Sec. 110001 Short title; table of contents
This division may be cited as the “COVID–19 Housing, Economic Relief, and Oversight Act” or the “COVID–19 HERO Act”.
Division K — COVID–19 HERO Act
K COVID–19 HERO Act
I Providing Medical Equipment for First Responders and Essential Workers
Sec. 110101 COVID–19 Emergency Medical Supplies Enhancement
Determination on emergency supplies and relationship to state and local efforts—
Determination— For the purposes of section 101 of the Defense Production Act of 1950 (50 U.S.C. 4511), the following materials shall be deemed to be scarce and critical materials essential to the national defense and otherwise meet the requirements of section 101(b) of such Act during the COVID–19 emergency period:
Diagnostic tests, including serological tests, for COVID–19 and the reagents and other materials necessary for producing or conducting such tests.
Personal protective equipment, including face shields, N–95 respirator masks, and any other masks determined by the Secretary of Health and Human Services to be needed to respond to the COVID–19 pandemic, and the materials to produce such equipment.
Medical ventilators, the components necessary to make such ventilators, and medicines needed to use a ventilator as a treatment for any individual who is hospitalized for COVID–19.
Pharmaceuticals and any medicines determined by the Food and Drug Administration or another Government agency to be effective in treating COVID–19 (including vaccines for COVID–19) and any materials necessary to produce or use such pharmaceuticals or medicines (including self-injection syringes or other delivery systems).
Any other medical equipment or supplies determined by the Secretary of Health and Human Services or the Secretary of Homeland Security to be scarce and critical materials essential to the national defense for purposes of section 101 of the Defense Production Act of 1950 (50 U.S.C. 4511).
Exercise of title I authorities in relation to contracts by state and local governments— In exercising authorities under title I of the Defense Production Act of 1950 (50 U.S.C. 4511 et seq.) during the COVID–19 emergency period, the President (and any officer or employee of the United States to which authorities under such title I have been delegated)—
may exercise the prioritization or allocation authority provided in such title I to exclude any materials described in paragraph (1) ordered by a State or local government that are scheduled to be delivered within 15 days of the time at which—
the purchase order or contract by the Federal Government for such materials is made; or
the materials are otherwise allocated by the Federal Government under the authorities contained in such Act; and
shall, within 24 hours of any exercise of the prioritization or allocation authority provided in such title I—
notify any State or local government if the exercise of such authorities would delay the receipt of such materials ordered by such government; and
take such steps as may be necessary to ensure that such materials ordered by such government are delivered in the shortest possible period.
Update to the Federal Acquisition Regulation— Not later than 15 days after the date of the enactment of this Act, the Federal Acquisition Regulation shall be revised to reflect the requirements of paragraph (2)(A).
Engagement with the private sector—
Sense of congress— The Congress—
appreciates the willingness of private companies not traditionally involved in producing items for the health sector to volunteer to use their expertise and supply chains to produce essential medical supplies and equipment;
encourages other manufacturers to review their existing capacity and to develop capacity to produce essential medical supplies, medical equipment, and medical treatments to address the COVID–19 emergency; and
commends and expresses deep appreciation to individual citizens who have been producing personal protective equipment and other materials for, in particular, use at hospitals in their community.
Outreach representative—
Designation— Consistent with the authorities in title VII of the Defense Production Act of 1950 (50 U.S.C. 4551 et seq.), the Administrator of the Federal Emergency Management Agency, in consultation with the Secretary of Health and Human Services, shall designate or shall appoint, pursuant to section 703 of such Act (50 U.S.C. 4553), an individual to be known as the “Outreach Representative”. Such individual shall—
be appointed from among individuals with substantial experience in the private sector in the production of medical supplies or equipment; and
act as the Government-wide single point of contact during the COVID–19 emergency for outreach to manufacturing companies and their suppliers who may be interested in producing medical supplies or equipment, including the materials described under subsection (a).
Encouraging partnerships— The Outreach Representative shall seek to develop partnerships between companies, in coordination with the Supply Chain Stabilization Task Force or any overall coordinator appointed by the President to oversee the response to the COVID–19 emergency, including through the exercise of the authorities under section 708 of the Defense Production Act of 1950 (50 U.S.C. 4558).
Enhancement of supply chain production— In exercising authority under title III of the Defense Production Act of 1950 (50 U.S.C. 4531 et seq.) with respect to materials described in subsection (a), the President shall seek to ensure that support is provided to companies that comprise the supply chains for reagents, components, raw materials, and other materials and items necessary to produce or use the materials described in subsection (a).
Oversight of current activity and needs—
Response to immediate needs—
In general— Not later than 7 days after the date of the enactment of this Act, the President, in coordination with the National Response Coordination Center of the Federal Emergency Management Agency, the Administrator of the Defense Logistics Agency, the Secretary of Health and Human Services, the Secretary of Veterans Affairs, and heads of other Federal agencies (as appropriate), shall submit to the appropriate congressional committees a report assessing the immediate needs described in subparagraph (B) to combat the COVID–19 pandemic and the plan for meeting those immediate needs.
Assessment— The report required by this paragraph shall include—
an assessment of the needs for medical supplies or equipment necessary to address the needs of the population of the United States infected by the virus SARS–CoV–2 that causes COVID–19 and to prevent an increase in the incidence of COVID–19 throughout the United States, including diagnostic tests, serological tests, medicines that have been approved by the Food and Drug Administration to treat COVID–19, and ventilators and medicines needed to employ ventilators;
based on meaningful consultations with relevant stakeholders, an assessment of the need for personal protective equipment and other supplies (including diagnostic tests) required by—
health professionals, health workers, and hospital staff;
workers in industries and sectors described in the “Advisory Memorandum on Identification of Essential Critical Infrastructure Workers during the COVID–19 Response” issued by the Director of Cybersecurity and Infrastructure Security Agency of the Department of Homeland Security on April 17, 2020 (and any expansion of industries and sectors included in updates to such advisory memorandum); and
other workers determined to be essential based on such consultation;
an assessment of the quantities of equipment and supplies in the Strategic National Stockpile (established under section 319F–2 of the Public Health Service Act ((42 U.S.C. 247d–6b(a)(1))) as of the date of the report, and the projected gap between the quantities of equipment and supplies identified as needed in the assessment under clauses (i) and (ii) and the quantities in the Strategic National Stockpile;
an identification of the industry sectors and manufacturers most ready to fulfill purchase orders for such equipment and supplies (including manufacturers that may be incentivized) through the exercise of authority under section 303(e) of the Defense Production Act of 1950 (50 U.S.C. 4533(e)) to modify, expand, or improve production processes to manufacture such equipment and supplies to respond immediately to a need identified in clause (i) or (ii);
an identification of Government-owned and privately-owned stockpiles of such equipment and supplies not included in the Strategic National Stockpile that could be repaired or refurbished;
an identification of previously distributed critical supplies that can be redistributed based on current need;
a description of any exercise of the authorities described under paragraph (1)(E) or (2)(A) of subsection (a); and
an identification of critical areas of need, by county and by areas identified by the Indian Health Service, in the United States and the metrics and criteria for identification as a critical area.
Plan— The report required by this paragraph shall include a plan for meeting the immediate needs to combat the COVID–19 pandemic, including the needs described in subparagraph (B). Such plan shall include—
each contract the Federal Government has entered into to meet such needs, including the purpose of each contract, the type and amount of equipment, supplies, or services to be provided under the contract, the entity performing such contract, and the dollar amount of each contract;
each contract that the Federal Government intends to enter into within 14 days after submission of such report, including the information described in subparagraph (B) for each such contract; and
whether any of the contracts described in clause (i) or (ii) have or will have a priority rating under the Defense Production Act of 1950 (50 U.S.C. 4501 et seq.), including purchase orders pursuant to Department of Defense Directive 4400.1 (or any successor directive), subpart A of part 101 of title 45, Code of Federal Regulations, or any other applicable authority.
Additional requirements— The report required by this paragraph, and each update required by subparagraph (E), shall include—
any requests for equipment and supplies from State or local governments and Indian Tribes, and an accompanying list of the employers and unions consulted in developing these requests;
any modeling or formulas used to determine allocation of equipment and supplies, and any related chain of command issues on making final decisions on allocations;
the amount and destination of equipment and supplies delivered;
an explanation of why any portion of any contract, whether to replenish the Strategic National Stockpile or otherwise, will not be filled;
of products procured under this section, the percentage of such products that are used to replenish the Strategic National Stockpile, that are targeted to COVID–19 hotspots, and that are used for the commercial market;
metrics, formulas, and criteria used to determine COVID–19 hotspots or areas of critical need for a State, county, or an area identified by the Indian Health Service;
production and procurement benchmarks, where practicable; and
results of the consultation with the relevant stakeholders required by subparagraph (B)(ii).
Updates— The President, in coordination with the National Response Coordination Center of the Federal Emergency Management Agency, the Administrator of the Defense Logistics Agency, the Secretary of Health and Human Services, the Secretary of Veterans Affairs, and heads of other Federal agencies (as appropriate), shall update such report every 14 days.
Public availability— The President shall make the report required by this paragraph and each update required by subparagraph (E) available to the public, including on a Government website.
Response to longer-term needs—
In general— Not later than 14 days after the date of enactment of this Act, the President, in coordination with the National Response Coordination Center of the Federal Emergency Management Agency, the Administrator of the Defense Logistics Agency, the Secretary of Health and Human Services, the Secretary of Veterans Affairs, and heads of other Federal agencies (as appropriate), shall submit to the appropriate congressional committees a report containing an assessment of the needs described in subparagraph (B) to combat the COVID–19 pandemic and the plan for meeting such needs during the 6-month period beginning on the date of submission of the report.
Assessment— The report required by this paragraph shall include—
an assessment of the elements describe in clauses (i) through (v) and clause (viii) of paragraph (1)(B); and
an assessment of needs related to COVID–19 vaccines and any additional services to address the COVID–19 pandemic, including services related to health surveillance to ensure that the appropriate level of contact tracing related to detected infections is available throughout the United States.
Plan— The report required by this paragraph shall include a plan for meeting the longer-term needs to combat the COVID–19 pandemic, including the needs described in subparagraph (B). This plan shall include—
a plan to exercise authorities under the Defense Production Act of 1950 (50 U.S.C. 4501 et seq.) necessary to increase the production of the medical equipment, supplies, and services that are essential to meeting the needs identified in subparagraph (B), including the number of N–95 respirator masks and other personal protective equipment needed, based on meaningful consultations with relevant stakeholders, by the private sector to resume economic activity and by the public and nonprofit sectors to significantly increase their activities;
results of the consultations with the relevant stakeholders required by clause (i);
an estimate of the funding and other measures necessary to rapidly expand manufacturing production capacity for such equipment and supplies, including—
any efforts to expand, retool, or reconfigure production lines;
any efforts to establish new production lines through the purchase and installation of new equipment; or
the issuance of additional contracts, purchase orders, purchase guarantees, or other similar measures;
each contract the Federal Government has entered into to meet such needs or expand such production, the purpose of each contract, the type and amount of equipment, supplies, or services to be provided under the contract, the entity performing such contract, and the dollar amount of each contract;
each contract that the Federal Government intends to enter into within 14 days after submission of such report, including the information described in clause (iv) for each such contract;
whether any of the contracts described in clause (iv) or (v) have or will have a priority rating under the Defense Production Act of 1950 (50 U.S.C. 4501 et seq.), including purchase orders pursuant to Department of Defense Directive 4400.1 (or any successor directive), subpart A of part 101 of title 45, Code of Federal Regulations, or any other applicable authority; and
the manner in which the Defense Production Act of 1950 (50 U.S.C. 4501 et seq.) could be used to increase services necessary to combat the COVID–19 pandemic, including services described in subparagraph (B)(ii).
Updates— The President, in coordination with the National Response Coordination Center of the Federal Emergency Management Agency, the Administrator of the Defense Logistics Agency, the Secretary of Health and Human Services, the Secretary of Veterans Affairs, and heads of other Federal agencies (as appropriate), shall update such report every 14 days.
Public availability— The President shall make the report required by this subsection and each update required by subparagraph (D) available to the public, including on a Government website.
Report on exercising authorities under the Defense Production Act of 1950—
In general— Not later than 14 days after the date of the enactment of this Act, the President, in consultation with the Administrator of the Federal Emergency Management Agency, the Secretary of Defense, and the Secretary of Health and Human Services, shall submit to the appropriate congressional committees a report on the exercise of authorities under titles I, III, and VII of the Defense Production Act of 1950 (50 U.S.C. 4501 et seq.) prior to the date of such report.
Contents— The report required under subparagraph (A) and each update required under subparagraph (C) shall include, with respect to each exercise of such authority—
an explanation of the purpose of the applicable contract, purchase order, or other exercise of authority (including an allocation of materials, services, and facilities under section 101(a)(2) of the Defense Production Act of 1950 (50 U.S.C. 4511(a)(2));
the cost of such exercise of authority; and
if applicable—
the amount of goods that were purchased or allocated;
an identification of the entity awarded a contract or purchase order or that was the subject of the exercise of authority; and
an identification of any entity that had shipments delayed by the exercise of any authority under the Defense Production Act of 1950 (50 U.S.C. 4501 et seq.).
Updates— The President shall update the report required under subparagraph (A) every 14 days.
Public availability— The President shall make the report required by this subsection and each update required by subparagraph (C) available to the public, including on a Government website.
Quarterly reporting— The President shall submit to Congress, and make available to the public (including on a Government website), a quarterly report detailing all expenditures made pursuant to titles I, III, and VII of the Defense Production Act of 1950 50 U.S.C. 4501 et seq.).
Sunset— The requirements of this subsection shall terminate on the later of—
December 31, 2021; or
the end of the COVID–19 emergency period.
Enhancements to the Defense Production Act of 1950—
Health emergency authority— Section 107 of the Defense Production Act of 1950 (50 U.S.C. 4517) is amended by adding at the end the following:
“(c) Health emergency authority—With respect to a public health emergency declaration by the Secretary of Health and Human Services under section 319 of the Public Health Service Act, or preparations for such a health emergency, the Secretary of Health and Human Services and the Administrator of the Federal Emergency Management Agency are authorized to carry out the authorities provided under this section to the same extent as the President.”
Emphasis on business concerns owned by women, minorities, veterans, and Native Americans— Section 108 of the Defense Production Act of 1950 (50 U.S.C. 4518) is amended—
in the heading, by striking “MODERNIZATION OF SMALL BUSINESS SUPPLIERS” and inserting “SMALL BUSINESS PARTICIPATION AND FAIR INCLUSION”;
by amending subsection (a) to read as follows:
“(a) Participation and inclusion
“(1) In general—In providing any assistance under this Act, the President shall accord a strong preference for subcontractors and suppliers that are—
“(A) small business concerns; or
“(B) businesses of any size owned by women, minorities, veterans, and the disabled.
“(2) Special consideration—To the maximum extent practicable, the President shall accord the preference described under paragraph (1) to small business concerns and businesses described in paragraph (1)(B) that are located in areas of high unemployment or areas that have demonstrated a continuing pattern of economic decline, as identified by the Secretary of Labor.”
by adding at the end the following:
“(c) Minority defined—In this section, the term minority—
“(1) has the meaning given the term in section 308(b) of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989; and
“(2) includes any indigenous person in the United States, including any territories of the United States.”
Additional information in annual report— Section 304(f)(3) of the Defense Production Act of 1950 (50 U.S.C. 4534(f)(3)) is amended by striking “year.” and inserting “year, including the percentage of contracts awarded using Fund amounts to each of the groups described in section 108(a)(1)(B) (and, with respect to minorities, disaggregated by ethnic group), and the percentage of the total amount expended during such fiscal year on such contracts.”.
Definition of national defense— Section 702(14) of the Defense Production Act of 1950 is amended by striking “and critical infrastructure protection and restoration” and inserting “, critical infrastructure protection and restoration, and health emergency preparedness and response activities”.
Securing essential medical materials—
Statement of policy— Section 2(b) of the Defense Production Act of 1950 (50 U.S.C. 4502) is amended—
by redesignating paragraphs (3) through (8) as paragraphs (4) through (9), respectively; and
by inserting after paragraph (2) the following:
“(3) authorities under this Act should be used when appropriate to ensure the availability of medical materials essential to national defense, including through measures designed to secure the drug supply chain, and taking into consideration the importance of United States competitiveness, scientific leadership and cooperation, and innovative capacity;”
Strengthening domestic capability— Section 107 of the Defense Production Act of 1950 (50 U.S.C. 4517) is amended—
in subsection (a), by inserting “(including medical materials)” after “materials”; and
in subsection (b)(1), by inserting “(including medical materials such as drugs to diagnose, cure, mitigate, treat, or prevent disease that essential to national defense)” after “essential materials”.
Strategy on securing supply chains for medical articles— Title I of the Defense Production Act of 1950 (50 U.S.C. 4511 et seq.) is amended by adding at the end the following:
“109. Strategy on securing supply chains for medical materials
“(a) In general—Not later than 180 days after the date of the enactment of this section, the President, in consultation with the Secretary of Health and Human Services, the Secretary of Commerce, the Secretary of Homeland Security, and the Secretary of Defense, shall transmit a strategy to the appropriate Members of Congress that includes the following:
“(1) A detailed plan to use the authorities under this title and title III, or any other provision of law, to ensure the supply of medical materials (including drugs to diagnose, cure, mitigate, treat, or prevent disease) essential to national defense, to the extent necessary for the purposes of this Act.
“(2) An analysis of vulnerabilities to existing supply chains for such medical articles, and recommendations to address the vulnerabilities.
“(3) Measures to be undertaken by the President to diversify such supply chains, as appropriate and as required for national defense.
“(4) A discussion of—
“(A) any significant effects resulting from the plan and measures described in this subsection on the production, cost, or distribution of vaccines or any other drugs (as defined under section 201 of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 321));
“(B) a timeline to ensure that essential components of the supply chain for medical materials are not under the exclusive control of a foreign government in a manner that the President determines could threaten the national defense of the United States; and
“(C) efforts to mitigate any risks resulting from the plan and measures described in this subsection to United States competitiveness, scientific leadership, and innovative capacity, including efforts to cooperate and proactively engage with United States allies.
“(b) Progress report—Following submission of the strategy under subsection (a), the President shall submit to the appropriate Members of Congress an annual progress report evaluating the implementation of the strategy, and may include updates to the strategy as appropriate. The strategy and progress reports shall be submitted in unclassified form but may contain a classified annex.
“(c) Appropriate members of congress—The term appropriate Members of Congress means the Speaker, majority leader, and minority leader of the House of Representatives, the majority leader and minority leader of the Senate, the Chairman and Ranking Member of the Committees on Armed Services and Financial Services of the House of Representatives, and the Chairman and Ranking Member of the Committees on Armed Services and Banking, Housing, and Urban Affairs of the Senate.”
GAO report—
In general— Not later than 270 days after the date of the enactment of this Act, and annually thereafter, the Comptroller General of the United States shall submit to the appropriate congressional committees a report on ensuring that the United States Government has access to the medical supplies and equipment necessary to respond to future pandemics and public health emergencies, including recommendations with respect to how to ensure that the United States supply chain for diagnostic tests (including serological tests), personal protective equipment, vaccines, and therapies is better equipped to respond to emergencies, including through the use of funds in the Defense Production Act Fund under section 304 of the Defense Production Act of 1950 (50 U.S.C. 4534) to address shortages in that supply chain.
Review of assessment and plan—
In general— Not later than 30 days after each of the submission of the reports described in paragraphs (1) and (2) of subsection (d), the Comptroller General of the United States shall submit to the appropriate congressional committees an assessment of such reports, including identifying any gaps and providing any recommendations regarding the subject matter in such reports.
Monthly review— Not later than a month after the submission of the assessment under subparagraph (A), and monthly thereafter, the Comptroller General shall issue a report to the appropriate congressional committees with respect to any updates to the reports described in paragraph (1) and (2) of subsection (d) that were issued during the previous 1-month period, containing an assessment of such updates, including identifying any gaps and providing any recommendations regarding the subject matter in such updates.
Definitions— In this section:
Appropriate congressional committees— The term appropriate congressional committees means the Committees on Appropriations, Armed Services, Energy and Commerce, Financial Services, Homeland Security, and Veterans’ Affairs of the House of Representatives and the Committees on Appropriations, Armed Services, Banking, Housing, and Urban Affairs, Health, Education, Labor, and Pensions, Homeland Security and Governmental Affairs, and Veterans’ Affairs of the Senate.
COVID–19 emergency period— The term COVID–19 emergency period means the period beginning on the date of enactment of this Act and ending after the end of the incident period for the emergency declared on March 13, 2020, by the President under Section 501 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 4121 et seq.) relating to the Coronavirus Disease 2019 (COVID–19) pandemic.
Relevant stakeholder— The term relevant stakeholder means—
representative private sector entities;
representatives of the nonprofit sector; and
representatives of labor organizations representing workers, including unions that represent health workers, manufacturers, public sector employees, and service sector workers.
State— The term State means each of the several States, the District of Columbia, the Commonwealth of Puerto Rico, and any territory or possession of the United States.
II Protecting Renters and Homeowners from Evictions and Foreclosures
Sec. 110201 Emergency rental assistance
Authorization of appropriations— There is authorized to be appropriated to the Secretary of Housing and Urban Development (referred to in this section as the “Secretary”) $100,000,000,000 for an additional amount for grants under the Emergency Solutions Grants program under subtitle B of title IV of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11371 et seq.), to remain available until expended (subject to subsections (d) and (n) of this section), to be used for providing short- or medium-term assistance with rent and rent-related costs (including tenant-paid utility costs, utility- and rent-arrears, fees charged for those arrears, and security and utility deposits) in accordance with paragraphs (4) and (5) of section 415(a) of such Act (42 U.S.C. 11374(a)) and this section.
Definition of at risk of homelessness— Notwithstanding section 401(1) of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11360(1)), for purposes of assistance made available with amounts made available pursuant to subsection (a), the term “at risk of homelessness” means, with respect to an individual or family, that the individual or family—
has an income below 80 percent of the median income for the area as determined by the Secretary; and
has an inability to attain or maintain housing stability or has insufficient resources to pay for rent or utilities due to financial hardships.
Income targeting and calculation— For purposes of assistance made available with amounts made available pursuant to subsection (a)—
each recipient of such amounts shall use—
not less than 40 percent of the amounts received only for providing assistance for individuals or families experiencing homelessness, or for persons or families at risk of homelessness who have incomes not exceeding 30 percent of the median income for the area as determined by the Secretary;
not less than 70 percent of the amounts received only for providing assistance for individuals or families experiencing homelessness, or for persons or families at risk of homelessness who have incomes not exceeding 50 percent of the median income for the area as determined by the Secretary; and
the remainder of the amounts received only for providing assistance to individuals or families experiencing homelessness, or for persons or families at risk of homelessness who have incomes not exceeding 80 percent of the median income for the area as determined by the Secretary, but such recipient may establish a higher percentage limit for purposes of subsection (b)(1), which shall not in any case exceed 120 percent of the area median income, if the recipient states that it will serve such population in its plan; and
in determining the income of a household for homelessness prevention assistance—
the calculation of income performed at the time of application for such assistance, including arrearages, shall consider only income that the household is currently receiving at such time and any income recently terminated shall not be included;
any calculation of income performed with respect to households receiving ongoing assistance (such as medium-term rental assistance) 3 months after initial receipt of assistance shall consider only the income that the household is receiving at the time of such review; and
the calculation of income performed with respect to households receiving assistance for arrearages shall consider only the income that the household was receiving at the time such arrearages were incurred.
3-year availability—
In general— Each recipient of amounts made available pursuant to subsection (a) shall—
expend not less than 60 percent of such grant amounts within 2 years of the date that such funds became available to the recipient for obligation; and
expend 100 percent of such grant amounts within 3 years of such date.
Reallocation after 2 years— The Secretary may recapture any amounts not expended in compliance with paragraph (1)(A) and reallocate such amounts to recipients in compliance with the formula referred to in subsection (h)(1)(A).
Rent restrictions—
Inapplicability— Section 576.106(d) of title 24, Code of Federal Regulations, shall not apply with respect to homelessness prevention assistance made available with amounts made available under subsection (a).
Amount of rental assistance— In providing homelessness prevention assistance with amounts made available under subsection (a), the maximum amount of rental assistance that may be provided shall be the greater of—
120 percent of the higher of—
the Fair Market Rent established by the Secretary for the metropolitan area or county; or
the applicable Small Area Fair Market Rent established by the Secretary; or
such higher amount as the Secretary shall determine is needed to cover market rents in the area.
Subleases— A recipient shall not be prohibited from providing assistance authorized under subsection (a) with respect to subleases that are valid under State law.
Housing relocation or stabilization activities— A recipient of amounts made available pursuant to subsection (a) may expend up to 25 percent of its allocation for activities under section 415(a)(5) of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11374(a)(5)), except that notwithstanding such section, activities authorized under this subsection may be provided only for individuals or families who have incomes not exceeding 50 percent of the area median income and meet the criteria in subsection (b)(2) of this section or section 103 of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11302). This subsection shall not apply to rent-related costs that are specifically authorized under subsection (a) of this section.
Allocation of assistance—
In general— In allocating amounts made available pursuant to subsection (a), the Secretary shall—
for any purpose authorized in this section—
allocate 2 percent of such amount for Indian tribes and tribally designated housing entities (as such terms are defined in section 4 of the Native American Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 4103)) under the formula established pursuant to section 302 of such Act (25 U.S.C. 4152), except that 0.3 percent of the amount allocated under this clause shall be allocated for the Department of Hawaiian Home Lands; and
allocate 0.3 percent of such amount for the Virgin Islands, Guam, American Samoa, and the Northern Mariana Islands;
not later than 30 days after the date of enactment of this Act, obligate and disburse the amounts allocated pursuant to clause (i) in accordance with such allocations and provide such recipient with any necessary guidance for use of the funds; and
not later than 7 days after the date of enactment of this Act and after setting aside amounts under subparagraph (A), allocate 50 percent of any such remaining amounts under the formula specified in subsections (a), (b), and (e) of section 414 of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11373) for, and notify, each State, metropolitan city, and urban county that is to receive a direct grant of such amounts; and
not later than 30 days after the date of enactment of this Act, obligate and disburse the amounts allocated pursuant to clause (i) in accordance with such allocations and provide such recipient with any necessary guidance for use of the funds; and
not later than 45 days after the date of enactment of this Act, allocate any remaining amounts for eligible recipients according to a formula to be developed by the Secretary that takes into consideration the formula referred to in subparagraph (A) and the need for emergency rental assistance under this section, including the severe housing cost burden among extremely low- and very low-income renters and disruptions in housing and economic conditions, including unemployment; and
not later than 30 days after the date of the allocation of such amounts pursuant to clause (i), obligate and disburse such amounts in accordance with such allocations.
Allocations to states—
In general— Notwithstanding subsection (a) of section 414 of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11373(a)) and section 576.202(a) of title 24, Code of Federal Regulations, a State recipient of an allocation under this section may elect to use up to 100 percent of its allocation to carry out activities eligible under this section directly.
Requirement— Any State recipient making an election described in subparagraph (A) shall serve households throughout the entire State, including households in rural communities and small towns.
Election not to administer— If a recipient other than a State elects not to receive funds under this section, such funds shall be allocated to the State recipient in which the recipient is located.
Partnerships, subgrants, and contracts— A recipient of a grant under this section may distribute funds through partnerships, subgrants, or contracts with an entity, such as 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))), that is capable of carrying activities under this section.
Revision to rule— The Secretary shall revise section 576.3 of tile 24, Code of Federal Regulations, to change the set aside for allocation to the territories to exactly 0.3 percent.
Inapplicability of matching requirement— Subsection (a) of section 416 of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11375(a)) shall not apply to any amounts made available pursuant to subsection (a) of this section.
Reimbursement of eligible activities— Amounts made available pursuant to subsection (a) may be used by a recipient to reimburse expenditures incurred for eligible activities under this section after March 27, 2020.
Prohibition on prerequisites— None of the funds made available pursuant to this section may be used to require any individual receiving assistance under the program under this section to receive treatment or perform any other prerequisite activities as a condition for receiving shelter, housing, or other services.
Waivers and alternative requirements—
In general—
Authority— In administering the amounts made available pursuant to subsection (a), the Secretary may waive, or specify alternative requirements for, any provision of any statute or regulation that the Secretary administers in connection with the obligation by the Secretary or the use by the recipient of such amounts (except for requirements related to fair housing, nondiscrimination, labor standards, prohibition on prerequisites, minimum data reporting, and the environment), if the Secretary finds that good cause exists for the waiver or alternative requirement and such waiver or alternative requirement is necessary to expedite the use of funds made available pursuant to this section, to respond to public health orders or conditions related to the COVID-19 emergency, or to ensure that eligible individuals can attain or maintain housing stability.
Public notice— The Secretary shall notify the public through the Federal Register or other appropriate means of any waiver or alternative requirement under this paragraph, and that such public notice shall be provided, at a minimum, on the internet at the appropriate Government website or through other electronic media, as determined by the Secretary.
Eligibility requirements— Eligibility for rental assistance or housing relocation and stabilization services shall not be restricted based upon the prior receipt of assistance under the program during the preceding three years.
Public hearings—
Inapplicability of in-person hearing requirements during the COVID-19 emergency—
In general— A recipient under this section shall not be required to hold in-person public hearings in connection with its citizen participation plan, but shall provide citizens with notice, including publication of its plan for carrying out this section on the internet, and a reasonable opportunity to comment of not less than 5 days.
Resumption of in-person hearing requirements— After the period beginning on the date of enactment of this Act and ending on the date of the termination by the Federal Emergency Management Agency of the emergency declared on March 13, 2020, by the President under the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 4121 et seq.) relating to the Coronavirus Disease 2019 (COVID-19) pandemic, and after the period described in subparagraph (B), the Secretary shall direct recipients under this section to resume pre-crisis public hearing requirements.
Virtual public hearings—
In general— During the period that national or local health authorities recommend social distancing and limiting public gatherings for public health reasons, a recipient may fulfill applicable public hearing requirements for all grants from funds made available pursuant to this section by carrying out virtual public hearings.
Requirements— Any virtual hearings held under clause (i) by a recipient under this section shall provide reasonable notification and access for citizens in accordance with the recipient’s certifications, timely responses from local officials to all citizen questions and issues, and public access to all questions and responses.
Consultation— In addition to any other citizen participation and consultation requirements, in developing and implementing a plan to carry out this section, each recipient of funds made available pursuant to this section shall consult with the applicable Continuum or Continuums of Care for the area served by the recipient and organizations representing underserved communities and populations and organizations with expertise in affordable housing, fair housing, and services for people with disabilities.
Administration—
By Secretary— Of any amounts made available pursuant to subsection (a)—
not more than the lesser of 0.5 percent, or $15,000,000, may be used by the Secretary for staffing, training, technical assistance, technology, monitoring, research, and evaluation activities necessary to carry out the program carried out under this section, and such amounts shall remain available until September 30, 2024; and
not more than $2,000,000 shall be available to the Office of the Inspector General for audits and investigations of the program authorized under this section.
By Recipients— Notwithstanding section 576.108 of title 24 of the Code of Federal Regulations, with respect to amounts made available pursuant to this section, a recipient may use up to 10 percent of the recipient’s grant for payment of administrative costs related to the planning and execution of activities.
Sec. 110202 Homeowner Assistance Fund
Definitions— In this section:
Fund— The term “Fund” means the Homeowner Assistance Fund established under subsection (b).
Secretary— The term Secretary means the Secretary of the Treasury.
State— The term State means any State of the United States, the District of Columbia, any territory of the United States, Puerto Rico, Guam, American Samoa, the Virgin Islands, and the Northern Mariana Islands.
Establishment of fund— There is established at the Department of the Treasury a Homeowner Assistance Fund to provide such funds as are made available under subsection (g) to State housing finance agencies for the purpose of preventing homeowner mortgage defaults, foreclosures, and displacements of individuals and families experiencing financial hardship after January 21, 2020.
Allocation of funds—
Administration— Of any amounts made available for the Fund, the Secretary of the Treasury may allocate, in the aggregate, an amount not exceeding 5 percent—
to the Office of Financial Stability established under section 101(a) of the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5211(a)) to administer and oversee the Fund, and to provide technical assistance to States for the creation and implementation of State programs to administer assistance from the Fund; and
to the Inspector General of the Department of the Treasury for oversight of the program under this section.
For States— The Secretary shall establish such criteria as are necessary to allocate the funds available within the Fund for each State. The Secretary shall allocate such funds among all States taking into consideration the number of unemployment claims within a State relative to the nationwide number of unemployment claims.
Small state minimum— The amount allocated for each State shall not be less than $250,000,000.
Set-aside for insular areas— Notwithstanding any other provision of this section, of the amounts appropriated under subsection (g), the Secretary shall reserve $200,000,000 to be disbursed to Guam, American Samoa, the Virgin Islands, and the Northern Mariana Islands based on each such territory’s share of the combined total population of all such territories, as determined by the Secretary. For the purposes of this paragraph, population shall be determined based on the most recent year for which data are available from the United States Census Bureau.
Set-aside for Indian tribes and Native Hawaiians—
Indian tribes— Notwithstanding any other provision of this section, of the amounts appropriated under subsection (g), the Secretary shall use 5 percent to make grants in accordance with subsection (f) to eligible recipients for the purposes described in subsection (e)(1).
Native Hawaiians— Of the funds set aside under subparagraph (A), the Secretary shall use 0.3 percent to make grants to the Department of Hawaiian Home Lands in accordance with subsection (f) for the purposes described in subsection (e)(1).
Disbursement of funds—
Administration— Except for amounts made available for assistance under subsection (f), State housing finance agencies shall be primarily responsible for administering amounts disbursed from the Fund, but may delegate responsibilities and sub-allocate amounts to community development financial institutions and State agencies that administer Low-Income Home Energy Assistance Program of the Department of Health and Human Services.
Notice of funding— The Secretary shall provide public notice of the amounts that will be made available to each State and the method used for determining such amounts not later than the expiration of the 14-day period beginning on the date of the enactment of this Act of enactment.
SHFA plans—
Eligibility— To be eligible to receive funding allocated for a State under the section, a State housing finance agency for the State shall submit to the Secretary a plan for the implementation of State programs to administer, in part or in full, the amount of funding the state is eligible to receive, which shall provide for the commencement of receipt of applications by homeowners for assistance, and funding of such applications, not later than the expiration of the 6-month period beginning upon the approval under this paragraph of such plan.
Multiple plans— . A State housing finance agency may submit multiple plans, each covering a separate portion of funding for which the State is eligible.
Timing— The Secretary shall approve or disapprove a plan within 30 days after the plan’s submission and, if disapproved, explain why the plan could not be approved.
Disbursement upon approval— The Secretary shall disburse to a State housing finance agency the appropriate amount of funding upon approval of the agency’s plan.
Amendments— A State housing finance agency may subsequently amend a plan that has previously been approved, provided that any plan amendment shall be subject to the approval of the Secretary. The Secretary shall approve any plan amendment or disapprove such amendment explain why the plan amendment could not be approved within 45 days after submission to the Secretary of such amendment.
Technical assistance— The Secretary shall provide technical assistance for any State housing finance agency that twice fails to have a submitted plan approved.
Plan Templates— The Secretary shall, not later than 30 days after the date of the enactment of this Act, publish templates that States may utilize in drafting the plans required under paragraph (3)(A). The template plans shall include standard program terms and requirements, as well as any required legal language, which State housing finance agencies may modify with the consent of the Secretary.
Permissible uses of fund—
In general— Funds made available to State housing finance agencies pursuant to this section may be used for the purposes established under subsection (b), which may include—
mortgage payment assistance, including financial assistance to allow a borrower to reinstate their mortgage or to achieve a more affordable mortgage payment, which may include principal reduction or rate reduction, provided that any mortgage payment assistance is tailored to a borrower’s needs and their ability to repay, and takes into consideration the loss mitigation options available to the borrower;
assistance with payment of taxes, hazard insurance, flood insurance, mortgage insurance, or homeowners’ association fees;
utility payment assistance, including electric, gas, water, and internet service, including broadband internet access service (as such term is defined in section 8.1(b) of title 47, Code of Federal Regulations (or any successor regulation));
reimbursement of funds expended by a State or local government during the period beginning on January 21, 2020, and ending on the date that the first funds are disbursed by the State under the Fund, for the purpose of providing housing or utility assistance to individuals or otherwise providing funds to prevent foreclosure or eviction of a homeowner or prevent mortgage delinquency or loss of housing or critical utilities as a response to the coronavirus disease 2019 (COVID–19) pandemic; and
any other assistance for homeowners to prevent eviction, mortgage delinquency or default, foreclosure, or the loss of essential utility services.
Targeting—
Requirement— Not less than 60 percent of amounts made available for each State or other entity allocated amounts under subsection (c) shall be used for activities under paragraph (1) that assist homeowners having incomes equal to or less than 80 percent of the area median income.
Determination of income— In determining the income of a household for purposes of this paragraph, income shall be considered to include only income that the household is receiving at the time of application for assistance from the Fund and any income recently terminated shall not be included, except that for purposes of households receiving assistance for arrearages income shall include only the income that the household was receiving at the time such arrearages were incurred.
Language assistance— Each State housing finance agency or other entity allocated amounts under subsection (c) shall make available to each applicant for assistance from amounts from the Fund language assistance in any language for which such language assistance is available to the State housing finance agency or entity in and shall provide notice to each such applicant that such language assistance is available.
Administrative expenses— Not more than 15 percent of the amount allocated to a State pursuant to subsection (c) may be used by a State housing financing agency for administrative expenses. Any amounts allocated to administrative expenses that are no longer necessary for administrative expenses may be used in accordance with paragraph (1).
Tribal and Native Hawaiian assistance—
Definitions— In this subsection:
Department of Hawaiian home lands— The term “Department of Hawaiian Home Lands” has the meaning given the term in section 801 of the Native American Housing Assistance and Self-Determination Act of 1996 (42 U.S.C. 4221).
Eligible recipient— The term “eligible recipient” means any entity eligible to receive a grant under section 101 of the Native American Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 4111).
Requirements—
Allocation— Except for the funds set aside under subsection (c)(5)(B), the Secretary shall allocate the funds set aside under subsection (c)(5)(A) using the allocation formula described in subpart D of part 1000 of title 24, Code of Federal Regulations (or any successor regulations).
Native Hawaiians— The Secretary shall use the funds made available under subsection (c)(5)(B) in accordance with part 1006 of title 24, Code of Federal Regulations (or successor regulations).
Transfer— The Secretary shall transfer any funds made available under subsection (c)(5) that have not been allocated by an eligible recipient or the Department of Hawaiian Home Lands, as applicable, to provide the assistance described in subsection (e)(1) by December 31, 2030, to the Secretary of Housing and Urban Development to carry out the Native American Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 4101 et seq.).
Authorization of appropriations— There is authorized to be appropriated to the Homeowner Assistance Fund established under subsection (b), $75,000,000,000, to remain available until expended.
Use of housing finance agency innovation fund for the hardest hit housing markets funds— A State housing finance agency may reallocate any administrative or programmatic funds it has received as an allocation from the Housing Finance Agency Innovation Fund for the Hardest Hit Housing Markets created pursuant to section 101(a) of the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5211(a)) that have not been otherwise allocated or disbursed as of the date of enactment of this Act to supplement any administrative or programmatic funds received from the Housing Assistance Fund. Such reallocated funds shall not be considered when allocating resources from the Housing Assistance Fund using the process established under subsection (c) and shall remain available for the uses permitted and under the terms and conditions established by the contract with Secretary created pursuant to subsection (d)(1) and the terms of subsection (i).
Reporting requirements— The Secretary shall provide public reports not less frequently than quarterly regarding the use of funds provided by the Homeowner Assistance Fund. Such reports shall include the following data by State and by program within each State, both for the past quarter and throughout the life of the program—
the amount of funds allocated;
the amount of funds disbursed;
the number of households and individuals assisted;
the acceptance rate of applicants;
the type or types of assistance provided to each household;
whether the household assisted had a federally backed loan and identification of the Federal entity backing such loan;
the average amount of funding provided per household receiving assistance and per type of assistance provided;
the average number of monthly payments that were covered by the funding amount that a household received, as applicable, disaggregated by type of assistance provided;
the income level of each household receiving assistance; and
the outcome 12 months after the household has received assistance.
Sec. 110203 Protecting renters and homeowners from evictions and foreclosures
Eviction moratorium— The CARES Act is amended by striking section 4024 (15 U.S.C. 9058; Public Law 116–136; 134 Stat. 492) and inserting the following new section:
“4024. Temporary moratorium on eviction filings
“(a) Congressional findings—The Congress finds that—
“(1) according to the 2018 American Community Survey, 36 percent of households in the United States—more than 43 million households—are renters;
“(2) in 2019 alone, renters in the United States paid $512 billion in rent;
“(3) according to the Joint Center for Housing Studies of Harvard University, 20.8 million renters in the United States spent more than 30 percent of their incomes on housing in 2018 and 10.9 million renters spent more than 50 percent of their incomes on housing in the same year;
“(4) according to data from the Department of Labor, more than 30 million people have filed for unemployment since the COVID-19 pandemic began;
“(5) the impacts of the spread of COVID-19, which is now considered a global pandemic, are expected to negatively impact the incomes of potentially millions of renter households, making it difficult for them to pay their rent on time; and
“(6) evictions in the current environment would increase homelessness and housing instability which would be counterproductive towards the public health goals of keeping individuals in their homes to the greatest extent possible.
“(b) Moratorium—During the period beginning on the date of the enactment of this Act and ending 12 months after such date of enactment, the lessor of a covered dwelling located in such State may not make, or cause to be made, any filing with the court of jurisdiction to initiate a legal action to recover possession of the covered dwelling from the tenant for nonpayment of rent or other fees or charges.
“(c) Definitions—For purposes of this section, the following definitions shall apply:
“(1) Covered dwelling—The term “covered dwelling” means a dwelling that is occupied by a tenant—
“(A) pursuant to a residential lease; or
“(B) without a lease or with a lease terminable at will under State law.
“(2) Dwelling—The term “dwelling” has the meaning given such term in section 802 of the Fair Housing Act (42 U.S.C. 3602) and includes houses and dwellings described in section 803(b) of such Act (42 U.S.C. 3603(b)).
“(d) Notice to vacate after moratorium expiration date—After the expiration of the period described in subsection (b), the lessor of a covered dwelling may not require the tenant to vacate the covered dwelling by reason of nonpayment of rent or other fees or charges before the expiration of the 30-day period that begins upon the provision by the lessor to the tenant, after the expiration of the period described in subsection (b), of a notice to vacate the covered dwelling.”
Mortgage relief—
Forbearance and foreclosure moratorium for covered mortgage loans— Section 4022 of the CARES Act (15 U.S.C. 9056) is amended—
by striking “Federally backed mortgage loan” each place such term appears and inserting “covered mortgage loan”; and
in subsection (a)—
by amending paragraph (2) to read as follows:
“(2) Covered mortgage loan—The term covered mortgage loan means any credit transaction that is secured by a mortgage, deed of trust, or other equivalent consensual security interest on a 1- to 4-unit dwelling or on residential real property that includes a 1- to 4-unit dwelling, except that it shall not include a credit transaction under an open end credit plan other than a reverse mortgage.”
by adding at the end the following:
“(3) Covered period—With respect to a loan, the term covered period means the period beginning on the date of enactment of this Act and ending 12 months after such date of enactment.”
Automatic forbearance for delinquent borrowers— Section 4022(c) of the CARES Act (15 U.S.C. 9056(c)), as amended by paragraph (5) of this subsection, is further amended by adding at the end the following:
“(9) Automatic forbearance for delinquent borrowers
“(A) In general—Notwithstanding any other law governing forbearance relief—
“(i) any borrower whose covered mortgage loan became 60 days delinquent between March 13, 2020, and the date of enactment of this paragraph, and who has not already received a forbearance under subsection (b), shall automatically be granted a 60-day forbearance that begins on the date of enactment of this paragraph, provided that a borrower shall not be considered delinquent for purposes of this paragraph while making timely payments or otherwise performing under a trial modification or other loss mitigation agreement; and
“(ii) any borrower whose covered mortgage loan becomes 60 days delinquent between the date of enactment of this paragraph and the end of the covered period, and who has not already received a forbearance under subsection (b), shall automatically be granted a 60-day forbearance that begins on the 60th day of delinquency, provided that a borrower shall not be considered delinquent for purposes of this paragraph while making timely payments or otherwise performing under a trial modification or other loss mitigation agreement.
“(B) Initial extension—An automatic forbearance provided under subparagraph (A) shall be extended for up to an additional 120 days upon the borrower’s request, oral or written, submitted to the borrower’s servicer affirming that the borrower is experiencing a financial hardship that prevents the borrower from making timely payments on the covered mortgage loan due, directly or indirectly, to the COVID–19 emergency.
“(C) Subsequent extension—A forbearance extended under subparagraph (B) shall be extended for up to an additional 180 days, up to a maximum of 360 days (including the period of automatic forbearance), upon the borrower’s request, oral or written, submitted to the borrower’s servicer affirming that the borrower is experiencing a financial hardship that prevents the borrower from making timely payments on the covered mortgage loan due, directly or indirectly, to the COVID–19 emergency.
“(D) Right to elect to continue making payments—With respect to a forbearance provided under this paragraph, the borrower of such loan may elect to continue making regular payments on the loan. A borrower who makes such election shall be offered a loss mitigation option pursuant to subsection (d) within 30 days of resuming regular payments to address any payment deficiency during the forbearance.
“(E) Right to shorten forbearance—At a borrower’s request, any period of forbearance provided under this paragraph may be shortened. A borrower who makes such a request shall be offered a loss mitigation option pursuant to subsection (d) within 30 days of resuming regular payments to address any payment deficiency during the forbearance.
“(10) Automatic forbearance for certain reverse mortgage loans
“(A) In general—When any covered mortgage loan which is also a federally-insured reverse mortgage loan, during the covered period, is due and payable due to the death of the last borrower or end of a deferral period or eligible to be called due and payable due to a property charge default, or if the borrower defaults on a property charge repayment plan, or if the borrower defaults for failure to complete property repairs, or if an obligation of the borrower under the Security Instrument is not performed, the mortgagee automatically shall be granted a six-month extension of—
“(i) the mortgagee’s deadline to request due and payable status from the Department of Housing and Urban Development;
“(ii) the mortgage’s deadline to send notification to the mortgagor or his or her heirs that the loan is due and payable;
“(iii) the deadline to initiate foreclosure;
“(iv) any reasonable diligence period related to foreclosure or the Mortgagee Optional Election;
“(v) if applicable, the deadline to obtain the due and payable appraisal; and
“(vi) any claim submission deadline, including the 6-month acquired property marketing period.
“(B) Forbearance period—The mortgagee shall not request due and payable status from the Secretary of Housing and Urban Development nor initiate foreclosure during this six-month period described under subparagraph (A), which shall be considered a forbearance period.
“(C) Extension—A forbearance provided under subparagraph (B) and related deadline extension authorized under subparagraph (A) shall be extended for an additional 180 days upon—
“(i) the borrower’s request, oral or written, submitted to the borrower’s servicer affirming that the borrower is experiencing a financial hardship that prevents the borrower from making payments on property charges, completing property repairs, or performing an obligation of the borrower under the Security Instrument due, directly or indirectly, to the COVID–19 emergency;
“(ii) a non-borrowing spouse’s request, oral or written, submitted to the servicer affirming that the non-borrowing spouse has been unable to satisfy all criteria for the Mortgagee Optional Election program due, directly or indirectly, to the COVID-19 emergency, or to perform all actions necessary to become an eligible non-borrowing spouse following the death of all borrowers; or
“(iii) a successor-in-interest of the borrower’s request, oral or written, submitted to the servicer affirming the heir’s difficulty satisfying the reverse mortgage loan due, directly or indirectly, to the COVID-19 emergency.
“(D) Curtailment of debenture interest—Where any covered mortgage loan which is also a federally insured reverse mortgage loan is in default during the covered period and subject to a prior event which provides for curtailment of debenture interest in connection with a claim for insurance benefits, the curtailment of debenture interest shall be suspended during any forbearance period provided herein.”
Additional Foreclosure and repossession protections— Section 4022(c) of the CARES Act (15 U.S.C. 9056(c)) is amended—
in paragraph (2), by striking “may not initiate any judicial or non-judicial foreclosure process, move for a foreclosure judgment or order of sale, or execute a foreclosure-related eviction or foreclosure sale for not less than the 60-day period beginning on March 18, 2020” and inserting “may not initiate or proceed with any judicial or non-judicial foreclosure process, schedule a foreclosure sale, move for a foreclosure judgment or order of sale, execute a foreclosure related eviction or foreclosure sale for six months after the date of enactment of the COVID–19 HERO Act”; and
by adding at the end the following:
“(3) Repossession moratorium—In the case of personal property, including any recreational or motor vehicle, used as a dwelling, no person may use any judicial or non-judicial procedure to repossess or otherwise take possession of such property for six months after date of enactment of this paragraph.”
in subsection (b), by striking paragraphs (1), (2), and (3) and inserting the following:
“(1) In general—During the covered period, a borrower with a covered mortgage loan who has not obtained automatic forbearance pursuant to this section and who is experiencing a financial hardship that prevents the borrower from making timely payments on the covered mortgage loan due, directly or indirectly, to the COVID–19 emergency may request forbearance on the loan, regardless of delinquency status, by—
“(A) submitting a request, orally or in writing, to the servicer of the loan; and
“(B) affirming that the borrower is experiencing a financial hardship that prevents the borrower from making timely payments on the covered mortgage loan due, directly or indirectly, to the COVID–19 emergency.
“(2) Duration of forbearance
“(A) In general—Upon a request by a borrower to a servicer for forbearance under paragraph (1), such forbearance shall be granted by the servicer for the period requested by the borrower, up to an initial length of 180 days, the length of which shall be extended by the servicer, at the request of the borrower for the period or periods requested, for a total forbearance period of up to 12-months.
“(B) Minimum forbearance amounts—For purposes of granting a forbearance under this paragraph, a servicer may grant an initial forbearance with a term of not less than 90 days, provided that it is automatically extended for an additional 90 days unless the servicer confirms the borrower does not want to renew the forbearance or that the borrower is no longer experiencing a financial hardship that prevents the borrower from making timely mortgage payments due, directly or indirectly, to the COVID–19 emergency.
“(C) Right to shorten forbearance—At a borrower’s request, any period of forbearance described under this paragraph may be shortened. A borrower who makes such a request shall be offered a loss mitigation option pursuant to subsection (d) within 30 days of resuming regular payments to address any payment deficiency during the forbearance.
“(3) Accrual of interest or fees—A servicer shall not charge a borrower any fees, penalties, or interest (beyond the amounts scheduled or calculated as if the borrower made all contractual payments on time and in full under the terms of the mortgage contract) in connection with a forbearance, provided that a servicer may offer the borrower a modification option at the end of a forbearance period granted hereunder that includes the capitalization of past due principal and interest and escrow payments as long as the borrower’s principal and interest payment under such modification remains at or below the contractual principal and interest payments owed under the terms of the mortgage contract before such forbearance period except as the result of a change in the index of an adjustable rate mortgage.
“(4) Communication with servicers—Any communication between a borrower and a servicer described under this section may be made in writing or orally, at the borrower’s choice.
“(5) Communication with borrowers with a disability—Upon request from a borrower, servicers shall communicate with borrowers who have a disability in the borrower's preferred method of communication. For purposes of this paragraph, the term “disability” has the meaning given that term in the Fair Housing Act, the Americans with Disabilities Act of 1990, or the Rehabilitation Act of 1973.”
in subsection (c), by amending paragraph (1) to read as follows:
“(1) No documentation required—A servicer of a covered mortgage loan shall not require any documentation with respect to a forbearance under this section other than the borrower’s affirmation (oral or written) to a financial hardship that prevents the borrower from making timely payments on the covered mortgage loan due, directly or indirectly, to the COVID–19 emergency. An oral request for forbearance and oral affirmation of hardship by the borrower shall be sufficient for the borrower to obtain or extend a forbearance.”
Other servicer requirements during forbearance— Section 4022(c) of the CARES Act (15 U.S.C. 9056(c)), as amended by paragraph (3) of this subsection, is further amended by adding at the end the following:
“(4) Forbearance terms notice—Within 30 days of a servicer of a covered mortgage loan providing forbearance to a borrower under subsection (b) or paragraph (9) or (10), or 10 days if the forbearance is for a term of less than 60 days, but only where the forbearance was provided in response to a borrower’s request for forbearance or when an automatic forbearance was initially provided under paragraph (9) or (10), and not when an existing forbearance is automatically extended, the servicer shall provide the borrower with a notice in accordance with the terms in paragraph (5).
“(5) Contents of notice—The written notice required under paragraph (4) shall state in plain language—
“(A) the specific terms of the forbearance;
“(B) the beginning and ending dates of the forbearance;
“(C) that the borrower is eligible for up to 12 months of forbearance;
“(D) that the borrower may request an extension of the forbearance unless the borrower will have reached the maximum period at the end of the forbearance;
“(E) that the borrower may request that the initial or extended period be shortened at any time;
“(F) that the borrower should contact the servicer before the end of the forbearance period;
“(G) a description of the loss mitigation options that may be available to the borrower at the end of the forbearance period based on the borrower’s specific loan;
“(H) information on how to find a housing counseling agency approved by the Department of Housing and Urban Development;
“(I) in the case of a forbearance provided pursuant to paragraph (9) or (10), that the forbearance was automatically provided and how to contact the servicer to make arrangements for further assistance, including any renewal; and
“(J) where applicable, that the forbearance is subject to an automatic extension including the terms of any such automatic extensions and when any further extension would require a borrower request.
“(6) Treatment of escrow accounts—During any forbearance provided under this section, a servicer shall pay or advance funds to make disbursements in a timely manner from any escrow account established on the covered mortgage loan.
“(7) Notification for borrowers—During the period that begins 90 days after the date of the enactment of this paragraph and ends at the end of the covered period, each servicer of a covered mortgage loan shall be required to—
“(A) make available in a clear and conspicuous manner on their webpage accurate information, in English and Spanish, for borrowers regarding the availability of forbearance as provided under subsection (b); and
“(B) notify every borrower whose payments on a covered mortgage loan are delinquent in any oral communication with or to the borrower that the borrower may be eligible to request forbearance as provided under subsection (b), except that such notice shall not be required if the borrower already has requested forbearance under subsection (b).
“(8) Certain treatment under RESPA—As long as a borrower’s payment on a covered mortgage loan was not more than 30 days delinquent on March 13, 2020, a servicer may not deem the borrower as delinquent while a forbearance granted under subsection (b) is in effect for purposes of the application of sections 6 and 10 of the Real Estate Settlement Procedures Act and any applicable regulations.”
Post-forbearance loss mitigation—
Amendment to CARES Act— Section 4022 of the CARES Act (15 U.S.C. 9056) is amended by adding at the end the following:
“(d) Post-forbearance loss mitigation
“(1) Notice of availability of additional forbearance—With respect to any covered mortgage loan as to which forbearance under this section has been granted and not otherwise extended, including by automatic extension, a servicer shall, no later than 30 days before the end of the forbearance period, in writing, notify the borrower that additional forbearance may be available and how to request such forbearance, except that no such notice is required where the borrower already has requested an extension of the forbearance period, is subject to automatic extension pursuant to subsection (b)(2)(B), or no additional forbearance is available.
“(2) Loss mitigation offer before expiration of forbearance—No later than 30 days before the end of any forbearance period that has not been extended or 30 days after a request by a consumer to terminate the forbearance, which time shall be before the servicer initiates or engages in any foreclosure activity listed in subsection (c)(2), including incurring or charging to a borrower any fees or corporate advances related to a foreclosure, the servicer shall, in writing—
“(A) offer the borrower a loss mitigation option, without the charging of any fees or penalties other than interest, such that the borrower’s principal and interest payment remains the same as it was prior to the forbearance, subject to any adjustment of the index pursuant to the terms of an adjustable rate mortgage, and that either—
“(i) defers the payment of total arrearages, including any escrow advances, to the end of the existing term of the loan, without the charging or collection of any additional interest on the deferred amounts; or
“(ii) extends the term of the mortgage loan, and capitalizes, defers, or forgives all escrow advances and other arrearages;
“(B) concurrent with the loss mitigation offer in subparagraph (A), notify the borrower that the borrower has the right to be evaluated for other loss mitigation options if the borrower is not able to make the payment under the option offered in subparagraph (A).
“(3) Evaluation for loss mitigation prior to foreclosure initiation—Before a servicer may initiate or engage in any foreclosure activity listed in subsection (c)(2), including incurring or charging to a borrower any fees or corporate advances related to a foreclosure on the basis that the borrower has failed to perform under the loss mitigation offer in paragraph (2)(A) within the first 90 days after the option is offered, including a failure to accept the loss mitigation offer in paragraph (2)(A), the servicer shall—
“(A) unless the borrower has already submitted a complete application that the servicer is reviewing—
“(i) notify the borrower in writing of the documents and information, if any, needed by the servicer to enable the servicer to consider the borrower for all available loss mitigation options;
“(ii) exercise reasonable diligence to obtain the documents and information needed to complete the borrower’s loss mitigation application;
“(B) upon receipt of a complete application or if, despite the servicer’s exercise of reasonable diligence, the loss mitigation application remains incomplete sixty days after the notice in paragraph (2)(A) is sent, conduct an evaluation of the complete or incomplete loss mitigation application without reference to whether the borrower has previously submitted a complete loss mitigation application and offer the borrower all available loss mitigation options for which the borrower qualifies under applicable investor guidelines, including guidelines regarding required documentation.
“(4) Effect on future requests for loss mitigation review—An application, offer, or evaluation for loss mitigation under this section shall not be the basis for the denial of a borrower’s application as duplicative or for a reduction in the borrower’s appeal rights under Regulation X (12 C.F.R. 1024) in regard to any loss mitigation application submitted after the servicer has complied with the requirements of paragraphs (2) and (3).
“(5) Safe harbor—Any loss mitigation option authorized by the Federal National Mortgage Association, the Federal Home Loan Corporation, or the Federal Housing Administration that either—
“(A) defers the payment of total arrearages, including any escrow advances, to the end of the existing term of the loan, without the charging or collection of any additional interest on the deferred amounts, or
“(B) extends the term of the mortgage loan, and capitalizes, defers, or forgives all escrow advances and other arrearages, without the charging of any fees or penalties beyond interest on any amount capitalized into the loan principal,
“(6) Home retention options for certain reverse mortgage loans
“(A) In general—For a covered mortgage loan which is also a federally-insured reverse mortgage loan, a servicer’s conduct shall be deemed to comply with this section provided that if the loan is eligible to be called due and payable due to a property charge default, the mortgagee shall, as a precondition to sending a due and payable request to the Secretary or initiating or continuing a foreclosure process—
“(i) make a good faith effort to communicate with the borrower regarding available home retention options to cure the property charge default, including encouraging the borrower to apply for home retention options; and
“(ii) consider the borrower for all available home retention options as allowed by the Secretary.
“(B) Permissible repayment plans—The Secretary shall amend its allowable home retention options to permit a repayment plan of up to 120 months in length, and to permit a repayment plan without regard to prior defaults on repayment plans.
“(C) Limitation on interest curtailment—The Secretary may not curtail interest paid to mortgagees who engage in loss mitigation or home retention actions through interest curtailment during such loss mitigation or home retention review or during the period when a loss mitigation or home retention plan is in effect and ending 90 days after any such plan terminates.”
Amendment to Housing Act of 1949— Section 505 of the Housing Act of 1949 (42 U.S.C. 1475) is amended—
by striking the section heading and inserting “Loss Mitigation and Foreclosure Procedures”;
in subsection (a), by striking the section designation and all that follows through “During any” and inserting the following:
“505.
“(a) Moratorium—
“(1) In determining a borrower’s eligibility for relief, the Secretary shall make all eligibility decisions based on the borrower’s household’s income, expenses, and circumstances.
“(2) During any”
by redesignating subsection (b) as subsection (c); and
by inserting after subsection (a) the following new subsection:
“(b) Loan Modification—(1) Notwithstanding any other provision of this title, for any loan made under section 502 or 504, the Secretary may modify the interest rate and extend the term of such loan for up to 30 years from the date of such modification.
“(2) At the end of any moratorium period granted under this section or under the COVID–19 HERO Act, the Secretary shall determine whether the borrower can reasonably resume making principal and interest payments after the Secretary modifies the borrower’s loan obligations in accordance with paragraph (1).”
by striking “Federally backed multifamily mortgage loan” each place such term appears and inserting “multifamily mortgage loan”;
in subsection (b), by striking “during” and inserting “due, directly or indirectly, to”;
in subsection (c)(1)—
in subparagraph (A), by adding “and” at the end; and
by striking subparagraphs (B) and (C) and inserting the following:
“(B) provide the forbearance for up to the end of the period described under section 4024(b).”
by redesignating subsection (f) as subsection (g);
by inserting after subsection (e) the following:
“(f) Treatment after forbearance—With respect to a multifamily mortgage loan provided a forbearance under this section, the servicer of such loan—
“(1) shall provide the borrower with a 12-month period beginning at the end of such forbearance to become current on the payments under such loan;
“(2) may not charge any late fees, penalties, or other charges with respect to payments on the loan that were due during the forbearance period, if such payments are made before the end of the 12-month period; and
“(3) may not report any adverse information to a credit rating agency (as defined under section 603 of the Fair Credit Reporting Act with respect to any payments on the loan that were due during the forbearance period, if such payments are made before the end of the 12-month period.).”
in subsection (g), as so redesignated—
in paragraph (2)—
by striking “that—” and all that follows through “(A) is secured by” and inserting “that is secured by”;
by striking “; and” and inserting a period; and
by striking subparagraph (B); and
by amending paragraph (5) to read as follows:
“(5) Covered period—With respect to a loan, the term covered period has the meaning given that term under section 4022(a)(3).”
Renter protections during forbearance period— A borrower that receives a forbearance pursuant to section 4022 or 4023 of the CARES Act (15 U.S.C. 9056 or 9057) may not, for the duration of the forbearance—
evict or initiate the eviction of a tenant solely for nonpayment of rent or other fees or charges; or
charge any late fees, penalties, or other charges to a tenant for late payment of rent.
Extension of GSE Patch—
Non-applicability of existing sunset— Section 1026.43(e)(4)(iii)(B) of title 12, Code of Federal Regulations, shall have no force or effect.
Extended sunset— The special rules in section 1026.43(e)(4) of title 12, Code of Federal Regulations, shall apply to covered transactions consummated prior to June 1, 2022, or such later date as the Director of the Bureau of Consumer Financial Protection may determine, by rule.
Servicer safe harbor from investor liability—
Safe harbor—
In general— A servicer of covered mortgage loans or multifamily mortgage loans shall be deemed not to have violated any duty or contractual obligation owed to investors or other parties regarding such mortgage loans on account of offering or implementing in good faith forbearance during the covered period or offering or implementing in good faith post-forbearance loss mitigation (including after the expiration of the covered period) in accordance with the terms of sections 4022 and 4023 of the CARES Act to borrowers, respectively, on covered or multifamily mortgage loans that it services and shall not be liable to any party who is owed such a duty or obligation or subject to any injunction, stay, or other equitable relief to such party on account of such offer or implementation of forbearance or post-forbearance loss mitigation.
Other persons— Any person, including a trustee of a securitization vehicle or other party involved in a securitization or other investment vehicle, who in good faith cooperates with a servicer of covered or multifamily mortgage loans held by that securitization or investment vehicle to comply with the terms of section 4022 and 4023 of the CARES Act, respectively, to borrowers on covered or multifamily mortgage loans owned by the securitization or other investment vehicle shall not be liable to any party who is owed such a duty or obligation or subject to any injunction, stay, or other equitable relief to such party on account of its cooperation with an offer or implementation of forbearance during the covered period or post-forbearance loss mitigation, including after the expiration of the covered period.
Standard industry practice— During the covered period, notwithstanding any contractual restrictions, it is deemed to be standard industry practice for a servicer to offer forbearance or loss mitigation options in accordance with the terms of sections 4022 and 4023 of the CARES Act to borrowers, respectively, on all covered or multifamily mortgage loans it services.
Rule of construction— Nothing in this paragraph may be construed as affecting the liability of a servicer or other person for actual fraud in the servicing of a mortgage loan or for the violation of a State or Federal law.
Definitions— In this paragraph:
Covered mortgage loan— The term covered mortgage loan has the meaning given that term under section 4022(a) of the CARES Act.
Covered period— The term covered period has the meaning given that term under section 4023(g) of the CARES Act.
Multifamily mortgage loan— The term multifamily mortgage loan has the meaning given that term under section 4023(g) of the CARES Act.
Servicer— The term servicer—
has the meaning given the term under section 6(i) of the Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 2605(i)); and
means a master servicer and a subservicer, as such terms are defined, respectively, under section 1024.31 of title 12, Code of Federal Regulations.
Securitization vehicle— The term securitization vehicle has the meaning give that term under section 129A(f) of the Truth in Lending Act (15 U.S.C. 1639a(f)).
Bankruptcy protections—
Bankruptcy Protections for Federal Coronavirus Relief Payments— Section 541(b) of title 11, United States Code, is amended—
in paragraph (9), in the matter following subparagraph (B), by striking “or”;
in paragraph (10)(C), by striking the period at the end and inserting “; or”; and
by inserting after paragraph (10) the following:
“(11) payments made under Federal law relating to the national emergency declared by the President under the National Emergencies Act (50 U.S.C. 1601 et seq.) with respect to the coronavirus disease 2019 (COVID–19).”
Protection Against Discriminatory Treatment of Homeowners in Bankruptcy— Section 525 of title 11, United States Code, is amended by adding at the end the following:
“(d) A person may not be denied any forbearance, assistance, or loan modification relief made available to borrowers by a mortgage creditor or servicer because the person is or has been a debtor, or has received a discharge, in a case under this title.”
in subsection (d)(1), by striking “$15,000” and inserting “$100,000”; and
by adding at the end the following:
“(r) Notwithstanding any other provision of applicable nonbankruptcy law, a debtor in any State may exempt from property of the estate the property described in subsection (d)(1) not to exceed the value in subsection (d)(1) if the exemption for such property permitted by applicable nonbankruptcy law is lower than that amount.”
Effect of Missed Mortgage Payments on Discharge— Section 1328 of title 11, United States Code, is amended by adding at the end the following:
“(i) A debtor shall not be denied a discharge under this section because, as of the date of discharge, the debtor did not make 6 or fewer payments directly to the holder of a debt secured by real property.
“(j) Notwithstanding subsections (a) and (b), upon the debtor’s request, the court shall grant a discharge of all debts provided for in the plan that are dischargeable under subsection (a) if the debtor—
“(1) has made payments under a confirmed plan for at least 1 year; and
“(2) is experiencing or has experienced a material financial hardship due, directly or indirectly, to the coronavirus disease 2019 (COVID–19) pandemic.”
Expanded eligibility for chapter 13— Section 109(e) of title 11, United States Code, is amended—
by striking “$250,000” each place the term appears and inserting “$850,000”; and
by striking “$750,000” each place the term appears and inserting “$2,600,000”.
Extended Cure Period for Homeowners Harmed by COVID–19 Pandemic—
In general— Chapter 13 of title 11, United States Code, is amended by adding at the end thereof the following:
“1331. Special provisions related to COVID–19 pandemic
“(a) Notwithstanding subsections (b)(2) and (d) of section 1322, if the debtor is experiencing or has experienced a material financial hardship due, directly or indirectly, to the coronavirus disease 2019 (COVID–19) pandemic, a plan may provide for the curing of any default within a reasonable time, not to exceed 7 years after the time that the first payment under the original confirmed plan was due, and maintenance of payments while the case is pending on any unsecured claim or secured claim on which the last payment is due after the expiration of such time. Any such plan provision shall not affect the applicable commitment period under section 1325(b).
“(b) For purposes of sections 1328(a) and 1328(b), any cure or maintenance payments under subsection (a) that are made after the end of the period during which the plan provides for payments (other than payments under subsection (a)) shall not be treated as payments under the plan.
“(c) Notwithstanding section 1329(c), a plan modified under section 1329 at the debtor’s request may provide for cure or maintenance payments under subsection (a) over a period that is not longer than 7 years after the time that the first payment under the original confirmed plan was due.
“(d) Notwithstanding section 362(c)(2), during the period after the debtor receives a discharge and the period during which the plan provides for the cure of any default and maintenance of payments under the plan, section 362(a) shall apply to the holder of a claim for which a default is cured and payments are maintained under subsection (a) and to any property securing such claim.
“(e) Notwithstanding section 1301(a)(2), the stay of section 1301(a) terminates upon the granting of a discharge under section 1328 with respect to all creditors other than the holder of a claim for which a default is cured and payments are maintained under subsection (a).”
Table of contents— The table of sections of chapter 13, title 11, United States Code, is amended by adding at the end thereof the following:
Application— The amendments made by this paragraph shall apply only to any case under title 11, United States Code, commenced before 3 years after the date of enactment of this Act and pending on or commenced after such date of enactment, in which a plan under chapter 13 of title 11, United States Code, was not confirmed before March 27, 2020.
Sec. 110204 Liquidity for mortgage servicers and residential rental property owners
In general— Section 4003 of the CARES Act (15 U.S.C. 9042), is amended by adding at the end the following:
“(i) Liquidity for mortgage servicers
“(1) In general—Subject to paragraph (2), the Secretary shall ensure that servicers of covered mortgage loans (as defined under section 4022) and multifamily mortgage loans (as defined under section 4023) are provided the opportunity to participate in the loans, loan guarantees, or other investments made by the Secretary under this section. The Secretary shall ensure that servicers are provided with access to such opportunities under equitable terms and conditions regardless of their size.
“(2) Mortgage servicer eligibility—In order to receive assistance under subsection (b)(4), a mortgage servicer shall—
“(A) demonstrate that the mortgage servicer has established policies and procedures to use such funds only to replace funds used for borrower assistance, including to advance funds as a result of forbearance or other loss mitigation provided to borrowers;
“(B) demonstrate that the mortgage servicer has established policies and procedures to provide forbearance, post-forbearance loss mitigation, and other assistance to borrowers in compliance with the terms of section 4022 or 4023, as applicable;
“(C) demonstrate that the mortgage servicer has established policies and procedures to ensure that forbearance and post-forbearance assistance is available to all borrowers in a non-discriminatory fashion and in compliance with the Fair Housing Act, the Equal Credit Opportunity Act, and other applicable fair housing and fair lending laws; and
“(D) comply with the limitations on compensation set forth in section 4004.
“(3) Mortgage servicer requirements—A mortgage servicer receiving assistance under subsection (b)(4) may not, while the servicer is under any obligation to repay funds provided or guaranteed under this section—
“(A) pay dividends with respect to the common stock of the mortgage servicer or purchase an equity security of the mortgage servicer or any parent company of the mortgage servicer if the security is listed on a national securities exchange, except to the extent required under a contractual obligation that is in effect on the date of enactment of this subsection; or
“(B) prepay any debt obligation.”
Credit facility for residential rental property owners—
In general— The Board of Governors of the Federal Reserve System shall—
establish a facility, using amounts made available under section 4003(b)(4) of the CARES Act (15 U.S.C. 9042(b)(4)), to make long-term, low-cost loans to residential rental property owners as to temporarily compensate such owners for documented financial losses caused by reductions in rent payments; and
defer such owners’ required payments on such loans until after six months after the date of enactment of this Act.
Requirements— A borrower that receives a loan under this subsection may not, for the duration of the loan—
evict or initiate the eviction of a tenant solely for nonpayment of rent or other fees or charges;
charge any late fees, penalties, or other charges to a tenant for late payment of rent; and
with respect to a person or entity described under paragraph (4), discriminate on the basis of source of income.
Report on residential rental property owners— The Board of Governors shall issue reports to the Congress on a monthly basis containing the following, with respect to each property owner receiving a loan under this subsection:
The number of borrowers that received assistance under this subsection.
The average total loan amount that each borrower received.
The total number of rental units that each borrower owned.
The average rent charged by each borrower.
Report on large residential rental property owners— The Board of Governors shall issue reports to the Congress on a monthly basis that identify any person or entity that in aggregate owns or holds a controlling interest in any entity that, in aggregate, owns—
more than 100 rental units that are located within in a single Metropolitan Statistical Area;
more than 1,000 rental units nationwide; or
rental units in three or more States.
Amendments to National Housing Act— Section 306(g)(1) of the National Housing Act (12 U.S.C. 1721(a)) is amended—
in the fifth sentence, by inserting after “issued” the following: “, subject to any pledge or grant of security interest of the Federal Reserve under section 4003(a) of the CARES Act (Public Law 116–136; 134 Stat. 470; 15 U.S.C. 9042(a)) and to any such mortgage or mortgages or any interest therein and the proceeds thereon, which the Association may elect to approve”; and
in the sixth sentence—
by striking “or (C)” and inserting “(C)”; and
by inserting before the period the following: “, or (D) its approval and honoring of any pledge or grant of security interest of the Federal Reserve under section 4003(a) of the CARES Act and to any such mortgage or mortgages or any interest therein and proceeds thereon as”.
Sec. 110205 Rural rental assistance
There is authorized to be appropriated for fiscal year 2020 $309,000,000 for rural rental assistance, which shall remain available until September 30, 2021, of which—
up to $25,000,000 million may be used for an additional amount for rural housing vouchers for any low-income households (including those not receiving rental assistance) residing in a property financed with a section 515 loan which has been prepaid after September 30, 2005, or has matured after September 30, 2019; and
the remainder shall be used for an additional amount for rural rental assistance agreements entered into or renewed pursuant to section 521(a)(2) of the Housing Act of 1949 (42 U.S.C. 1490a(a)(2)) to—
supplement the rental assistance of households on whose behalf assistance is being provided; and
provide rental assistance on behalf of households who are not being assisted with such rental assistance but who qualify for such assistance.
Sec. 110206 Funding for public housing and tenant-based rental assistance
Public housing operating fund— There is authorized to be appropriated for an additional amount for fiscal year 2020 for the Public Housing Operating Fund under section 9(e) of the United States Housing Act of 1937 (42 U.S.C. 1437g(e)) $2,000,000,000, to remain available until September 30, 2021.
Tenant-based section 8 rental assistance— There is authorized to be appropriated for an additional amount for fiscal year 2020 for the tenant-based rental assistance under section 8(o) of the United States Housing Act of 1937 (42 U.S.C. 1437f(o)) $3,000,000,000, to remain available until September 30, 2021, of which not more than $500,000,000 may be used for administrative fees under section 8(q) of such Act (42 U.S.C. 1437f(q)).
Applicability of waivers— Any waiver or alternative requirement made by the Secretary of Housing and Urban Development pursuant to the heading “Tenant-Based Rental Assistance” or “Public Housing Operating Fund” in title XII of division B of the CARES Act (Public Law 116–136) shall apply with respect to amounts made available pursuant to this section.
Sec. 110207 Supplemental funding for supportive housing for the elderly, supportive housing for persons with disabilities, supportive housing for persons with AIDS, and project-based section 8 rental assistance
Authorization of appropriations— There is authorized to be appropriated $500,000,000 for fiscal year 2020 for additional assistance for supportive housing for the elderly, of which—
$200,000,000 shall be for rental assistance under section 202 of the Housing Act of 1959 (12 U.S.C. 1701q) or section 8 of the United States Housing Act of 1937 (42 U.S.C. 1437f), as appropriate, and for hiring additional staff and for services and costs, including acquiring personal protective equipment, to prevent, prepare for, or respond to the public health emergency relating to Coronavirus Disease 2019 (COVID-19) pandemic; and
$300,000,000 shall be for grants under section 676 of the Housing and Community Development Act of 1992 (42 U.S.C. 13632) for costs of providing service coordinators for purposes of coordinating services to prevent, prepare for, or respond to the public health emergency relating to Coronavirus Disease 2019 (COVID-19).
Eligibility of supportive housing for persons with disabilities— Subsection (a) of section 676 of the Housing and Community Development Act of 1992 (42 U.S.C. 13632(a)) shall be applied, for purposes of subsection (a) of this section, by substituting “(G), and (H)” for “ and (G)”.
Service coordinators—
Hiring— In the hiring of staff using amounts made available pursuant to this section for costs of providing service coordinators, grantees shall consider and hire, at all levels of employment and to the greatest extent possible, a diverse staff, including by race, ethnicity, gender, and disability status. Each grantee shall submit a report to the Secretary of Housing and Urban Development describing compliance with the preceding sentence not later than the expiration of the 120-day period that begins upon the termination of the emergency declared on March 13, 2020, by the President under the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 4121 et seq.) relating to the Coronavirus Disease 2019 (COVID-19) pandemic.
One-time grants— Grants made using amounts made available pursuant to subsection (a) for costs of providing service coordinators shall not be renewable.
One-year availability— Any amounts made available pursuant to this section for costs of providing service coordinators that are allocated for a grantee and remain unexpended upon the expiration of the 12-month period beginning upon such allocation shall be recaptured by the Secretary.
Funding for supportive housing for persons with disabilities— There is authorized to be appropriated $200,000,000 for fiscal year 2020 for additional assistance for supportive housing for persons with disabilities under section 811 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 8013). Any provisions of, and waivers and alternative requirements issued by the Secretary pursuant to, the heading “Department of Housing and Urban Development—Housing Programs—Housing for Persons With Disabilities” in title XII of division B of the CARES Act (Public Law 116–136) shall apply with respect to amounts made available pursuant to this subsection.
Funding for Housing Opportunities for People with AIDS program— There is authorized to be appropriated $15,000,000 for fiscal year 2020 for additional assistance for the Housing Opportunities for Persons with AIDS program under the AIDS Housing Opportunity Act (42 U.S.C. 12901 et seq.). Any provisions of, and waivers and alternative requirements issued by the Secretary pursuant to, the heading “Department of Housing and Urban Development—Community Planning and Development—Housing Opportunities for Persons With AIDS” in title XII of division B of the CARES Act (Public Law 116–136) shall apply with respect to amounts made available pursuant to this subsection.
Funding for project-based section 8 rental assistance— There is authorized to be appropriated $750,000,000 for fiscal year 2020 for additional assistance for project-based rental assistance under section 8 of the United States Housing Act of 1937 (42 U.S.C. 1437f). Any provisions of, and waivers and alternative requirements issued by the Secretary pursuant to, the heading “Department of Housing and Urban Development—Housing Programs—Project-Based Rental Assistance” in title XII of division B of the CARES Act (Public Law 116–136) shall apply with respect to amounts made available pursuant to this subsection.
Sec. 110208 Fair Housing
Definition of COVID–19 emergency period— For purposes of this Act, the term “COVID–19 emergency period” means the period that begins upon the date of the enactment of this Act and ends upon the date of the termination by the Federal Emergency Management Agency of the emergency declared on March 13, 2020, by the President under the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 4121 et seq.) relating to the Coronavirus Disease 2019 (COVID–19) pandemic.
Fair housing activities—
Authorization of appropriations— To ensure existing grantees have sufficient resource for fair housing activities and for technology and equipment needs to deliver services through use of the Internet or other electronic or virtual means in response to the public health emergency related to the Coronavirus Disease 2019 (COVID-19) pandemic, there is authorized to be appropriated $4,000,000 for Fair Housing Organization Initiative grants through the Fair Housing Initiatives Program under section 561 of the Housing and Community Development Act of 1987 (42 U.S.C. 3616a).
3-year availability— Any amounts made available pursuant paragraph (1) that are allocated for a grantee and remain unexpended upon the expiration of the 3-year period beginning upon such allocation shall be recaptured by the Secretary.
Fair housing education— There is authorized to be appropriated $10,000,000 for the Office of Fair Housing and Equal Opportunity of the Department of Housing and Urban Development to carry out a national media campaign and local education and outreach to educate the public of increased housing rights during COVID–19 emergency period, that provides that information and materials used in such campaign are available—
in the languages used by communities with limited English proficiency; and
to persons with disabilities.
Sec. 110209 Funding for housing counseling services
Congressional findings— The Congress finds that—
the spread of Coronavirus Disease 2019 (COVID–19), which is now considered a global pandemic, is expected to negatively impact the incomes of potentially millions of homeowners, renters, individuals experiencing homelessness, and individuals at risk of homelessness, making it difficult for them to pay their mortgages or rents on time;
housing counseling is critical to ensuring that homeowners, renters, individuals experiencing homelessness, and individuals at risk of homelessness have the resources they need to manage financial hardships from the COVID-19 crisis;
loan preservation and foreclosure mitigation services are also critical to address the needs of homeowners who lose employment and income because of the pandemic and who face serious delinquency or home loan default, or are in foreclosing proceedings during this period; and
evaluations from the National Foreclosure Mitigation Counseling program revealed that homeowners at risk of or facing foreclosure are better served when they have access to a housing counselor and a range of tools and resources to help them avoid losing their home and have the support they need to tailor the best possible response to their situation.
Authorization of appropriations— There is authorized to be appropriated to the Neighborhood Reinvestment Corporation (in this section referred to as the “Corporation”) established under the Neighborhood Reinvestment Corporation Act (42 U.S.C. 8101 et seq.) $100,000,000 for fiscal year 2020 for housing counseling services, which shall remain available until September 30, 2023.
Prioritization of housing counseling services— Of any grant funds made available pursuant to subsection (b), not less than 40 percent shall be provided to counseling organizations that target counseling services to minority and low-income homeowners, renters, individuals experiencing homelessness, and individuals at risk of homelessness or provide such services in neighborhoods with high concentrations of minority and low-income homeowners, renters, individuals experiencing homelessness, and individuals at risk of homelessness.
Eligible uses— Amounts made available pursuant to subsection (b) may be used in such amounts as the Corporation determines for costs of—
public education and outreach;
direct services, including the full range of services provided by housing counselors to assist homeowners, including manufactured homeowners, regardless of financing type, renters, individuals experiencing homelessness, and individuals at risk of homelessness, including the practices, tools, and innovations in foreclosure mitigation that were utilized in the National Foreclosure Mitigation Counseling Program, and financial capability, credit counseling, homeless counseling, and rental counseling;
equipment and technology, including broadband internet and equipment upgrades needed to ensure timely and effective service delivery;
training, including capacitating housing counseling staff in various modes of counseling, including rental and foreclosure, delivery of remote counseling utilizing improved technology, enhanced network security, and supportive options for the delivery of client services; and
administration and oversight of the program in accordance with the Corporation's rate for program administration.
Disbursement— The Corporation shall disburse all grant funds made available pursuant to subsection (b) as expeditiously as possible, through grants to housing counseling intermediaries approved by the Department of Housing and Urban Development, State housing finance agencies, and NeighborWorks organizations. The aggregate amount provided to NeighborWorks organizations shall not exceed 15 percent of the total of grant funds made available pursuant to subsection (b).
III Protecting People Experiencing Homelessness
Sec. 110301 Homeless assistance funding
Emergency homeless assistance—
Authorization of appropriations— There is authorized to be appropriated under the Emergency Solutions Grants program under subtitle B of title IV of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11371 et seq.) $11,500,000,000 for grants under such subtitle in accordance with this subsection to respond to needs arising from the public health emergency relating to Coronavirus Disease 2019 (COVID-19). Of such amounts made available, $4,000,000,000 shall be allocated in accordance with sections 413 and 414 of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11372, 11373).
Formula— Notwithstanding sections 413 and 414 of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11372, 11373), the Secretary of Housing and Urban Development (in this Act referred to as the “Secretary”) shall allocate any amounts remaining after amounts are allocated pursuant to paragraph (1) in accordance with a formula to be established by the Secretary that takes into consideration the following factors:
Risk of transmission of coronavirus in a jurisdiction.
Whether a jurisdiction has a high number or rate of sheltered and unsheltered homeless individuals and families.
Economic and housing market conditions in a jurisdiction.
Eligible activities— In addition to eligible activities under section 415(a) of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11374(a), amounts made available pursuant to paragraph (1) may also be used for costs of the following activities:
Providing training on infectious disease prevention and mitigation.
Providing hazard pay, including for time worked before the effectiveness of this subparagraph, for staff working directly to prevent and mitigate the spread of coronavirus or COVID-19 among people experiencing or at risk of homelessness.
Reimbursement of costs for eligible activities (including activities described in this paragraph) relating to preventing, preparing for, or responding to the coronavirus or COVID-19 that were accrued before the date of the enactment of this Act.
Notwithstanding 24 C.F.R. 576.102(a)(3), providing a hotel or motel voucher for a homeless individual or family.
Inapplicability of procurement standards— To the extent amounts made available pursuant to paragraph (1) are used to procure goods and services relating to activities to prevent, prepare for, or respond to the coronavirus or COVID-19, the standards and requirements regarding procurement that are otherwise applicable shall not apply.
Inapplicability of habitability and environmental review standards— Any Federal standards and requirements regarding habitability and environmental review shall not apply with respect to any emergency shelter that is assisted with amounts made available pursuant to paragraph (1) and has been determined by a State or local health official, in accordance with such requirements as the Secretary shall establish, to be necessary to prevent and mitigate the spread of coronavirus or COVID-19, such shelters.
Inapplicability of cap on emergency shelter activities— Subsection (b) of section 415 of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11374) shall not apply to any amounts made available pursuant to paragraph (1) of this subsection.
Initial allocation of assistance— Section 417(b) of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11376(b)) shall be applied with respect to amounts made available pursuant to paragraph (1) of this subsection by substituting “30-day” for “60-day”.
Waivers and alternative requirements—
Authority— In administering amounts made available pursuant to paragraph (1), the Secretary may waive, or specify alternative requirements for, any provision of any statute or regulation (except for any requirements related to fair housing, nondiscrimination, labor standards, and the environment) that the Secretary administers in connection with the obligation or use by the recipient of such amounts, if the Secretary finds that good cause exists for the waiver or alternative requirement and such waiver or alternative requirement is consistent with the purposes described in this subsection.
Notification— The Secretary shall notify the public through the Federal Register or other appropriate means 5 days before the effective date of any such waiver or alternative requirement, and any such public notice may be provided on the Internet at the appropriate Government web site or through other electronic media, as determined by the Secretary.
Exemption— The use of amounts made available pursuant to paragraph (1) shall not be subject to the consultation, citizen participation, or match requirements that otherwise apply to the Emergency Solutions Grants program, except that a recipient shall publish how it has and will utilize its allocation at a minimum on the Internet at the appropriate Government web site or through other electronic media.
Inapplicability of matching requirement— Subsection (a) of section 416 of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11375(a)) shall not apply to any amounts made available pursuant to paragraph (1) of this subsection.
Prohibition on prerequisites— None of the funds authorized under this subsection may be used to require people experiencing homelessness to receive treatment or perform any other prerequisite activities as a condition for receiving shelter, housing, or other services.
Continuum of Care program— Due to the emergency relating to the Coronavirus Disease 2019 (COVID-19) pandemic, the Notice of Funding Availability (NOFA) for fiscal year 2020 for the Continuum of Care program under subtitle C of title IV of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11381 et seq.) shall have no force or effect and the Secretary of Housing and Urban Development shall distribute amounts made available for such fiscal year for such program based on the results of the competition for amounts made available for such program for fiscal year 2019 (FR-6300-–25), except that grant amounts may be adjusted to account for changes in fair market rents.
Sec. 110302 Emergency rental assistance voucher program
Authorization of appropriations— There is authorized to be appropriated to the Secretary of Housing and Urban Development (in this section referred to as the “Secretary”), $1,000,000,000 for fiscal year 2020, to remain available until expended, for incremental emergency vouchers under subsection (b).
Emergency vouchers—
In general— The Secretary shall provide emergency rental assistance vouchers under this subsection, which shall be tenant-based rental assistance under section 8(o) the United States Housing Act of 1937 (42 U.S.C. 1437f(o)).
Selection of families—
Mandatory preferences— Each public housing agency administering assistance under this section shall provide preference for such assistance to eligible families that are—
homeless (as such term is defined in section 103(a) of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11302(a)));
at risk of homelessness (as such term is defined in section 401 of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11360)); or
fleeing, or attempting to flee, domestic violence, dating violence, sexual assault, or stalking.
Allocation— In allocating amounts made available under this section, the Secretary shall—
not later than 60 days after the date of the enactment of this Act, allocate at least 50 percent of such amounts to public housing agencies in accordance with a formula that considers—
the capability of public housing agencies to promptly use emergency vouchers provided under this section; and
the need for emergency vouchers provided under this section in the geographical area, based on factors determined by the Secretary, including risk of transmission of coronavirus, high numbers or rates of sheltered and unsheltered homelessness, and economic and housing market conditions;
allocate remaining amounts in accordance with a formula that considers—
the criteria under clause (i) and the success of a public housing agency in promptly utilizing vouchers awarded under clause (i); and
the capability of the public housing agency to create and manage structured partnerships with service providers for the delivery of appropriate community-based services; and
designate the number of vouchers under this section that each public housing agency that is awarded funds under this section is authorized to administer.
Election not to administer— If a public housing agency elects not to administer amounts under this section, the Secretary shall award such amounts to other public housing agencies according to the criteria in subparagraph (B).
Failure to use vouchers promptly— If a public housing agency fails to issue all of its authorized vouchers under this section on behalf of eligible families within a reasonable period of time as determined by the Secretary, the Secretary shall reallocate any unissued vouchers and associated funds to others public housing agencies according to the criteria under subparagraph (B)(ii).
Waivers and alternative requirements— Any waiver or alternative requirement that the Secretary makes available to all public housing agencies in connection with assistance made available under the heading “Tenant-Based Rental Assistance” in title XII of division B of the CARES Act (Public Law 116–136; 134 Stat.601) shall apply to assistance under this section until the expiration of such waiver or alternative requirement.
Termination of vouchers upon turnover—
In general— A public housing agency may not reissue any vouchers made available under this section when assistance for the family initially assisted is terminated.
Reallocation— Upon termination of assistance for one or more families assisted by a public housing agency under this section, the Secretary shall reallocate amounts that are no longer needed by such public housing agency for assistance under this section to another public housing agency for the renewal of vouchers previously authorized under this section.
IV Suspending Negative Credit Reporting and Strengthening Consumer and Investor Protections
Sec. 110401 Reporting of information during major disasters
In general— The CARES Act (Public Law 116–136) is amended by striking section 4021 and inserting the following:
“4021. Reporting of information during major disasters
“(a) Purpose—The purpose of this section, and the amendments made by this section, is to protect consumers' credit from negative impacts as a result of financial hardship due to the coronavirus disease (COVID–19) outbreak and future major disasters.
“(b) Reporting of information during major disasters
“(1) In general—The Fair Credit Reporting Act is amended by inserting after section 605B the following:
“(2) Technical and conforming amendment—The table of contents for the Fair Credit Reporting Act is amended by inserting after the item relating to section 605B the following:
“4021A. Limitations on new credit scoring models during the COVID–19 emergency and major disasters
“The Fair Credit Reporting Act (15 U.S.C. 1681 et seq.) is amended—
“(1) by adding at the end the following:
“(2) in the table of contents for such Act, by adding at the end the following new item:”
Clerical amendment— The table of contents in section 2 of the CARES Act is amended by striking the item relating to section 4021 and inserting the following:
Conforming amendment— Subparagraph (F) of section 623(a)(1) of the Fair Credit Reporting Act (15 U.S.C. 1681s–2(a)(1)) is hereby repealed.
Sec. 110402 Restrictions on collections of consumer debt during a national disaster or emergency
In general— The Fair Debt Collection Practices Act (15 U.S.C. 1692 et seq.) is amended by inserting after section 812 (15 U.S.C. 1692j) the following:
“812A. Restrictions on collections of consumer debt during a national disaster or emergency
“(a) Definitions—In this section:
“(1) Covered period—The term covered period means the period beginning on the date of enactment of this section and ending 120 days after the end of the incident period for the emergency declared on March 13, 2020, by the President under section 501 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 4121 et seq.) relating to the Coronavirus Disease 2019 (COVID-19) pandemic.
“(2) Creditor—The term creditor means any person—
“(A) who offers or extends credit creating a debt or to whom a debt is owed; or
“(B) to whom any obligation for payment is owed.
“(3) Debt—The term debt—
“(A) means any obligation or alleged obligation that is or during the covered period becomes past due, other than an obligation arising out of a credit agreement entered into after the effective date of this section, that arises out of a transaction with a consumer; and
“(B) does not include a mortgage loan.
“(4) Debt collector—The term debt collector means a creditor and any other person or entity that engages in the collection of debt, including the Federal Government and a State government, irrespective of whether the applicable debt is allegedly owed to or assigned to such creditor, person, or entity.
“(5) Mortgage loan—The term mortgage loan means a covered mortgage loan (as defined under section 4022 of the CARES Act) and a multifamily mortgage loan (as defined under section 4023 of the CARES Act).
“(b) Prohibitions
“(1) In general—Notwithstanding any other provision of law, no debt collector may, during a covered period—
“(A) enforce a security interest securing a debt through repossession, limitation of use, or foreclosure;
“(B) take or threaten to take any action to deprive an individual of their liberty as a result of nonpayment of or nonappearance at any hearing relating to an obligation owed by a consumer;
“(C) collect any debt, by way of garnishment, attachment, assignment, deduction, offset, or other seizure, from—
“(i) wages, income, benefits, bank, prepaid or other asset accounts; or
“(ii) any assets of, or other amounts due to, a consumer;
“(D) commence or continue an action to evict a consumer from real or personal property for nonpayment;
“(E) disconnect or terminate service from a utility service, including electricity, natural gas, telecommunications or broadband, water, or sewer, for nonpayment; or
“(F) threaten to take any of the foregoing actions.
“(2) Rule of construction—Nothing in this section may be construed to prohibit a consumer from voluntarily paying, in whole or in part, a debt.
“(c) Limitation on fees and interest—After the expiration of a covered period, a debt collector may not add to any past due debt any interest on unpaid interest, higher rate of interest triggered by the nonpayment of the debt, or fee triggered prior to the expiration of the covered period by the nonpayment of the debt.
“(e) Violations—Any person or government entity that violates this section shall be liable to the applicable consumer as provided under section 813, except that, for purposes of applying section 813—
“(1) such person or government entity shall be deemed a debt collector, as such term is defined for purposes of section 813; and
“(2) each dollar figure in such section shall be deemed to be 10 times the dollar figure specified.
“(f) Tolling—Any applicable time limitations for exercising an action prohibited under subsection (b) shall be tolled during a covered period.
“(g) Predispute arbitration agreements—Notwithstanding any other provision of law, no predispute arbitration agreement or predispute joint-action waiver shall be valid or enforceable with respect to a dispute brought under this section, including a dispute as to the applicability of this section, which shall be determined under Federal law.”
Clerical amendment— The table of contents for the Fair Debt Collection Practices Act is amended by inserting after the item relating to section 812 the following:
Sec. 110403 Repayment period and forbearance for consumers
Section 812A of the Fair Debt Collection Practices Act (15 U.S.C. 1692 et seq.), as added by section 110402, is amended—
by inserting after subsection (c) the following:
“(d) Repayment period—After the expiration of a covered period, a debt collector shall comply with the following:
“(1) Debt arising from credit with a defined payment period—For any debt arising from credit with a defined term, the debt collector shall extend the time period to repay any past due balance of the debt by—
“(A) 1 payment period for each payment that a consumer missed during the covered period, with the payments due in the same amounts and at the same intervals as the pre-existing payment schedule; and
“(B) 1 payment period in addition to the payment periods described under subparagraph (A).
“(2) Debt arising from an open end credit plan—For debt arising from an open end credit plan, as defined in section 103 of the Truth in Lending Act (15 U.S.C. 1602), the debt collector shall allow the consumer to repay the past-due balance in a manner that does not exceed the amounts permitted by the methods described in section 171(c) of the Truth in Lending Act (15 U.S.C. 1666i–1(c)) and regulations promulgated under that section.
“(3) Debt arising from other credit
“(A) In general—For debt not described under paragraph (2) or (3), the debt collector shall—
“(i) allow the consumer to repay the past-due balance of the debt in substantially equal payments over time; and
“(ii) provide the consumer with—
“(I) for past due balances of $2,000 or less, 12 months to repay, or such longer period as the debt collector may allow;
“(II) for past due balances between $2,001 and $5,000, 24 months to repay, or such longer period as the debt collector may allow; or
“(III) for past due balances greater than $5,000, 36 months to repay, or such longer period as the debt collector may allow.
“(B) Additional protections—The Director of the Bureau may issue rules to provide greater repayment protections to consumers with debts described under subparagraph (A).
“(C) Relation to State law—This paragraph shall not preempt any State law that provides for greater consumer protections than this paragraph.”
by adding at the end the following:
“(h) Forbearance for affected consumers
“(1) Forbearance program—Each debt collector that makes use of the credit facility described in paragraph (4) shall establish a forbearance program for debts available during the covered period.
“(2) Automatic grant of forbearance upon request—Under a forbearance program required under paragraph (1), upon the request of a consumer experiencing a financial hardship due, directly or indirectly, to COVID–19, the debt collector shall grant a forbearance on payment of debt for such time as needed until the end of the covered period, with no additional documentation required other than the borrower’s attestation to a financial hardship caused by COVID–19 and with no fees, penalties, or interest (beyond the amounts scheduled or calculated as if the borrower made all contractual payments on time and in full under the terms of the loan contract) charged to the borrower in connection with the forbearance.
“(3) Exception for certain mortgage loans subject to the CARES Act—This subsection shall not apply to a mortgage loan subject to section 4022 or 4023 of the CARES Act.”
Sec. 110404 Credit facility
Section 812A(h) of the Fair Debt Collection Practices Act (15 U.S.C. 1692 et seq.), as added by section 110403, is amended by adding at the end the following:
“(4) Credit facility—The Board of Governors of the Federal Reserve System shall—
“(A) establish a facility, using amounts made available under section 4003(b)(4) of the CARES Act (15 U.S.C. 9042(b)(4)), to make long-term, low-cost loans to debt collectors to temporarily compensate such debt collectors for documented financial losses caused by forbearance of debt payments under this subsection; and
“(B) defer debt collectors’ required payments on such loans until after consumers’ debt payments resume.”
V Forgiving Student Loan Debt and Protecting Student Borrowers
Sec. 110501 Payments for private education loan borrowers as a result of the COVID–19 national emergency
In general— Section 140 of the Truth in Lending Act (15 U.S.C. 1650) is amended by adding at the end the following new subsection:
“(h) COVID–19 national emergency private education loan repayment assistance
“(1) Authority
“(A) In general—Effective on the date of the enactment of this section, until September 30, 2021, the Secretary of the Treasury shall, for each borrower of a private education loan, pay the total amount due for such month on the loan, based on the payment plan selected by the borrower or the borrower’s loan status.
“(B) Limitation on payments—The maximum amount of aggregate payments that the Secretary of the Treasury may make under subparagraph (A) with respect to an individual borrower is $10,000.
“(2) No capitalization of interest—With respect to any loan in repayment until September 30, 2021, interest due on a private education loan during such period shall not be capitalized at any time until after September 30, 2021.
“(3) Reporting to consumer reporting agencies—Until September 30, 2021—
“(A) during the period in which the Secretary of the Treasury is making payments on a loan under paragraph (1), the Secretary shall ensure that, for the purpose of reporting information about the loan to a consumer reporting agency, any payment made by the Secretary is treated as if it were a regularly scheduled payment made by a borrower; and
“(B) no adverse credit information may be furnished to a consumer reporting agency for any private education loan.
“(4) Notice of payments and program—Not later than 15 days following the date of enactment of this subsection, and monthly thereafter until September 30, 2021, the Secretary of the Treasury shall provide a notice to all borrowers of private education loans—
“(A) informing borrowers of the actions taken under this subsection;
“(B) providing borrowers with an easily accessible method to opt out of the benefits provided under this subsection; and
“(C) notifying the borrower that the program under this subsection is a temporary program and will end on September 30, 2021.
“(5) Suspension of involuntary collection—Until September 30, 2021, the holder of a private education loan shall immediately take action to halt all involuntary collection related to the loan.
“(6) Mandatory forbearance—During the period in which the Secretary of the Treasury is making payments on a loan under paragraph (1), the servicer of such loan shall grant the borrower forbearance as follows:
“(A) A temporary cessation of all payments on the loan other than the payments of interest and principal on the loan that are made under paragraph (1).
“(B) For borrowers who are delinquent but who are not yet in default before the date on which the Secretary begins making payments under paragraph (1), the retroactive application of forbearance to address any delinquency.
“(7) Data to implement—Holders and servicers of private education loans shall report, to the satisfaction of the Secretary of the Treasury, the information necessary to calculate the amount to be paid under this subsection.
“(8) Application only to economically distressed borrowers
“(A) In general—This subsection shall only apply to a borrower of a private education loan who is an economically distressed borrower.
“(B) Economically distressed borrower defined—In this paragraph, the term “economically distressed borrower” means a borrower of a private education loan who, as of March 12, 2020—
“(i) based on financial state or other conditions, would be otherwise eligible, if the borrower instead had a Federal student loan, of having a monthly payment due on such loan of $0 pursuant to an income-contingent repayment plan under section 455(d)(1)(D) of the Higher Education Act of 1965 (20 U.S.C. 1087e(d)(1)(D)) or an income-based repayment plan under section 493C of such Act (20 U.S.C. 1098e);
“(ii) was in default on such loan;
“(iii) had a payment due on such loan that was at least 90 days past due; or
“(iv) based on financial state or other conditions, was in forbearance or deferment.
“(C) Rulemaking—Not later than 7 days after the date of enactment of this paragraph, the Director of the Bureau, in consultation with the Secretary of Education, shall issue rules to implement this paragraph, including providing a detailed description of how a borrower of a private education loan will be considered an economically distressed borrower as defined under each clause of subparagraph (B).”
Appropriation— There is appropriated to the Secretary of the Treasury, out of amounts in the Treasury not otherwise appropriated, $45,000,000,000 to carry out this title and the amendments made by this title.
Sec. 110502 Additional protections for private student loan borrowers
In general—
Repayment plan and forgiveness terms— Each private education loan holder who receives a monthly payment pursuant to section 140(h) of the Truth in Lending Act shall modify all private education loan contracts that it holds to provide for the same repayment plan and forgiveness terms available to Direct Loans borrowers under section 685.209(c) of title 34, Code of Federal Regulations, in effect as of January 1, 2020.
Treatment of State statutes of limitation— For a borrower who has defaulted on a private education loan under the terms of the promissory note prior to any loan payment made or forbearance granted under section 140(h) of the Truth in Lending Act, no payment made or forbearance granted under such section 140(h) shall be considered an event that impacts the calculation of the applicable State statutes of limitation.
Prohibition on pressuring borrowers—
In general— A private education loan debt collector or creditor may not pressure a borrower to elect to apply any amount received pursuant to subsection (b) to any private education loan.
Violations— A violation of this paragraph is deemed—
an unfair, deceptive, or abusive act or practice under Federal law in connection with any transaction with a consumer for a consumer financial product or service under section 1031 of the Consumer Financial Protection Act of 2010 (12 U.S.C. 5531); and
with respect to a violation by a debt collector, an unfair or unconscionable means to collect or attempt to collect any debt under section 808 of the Federal Debt Collection Practices Act (15 U.S.C. 1692f).
Pressure defined— In this paragraph, the term pressure means any communication, recommendation, or other similar communication, other than providing basic information about a borrower’s options, urging a borrower to make an election described under subsection (b).
Relief for private student loan borrowers as a result of the COVID–19 national emergency—
Student loan relief as a result of the COVID–19 national emergency— Not later than 90 days after September 30, 2021, the Secretary of the Treasury shall carry out a program under which a borrower, with respect to the private education loans of such borrower, shall receive in accordance with paragraph (3) an amount equal to the lesser of—
the total amount of each private education loan of the borrower; or
$10,000, reduced by the aggregate amount of all payments made by the Secretary of the Treasury with respect to such borrower under section 140(h) of the Truth in Lending Act.
Notification of borrowers— Not later than 90 days after September 30, 2021, the Secretary of the Treasury shall notify each borrower of a private education loan of—
the requirements to provide loan relief to such borrower under this section; and
the opportunity for such borrower to make an election under paragraph (3)(A) with respect to the application of such loan relief to the private education loans of such borrower.
Distribution of funding—
Election by borrower— Not later than 45 days after a notice is sent under paragraph (2), a borrower may elect to apply the amount determined with respect to such borrower under paragraph (1) to any private education loan of the borrower.
Automatic payment—
In general— In the case of a borrower who does not make an election under subparagraph (A) before the date described in such subparagraph, the Secretary of the Treasury shall apply the amount determined with respect to such borrower under paragraph (1) in order of the private education loan of the borrower with the highest interest rate.
Equal interest rates— In case of two or more private education loans described in clause (i) with equal interest rates, the Secretary of the Treasury shall apply the amount determined with respect to such borrower under paragraph (1) first to the loan with the highest principal.
Application only to economically distressed borrowers— This section shall only apply to a borrower of a private education loan who is an economically distressed borrower.
Definitions— In this section:
Fair Debt Collection Practices Act terms— The terms creditor and debt collector have the meaning given those terms, respectively, under section 803 of the Fair Debt Collection Practices Act (15 U.S.C. 1692a).
Private education loan— The term private education loan has the meaning given the term in section 140 of the Truth in Lending Act (15 U.S.C. 1650).
Economically distressed borrower defined— The term “economically distressed borrower” has the meaning given that term under section 140(h)(8) of the Truth in Lending Act, as added by section 110501.
VI Standing Up For Small Businesses, Minority-Owned Businesses, and Non-Profits
Sec. 110601 Restrictions on collections of small business and nonprofit debt during a national disaster or emergency
In general— The Fair Debt Collection Practices Act (15 U.S.C. 1692 et seq.), as amended by section 110402, is further amended by inserting after section 812A the following:
“812B. Restrictions on collections of small business and nonprofit debt during a national disaster or emergency
“(a) Definitions—In this section:
“(1) Covered period—The term covered period means the period beginning on the date of enactment of this section and ending 120 days after the end of the incident period for the emergency declared on March 13, 2020, by the President under section 501 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 4121 et seq.) relating to the Coronavirus Disease 2019 (COVID-19) pandemic.
“(2) Creditor—The term creditor means any person—
“(A) who offers or extends credit creating a debt or to whom a debt is owed; or
“(B) to whom any obligation for payment is owed.
“(3) Debt—The term debt—
“(A) means any obligation or alleged obligation that is or during the covered period becomes past due, other than an obligation arising out of a credit agreement entered into after the effective date of this section, that arises out of a transaction with a nonprofit organization or small business; and
“(B) does not include a mortgage loan.
“(4) Debt collector—The term debt collector means a creditor and any other person or entity that engages in the collection of debt, including the Federal Government and a State government, irrespective of whether the applicable debt is allegedly owed to or assigned to such creditor, person, or entity.
“(5) Mortgage loan—The term mortgage loan means a covered mortgage loan (as defined under section 4022 of the CARES Act) and a multifamily mortgage loan (as defined under section 4023 of the CARES Act).
“(6) Nonprofit organization—The term nonprofit organization means an organization that is described in section 501(c)(3) of the Internal Revenue Code of 1986 and that is exempt from taxation under section 501(a) of such Code.
“(7) Small business—The term small business has the meaning given the term small business concern in section 3 of the Small Business Act (15 U.S.C. 632).
“(b) Prohibitions
“(1) In general—Notwithstanding any other provision of law, no debt collector may, during a covered period—
“(A) enforce a security interest securing a debt through repossession, limitation of use, or foreclosure;
“(B) take or threaten to take any action to deprive an individual of their liberty as a result of nonpayment of or nonappearance at any hearing relating to an obligation owed by a small business or nonprofit organization;
“(C) collect any debt, by way of garnishment, attachment, assignment, deduction, offset, or other seizure, from—
“(i) wages, income, benefits, bank, prepaid or other asset accounts; or
“(ii) any assets of, or other amounts due to, a small business or nonprofit organization;
“(D) commence or continue an action to evict a small business or nonprofit organization from real or personal property for nonpayment;
“(E) disconnect or terminate service from a utility service, including electricity, natural gas, telecommunications or broadband, water, or sewer, for nonpayment; or
“(F) threaten to take any of the foregoing actions.
“(2) Rule of construction—Nothing in this section may be construed to prohibit a small business or nonprofit organization from voluntarily paying, in whole or in part, a debt.
“(c) Limitation on fees and interest—After the expiration of a covered period, a debt collector may not add to any past due debt any interest on unpaid interest, higher rate of interest triggered by the nonpayment of the debt, or fee triggered prior to the expiration of the covered period by the nonpayment of the debt.
“(e) Violations—Any person or government entity that violates this section shall be liable to the applicable small business or nonprofit organization as provided under section 813, except that, for purposes of applying section 813—
“(1) such person or government entity shall be deemed a debt collector, as such term is defined for purposes of section 813; and
“(2) such small business or nonprofit organization shall be deemed a consumer, as such term is defined for purposes of section 813.
“(f) Tolling—Any applicable time limitations for exercising an action prohibited under subsection (b) shall be tolled during a covered period.
“(g) Predispute arbitration agreements—Notwithstanding any other provision of law, no predispute arbitration agreement or predispute joint-action waiver shall be valid or enforceable with respect to a dispute brought under this section, including a dispute as to the applicability of this section, which shall be determined under Federal law.”
Clerical amendment— The table of contents for the Fair Debt Collection Practices Act, as amended by section 110402, is further amended by inserting after the item relating to section 812A the following:
Sec. 110602 Repayment period and forbearance for small businesses and nonprofit organizations
Section 812B of the Fair Debt Collection Practices Act (15 U.S.C. 1692 et seq.), as added by section 110601, is amended—
by inserting after subsection (c) the following:
“(d) Repayment period—After the expiration of a covered period, a debt collector shall comply with the following:
“(1) Debt arising from credit with a defined payment period—For any debt arising from credit with a defined term, the debt collector shall extend the time period to repay any past due balance of the debt by—
“(A) 1 payment period for each payment that a small business or nonprofit organization missed during the covered period, with the payments due in the same amounts and at the same intervals as the pre-existing payment schedule; and
“(B) 1 payment period in addition to the payment periods described under subparagraph (A).
“(2) Debt arising from an open end credit plan—For debt arising from an open end credit plan, as defined in section 103 of the Truth in Lending Act (15 U.S.C. 1602), the debt collector shall allow the small business or nonprofit organization to repay the past-due balance in a manner that does not exceed the amounts permitted by the methods described in section 171(c) of the Truth in Lending Act (15 U.S.C. 1666i–1(c)) and regulations promulgated under that section.
“(3) Debt arising from other credit
“(A) In general—For debt not described under paragraph (2) or (3), the debt collector shall—
“(i) allow the small business or nonprofit organization to repay the past-due balance of the debt in substantially equal payments over time; and
“(ii) provide the small business or nonprofit organization with—
“(I) for past due balances of $2,000 or less, 12 months to repay, or such longer period as the debt collector may allow;
“(II) for past due balances between $2,001 and $5,000, 24 months to repay, or such longer period as the debt collector may allow; or
“(III) for past due balances greater than $5,000, 36 months to repay, or such longer period as the debt collector may allow.
“(B) Additional protections—The Director of the Bureau may issue rules to provide greater repayment protections to small businesses and nonprofit organizations with debts described under subparagraph (A).
“(C) Relation to State law—This paragraph shall not preempt any State law that provides for greater small business or nonprofit organization protections than this paragraph.”
by adding at the end the following:
“(h) Forbearance for affected small businesses and nonprofit organizations
“(1) Forbearance program—Each debt collector that makes use of the credit facility described in paragraph (4) shall establish a forbearance program for debts available during the covered period.
“(2) Automatic grant of forbearance upon request—Under a forbearance program required under paragraph (1), upon the request of a small business or nonprofit organization experiencing a financial hardship due, directly or indirectly, to COVID–19, the debt collector shall grant a forbearance on payment of debt for such time as needed until the end of the covered period, with no additional documentation required other than the small business or nonprofit organization’s attestation to a financial hardship caused by COVID–19 and with no fees, penalties, or interest (beyond the amounts scheduled or calculated as if the borrower made all contractual payments on time and in full under the terms of the loan contract) charged to the borrower in connection with the forbearance.
“(3) Exception for certain mortgage loans subject to the CARES Act—This subsection shall not apply to a mortgage loan subject to section 4022 or 4023 of the CARES Act.”
Sec. 110603 Credit facility
Section 812B(h) of the Fair Debt Collection Practices Act (15 U.S.C. 1692 et seq.), as added by section 110602, is amended by adding at the end the following:
“(4) Credit facility—The Board of Governors of the Federal Reserve System shall—
“(A) establish a facility, using amounts made available under section 4003(b)(4) of the CARES Act (15 U.S.C. 9042(b)(4)), to make long-term, low-cost loans to debt collectors to temporarily compensate such debt collectors for documented financial losses caused by forbearance of debt payments under this subsection; and
“(B) defer debt collectors’ required payments on such loans until after small businesses or nonprofit organizations’ debt payments resume.”
Sec. 110604 Main Street Lending Program requirements
by striking “Nothing in this subparagraph shall limit the discretion of the Board of Governors of the Federal Reserve System to” and inserting the following:
“(I) In general—The Board of Governors of the Federal Reserve System shall”
by adding at the end the following:
“(II) Requirements—In carrying out subclause (I), the Board of Governors of the Federal Reserve System—
“(aa) shall make non-profit organizations and institutions of higher education (as such term is defined in section 101(a) of the Higher Education Act of 1965 (20 U.S.C. 1001(a)) eligible for any program or facility established under such subclause;
“(bb) shall create a low-cost loan option tailored to the unique needs of non-profit organizations, including the ability to defer payments without capitalization of interest and, solely for non-profit organizations that predominantly serve low-income communities, as determined by the Federal Reserve, have the loans forgiven by the Department of the Treasury for a similar purpose to maintain payroll and operations provided under the Paycheck Protection Program, notwithstanding section 4003(d)(3) of the CARES Act;
“(cc) shall make any 501(c)(4) organization (as defined in section 501(c)(4) of the Internal Revenue Code of 1986) eligible for any facility provided that such 501(c)(4) organization has not made and will not make a contribution, expenditure, independent expenditure, or electioneering communication within the meaning of the Federal Election Campaign Act, and has not undertaken and will not undertake similar campaign finance activities in state and local elections, during the election cycle which ends on the date of the general election in this calendar year;”
Deadline— Not later than the end of the 5-day period beginning on the date of enactment of this Act, the Board of Governors of the Federal Reserve System shall issue such rules or take such other actions as may be necessary to implement the requirements made by the amendments made by this section.
Sec. 110605 Options for small businesses and non-profits under the Main Street Lending Program
In general— Section 4003(c)(3)(D)(ii)(II) of the CARES Act (15 U.S.C. 9042(c)(3)(D)(ii)(II)), as added by section 110604, is further amended by adding at the end the following:
“(cc) shall provide at least one low-cost loan option that small businesses, small non-profits, and small institutions of higher education (as such term is defined in section 101(a) of the Higher Education Act of 1965 (20 U.S.C. 1001(a)) are eligible for that does not have a minimum loan size and includes the ability to defer payments, without capitalization of interest, and, solely for small nonprofit organizations that predominantly serve low-income communities, as determined by the Federal Reserve, have the loans forgiven by the Department of the Treasury for a similar purpose to maintain payroll and operations provided under the Paycheck Protection Program, notwithstanding section 4003(d)(3) of the CARES Act.”
Deadline— Not later than the end of the 5-day period beginning on the date of enactment of this Act, the Board of Governors of the Federal Reserve System shall issue such rules or take such other actions as may be necessary to implement the requirements made by the amendments made by this section.
Sec. 110606 SAFE Banking
Short title; purpose—
Short title— This section may be cited as the “Secure And Fair Enforcement Banking Act of 2020” or the “SAFE Banking Act of 2020”.
Purpose— The purpose of this section is to increase public safety by ensuring access to financial services to cannabis-related legitimate businesses and service providers and reducing the amount of cash at such businesses.
Safe harbor for depository institutions—
In general— A Federal banking regulator may not—
terminate or limit the deposit insurance or share insurance of a depository institution under the Federal Deposit Insurance Act (12 U.S.C. 1811 et seq.), the Federal Credit Union Act (12 U.S.C. 1751 et seq.), or take any other adverse action against a depository institution under section 8 of the Federal Deposit Insurance Act (12 U.S.C. 1818) solely because the depository institution provides or has provided financial services to a cannabis-related legitimate business or service provider;
prohibit, penalize, or otherwise discourage a depository institution from providing financial services to a cannabis-related legitimate business or service provider or to a State, political subdivision of a State, or Indian Tribe that exercises jurisdiction over cannabis-related legitimate businesses;
recommend, incentivize, or encourage a depository institution not to offer financial services to an account holder, or to downgrade or cancel the financial services offered to an account holder solely because—
the account holder is a cannabis-related legitimate business or service provider, or is an employee, owner, or operator of a cannabis-related legitimate business or service provider;
the account holder later becomes an employee, owner, or operator of a cannabis-related legitimate business or service provider; or
the depository institution was not aware that the account holder is an employee, owner, or operator of a cannabis-related legitimate business or service provider;
take any adverse or corrective supervisory action on a loan made to—
a cannabis-related legitimate business or service provider, solely because the business is a cannabis-related legitimate business or service provider;
an employee, owner, or operator of a cannabis-related legitimate business or service provider, solely because the employee, owner, or operator is employed by, owns, or operates a cannabis-related legitimate business or service provider, as applicable; or
an owner or operator of real estate or equipment that is leased to a cannabis-related legitimate business or service provider, solely because the owner or operator of the real estate or equipment leased the equipment or real estate to a cannabis-related legitimate business or service provider, as applicable; or
prohibit or penalize a depository institution (or entity performing a financial service for or in association with a depository institution) for, or otherwise discourage a depository institution (or entity performing a financial service for or in association with a depository institution) from, engaging in a financial service for a cannabis-related legitimate business or service provider.
Safe harbor applicable to de novo institutions— Paragraph (1) shall apply to an institution applying for a depository institution charter to the same extent as such subsection applies to a depository institution.
Protections for ancillary businesses— For the purposes of sections 1956 and 1957 of title 18, United States Code, and all other provisions of Federal law, the proceeds from a transaction involving activities of a cannabis-related legitimate business or service provider shall not be considered proceeds from an unlawful activity solely because—
the transaction involves proceeds from a cannabis-related legitimate business or service provider; or
the transaction involves proceeds from—
cannabis-related activities described in subsection (n)(4)(B) conducted by a cannabis-related legitimate business; or
activities described in subsection (n)(13)(A) conducted by a service provider.
Protections under Federal law—
In general— With respect to providing a financial service to a cannabis-related legitimate business or service provider within a State, political subdivision of a State, or Indian country that allows the cultivation, production, manufacture, sale, transportation, display, dispensing, distribution, or purchase of cannabis pursuant to a law or regulation of such State, political subdivision, or Indian Tribe that has jurisdiction over the Indian country, as applicable, a depository institution, entity performing a financial service for or in association with a depository institution, or insurer that provides a financial service to a cannabis-related legitimate business or service provider, and the officers, directors, and employees of that depository institution, entity, or insurer may not be held liable pursuant to any Federal law or regulation—
solely for providing such a financial service; or
for further investing any income derived from such a financial service.
Protections for Federal reserve banks and Federal Home Loan Banks— With respect to providing a service to a depository institution that provides a financial service to a cannabis-related legitimate business or service provider (where such financial service is provided within a State, political subdivision of a State, or Indian country that allows the cultivation, production, manufacture, sale, transportation, display, dispensing, distribution, or purchase of cannabis pursuant to a law or regulation of such State, political subdivision, or Indian Tribe that has jurisdiction over the Indian country, as applicable), a Federal reserve bank or Federal Home Loan Bank, and the officers, directors, and employees of the Federal reserve bank or Federal Home Loan Bank, may not be held liable pursuant to any Federal law or regulation—
solely for providing such a service; or
for further investing any income derived from such a service.
Protections for insurers— With respect to engaging in the business of insurance within a State, political subdivision of a State, or Indian country that allows the cultivation, production, manufacture, sale, transportation, display, dispensing, distribution, or purchase of cannabis pursuant to a law or regulation of such State, political subdivision, or Indian Tribe that has jurisdiction over the Indian country, as applicable, an insurer that engages in the business of insurance with a cannabis-related legitimate business or service provider or who otherwise engages with a person in a transaction permissible under State law related to cannabis, and the officers, directors, and employees of that insurer may not be held liable pursuant to any Federal law or regulation—
solely for engaging in the business of insurance; or
for further investing any income derived from the business of insurance.
Forfeiture—
Depository institutions— A depository institution that has a legal interest in the collateral for a loan or another financial service provided to an owner, employee, or operator of a cannabis-related legitimate business or service provider, or to an owner or operator of real estate or equipment that is leased or sold to a cannabis-related legitimate business or service provider, shall not be subject to criminal, civil, or administrative forfeiture of that legal interest pursuant to any Federal law for providing such loan or other financial service.
Federal reserve banks and Federal Home Loan Banks— A Federal reserve bank or Federal Home Loan Bank that has a legal interest in the collateral for a loan or another financial service provided to a depository institution that provides a financial service to a cannabis-related legitimate business or service provider, or to an owner or operator of real estate or equipment that is leased or sold to a cannabis-related legitimate business or service provider, shall not be subject to criminal, civil, or administrative forfeiture of that legal interest pursuant to any Federal law for providing such loan or other financial service.
Rules of construction—
No requirement To provide financial services— Nothing in this section shall require a depository institution, entity performing a financial service for or in association with a depository institution, or insurer to provide financial services to a cannabis-related legitimate business, service provider, or any other business.
General examination, supervisory, and enforcement authority— Nothing in this section may be construed in any way as limiting or otherwise restricting the general examination, supervisory, and enforcement authority of the Federal banking regulators, provided that the basis for any supervisory or enforcement action is not the provision of financial services to a cannabis-related legitimate business or service provider.
Requirements for filing suspicious activity reports— Section 5318(g) of title 31, United States Code, is amended by adding at the end the following:
“(5) Requirements for cannabis-related legitimate businesses
“(A) In general—With respect to a financial institution or any director, officer, employee, or agent of a financial institution that reports a suspicious transaction pursuant to this subsection, if the reason for the report relates to a cannabis-related legitimate business or service provider, the report shall comply with appropriate guidance issued by the Financial Crimes Enforcement Network. The Secretary shall ensure that the guidance is consistent with the purpose and intent of the SAFE Banking Act of 2020 and does not significantly inhibit the provision of financial services to a cannabis-related legitimate business or service provider in a State, political subdivision of a State, or Indian country that has allowed the cultivation, production, manufacture, transportation, display, dispensing, distribution, sale, or purchase of cannabis pursuant to law or regulation of such State, political subdivision, or Indian Tribe that has jurisdiction over the Indian country.
“(B) Definitions—For purposes of this paragraph:
“(i) Cannabis—The term cannabis has the meaning given the term marihuana in section 102 of the Controlled Substances Act (21 U.S.C. 802).
“(ii) Cannabis-related legitimate business—The term “cannabis-related legitimate business” has the meaning given that term in subsection (n) of the SAFE Banking Act of 2020.
“(iii) Indian country—The term “Indian country” has the meaning given that term in section 1151 of title 18.
“(iv) Indian Tribe—The term “Indian Tribe” has the meaning given that term in section 102 of the Federally Recognized Indian Tribe List Act of 1994 (25 U.S.C. 479a).
“(v) Financial service—The term financial service has the meaning given that term in subsection (n) of the SAFE Banking Act of 2020.
“(vi) Service provider—The term “service provider” has the meaning given that term in subsection (n) of the SAFE Banking Act of 2020.
“(vii) State—The term State means each of the several States, the District of Columbia, Puerto Rico, and any territory or possession of the United States.”
Guidance and examination procedures— Not later than 180 days after the date of enactment of this Act, the Financial Institutions Examination Council shall develop uniform guidance and examination procedures for depository institutions that provide financial services to cannabis-related legitimate businesses and service providers.
Annual diversity and inclusion report— The Federal banking regulators shall issue an annual report to Congress containing—
information and data on the availability of access to financial services for minority-owned and women-owned cannabis-related legitimate businesses; and
any regulatory or legislative recommendations for expanding access to financial services for minority-owned and women-owned cannabis-related legitimate businesses.
GAO study on diversity and inclusion—
Study— The Comptroller General of the United States shall carry out a study on the barriers to marketplace entry, including in the licensing process, and the access to financial services for potential and existing minority-owned and women-owned cannabis-related legitimate businesses.
Report— The Comptroller General shall issue a report to the Congress—
containing all findings and determinations made in carrying out the study required under paragraph (1); and
containing any regulatory or legislative recommendations for removing barriers to marketplace entry, including in the licensing process, and expanding access to financial services for potential and existing minority-owned and women-owned cannabis-related legitimate businesses.
GAO study on effectiveness of certain reports on finding certain persons— Not later than 2 years after the date of the enactment of this Act, the Comptroller General of the United States shall carry out a study on the effectiveness of reports on suspicious transactions filed pursuant to section 5318(g) of title 31, United States Code, at finding individuals or organizations suspected or known to be engaged with transnational criminal organizations and whether any such engagement exists in a State, political subdivision, or Indian Tribe that has jurisdiction over Indian country that allows the cultivation, production, manufacture, sale, transportation, display, dispensing, distribution, or purchase of cannabis. The study shall examine reports on suspicious transactions as follows:
During the period of 2014 until the date of the enactment of this Act, reports relating to marijuana-related businesses.
During the 1-year period after date of the enactment of this Act, reports relating to cannabis-related legitimate businesses.
Banking services for hemp businesses—
Findings— The Congress finds that—
the Agriculture Improvement Act of 2018 (Public Law 115–334) legalized hemp by removing it from the definition of “marihuana” under the Controlled Substances Act;
despite the legalization of hemp, some hemp businesses (including producers, manufacturers, and retailers) continue to have difficulty gaining access to banking products and services; and
businesses involved in the sale of hemp-derived cannabidiol (“CBD”) products are particularly affected, due to confusion about their legal status.
Federal banking regulator hemp banking guidance— Not later than the end of the 90-day period beginning on the date of enactment of this Act, the Federal banking regulators shall jointly issue guidance to financial institutions—
confirming the legality of hemp, hemp-derived CBD products, and other hemp-derived cannabinoid products, and the legality of engaging in financial services with businesses selling hemp, hemp-derived CBD products, and other hemp-derived cannabinoid products, after the enactment of the Agriculture Improvement Act of 2018; and
to provide recommended best practices for financial institutions to follow when providing financial services and merchant processing services to businesses involved in the sale of hemp, hemp-derived CBD products, and other hemp-derived cannabinoid products.
Financial institution defined— In this section, the term “financial institution” means any person providing financial services.
Application of safe harbors to hemp and CBD products—
In general— Except as provided under paragraph (2), the provisions of this section (other than subsections (f) and (j)) shall apply to hemp (including hemp-derived cannabidiol and other hemp-derived cannabinoid products) in the same manner as such provisions apply to cannabis.
Rule of application— In applying the provisions of this section described under paragraph (1) to hemp, the definition of “cannabis-related legitimate business” shall be treated as excluding any requirement to engage in activity pursuant to the law of a State or political subdivision thereof.
Hemp defined— In this subsection, the term “hemp” has the meaning given that term under section 297A of the Agricultural Marketing Act of 1946 (7 U.S.C. 1639o).
Requirements for deposit account termination requests and orders—
Termination requests or orders must be valid—
In general— An appropriate Federal banking agency may not formally or informally request or order a depository institution to terminate a specific customer account or group of customer accounts or to otherwise restrict or discourage a depository institution from entering into or maintaining a banking relationship with a specific customer or group of customers unless—
the agency has a valid reason for such request or order; and
such reason is not based solely on reputation risk.
Treatment of national security threats— If an appropriate Federal banking agency believes a specific customer or group of customers is, or is acting as a conduit for, an entity which—
poses a threat to national security;
is involved in terrorist financing;
is an agency of the Government of Iran, North Korea, Syria, or any country listed from time to time on the State Sponsors of Terrorism list;
is located in, or is subject to the jurisdiction of, any country specified in clause (iii); or
does business with any entity described in clause (iii) or (iv), unless the appropriate Federal banking agency determines that the customer or group of customers has used due diligence to avoid doing business with any entity described in clause (iii) or (iv),
Notice requirement—
In general— If an appropriate Federal banking agency formally or informally requests or orders a depository institution to terminate a specific customer account or a group of customer accounts, the agency shall—
provide such request or order to the institution in writing; and
accompany such request or order with a written justification for why such termination is needed, including any specific laws or regulations the agency believes are being violated by the customer or group of customers, if any.
Justification requirement— A justification described under subparagraph (A)(ii) may not be based solely on the reputation risk to the depository institution.
Customer notice—
Notice required— Except as provided under subparagraph (B) or as otherwise prohibited from being disclosed by law, if an appropriate Federal banking agency orders a depository institution to terminate a specific customer account or a group of customer accounts, the depository institution shall inform the specific customer or group of customers of the justification for the customer’s account termination described under paragraph (2).
Notice prohibited—
Notice prohibited in cases of national security— If an appropriate Federal banking agency requests or orders a depository institution to terminate a specific customer account or a group of customer accounts based on a belief that the customer or customers pose a threat to national security, or are otherwise described under subsection (a)(2), neither the depository institution nor the appropriate Federal banking agency may inform the customer or customers of the justification for the customer’s account termination.
Notice prohibited in other cases— If an appropriate Federal banking agency determines that the notice required under subparagraph (A) may interfere with an authorized criminal investigation, neither the depository institution nor the appropriate Federal banking agency may inform the specific customer or group of customers of the justification for the customer’s account termination.
Reporting requirement— Each appropriate Federal banking agency shall issue an annual report to the Congress stating—
the aggregate number of specific customer accounts that the agency requested or ordered a depository institution to terminate during the previous year; and
the legal authority on which the agency relied in making such requests and orders and the frequency on which the agency relied on each such authority.
Definitions— For purposes of this subsection:
Appropriate Federal banking agency— The term “appropriate Federal banking agency” means—
the appropriate Federal banking agency, as defined under section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813); and
the National Credit Union Administration, in the case of an insured credit union.
Depository institution— The term “depository institution” means—
a depository institution, as defined under section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813); and
an insured credit union.
Definitions— In this Act:
Business of insurance— The term “business of insurance” has the meaning given such term in section 1002 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (12 U.S.C. 5481).
Cannabis— The term cannabis has the meaning given the term marihuana in section 102 of the Controlled Substances Act (21 U.S.C. 802).
Cannabis product— The term cannabis product means any article which contains cannabis, including an article which is a concentrate, an edible, a tincture, a cannabis-infused product, or a topical.
Cannabis-related legitimate business— The term “cannabis-related legitimate business” means a manufacturer, producer, or any person or company that—
engages in any activity described in subparagraph (B) pursuant to a law established by a State or a political subdivision of a State, as determined by such State or political subdivision; and
participates in any business or organized activity that involves handling cannabis or cannabis products, including cultivating, producing, manufacturing, selling, transporting, displaying, dispensing, distributing, or purchasing cannabis or cannabis products.
Depository institution— The term depository institution means—
a depository institution as defined in section 3(c) of the Federal Deposit Insurance Act (12 U.S.C. 1813(c));
a Federal credit union as defined in section 101 of the Federal Credit Union Act (12 U.S.C. 1752); or
a State credit union as defined in section 101 of the Federal Credit Union Act (12 U.S.C. 1752).
Federal banking regulator— The term Federal banking regulator means each of the Board of Governors of the Federal Reserve System, the Bureau of Consumer Financial Protection, the Federal Deposit Insurance Corporation, the Federal Housing Finance Agency, the Financial Crimes Enforcement Network, the Office of Foreign Asset Control, the Office of the Comptroller of the Currency, the National Credit Union Administration, the Department of the Treasury, or any Federal agency or department that regulates banking or financial services, as determined by the Secretary of the Treasury.
Financial service— The term financial service—
means a financial product or service, as defined in section 1002 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (12 U.S.C. 5481);
includes the business of insurance;
includes, whether performed directly or indirectly, the authorizing, processing, clearing, settling, billing, transferring for deposit, transmitting, delivering, instructing to be delivered, reconciling, collecting, or otherwise effectuating or facilitating of payments or funds, where such payments or funds are made or transferred by any means, including by the use of credit cards, debit cards, other payment cards, or other access devices, accounts, original or substitute checks, or electronic funds transfers;
includes acting as a money transmitting business which directly or indirectly makes use of a depository institution in connection with effectuating or facilitating a payment for a cannabis-related legitimate business or service provider in compliance with section 5330 of title 31, United States Code, and any applicable State law; and
includes acting as an armored car service for processing and depositing with a depository institution or a Federal reserve bank with respect to any monetary instruments (as defined under section 1956(c)(5) of title 18, United States Code.
Indian country— The term “Indian country” has the meaning given that term in section 1151 of title 18.
Indian Tribe— The term “Indian Tribe” has the meaning given that term in section 102 of the Federally Recognized Indian Tribe List Act of 1994 (25 U.S.C. 479a).
Insurer— The term “insurer” has the meaning given that term under section 313(r) of title 31, United States Code.
Manufacturer— The term manufacturer means a person who manufactures, compounds, converts, processes, prepares, or packages cannabis or cannabis products.
Producer— The term producer means a person who plants, cultivates, harvests, or in any way facilitates the natural growth of cannabis.
Service provider— The term “service provider”—
means a business, organization, or other person that—
sells goods or services to a cannabis-related legitimate business; or
provides any business services, including the sale or lease of real or any other property, legal or other licensed services, or any other ancillary service, relating to cannabis; and
does not include a business, organization, or other person that participates in any business or organized activity that involves handling cannabis or cannabis products, including cultivating, producing, manufacturing, selling, transporting, displaying, dispensing, distributing, or purchasing cannabis or cannabis products.
State— The term State means each of the several States, the District of Columbia, Puerto Rico, and any territory or possession of the United States.
Discretionary surplus funds— Section 7(a)(3)(A) of the Federal Reserve Act (12 U.S.C. 289(a)(3)(A)) is amended by striking “$6,825,000,000” and inserting “$6,821,000,000”.
VII Empowering Community Financial Institutions
Sec. 110701 Community Development Financial Institutions Fund
In General— There is authorized to be appropriated to the Community Development Financial Institutions Fund $2,000,000,000 for fiscal year 2020, for providing financial assistance and technical assistance under subparagraphs (A) and (B) of section 108(a)(1) of the Community Development Banking and Financial Institutions Act of 1994 (12 U.S.C. 4707(a)(1)), except that subsections (d) and (e) of such section 108 shall not apply to the provision of such assistance, for the Bank Enterprise Award program, and for financial assistance, technical assistance, training, and outreach programs designed to benefit Native American, Native Hawaiian, and Alaska Native communities and provided primarily through qualified community development lender organizations with experience and expertise in community development banking and lending in Indian country, Native American organizations, Tribes and Tribal organizations, and other suitable providers. Of the amount appropriated pursuant to this heading, not less than $800,000,000 shall be for providing financial assistance, technical assistance, awards, training, and outreach programs described above to recipients that are minority lending institutions.
Definitions— For purposes of this section:
Minority lending institution— The term “minority lending institution” means any depository institution, loan fund, or other financial institution that—
if a privately-owned institution, 51 percent is owned by one or more socially and economically disadvantaged individuals;
if publicly-owned, 51 percent of the stock is owned by one or more socially and economically disadvantaged individuals; and
in the case of a mutual institution, where the majority of the Board of Directors, account holders, and the community which it services is predominantly minority.
Minority— The term “minority” means any black American, Native American, Hispanic American, or Asian American.
Sec. 110702 Ensuring diversity in community banking
Short title— This section may be cited as the “Ensuring Diversity in Community Banking Act of 2020”.
Community development financial institution— In this section, the term community development financial institution has the meaning given under section 103 of the Riegle Community Development and Regulatory Improvement Act of 1994 (12 U.S.C. 4702).
Minority depository institution— In this section, the term minority depository institution has the meaning given under section 308 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 1463 note), as amended by this section.
Inclusion of women’s banks in the definition of minority depository institution— Section 308(b)(1) of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 1463 note) is amended—
by redesignating subparagraphs (A), (B), and (C) as clauses (i), (ii), and (iii), respectively;
by striking “means any” and inserting the following:
“(A) any”
in clause (iii) (as so redesignated), by striking the period at the end and inserting “; or”; and
by inserting at the end the following new subparagraph:
“(B) any bank described in clause (i), (ii), or (iii) of section 19(b)(1)(A) of the Federal Reserve Act—
“(i) more than 50 percent of the outstanding shares of which are held by 1 or more women; and
“(ii) the majority of the directors on the board of directors of which are women.”
Establishment of impact bank designation—
In general— Each appropriate Federal banking agency shall establish a program under which a depository institution with total consolidated assets of less than $10,000,000,000 may elect to be designated as an impact bank if the total dollar value of the loans extended by such depository institution to low-income borrowers is greater than or equal to 50 percent of the assets of such bank.
Designation— Based on data obtained through examinations, an appropriate Federal banking agency shall submit a notification to a depository institution stating that the depository institution qualifies for designation as an impact bank.
Application— A depository institution that does not receive a notification described in paragraph (2) may submit an application to the appropriate Federal banking agency demonstrating that the depository institution qualifies for designation as an impact bank.
Additional data or oversight— A depository institution is not required to submit additional data to an appropriate Federal banking agency or be subject to additional oversight from such an agency if such data or oversight is related specifically and solely for consideration for a designation as an impact bank.
Removal of designation— If an appropriate Federal banking agency determines that a depository institution designated as an impact bank no longer meets the criteria for such designation, the appropriate Federal banking agency shall rescind the designation and notify the depository institution of such rescission.
Reconsideration of designation; appeals— A depository institution may—
submit to the appropriate Federal banking agency a request to reconsider a determination that such depository institution no longer meets the criteria for the designation; or
file an appeal in accordance with procedures established by the appropriate Federal banking agency.
Rulemaking— Not later than 1 year after the date of the enactment of this Act, the appropriate Federal banking agencies shall jointly issue rules to carry out the requirements of this paragraph, including by providing a definition of a low-income borrower.
Reports— Each appropriate Federal banking agency shall submit an annual report to the Congress containing a description of actions taken to carry out this paragraph.
Federal Deposit Insurance Act definitions— In this subsection, the terms depository institution and appropriate Federal banking agency have the meanings given such terms, respectively, in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813).
Minority Depository Institutions Advisory Committees—
Establishment— Each covered regulator shall establish an advisory committee to be called the “Minority Depository Institutions Advisory Committee”.
Duties— Each Minority Depository Institutions Advisory Committee shall provide advice to the respective covered regulator on meeting the goals established by section 308 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 1463 note) to preserve the present number of covered minority institutions, preserve the minority character of minority-owned institutions in cases involving mergers or acquisitions, provide technical assistance, and encourage the creation of new covered minority institutions. The scope of the work of each such Minority Depository Institutions Advisory Committee shall include an assessment of the current condition of covered minority institutions, what regulatory changes or other steps the respective agencies may be able to take to fulfill the requirements of such section 308, and other issues of concern to minority depository institutions.
Membership—
In general— Each Minority Depository Institutions Advisory Committee shall consist of no more than 10 members, who—
shall serve for one two-year term;
shall serve as a representative of a depository institution or an insured credit union with respect to which the respective covered regulator is the covered regulator of such depository institution or insured credit union; and
shall not receive pay by reason of their service on the advisory committee, but may receive travel or transportation expenses in accordance with section 5703 of title 5, United States Code.
Diversity— To the extent practicable, each covered regulator shall ensure that the members of Minority Depository Institutions Advisory Committee of such agency reflect the diversity of depository institutions.
Meetings—
In general— Each Minority Depository Institutions Advisory Committee shall meet not less frequently than twice each year.
Invitations— Each Minority Depository Institutions Advisory Committee shall invite the attendance at each meeting of the Minority Depository Institutions Advisory Committee of—
one member of the majority party and one member of the minority party of the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate; and
one member of the majority party and one member of the minority party of any relevant subcommittees of such committees.
No termination of advisory committees— The termination requirements under section 14 of the Federal Advisory Committee Act (5 U.S.C. app.) shall not apply to a Minority Depository Institutions Advisory Committee established pursuant to this section.
Definitions— In this paragraph:
Covered regulator— The term covered regulator means the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the National Credit Union Administration.
Covered minority institution— The term covered minority institution means a minority depository institution (as defined in section 308(b) of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 1463 note)) or a minority credit union (as defined in section 1204(c) of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, as amended by this Act).
Depository institution— The term depository institution has the meaning given under section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813).
Insured credit union— The term insured credit union has the meaning given in section 101 of the Federal Credit Union Act (12 U.S.C. 1752).
Technical amendment— Section 308(b) 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 paragraph:
“(3) Depository institution—The term depository institution means an insured depository institution (as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813)) and an insured credit union (as defined in section 101 of the Federal Credit Union Act (12 U.S.C. 1752)).”
Federal deposits in minority depository institutions—
In general— Section 308 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 1463 note) is amended—
by adding at the end the following new subsection:
“(d) Federal deposits—The Secretary of the Treasury shall ensure that deposits made by Federal agencies in minority depository institutions and impact banks are collateralized or insured, as determined by the Secretary. Such deposits shall include reciprocal deposits, as defined under section 29(i)(2) of the Federal Deposit Insurance Act (12 U.S.C. 1831f(i)(2)).”
in subsection (b), as amended by subsection (f)(7), by adding at the end the following new paragraph:
“(4) Impact bank—The term impact bank means a depository institution designated by an appropriate Federal banking agency pursuant to subsection (e) of the Ensuring Diversity in Community Banking Act of 2020.”
Technical amendments— Section 308 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 1463 note) is amended—
in the matter preceding paragraph (1), by striking “section—” and inserting “section:”; and
in the paragraph heading for paragraph (1), by striking “financial” and inserting “depository”.
Minority Bank Deposit Program—
In general— Section 1204 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 1811 note) is amended to read as follows:
“1204. Expansion of use of minority banks and minority credit unions
“(a) Minority Bank Deposit Program
“(1) Establishment—There is established a program to be known as the “Minority Bank Deposit Program” to expand the use of minority banks and minority credit unions.
“(2) Administration—The Secretary of the Treasury, acting through the Fiscal Service, shall—
“(A) on application by a depository institution or credit union, certify whether such depository institution or credit union is a minority bank or minority credit union;
“(B) maintain and publish a list of all depository institutions and credit unions that have been certified pursuant to subparagraph (A); and
“(C) periodically distribute the list described in subparagraph (B) to—
“(i) all Federal departments and agencies;
“(ii) interested State and local governments; and
“(iii) interested private sector companies.
“(3) Inclusion of certain entities on list—A depository institution or credit union that, on the date of the enactment of this section, has a current certification from the Secretary of the Treasury stating that such depository institution or credit union is a minority bank or minority credit union shall be included on the list described under paragraph (2)(B).
“(b) Expanded Use Among Federal Departments and Agencies
“(1) In general—Not later than 1 year after the establishment of the program described in subsection (a), the head of each Federal department or agency shall develop and implement standards and procedures to ensure, to the maximum extent possible as permitted by law and consistent with principles of sound financial management, the use of minority banks and minority credit unions to hold the deposits of each such department or agency.
“(2) Report to Congress—Not later than 2 years after the establishment of the program described in subsection (a), and annually thereafter, the head of each Federal department or agency shall submit to Congress a report on the actions taken to increase the use of minority banks and minority credit unions hold the deposits of each such department or agency.
“(c) Definitions—For purposes of this section:
“(1) Credit union—The term credit union has the meaning given the term insured credit union in section 101 of the Federal Credit Union Act (12 U.S.C. 1752).
“(2) Depository institution—The term depository institution has the meaning given in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813).
“(3) Minority—The term minority means any Black American, Native American, Hispanic American, or Asian American.
“(4) Minority bank—The term minority bank means a minority depository institution as defined in section 308 of this Act.
“(5) Minority credit union—The term minority credit union means any credit union for which more than 50 percent of the membership (including board members) of such credit union are minority individuals, as determined by the National Credit Union Administration pursuant to section 308 of this Act.”
Conforming Amendments— The following provisions are amended by striking “1204(c)(3)” and inserting “1204(c)”:
Section 808(b)(3) of the Community Reinvestment Act of 1977 (12 U.S.C. 2907(b)(3)).
Section 40(g)(1)(B) of the Federal Deposit Insurance Act (12 U.S.C. 1831q(g)(1)(B)).
Section 704B(h)(4) of the Equal Credit Opportunity Act (15 U.S.C. 1691c–2(h)(4)).
Diversity report and best practices—
Annual report— Each covered regulator shall submit to Congress an annual report on diversity including the following:
Data, based on voluntary self-identification, on the racial, ethnic, and gender composition of the examiners of each covered regulator, disaggregated by length of time served as an examiner.
The status of any examiners of covered regulators, based on voluntary self-identification, as a veteran.
Whether any covered regulator, as of the date on which the report required under this section is submitted, has adopted a policy, plan, or strategy to promote racial, ethnic, and gender diversity among examiners of the covered regulator.
Whether any special training is developed and provided for examiners related specifically to working with banks that serve communities that are predominantly minorities, low income, or rural, and the key focus of such training.
Best practices— Each Office of Minority and Women Inclusion of a covered regulator shall develop, provide to the head of the covered regulator, and make publicly available best practices—
for increasing the diversity of candidates applying for examiner positions, including through outreach efforts to recruit diverse candidate to apply for entry-level examiner positions; and
for retaining and providing fair consideration for promotions within the examiner staff for purposes of achieving diversity among examiners.
Covered regulator defined— In this subsection, the term covered regulator means the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the National Credit Union Administration.
Investments in minority depository institutions and impact banks—
Control for certain institutions— Section 7(j)(8)(B) of the Federal Deposit Insurance Act (12 U.S.C. 1817(j)(8)(B)) is amended to read as follows:
“(B) “control” means the power, directly or indirectly—
“(i) to direct the management or policies of an insured depository institution; or
“(ii)
“(I) with respect to an insured depository institution, of a person to vote 25 per centum or more of any class of voting securities of such institution; or
“(II) with respect to an insured depository institution that is an impact bank (as designated pursuant to subsection (e) of the Ensuring Diversity in Community Banking Act of 2020) or a minority depository institution (as defined in section 308(b) of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989), of an individual to vote 30 percent or more of any class of voting securities of such an impact bank or a minority depository institution.”
Rulemaking— The appropriate Federal banking agency (as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813)) shall jointly issue rules for de novo minority depository institutions and de novo impact banks (as designated pursuant to subsection (e)) to allow 3 years to meet the capital requirements otherwise applicable to minority depository institutions and impact banks.
Report— Not later than 1 year after the date of the enactment of this Act, the appropriate Federal banking agencies shall jointly submit to Congress a report on—
the principal causes for the low number of de novo minority depository institutions during the 10-year period preceding the date of the report;
the main challenges to the creation of de novo minority depository institutions and de novo impact banks; and
regulatory and legislative considerations to promote the establishment of de novo minority depository institutions and de novo impact banks.
Report on covered mentor-protege programs—
Report— Not later than 6 months after the date of the enactment of this Act and annually thereafter, the Secretary of the Treasury shall submit to Congress a report on participants in a covered mentor-protege program, including—
an analysis of outcomes of such program;
the number of minority depository institutions that are eligible to participate in such program but do not have large financial institution mentors; and
recommendations for how to match such minority depository institutions with large financial institution mentors.
Definitions— In this subsection:
Covered mentor-protege program— The term covered mentor-protege program means a mentor-protege program established by the Secretary of the Treasury pursuant to section 45 of the Small Business Act (15 U.S.C. 657r).
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; and
that has total consolidated assets greater than or equal to $50,000,000,000.
Custodial deposit program for covered minority depository institutions and impact banks—
In general— Not later than one year after the date of the enactment of this Act, the Secretary of the Treasury shall issue rules establishing a custodial deposit program under which a covered bank may receive deposits from a qualifying account.
Requirements— In issuing rules under paragraph (1), the Secretary of the Treasury shall—
ensure each covered bank participating in the program established under this subsection—
has appropriate policies relating to management of assets, including measures to ensure the safety and soundness of each such covered bank; and
is compliant with applicable law; and
ensure, to the extent practicable that the rules do not conflict with goals described in section 308(a) of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 1463 note).
Report— Each quarter, the Secretary of the Treasury shall submit to Congress a report on the implementation of the program established under this subsection including information identifying participating covered banks and the total amount of deposits received by covered banks under the program.
Definitions— In this subsection:
Covered bank— The term “covered bank” means—
a minority depository institution that is well capitalized, as defined by the Federal Deposit Insurance Corporation or the National Credit Union Administration, as appropriate; or
a depository institution designated pursuant to subsection (e) that is well capitalized, as defined by the Federal Deposit Insurance Corporation.
Qualifying account— The term “qualifying account” means any account established in the Department of the Treasury that—
is controlled by the Secretary; and
is expected to maintain a balance greater than $200,000,000 for the following 24-month period.
Streamlined community development financial institution applications and reporting—
Application processes— Not later than 12 months after the date of the enactment of this Act and with respect to any person having assets under $3,000,000,000 that submits an application for deposit insurance with the Federal Deposit Insurance Corporation that could also become a community development financial institution, the Federal Deposit Insurance Corporation, in consultation with the Administrator of the Community Development Financial Institutions Fund, shall—
develop systems and procedures to record necessary information to allow the Administrator to conduct preliminary analysis for such person to also become a community development financial institution; and
develop procedures to streamline the application and annual certification processes and to reduce costs for such person to become, and maintain certification as, a community development financial institution.
Implementation report— Not later than 18 months after the date of the enactment of this Act, the Federal Deposit Insurance Corporation shall submit to Congress a report describing the systems and procedures required under paragraph (1).
Annual report—
In general— Section 17(a)(1) of the Federal Deposit Insurance Act (12 U.S.C. 1827(a)(1)) is amended—
in subparagraph (E), by striking “and” at the end;
by redesignating subparagraph (F) as subparagraph (G);
by inserting after subparagraph (E) the following new subparagraph:
“(F) applicants for deposit insurance that could also become a community development financial institution (as defined in section 103 of the Riegle Community Development and Regulatory Improvement Act of 1994), a minority depository institution (as defined in section 308 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989), or an impact bank (as designated pursuant to subsection (e) of the Ensuring Diversity in Community Banking Act of 2020); and”
Application— The amendment made by this paragraph shall apply with respect to the first report to be submitted after the date that is 2 years after the date of the enactment of this Act.
Task force on lending to small business concerns—
In general— Not later than 6 months after the date of the enactment of this Act, the Administrator of the Small Business Administration shall establish a task force to examine methods for improving relationships between the Small Business Administration and community development financial institutions, minority depository institutions, and Impact Banks to increase the volume of loans provided by such institutions to small business concerns (as defined under section 3 of the Small Business Act (15 U.S.C. 632)).
Report to Congress— Not later than 18 months after the establishment of the task force described in paragraph (1), the Administrator of the Small Business Administration shall submit to Congress a report on the findings of such task force.
Assistance to minority depository institutions and impact banks— The Secretary of the Treasury shall establish a program to provide assistance to a minority depository institution or an impact bank (as designated pursuant to subsection (e)) to support growth and development of such minority depository institutions and impact banks, including by providing assistance with obtaining or converting a charter, bylaw amendments, field-of-membership expansion requests, and online training and resources.
VIII Providing Assistance for State, Territory, Tribal, and Local Governments
Sec. 110801 Emergency relief for State, territorial, Tribal, and local governments
Purchase of COVID–19 related municipal issuances— Section 14(b) of the Federal Reserve Act (12 U.S.C. 355) is amended by adding at the end the following new paragraph:
“(3) Unusual and exigent circumstances—Under unusual and exigent circumstances, to buy any bills, notes, revenue bonds, and warrants issued by any State, county, district, political subdivision, municipality, or entity that is a combination of any of the several States, the District of Columbia, or any of the territories and possessions of the United States. In this paragraph, the term State means each of the several States, the District of Columbia, each territory and possession of the United States, and each federally recognized Indian Tribe.”
Federal Reserve authorization to purchase COVID–19 related municipal issuances— Within 7 days after the date of the enactment of this subsection, the Board of Governors of the Federal Reserve System shall modify the Municipal Liquidity Facility (established on April 9, 2020, pursuant to section 13(3) of the Federal Reserve Act (12 U.S.C. 343(3))) to—
ensure such facility is operational until December 31, 2021;
allow for the purchase of bills, notes, bonds, and warrants with maximum maturity of 10 years from the date of such purchase;
ensure that any purchases made are at an interest rate equal to the discount window primary credit interest rate most recently published on the Federal Reserve Statistical Release on selected interest rates (daily or weekly), commonly referred to as the “H.15 release” or the “Federal funds rate”;
ensure that an eligible issuer does not need to attest to an inability to secure credit elsewhere; and
include in the list of eligible issuers for such purchases—
any of the territories and possessions of the United States;
a political subdivision of a State with a population of more than 50,000 residents; and
an entity that is a combination of any of the several States, the District of Columbia, or any of the territories and possessions of the United States.
Sec. 110802 Community development block grants
Funding and allocations—
Authorization of appropriations— There is authorized to be appropriated $5,000,000,000 for assistance in accordance with this section 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.), which shall remain available until September 30, 2023.
Allocation— Amounts made available pursuant to paragraph (1) shall be distributed pursuant to section 106 of such Act (42 U.S.C. 5306) to grantees and such allocations shall be made within 30 days after the date of the enactment of this Act.
Time limitation on emergency grant payments— Paragraph (4) of section 570.207(b) of the Secretary’s regulations (24 C.F.R. 570.207(b)(4)) shall be applied with respect to grants with amounts made available pursuant to subsection (a), by substituting “121 consecutive months” for “3 consecutive months”.
Matching of amounts used for administrative costs— Any requirement for a State to match or supplement amounts expended for program administration of State grants under section 106(d) of the Housing and Community Development Act of 1974 (42 U.S.C. 5306(d)) shall not apply with respect to amounts made available pursuant to subsection (a).
CAPER information— During the period that begins on the date of enactment of this Act and ends on the date of the termination by the Federal Emergency Management Agency of the emergency declared on March 13, 2020, by the President under the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 4121 et seq.) relating to the Coronavirus Disease 2019 (COVID-19) pandemic, the Secretary shall make all information included in Consolidated Annual Performance and Evaluation Reports relating to assistance made available pursuant to this section publicly available on its website on a quarterly basis.
Authority; waivers— Any provisions of, and waivers and alternative requirements issued by the Secretary pursuant to, the heading “Department of Housing and Urban Development—Community Planning and Development —Community Development Fund” in title XII of division B of the CARES Act (Public Law 116–136) shall apply with respect to amounts made available pursuant to subsection (a) of this section.
IX Providing Oversight and Protecting Taxpayers
Sec. 110901 Mandatory reports to Congress
Disclosure of transaction reports— Section 4026(b)(1)(A)(iii) of the CARES Act (Public Law 116–136) is amended—
in subclause (IV)—
by inserting “and the justification for such exercise of authority” after “authority”; and
by striking “and” at the end;
in subclause (V), by striking the period at the end and inserting “; and”; and
by adding at the end the following:
“(VI) the identity of each recipient of a loan or loan guarantee described in subclause (I);
“(VII) the date and amount of each such loan or loan guarantee and the form in which each such loan or loan guarantee was provided;
“(VIII) the material terms of each such loan or loan guarantee, including—
“(aa) duration;
“(bb) collateral pledged and the value thereof;
“(cc) all interest, fees, and other revenue or items of value to be received in exchange for such loan or loan guarantee;
“(dd) any requirements imposed on the recipient with respect to employee compensation, distribution of dividends, or any other corporate decision in exchange for the assistance; and
“(ee) the expected costs to the Federal Government with respect to such loans or loan guarantees.”
Reports by the Secretary of the Treasury— Section 4018 of the CARES Act (Public Law 116–136) is amended by adding at the end the following:
“(k) Reports by the Secretary—Not later than 7 days after the last day of each month, the Secretary shall submit to the Special Inspector General, 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 includes the information specified in subparagraphs (A) through (E) of subsection (c)(1) with respect to the making, purchase, management, and sale of loans, loan guarantees, and other investments made by the Secretary under any program established by the Secretary under this Act.”
Sec. 110902 Discretionary reports to Congress
Section 4020(b) of the CARES Act (Public Law 116–136) is amended by adding at the end the following:
“(3) Discretionary reports to Congress—In addition to the reports required under paragraph (2), the Oversight Commission may submit other reports to Congress at such time, in such manner, and containing such information as the Oversight Commission determines appropriate.”
Sec. 110903 Definition of appropriate congressional committees
Pandemic Response Accountability Committee— Section 15010(a)(2) of the CARES Act (Public Law 116–136) is amended—
by redesignating subparagraphs (B) through (D) as subparagraphs (D) through (F), respectively; and
by inserting after subparagraph (A) the following:
“(B) the Committee on Banking, Housing, and Urban Affairs of the Senate;
“(C) the Committee on Financial Services of the House of Representatives;”
Oversight and audit authority— Section 19010(a)(1) of the CARES Act (Public Law 116–136) is amended—
by redesignating subparagraphs (B) through (G) as subparagraphs (D) through (I), respectively; and
by inserting after subparagraph (A) the following:
“(B) the Committee on Banking, Housing, and Urban Affairs of the Senate;
“(C) the Committee on Financial Services of the House of Representatives;”
Sec. 110904 Reporting by inspectors general
Definition of covered agency— In this section, the term covered agency means—
the Department of the Treasury;
the Federal Deposit Insurance Corporation;
the Office of the Comptroller of the Currency;
the Board of Governors of the Federal Reserve System;
the National Credit Union Administration;
the Bureau of Consumer Financial Protection;
the Department of Housing and Urban Development;
the Department of Agriculture, Rural Housing Service;
the Securities and Exchange Commission; and
the Federal Housing Finance Agency.
Report— The Inspector General of each covered agency shall include in each semiannual report submitted by the Inspector General the findings of the Inspector General on the effectiveness of—
rulemaking by the covered agency related to COVID–19; and
supervision and oversight by the covered agency of institutions and entities that participate in COVID–19-related relief, funding, lending, or other programs of the covered agency.
Submission— The Inspector General of each covered agency shall submit the information required to be included in each semiannual report under subsection (b) to—
the Special Inspector General for Pandemic Recovery appointed under section 4018 of division A of the CARES Act (Public Law 116–136);
the Pandemic Response Accountability Committee established under section 15010 of division B of the CARES Act (Public Law 116–136); and
the Congressional Oversight Commission established under section 4020 of division A of the CARES Act (Public Law 116–136).