate our full committee chairman, Chairman Hill, for his diligence and ability to find a solution to a very important issue as well to the chair of the Housing and Insurance Subcommittee, my friend Michael Flood,

for his words and just his tenacity in seeing this through.

I also offer special thanks to Ranking Member Waters and as well as

the subcommittee chair, Mr. Cleaver, for everything that they have done to find a solution.

America, Mr. Speaker, faces a housing shortage of well over 4 million homes, while only 1.5 million housing units are built each year. It is a big problem. We have a housing supply program. This bill addresses that shortfall and, importantly, expands affordability in homeownership.

Homebuilders tell us their costs are nearly $100,000 before a shovel even hits the dirt due to overregulation, permitting, environmental reviews, and zoning delays. Many can't build a home for less than $250,000.

This bill cuts through the blue tape, I tend to call it, by

streamlining bank financing for construction and development loans, giving banks greater flexibility to support new housing, which is so very important. It modernizes zoning guidance to create new housing developments, speeds up environmental and project reviews that too often delay construction for months, if not years, and increase costs.

President Trump and Republicans in Congress and, clearly, many

Democrats are determined to address our housing challenges, including preventing institutional investors from owning single-family homes, which is, again, very important. This legislation proves bipartisan and bicameral solutions are actually possible where results matter more than politics.

The SPEAKER pro tempore. The time of the gentleman has expired.

Mr. HILL of Arkansas. Mr. Speaker, I yield an additional 15 seconds to the gentleman from Pennsylvania.

Mr. MEUSER. Mr. Speaker, all future and existing homeowners throughout the United States will benefit from this bill.

Ms. WATERS. Mr. Speaker, I yield 1 minute to the gentlewoman from New York (Ms. Velazquez), the ranking member of the Small Business Committee and an author of several provisions of this bill.

Ms. VELAZQUEZ. Mr. Speaker, I rise in support of H.R. 6644. I thank Ranking Member Waters and Chairman Hill for including my language on cooperative housing developments and oversight of monitors and receivers of public housing authorities.

Cooperatives provide more than 1.5 million families with financially stable housing across the United States and are a critical source of homeownership. Unfortunately, however, they are often excluded from Federal housing programs.

Explicit recognition in this bill will ensure that cooperatives can

access the bill's benefits and continue to remain a critical component of our affordable housing stock.

Additionally, my language requiring Federal monitors and receivers of

PHAs to provide annual testimony and written assessments to Congress will ensure Congress is coordinated and providing struggling PHAs with the resources they need to improve their operations and conditions. It will also help ensure effective use of the taxpayers' money.

{time} 1810

The SPEAKER pro tempore. The time of the gentlewoman has expired.

Ms. WATERS. Mr. Speaker, I yield an additional 30 seconds to the gentlewoman from New York.

Ms. VELAZQUEZ. Mr. Speaker, finally, let me say that this bill is a much-needed first step. It is not the entire answer. We must all recognize that we still need substantial monetary investments in housing programs to ensure effective development and reconstruction of the units we need.

Mr. Speaker, I urge my colleagues to vote “yes.”

Mr. HILL of Arkansas. Mr. Speaker, I reserve the balance of my time.

Ms. WATERS. Mr. Speaker, I yield myself such time as I may consume.

Mr. Speaker, I say to Chairman Hill that in light of changes we agreed to today, I want to take a moment to make clarifications about the authority the Treasury has and should use related to the provisions banning large institutional investors from purchasing single-family homes.

Under our bill, the Secretary of the Treasury, in consultation with

the heads of HUD, FHFA, and SEC, may issue regulations to minimize market disruptions and negative impacts on consumers and communities.

He and I both firmly agree that the bill allows Treasury to do this

and that Treasury must use this authority to issue regulations and clarify the following things.

First, the bill was not intended to impact military housing, student

housing, disability housing, or LIHTC-supported housing, as defined in our earlier May 15, 2026, posted draft of this bill.

This bill was also not intended to include or impact nonprofits or

community land trusts that purchase single-family homes. These entities are not for-profit, large institutional investors.

In addition, large institutional investors are still prohibited from

buying properties with land contracts, again, as defined in our earlier May 15 posted draft. These are not subject to landlord-tenant laws and are harmful to renters. Large institutional investors should only be allowed to purchase foreclosed, federally backed properties after individuals and approved nonprofits have been given the first chance to buy them through a 30-day first look period, as described in our earlier May 15 posted draft.

Given our congressional intent, Treasury should use its authority to

address these concerns and to minimize market disruption and mitigate negative impacts on consumers and communities.

Mr. Speaker, I know Mr. Hill agrees with me on all of this, as we have discussed, and I would love for him to share his thoughts with our colleagues on this also.

I yield to the gentleman from Arkansas (Mr. Hill).

Mr. HILL of Arkansas. Mr. Speaker, I appreciate the gentlewoman yielding time.

I agree with her that throughout this process, we have tried to be on

the same page and be focused on that. We have heard from a lot of stakeholders, a lot of different companies, and a lot of different business models that provide housing options for Americans.

Ms. Waters outlined a number in her comments. These include providers of housing for Active-Duty military families, for adults with intellectual and developmental disabilities, near-campus student housing, and, of course, the senior market.

Also included are providers who are organized as nonprofits, as was

noted, community land trusts, or entities engaged in Federal or State affordability programs, like the low-income housing tax credit program.

We have also heard from many about tools that we use today to provide

for more affordable housing options, like First Look programs, to give current renters a leg up on becoming homeowners.

These are all valuable features of our current system that encourage,

not reduce, the great availability and affordability of housing.

I agree with Ms. Waters that we need to make sure that, in the implementation of this section, these beneficial features are not inadvertently caught up when really they have done nothing to the fundamental problem that we are trying to solve today, which is this institutional investor challenge.

Leveling the playing field between individual buyers and large

institutional investors is the goal. I think we have achieved it in what we have drafted.

These features did not cause the problem that we are here today to

solve. I thank the ranking member for working with me to ensure that the build-to-rent industry, particularly, is appropriately exempted in the text that we negotiated and considered today, and I commit to working with the Treasury Department and the ranking member throughout the rulemaking process on these issues.

Ms. WATERS. Mr. Speaker, I reclaim my time.

I approve of everything Chairman Hill said, and I thank him.

Mr. HILL of Arkansas. Mr. Speaker, I thank the ranking member for this long process. It was a labor of love, I think. When Arkansas and L.A. get together, good things happen.

I thank Ms. Waters for her diligence. I thank her staff for their diligence in working with my team, Ed and Shannon, and Cary. They all worked very

hard and collaboratively on what we did today.

I also thank Senators Tim Scott and Elizabeth Warren in the Senate. I think too often we play back and forth work here, but you are actually seeing legislation, Mr. Speaker, going back and forth between the committees. This is regular order.

Mr. Speaker, 390 Members came to the House floor a few weeks ago and voted for a housing bill that Ms. Waters and I put forward. That is a pretty big vote in today's time.

Likewise, in the Senate, as Chairman Flood referenced, Senators Scott

and Warren got 89 Senators to vote for a housing bill. What does that tell us? That tells us that on a bicameral, bipartisan basis, we ought to have a housing bill.

President Trump has attempted to spur housing and housing ownership

through tax changes in the Working Families Tax Cut Act, lowering regulatory burden so we can do more housing across this country. In his own State of the Union Address, he pointed out that we ought to have moms and dads being able to buy a house without competing on cash against somebody that is some big institutional investor.

That is the executive branch and the House and Senate all on the same

page.

Today, we come to the House floor eager to bring that to fruition, to

have a win, as Chairman Flood referenced, for the American people on greater affordability of housing and greater accessibility of housing.

Mr. Speaker, I reserve the balance of my time.

Ms. WATERS. Mr. Speaker, let me just say that I appreciate Mr. Hill's support of some of the efforts that we made. Because of his background in banking and his experience, he understood exactly what we were talking about when we talked about the banks being able to do smaller loans and to provide mortgages for homes that cost a lot less than the millions of dollars.

It was because of his background and his experience that he

understood right away that we want this pilot program so that we can show everybody that it is impossible to be able to have a mortgage if, in fact, you are buying a home that costs less than millions of dollars. I thank him very much.

Mr. Speaker, I yield 1 minute to the gentleman from California (Mr. Liccardo), a member of the Financial Services Committee and an author of several provisions in this bill.

Mr. LICCARDO. Mr. Speaker, I thank the ranking member and the chair for their leadership on this effort.

Mr. Speaker, I rise today in support of this amendment to the 21st Century ROAD to Housing Act.

Today, a rapidly growing number of our families, nearly 13 million,

appear severely rent burdened, meaning they spend more than half of their income on housing and utilities.

Our housing crisis requires many actions from this Congress, but we

should start precisely where we all agree, Republicans and Democrats, on improving affordability through accelerating expansion of housing supply.

This legislation, which includes four bills that I either lead or co-

lead with my colleagues, will take important steps to cut red tape, lower costs, and boost supply of multifamily housing construction, both market-rate and affordable.

{time} 1820

Let's embrace this too rare moment of bipartisanship and approve this

package to expand supply, and then let's continue this momentum, rolling up our sleeves, to address the affordability crisis that too many of our families are pressed by. Mr. Speaker, the rent is too damn high.

Mr. Speaker, I urge my colleagues to support this package.

Ms. WATERS. Mr. Speaker, I yield back the balance of my time.

Mr. HILL of Arkansas. Mr. Speaker, may I inquire how much time is remaining.

The SPEAKER pro tempore. The gentleman from Arkansas has 4\1/4\ minutes remaining.

Mr. HILL of Arkansas. Mr. Speaker, I yield myself the balance of my time.

Mr. Speaker, I thank Members from both sides of the aisle for their perseverance and efforts. Let me thank my friends in the Senate for their perseverance and support of the important policy of having more accessible and more affordable housing by cutting red tape and increasing capital availability to housing.

I want to think about my own constituency in central Arkansas. The community development officers, Mr. Howard and his team, at the city of Little Rock, have constantly approached me that if we could make reforms to the HOME Program, like Mr. Flood and Mr. Cleaver have proposed, it will lower the cost per square foot of the ability to use that program by the city of Little Rock for new housing construction.

They have approached me about CDBG money being more flexible in how

it can be used for infrastructure and how that could produce more housing availability in Little Rock.

In this bill, we reform the incentives to investment by bank holding

companies to directly invest in housing. That is a major, new source of capital that will come to the housing market.

Then just think about the reforms we talked about in building codes,

Mr. Speaker, that have a nationwide benefit. Some 3,000 zoning agencies will be benefited from those changes. Then, also in Little Rock, there is the importance of HUD oversight.

I thank Mr. Torres of New York and Mr. Lawler of New York and their provisions in this bill that talk about HUD's oversight.

How do we hold HUD accountable for doing a better job?

Finally, Mr. Speaker, I will close by saying that the ranking member and I have included some commonsense, bipartisan reforms to our community banks to make it easier for them to be engaged in their community and delivering for those homebuilders who are building for our families across our communities.

It is important because, Mr. Speaker, six out of ten home construction loans in this country—six out of ten of those loans—are made by community banks under $10 billion. That is the heart of America. It is the heart of Main Street, and that is why the ranking member and I have put a modest number of consensus elements to signal to Americans living on Main Street and living in our neighborhoods we want to have a supply side approach: more capital available for the banks, more funding for our homebuilders, and more investment in one- to-four family properties through the provisions of cutting red tape in this bill led by Mr. Flood and Mr. Cleaver.

I just insist that that, I believe, is so important, and I believe

that has been recognized by policymakers on both sides of the aisle.

The White House recently reinforced this principle in an executive

order promoting access to mortgage credit which recognized that regulatory changes over the past two decades have made it increase the cost to originate a mortgage and service a mortgage and have distorted the structure of the mortgage market.

This executive order specifically emphasized the importance of

ensuring that community banks and smaller lenders can continue participating in mortgage lending markets, reducing unnecessary regulatory burden.

The executive branch is on the same page with the legislative branch. I think this poses an opportunity for a bicameral success that we can send to President Trump's desk that increases accessibility to housing, increases affordability to housing, and is a real success in economic policy for this country.

Mr. Speaker, I encourage all Members on both sides of the aisle to support this legislation, and I yield back the balance of my time.

Ms. BONAMICI. Mr. Speaker, the bill we are debating today, 21st Century ROAD to Housing Act, is a meaningful investment in addressing the Nation's housing crisis. It appears to be a comprehensive legislation, but manufactured housing is left out.

For no good reason the House removed a bipartisan provision from this

legislation that would revitalize manufactured housing communities. 22 million Americans, including many veterans, seniors, and working families, live in manufactured homes, and manufactured housing communities provide a critical source of attainable homeownership.

The Preservation and Reinvestment Initiative for Community

Enhancement—or PRICE Act—helps to preserve existing low-cost homes at a fraction of the cost of new construction. Although this housing package makes major investments, rural communities and people living in manufactured houses are being left behind.

Both the President and Senate support keeping the PRICE program in

the bill, so I urge my colleagues to add PRICE back in and recognize the needs of the millions of low-income Americans who live in manufactured housing communities.

The SPEAKER pro tempore. The question is on the motion offered by the gentleman from Arkansas (Mr. Hill) that the House suspend the rules and agree to the resolution, H. Res. 1299.

The question was taken.

The SPEAKER pro tempore. In the opinion of the Chair, two-thirds being in the affirmative, the ayes have it.

Mr. HILL of Arkansas. Mr. Speaker, on that I demand the yeas and nays.

The yeas and nays were ordered.

The SPEAKER pro tempore. Pursuant to clause 8 of rule XX, further proceedings on this motion will be postponed.

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