H.R. 6644 — what changed
21st Century ROAD to Housing Act
From Reported in House to Engrossed in House. 12 sections amended and 13 added between Reported in House and Engrossed in House.
Sec. 102 Accelerating home building grant program
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In general— The Secretary may establish a pilot program to award grants to eligible entities to review designs of covered structures of mixed-income housing and designate such reviewed designs to be included in pattern books for use in the jurisdiction of the eligible entity.
Restriction— Amounts awarded under this section may not be used for construction, alteration, or repair work.
Considerations— In reviewing applications submitted by eligible entities for a grant under this section, the Secretary shall consider—
the need for affordable housing in the eligible entity;
the presence of high opportunity areas in the eligible entity;
coordination between the eligible entity and a State agency; and
coordination between the eligible entity and State, local, and regional transportation planning authorities.
Set-aside for rural areas— Of the amounts made available in each fiscal year for grants under this section, the Secretary shall ensure that not less than 10-percent shall be used for grants to eligible entities that are located in rural areas.
Report requirement— Not later than 3 years after being awarded a grant under this section, an eligible entity shall submit to the Secretary a report that—
describes the impacts of the activities carried out using the amounts provided under this section on improving the production and supply of affordable housing;
includes a list of any pattern books the eligible entity has established using amounts provided under this section, including a description of the designs such pattern book includes;
identifies the number of permits issued by the eligible entity for housing development using designs from such pattern book; and
identifies the number of housing units produced in developments of the eligible entity using a design from such pattern book.
Availability of information— The Secretary shall—
to the extent possible, encourage eligible entities awarded grants under this section to make any pattern books established by such entity, and designs in such pattern book, publicly available through a website; and
collect, identify, and disseminate best practices relating to pattern books and make such information publicly available on a website of the Department of Housing and Urban Development.
Repayment of awarded amounts— The Secretary may require an eligible entity to return, to the Secretary, grant amounts awarded under this section if the Secretary determines that the eligible entity has not approved a sufficient number of building permits that use designs included in a pattern book established by the eligible entity, during the 5-year period following receipt of the grant by the eligible entity, unless such period is extended by the Secretary.
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Sunset— The pilot program established under this section shall terminate on the date that is 7 years after the date of the enactment of this section.
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was (9)
Definitions— In this section:
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was (9)(3)
Affordable housing— The term affordable housing means housing for which the total monthly housing cost payment is not more than 30-percent of the monthly household income for a household earning not more than 80-percent of the area-median income.
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was (9)(4)
Covered structure— The term covered structure means a low-rise or mid-rise structure with not more than 25 dwelling units that may include—
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was (9)(4)(3)
an accessory dwelling unit;
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was (9)(4)(4)
infill development;
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was (9)(4)(5)
a duplex;
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was (9)(4)(6)
a triplex;
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was (9)(4)(7)
a fourplex;
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was (9)(4)(8)
a cottage court;
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was (9)(4)(9)
a courtyard building;
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was (9)(4)(10)
a townhouse;
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was (9)(4)(11)
a multiplex; and
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was (9)(4)(12)
any other structure with not less than 2 dwelling units that the Secretary has determined in advance to be appropriate.
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was (9)(5)
Eligible entity— The term eligible entity means—
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was (9)(5)(3)
a unit of general local government, as defined in section 102(a) of the Housing and Community Development Act of 1974 (42 U.S.C. 5302(a)); and
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was (9)(5)(4)
an Indian Tribe, as defined in section 102(a) of the Housing and Community Development Act of 1974 (42 U.S.C. 5302(a)).
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was (9)(6)
High opportunity area— The term high opportunity area has the meaning given the term in section 1282.1 of title 12, Code of Federal Regulations, or any successor regulation.
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was (9)(7)
Infill development— The term infill development means a residential housing development on small parcels in previously established areas for replacement by new or refurbished housing that utilizes existing utilities and infrastructure.
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was (9)(8)
Mixed-income housing— The term mixed-income housing means a housing development that is comprised of housing units that promote differing levels of affordability in the community.
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was (9)(9)
Pattern book— The term pattern book means a set of pre-reviewed, designated designs or construction plans that are assessed and approved as by-right development by localities for compliance with local building and permitting standards to streamline and expedite approval pathways for housing construction.
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was (9)(10)
Rural area— The term rural area means any area other than a city or town that has a population of less than 50,000 inhabitants.
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was (9)(11)
Secretary— The term Secretary means the Secretary of Housing and Urban Development.
Sec. 103 Federal guidelines for point-access block buildings
In general— Not later than 18 months after the date of enactment of this section, the Secretary of Housing and Urban Development shall issue guidelines to provide States, territories, Tribes, and localities with model code language, best practices, and technical guidance that could be used to facilitate the permitting of point-access block residential buildings.
Contents— When developing the guidelines under subsection (a), the Secretary shall consider—
fire safety considerations, including sprinkler coverage, smoke detection, ventilation, and building egress performance;
construction costs and potential impacts on housing affordability, including the potential for increasing housing supply in high-cost jurisdictions;
flexibility for diverse consumer needs, including family sizes, unit configurations, and accessibility;
examples of single-stair codes adopted or considered by States and cities in the United States;
examples single-stair codes used in relevant international standards;
research and model language relating to single-stair codes produced by organizations that focus on point-access block building design and building-code reform;
consulting with experts, including developers, architects, fire marshals, researchers, economists, housing authorities, and officials in States that have enacted or piloted single-stair codes; and
alternative methods of safety compliance, including options that utilize additional passive or active safety features.
Coordination with the International Code Council— The Secretary shall coordinate with the International Code Council to encourage the International Code Council to incorporate provisions about point-access block buildings into the International Building Code.
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Grants—
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In general— The Secretary may establish a program to award competitive grants to eligible entities to implement pilot projects that evaluate, demonstrate, or validate the safety, feasibility, or cost-effectiveness of point-access block residential buildings.
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Sunset— The program established under paragraph (1) shall terminate on the date that is 7 years after the date of the enactment of this subsection.
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Grants— The Secretary may award competitive grants to eligible entities to implement pilot projects that evaluate, demonstrate, or validate the safety, feasibility, or cost-effectiveness of point-access block residential buildings.
Rule of construction— Nothing in this section may be construed to preempt a State or local building code.
Definitions— In this section:
Eligible entity— The term eligible entity means a State, unit of local government, Tribal Government, public housing agency, nonprofit housing organization, community development organization, private developer, construction firm, qualified design firm, engineering firm, academic institution, research institution, or any partnership or consortium comprised of 2 or more such types of entities.
Point-access block building— The term point-access block building means a Group R–2 occupancy residential structure, as such term is defined by the International Building Code, in which a single internal stairway provides access and egress for all dwelling units in a building that is not greater than 6 stories in height.
Sec. 104 Unlocking Housing Supply Through Streamlined and Modernized Reviews
NEPA streamlining for HUD housing-related activities—
In general— The Secretary of Housing and Urban Development shall, in accordance with section 553 of title 5, United States Code, expand and reclassify housing-related activities under the necessary administrative regulations as follows:
The following housing-related activities shall be subject to regulations equivalent or substantially similar to the regulations entitled “exempt activities” as set forth in section 58.34 of title 24, Code of Federal Regulations, as in effect on January 1, 2025:
Tenant-based rental assistance, as defined in section 8(o) of the United States Housing Act of 1937 (42 U.S.C. 1437f(o)).
Supportive services, including health care, housing services, permanent housing placement, day care, nutritional services, short-term payment for rent, mortgage, or utility costs, and assistance in gaining access to Federal Government and State and local government benefits and services.
Operating costs, including maintenance, security, operation, utilities, furnishings, equipment, supplies, staff training, and recruitment and other incidental costs.
Economic development activities, including equipment purchases, inventory financing, interest subsidies, operating expenses, and similar costs not associated with construction or expansion of existing operations.
Activities to assist homebuyers to purchase existing dwelling units or dwelling units under construction, including closing costs and down payment assistance, interest rate buydowns, and similar activities that result in the transfer of title.
Affordable housing predevelopment costs related to obtaining site options, project financing, administrative costs and fees for loan commitment, zoning approvals, and other related activities that do not have a physical impact.
Approval of supplemental assistance, including insurance or guarantee, to a project previously approved by the Secretary.
Emergency homeowner or renter assistance for HVAC, hot water heaters, and other necessary uses of existing utilities required under applicable law.
The following housing-related activities shall be subject to regulations equivalent or substantially similar to the regulations entitled—
“categorical exclusions not subject to section 58.5”; and
“categorical exclusions not subject to the Federal laws and authorities cited in sections 50.4” in section 58.35(b) and section 50.19, respectively of title 24, Code of Federal Regulations, as in effect on January 1, 2025, if such activities do not materially alter environmental conditions and do not materially exceed the original scope of the project:
Acquisition, repair, improvement, reconstruction, or rehabilitation of public facilities and improvements (other than buildings) if the facilities and improvements are in place and will be retained in the same use without change in size or capacity of more than 20-percent, including replacement of water or sewer lines, reconstruction of curbs and sidewalks, and repaving of streets.
Rehabilitation of 1-to-4 unit residential buildings, and existing housing-related infrastructure, such as repairs or rehabilitation of existing wells, septics, or utility lines that connect to that housing.
New construction, development, demolition, acquisition, or disposition on up to 4 scattered site existing dwelling units where there is a maximum of 4 units on any 1 site.
Acquisitions (including leasing) or disposition of, or equity loans on an existing structure, or acquisition (including leasing) of vacant land if the structure or land acquired, financed, or disposed of will be retained for the same use.
The following housing-related activities shall be subject to regulations equivalent or substantially similar to the regulations entitled—
“categorical exclusions subject to section 58.5”; and
“categorical exclusions subject to the Federal laws and authorities cited in sections 50.4” in section 58.35(a) and section 50.20, respectively, of title 24, Code of Federal Regulations, as in effect on January 1, 2025, if such activities do not materially alter environmental conditions and do not materially exceed the original scope of the project:
Acquisitions of open space or residential property, where such property will be retained for the same use or will be converted to open space to help residents relocate out of an area designated as a high-risk area by the Secretary.
Conversion of existing office buildings into residential development, subject to—
a maximum number of units to be determined by the Secretary; and
a limitation on the change in building size to not more than 20-percent.
New construction, development, demolition, acquisition, or disposition on 5 to 15 dwelling units where there is a maximum of 15 units on any 1 site. The units can be 15 1-unit buildings or 1 15-unit building, or any combination in between.
New construction, development, demolition, acquisition, or disposition on 15 or more housing units developed on scattered sites when there are not more than 15 housing units on any 1 site, and the sites are more than a set number of feet apart as determined by the Secretary.
Rehabilitation of buildings and improvements in the case of a building for residential use with 5 to 15 units, if the density is not increased beyond 15 units and the land use is not changed.
Infill projects consisting of new construction, rehabilitation, or development of residential housing units.
Buyouts, defined as the voluntary acquisition of properties located in—
a floodway;
a floodplain; or
an other area, clearly delineated by the grantee, that has been impacted by a predictable environmental threat to the safety and wellbeing of program beneficiaries caused or exacerbated by a federally declared disaster.
Report— The Secretary shall submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives annual reports during the 5-year period beginning on the date that is 2 years after the date of enactment of this Act that provide a summary of findings of reductions in review times and administrative cost reduction, with a particular focus on the affordable housing sector, as a result of the actions set forth in this subsection, and any recommendations of the Secretary for future congressional action with respect to revising categorical exclusions or exemptions under title 24, Code of Federal Regulations.
Better Use of Intergovernmental and Local Development for Housing—
Designation of environmental review procedure— The Department of Housing and Urban Development Act (42 U.S.C. 3531 et seq.) is amended by inserting after section 12 (42 U.S.C. 3537a) the following:
“13. Designation of environmental review procedure
“(a) In general—Except as provided in subsection (b), the Secretary may, for purposes of environmental review, decision-making, and action pursuant to the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.), and other provisions of law that further the purposes of such Act, designate the treatment of assistance administered by the Secretary as funds for a special project for purposes of section 305(c) of the Multifamily Housing Property Disposition Reform Act of 1994 (42 U.S.C. 3547).
“(b) Exception—The designation described in subsection (a) shall not apply to assistance for which a procedure for carrying out the responsibilities of the Secretary under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.), and other provisions of law that further the purposes of such Act, is otherwise specified in law.”
Tribal assumption of environmental review obligations— Section 305(c) of the Multifamily Housing Property Disposition Reform Act of 1994 (42 U.S.C. 3547) is amended—
by striking “State or unit of general local government” each place it appears and inserting “State, Indian Tribe, or unit of general local government”;
in paragraph (1)(C), in the heading, by striking “state or unit of general local government” and inserting “state, Indian Tribe, or unit of general local government”; and
by adding at the end the following:
“(5) Definition of Indian Tribe—For purposes of this subsection, the term Indian Tribe means a federally recognized Tribe, as defined in section 4(13)(B) of the Native American Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 4103(13)(B)).”
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Applicability— Any activity generated under subsections (a) or (b) would be subject to an authorization of appropriations.
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was (4)
Infill project defined— In this section, the term infill project means a project that—
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was (4)(3)
occurs within the geographic limits of a municipality;
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was (4)(4)
is adequately served by existing utilities and public services as required under applicable law;
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was (4)(5)
is located on a site of previously disturbed land of not more than 5 acres and substantially surrounded by residential or commercial development;
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was (4)(6)
will repurpose a vacant or underutilized parcel of land, or a dilapidated or abandoned structure; and
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was (4)(7)
will serve a residential or commercial purpose.
Sec. 105 Federal Housing Agency Application of Environmental Reviews
Memorandum of understanding—
In general— Not later than 180 days after the date of enactment of this Act, the Secretary of Housing and Urban Development and the Secretary of Agriculture shall enter into a memorandum of understanding to—
evaluate the use of categorical exclusions (as defined in section 111 of the National Environmental Policy Act of 1969 (42 U.S.C. 4336e)) for housing projects funded by amounts from the Department of the Housing and Urban Development and the Department of Agriculture;
develop a process to designate a lead agency among the Department of Housing and Urban Development and the Department of Agriculture to streamline the adoption of environmental impact statements and environmental assessments approved by the other agency to construct housing projects funded by amounts from both agencies;
maintain compliance with environmental regulations under part 58 of title 24, Code of Federal Regulations, as in effect on January 1, 2025; and
evaluate the feasibility of a joint physical inspection process for housing projects funded by amounts from the Department of the Housing and Urban Development and the Department of Agriculture.
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Advisory working group—
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In general— Not later than 180 days after the date of enactment of this Act, the Secretary of Housing and Urban Development and the Secretary of Agriculture shall establish an advisory working group for the purpose of consulting on the implementation of the memorandum of understanding entered into under paragraph (1).
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Members— The advisory working group established under subparagraph (A) shall consist of rural and nonrural stakeholders, including—
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affordable housing nonprofit organizations;
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State housing and housing finance agencies;
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nonprofit and for-profit home builders and housing developers;
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property management companies;
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owners of multifamily properties, including nonprofit and for-profit owners and operators;
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public housing agencies;
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residents in housing assisted by the Department of Housing and Urban Development or the Department of Agriculture and representatives of those residents; and
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housing contract administrators.
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was (2)(4)
Report— Not later than 1 year after the date of enactment of this Act, the Secretary of Housing and Urban Development and the Secretary of Agriculture shall submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives a report that includes recommendations for legislative, regulatory, or administrative actions—
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was (2)(4)(3)
to improve the efficiency and effectiveness of housing projects funded by amounts from the Department of the Housing and Urban Development and the Department of Agriculture; and
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that do not materially, with respect to residents of housing projects described in subparagraph (A)—
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was (2)(4)(4)(2)
reduce the safety of those residents;
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was (2)(4)(4)(3)
shift long-term costs onto those residents; or
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was (2)(4)(4)(4)
undermine the environmental standards of those residents.
Study and Review—
Exemption— In providing assistance under section 501, 502, 504, 515, 533, or 538 of the Housing Act of 1949 (42 U.S.C. 1471, 1472, 1474, 1485, 1490m, or 1490p–2) for the construction or modification of residential housing located on an infill site, the Secretary of Agriculture shall not be required to carry out any study or report on the environmental effects of such assistance.
Report— Not later than the date that is 5 years after the date of enactment of this section, the Secretary of Agriculture shall submit, to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate, a report that—
determines whether the implementation of this section—
reduced the amount of time it takes to review an application for assistance under the sections of the Housing Act of 1949 identified in paragraph (1); and
reduced the administrative cost of providing such assistance;
describes how the implementation of this section affects the affordable housing sector in rural America; and
includes any legislative recommendations from the Secretary of Agriculture.
Definitions— In this section:
Greenfield— The term greenfield means a site that has not been developed, including a woodland, farmland, and an open field.
Infill site— The term infill site—
means a site that is served by existing infrastructure, including water lines, sewer lines, and roads; and
does not include—
a site that is served by existing infrastructure that only consists of a road;
a site within a census tract designated as very high or relatively high risk for wildfire, coastal flooding, and riverine flooding under the National Risk Index of the Federal Emergency Management Agency pursuant to section 206 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5136); and
a greenfield.
Sec. 107 GAO study on workforce housing
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Workforce housing study—
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was (2)(2)
In general— Not later than 1 year after the date of the enactment of this section, the Comptroller General of the United States shall conduct a study and submit to the Congress a report that—
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was (2)(2)(3)
identifies obstacles middle-income households face when looking to secure affordable housing;
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identifies geographic areas where housing is the most unaffordable and unavailable for middle-income households;
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was (2)(2)(5)
includes a list of Federal housing programs, including Federal tax credits, grants, and loan programs, that are not available to middle-income households due to their income status, including Federal housing programs designed to promote affordability;
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was (2)(2)(6)
recommends income and other parameters to establish a clear and consistent Federal definition for the term workforce housing for use when describing the segment of housing that could be made available to such middle-income households in Federal housing programs if funding commensurate with the additional eligibility were to be made available; and
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was (2)(2)(7)
analyzes how to modify or newly develop new Federal housing programs and incentives to include “workforce housing” if funding commensurate with the additional eligibility were to be made available.
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Middle-income household defined— In this subsection, the term middle income household means a household with an income above 80-percent but that does not exceed 120-percent of the median family income of the area, as determined by the Secretary with adjustments for smaller and larger families.
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Uniform building code study—Middle-income household defined— Not later than 1 year after the date of the enactment of In this section, the Comptroller General term middle income household means a household with an income above 80-percent but that does not exceed 120-percent of the United States shall conduct a study and submit a report to median family income of the Congress that examines area, as determined by the costs and benefits that could be associated Secretary with establishing a Federal uniform residential building code, including whether such a code could—adjustments for smaller and larger families.
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reduce the amount of time required for units of local government to approve new construction;
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reduce the cost of residential construction in the United States; or
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increase the quality of available and affordable residential housing in the United States.
Sec. 201 HOME Reform
In general— Section 104 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12704) is amended—
in paragraph (6)(B), by striking “significant”; and
by adding at end the following new paragraph:
“(26) The term infill housing project means a residential housing project that—
“(A) is located within the geographic limits of a municipality;
“(B) is adequately served by existing utilities and public services as required under applicable law;
“(C) is located on a site of previously disturbed land of not more than 5 acres; and
“(D) is substantially surrounded by residential or commercial development, as determined by the Secretary.”
Assistance for low-Income families— Title II of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12721 et seq.) is amended—
in section 214(2), by striking “households that qualify as low-income families” and inserting “families with a household income that does not exceed 100-percent of the median-family income of the area, as determined by the Secretary”;
in section 215—
in subsection (b)(2), by striking “whose family qualifies as a low-income family” and inserting “with a family income that does not exceed 100-percent of the median-family income of the area as determined by the Secretary with adjustments for smaller and larger families”; and
in subsection (b)(3)(A)(ii), by striking “low-income homebuyers” and inserting “homebuyers with a household income that does not exceed 100-percent of the median-family income of the area, as determined by the Secretary with adjustments for smaller and larger families”; and
in section 271(c)—
in paragraph (1)(B), by striking “low-income” and inserting “families with a household income that does not exceed 100-percent of the median-family income of the area as determined by the Secretary with adjustments for smaller and larger families”; and
in paragraph (2)(A), by striking “low-income families” and inserting “families with a household income that does not exceed 100-percent of the median-family income of the area as determined by the Secretary with adjustments for smaller and larger families”.
Choices made by participating jurisdictions— Section 212(a)(2) of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12742) is amended to read as follows:
“(2) Limitation—The Secretary may not restrict a participating jurisdiction’s choice of rehabilitation, substantial rehabilitation, new construction, reconstruction, acquisition, or other eligible housing uses authorized in paragraph (1) unless such restriction is explicitly authorized under section 223(2).”
Use of amounts by certain jurisdictions for infrastructure improvements—
In general— Section 212(a) of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12742(a)) is amended by inserting after paragraph (3) the following:
“(4) Infrastructure improvements in nonentitlement areas
“(A) In general—A participating jurisdiction may use funds provided under this subtitle for infrastructure improvements, including the installation or repair of water and sewer lines, sidewalks, roads, and utility connections if—
“(i) such participating jurisdiction does not receive assistance under title I of the Housing and Community Development Act of 1974; and
“(ii) such improvements are directly related to, and located within or immediately adjacent to—
“(I) housing assisted under this subtitle; or
“(II) housing assisted under section 42 of the Internal Revenue Code of 1986.
“(B) Application of labor standards—The labor standards and requirements set forth in section 110 of the Housing and Community Development Act of 1974 (42 U.S.C. 5310) shall apply to any infrastructure improvement conducted using funds provided under this subtitle.
“(C) Rule of construction—Nothing in this paragraph may be construed to impose any requirements of the HOME Investment Partnerships program on housing that benefits from an infrastructure improvement conducted using funds provided under this subtitle but was not otherwise assisted under the HOME Investment Partnerships program.”
Rulemaking— Not later than 1 year after the date of the enactment of this section, the Secretary shall issue rules to carry out the amendment made by paragraph (1).
Per unit investment limitations— Section 212(e)(1) of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12742(e)(1)) is amended by striking the second sentence.
Affordable rental housing qualifications— Section 215(a) of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12745(a)) is amended by adding at the end the following:
“(7) Qualification Exception—Notwithstanding paragraph (1)(A), a rental unit shall be considered to qualify as affordable housing under this title if—
“(A) the unit is occupied by a tenant receiving tenant-based rental assistance under section 8 of the United States Housing Act of 1937 (42 U.S.C. 1437f);
“(B) the tenant’s contribution toward rent does not exceed the amount permitted under such section 8 assistance; and
“(C) the total rent for the unit does not exceed the amount approved by the public housing agency administering the assistance under that program.”
Affordable homeownership housing qualifications— Section 215 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12745(b)) is amended—
in subsection (b)—
in paragraph (1), by striking “95 percent” and inserting “110 percent”;
in paragraph (3)—
in subparagraph (A)(ii), by striking “or” at the end;
in subparagraph (B), by striking “and” at the end and inserting “or”; and
by adding at the end the following new subparagraph:
“(C) maintain long-term affordability through a shared equity ownership model, a community land trust, a limited equity cooperative, a community development corporation, or other mechanism approved by the Secretary, that preserves affordability for future eligible homebuyers and ensures compliance with the purposes of this title, including through the use of purchase options, rights of first refusal or other preemptive rights to purchase housing; and”
by adding at the end the following:
“(c) Qualification exceptions for homeownership
“(1) Military members—A participating jurisdiction, in accordance with terms established by the Secretary, may suspend or waive the income qualifications described in subsection (b)(2) with respect to housing that otherwise meets the criteria described in subsection (b) if the owner of the housing—
“(A) is a member of a regular component of the armed forces or a member of the National Guard on full-time National Guard duty, active Guard and Reserve duty, or inactive-duty training (as those terms are defined in section 101(d) of title 10, United States Code); and
“(B) has received—
“(i) temporary duty orders to deploy with a military unit or military orders to deploy as an individual acting in support of a military operation, to a location that is not within a reasonable distance from the housing, as determined by the Secretary, for a period of not less than 90 days; or
“(ii) orders for a permanent change of station.
“(2) Heirs and beneficiaries of deceased owners—Housing that meets the criteria described in subsection (b)(3) prior to the death of an owner of such housing shall continue to qualify as affordable housing under this title if—
“(A) the housing is the principal residence of an heir or beneficiary of the deceased owner, as defined by the Secretary; and
“(B) the heir or beneficiary, in accordance with terms established by the Secretary, assumes the duties and obligations of the deceased owner with respect to funds provided under this title.”
Elimination of expiration of right to draw home investment trust funds— Section 218 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12748) is amended—
by striking subsection (g); and
by redesignating subsection (h) as subsection (g).
Adjusted recapture and reuse of set-aside for community housing developmental organizations— Section 231(b) of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12771(b)) is amended to read as follows:
“(b) Recapture and reuse—If any funds reserved under subsection (a) remain uninvested for a period of 24 months, the Secretary shall make such funds available to the participating jurisdiction for any eligible activities under title II of this Act without regard to whether a community housing development organization materially participates in the use of such funds.”
Asset recycling information dissemination expansion— Section 245(b)(2) of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12785(b)(2)) is amended by striking “95 percent” and inserting “110 percent”.
Environmental review requirements—
In general— Section 288 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12838) is amended by adding at the end the following:
“(e) Categorical exemptions—The following categories of activities carried out under this title shall be statutorily exempt from environmental review under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.), and shall not require further review under such Act—
“(1) new construction infill housing projects;
“(2) acquisition of real property for affordable housing purposes;
“(3) rehabilitation projects carried out pursuant to section 212(a)(1); and
“(4) new construction projects of 15 units or less.
“(f) Removing duplicative reviews
“(1) In general—To the extent practicable and permitted by law, the Secretary shall ensure that a project that has undergone an environmental review under this section shall not be subject to a duplicative environmental review solely due to the addition, substitution, or reallocation of other sources of Federal assistance, if the scope, scale, and location of the project remain substantially unchanged.
“(2) Coordination of environmental review responsibilities—The Secretary shall, by regulation, provide for coordination of environmental review responsibilities with other Federal agencies to streamline inter-agency compliance and avoid unnecessary duplication of effort under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) and other applicable laws.
“(3) Recognition of prior reviews by responsible entities—A project may not be subject to an environmental review under this section if a substantially similar review has already been completed by an entity designated under section 104(g)(1) of the Housing and Community Development Act of 1974 (42 U.S.C. 5304(g)(1)) or by another entity the Secretary determines to have equivalent authority, if the scope, scale, and location of the project remain substantially unchanged.”
Rulemaking— Not later than 1 year after the date of the enactment of this Act, the Secretary shall issue such rules as the Secretary determines necessary to carry out the amendment made by this subsection.
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Applicability— Any activity generated under this subsection would be subject to an authorization of appropriations.
added
Application of Build America, Buy America requirements for HOME Investment Partnerships Program—
added
In general— Not later than 180 days after the date of the enactment of this section, the Secretary of Housing and Urban Development shall complete a review of the implementation of the Build America, Buy America Act (title IV of division G of Public Law 117–58; 42 U.S.C. 8301 note) with respect to the activities assisted under title II of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12721 et seq.).
added
Updated guidance— Not later than 90 days after the review described in subsection (a) is completed, the Secretary shall issue updated guidance to clarify the application of the Build America, Buy America Act (title IV of division G of Public Law 117–58; 42 U.S.C. 8301 note) with respect to the activities assisted under title II of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12721 et seq.).
added
Report— Not later than 270 days after the date of the enactment of this section, the Secretary shall submit to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate a report that describes—
added
the results of the review required under subsection (a); and
added
the guidance issued as described in subsection (b).
added
Application of other specified statutory requirements— Title II of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12721 et seq.) is amended by adding at the end the following new section (and by conforming the table of sections in section 1(b), accordingly):
added “291. Nonapplicability of certain requirements for small projects
removed
Application of other specified statutory requirements— Title II of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12721 et seq.) is amended by adding at the end the following new sections (and by conforming the table of sections in section 1(b), accordingly):
removed
“291. Application of build America, buy America requirements
removed
“With respect to activities assisted under this title, requirements under the Build America, Buy America Act (41 U.S.C. 8301 note) and any implementing regulations or guidance, shall only apply to infrastructure improvements conducted under section 212(a)(4) using funds provided under subtitle A.
removed
“292. Nonapplicability of certain requirements for small projects
“Notwithstanding any other provision of law, the requirements of section 3 of the Housing and Urban Development Act of 1968 (12 U.S.C. 1701u), and any implementing regulations or guidance, shall not apply to an activity assisted under this title that involves rehabilitation, construction, or other development of housing if—
“(1) the recipient of assistance under this title is—
“(A) a State recipient pursuant to section 216; or
“(B) a participating jurisdiction that received a total allocation of less than $3,000,000 in the most recent fiscal year pursuant to section 216; and
“(2) the total number of dwelling units assisted as a part of such activity is 50 or fewer.”
renumbered
was (14)
Technical amendments— The Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12701 et seq.) is amended—
renumbered
was (14)(3)
by striking “Stewart B. McKinney Homeless Assistance Act” each place it appears and inserting “McKinney-Vento Homeless Assistance Act”; and
renumbered
was (14)(4)
by striking “Committee on Banking, Finance and Urban Affairs” each place it appears and inserting “Committee on Financial Services”.
renumbered
was (15)
Reallocation not available for certain jurisdictions— Section 217(d) of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12747(d)) is amended—
renumbered
was (15)(3)
in paragraph (1), by striking the second sentence and inserting the following: “Subject to paragraph (4), jurisdictions eligible for such reallocations shall include participating jurisdictions and jurisdictions meeting the requirements of this title, including the requirements in paragraphs (3), (4), and (5) of section 216.”; and
renumbered
was (15)(4)
by adding at the end the following:
“(4) Reallocation not available for certain jurisdictions—The Secretary may decline to make a reallocation available to a jurisdiction eligible for such reallocation if such jurisdiction has failed to meet or comply with any requirement under this title.”
renumbered
was (16)
Amendments to qualification as affordable housing— Section 215(a) of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12745(a)) is amended—
renumbered
was (16)(3)
in paragraph (1)(E), by striking “except upon a foreclosure by a lender (or upon other transfer in lieu of foreclosure) if such action (i) recognizes any contractual or legal rights of public agencies, nonprofit sponsors, or others to take actions that would avoid termination of low-income affordability in the case of foreclosure or transfer in lieu of foreclosure, and (ii) is not for the purpose of avoiding low income affordability restrictions, as determined by the Secretary; and” and inserting the following: “except—
“(i) upon a foreclosure by a lender (or upon other transfer in lieu of foreclosure) if such action—
“(I) recognizes any contractual or legal rights of public agencies, nonprofit sponsors, or others to take actions that would avoid termination of low-income affordability in the case of foreclosure or transfer in lieu of foreclosure; and
“(II) is not for the purpose of avoiding low-income affordability restrictions, as determined by the Secretary; or
“(ii) where existing affordable housing is no longer financially viable due to unforeseen acts or occurrences beyond the reasonable contemplation or control of the participating jurisdiction in which the affordable housing is located or the owner of the affordable housing that significantly impact the financial or physical condition of the affordable housing, as determined by the Secretary; and”
renumbered
was (16)(4)
by adding at the end the following:
“(8) Small-scale housing
“(A) In general—Small-scale housing shall qualify as affordable housing under this title if—
“(i) each dwelling unit in such housing bears rent in an amount that complies with the requirements described in paragraph (1)(A);
“(ii) each dwelling unit in such housing is occupied by a low-income family;
“(iii) no dwelling unit in such housing is refused for leasing to a holder of a voucher under section 8 of the United States Housing Act of 1937 (42 U.S.C. 1437f) because of the status of the prospective tenant as a holder of such voucher;
“(iv) such housing complies with the requirement described in paragraph (1)(E); and
“(v) the participating jurisdiction in which such small-scale housing is located monitors the compliance of such housing with the requirements of this title in a manner consistent with the purposes of section 226(b), as determined by the Secretary.
“(B) Small-scale housing defined—In this paragraph, the term small-scale housing means housing with not more than 4 dwelling units each of which is made available for rental.”
renumbered
was (17)
Tenant and participant protections for small-scale affordable housing— Section 225 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12755) is amended by adding at the end the following:
“(e) Exception—Paragraphs (2), (3), and (4) shall not apply to small-scale housing, as such term is defined in section 215(a)(7).”
renumbered
was (18)
Revision of definition of community land trust— Section 104 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12704) is amended by adding at the end the following:
“(27) The term community land trust means a nonprofit entity, a State, a unit of local government or instrumentality of a State or unit of local government that—
“(A) is not managed by, or an affiliate of, a for-profit organization;
“(B) has as a primary purpose of acquiring, developing, or holding land to provide housing that is permanently affordable to low- and moderate-income persons;
“(C) monitors properties to ensure affordability is preserved;
“(D) provides housing that is permanently affordable to low- and moderate-income persons using a ground lease, deed covenant, or other similar legally enforceable measure, determined acceptable by the Secretary, that—
“(i) keeps housing affordable to low- and moderate-income persons for not less than 30 years; and
“(ii) enables low- and moderate-income persons to rent or purchase the housing for homeownership; and
“(E) maintains preemptive purchase options to purchase the property if such purchase would allow the housing to remain affordable to low-and moderate-income persons.”
renumbered
was (19)
Conforming amendments— The Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12701 et seq.) is amended—
renumbered
was (19)(3)
in section 233 by striking subsection (f); and
renumbered
was (19)(4)
in section 233(b)(6), by striking “to community land trusts (as such term is defined in subsection (f))” and inserting “to community land trusts (as such term is defined in section 104)”.
renumbered
was (20)
Minimum allocations— Section 217(b) of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12747 (b)) is amended—
renumbered
was (20)(3)
in paragraph (2), by striking “$500,000” each place that term appears and inserting “$750,000”;
renumbered
was (20)(4)
in paragraph (3)—
renumbered
was (20)(4)(2)
by striking “jurisdictions that are allocated an amount of $500,000 or more” and inserting “jurisdictions that are allocated an amount of $750,000 or more”;
added
by striking “that are allocated an amount less than $500,000” and inserting “that are allocated an amount less than $750,000”; and
removed
by striking “that are allocated an amount less than $500,000” and inserting “that are allocated an amount less than $500,000 before the date of the enactment of the Housing for the 21st Century Act or less than $750,000 on or after the date of the enactment of the Housing for the 21st Century Act”; and
renumbered
was (20)(4)(4)
by striking “, except as provided in paragraph (4)”; and
renumbered
was (20)(5)
by striking paragraph (4).
renumbered
was (21)
Additional technical corrections— The Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12701 et seq.) is amended—
renumbered
was (21)(3)
in section 108(a)(1), by striking “section 105(b)(15)” and inserting “section 105(b)(18)”; and
renumbered
was (21)(4)
in section 217(b)(1)(F), by striking “Subcommittee on Housing and Community Development” and inserting “Subcommittee on Housing, Transportation, and Community Development”.
Sec. 203 Grants for planning and implementation associated with affordable housing
changed
In general— The Secretary of Housing and Urban Development shall, not later than 1 year after the date of the enactment of this section, establish a pilot program to award grants on a competitive basis to eligible entities to assist planning and implementation activities associated with affordable housing.
Use of amounts—
By regional planning agencies— If an eligible entity that receives amounts under this section is a regional planning agency or consortia of regional planning agencies, such eligible entity shall use such amounts to assist planning activities with respect to affordable housing, including—
the development of housing plans;
the substantial improvement of State or local housing strategies;
the development of new regulatory requirements and processes;
updating zoning codes;
increasing the capacity to conduct housing inspections;
increasing the capacity to reduce barriers to housing supply elasticity and housing affordability;
the development of local or regional plans for community development; and
the substantial improvement of community development strategies, including strategies designed to—
increase the availability of affordable housing and access to affordable housing;
increase access to public transportation; and
advance sustainable or location-efficient community development goals.
By states, insular areas, metropolitan cities, and urban counties— If an eligible entity that receives amounts under this section is a State, insular area, metropolitan city, or urban county, such eligible entity shall use such amounts to—
implement and administer housing strategies and housing plans;
implement and administer any plans to increase housing choice, address disparities in housing needs, and provide greater access to opportunity;
fund any community investments that support goals identified in a housing strategy or housing plan;
implement and administer regulatory requirements and processes with respect to reformed zoning codes;
increase the capacity to conduct housing inspections;
increase the capacity to reduce barriers to housing supply elasticity and housing affordability;
implement and administer local or regional plans for community development; and
fund any planning to increase—
the availability of affordable housing and access to affordable housing;
access to public transportation; and
any location-efficient community development goals.
Use for administrative costs— A eligible entity that receives amounts under this section may not use more than 10-percent of such amounts for administrative costs.
Coordination— To the extent practicable, the Secretary shall coordinate with the Federal Transit Administrator in carrying out this section.
Additional uses of amounts—
Housing construction— Expenditures on new construction of housing shall be an eligible expense under this section.
Buildings for general conduct of government— Expenditures on building for the general conduct of government, other than the Federal Government, shall be eligible under this section when necessary and appropriate as a part of a natural hazard mitigation project.
added
Expiration of authority— After the expiration of the 5-year period beginning on the date of the enactment of this section, the Secretary may not newly establish a pilot program as described in this section.
added
Sunset— The pilot program established under this section shall terminate on the date that is 5 years after the date of the enactment of this section.
renumbered
was (6)
Definitions— In this subsection:
renumbered
was (6)(3)
Eligible entity— The term “eligible entity” means—
renumbered
was (6)(3)(3)
a State, insular area, metropolitan city, or urban county, as such terms are defined in section 102 of the Housing and Community Development Act of 1974; or
renumbered
was (6)(3)(4)
a regional planning agency or consortia of regional planning agencies.
renumbered
was (6)(4)
Housing plan— The term “housing plan” means a plan to, with respect to an area within the jurisdiction of an eligible entity—
renumbered
was (6)(4)(3)
increase the amount of available housing to meet the demand for such housing and any projected increase in the demand for such housing;
renumbered
was (6)(4)(4)
increase the affordability of housing;
renumbered
was (6)(4)(5)
increase the accessibility of housing for people with disabilities, including location-efficient housing;
renumbered
was (6)(4)(6)
preserve or improve the quality of housing;
renumbered
was (6)(4)(7)
reduce barriers to housing development; and
renumbered
was (6)(4)(8)
coordinate with transportation-related agencies.
renumbered
was (6)(5)
Housing strategy— The term “housing strategy” means a housing strategy required under section 105 of the Cranston-Gonzalez National Affordable Housing Act.
Sec. 401 Exclusion of certain disability benefits
In general— Section 3(b)(4)(B) of the United States Housing Act of 1937 (42 U.S.C. 1437a(b)(4)(B)) is amended—
by redesignating clauses (iv) and (v) as clauses (vi) and (vii), respectively; and
by inserting after clause (iii) the following:
“(iv) with respect to the supported housing program under section 8(o)(19), any disability benefits received under chapter 11 or chapter 15 of title 38, United States Code, received by a veteran, except that this exclusion may not apply to the definition of adjusted income;
“(v) with respect to any household receiving rental assistance under the supported housing program under section 8(o)(19) as it relates to eligibility for other types of housing assistance, any disability benefits received under chapter 11 or chapter 15 of title 38, United States Code, received by a veteran, except that this exclusion may not apply to the definition of adjusted income;”
removed
Service-connected disability compensation— Section 102(a)(20) of the Housing and Community Development Act of 1974 (42 U.S.C. 5302(a)(20)) is amended by adding at the end the following:
removed
“(C) Service-connected disability compensation—When determining whether a person is a person of low- and moderate-income, a person of low-income or a person of moderate-income under this paragraph, a State, unit of general local government, or Indian Tribe shall exclude any service-connected disability compensation received by such person from the Department of Veterans Affairs.”
renumbered
was (4)
Treatment of certain disability benefits— When determining the eligibility of a veteran to rent a residential dwelling unit constructed on Department property on or after the date of the enactment of this Act, for which assistance is provided as part of a housing assistance program administered by the Secretary of Housing and Urban Development and not yet in existence at the time of the enactment of this section, the Secretary shall exclude from income any disability benefits received under chapter 11 or chapter 15 of title 38, United States Code, by such person.
added
Department property defined— In this section, the term Department property has the meaning given the term in section 901 of title 38, United States Code.
removed
Report— The Comptroller General of the United States shall, not later than 1 year after the date of the enactment of this Act, submit to the Congress a report that—
removed
examines how service-connected disability compensation is treated for the purposes of determining eligibility for all programs administered by the Secretary of Housing and Urban Development;
removed
identifies any instances where service-connected disability compensation is treated in a manner inconsistent with the amendments made by subsections (a) and (b); and
removed
with respect to each program administered by the Secretary of Housing and Urban Development in which service-connected disability compensation is treated inconsistently, provides legislative recommendations relating to how such program could better serve veteran populations, and underserved communities.
removed
Definitions— In this section:
removed
Department property— The term Department property has the meaning given the term in section 901 of title 38, United States Code.
removed
Secretary— The term Secretary means the Secretary of Housing and Urban Development.
Sec. 402 Military service question
In general— Subpart A of part 2 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4541 et seq.) is amended by adding at the end the following:
“1329. Uniform residential loan application
changed
“Not later than 6 months after the date of enactment of this section, the Director shall, by regulation or order, require each enterprise to include a disclaimer disclosure below the military service question which shall be above the signature line on the form known as the Uniform Residential Loan Application stating, “If yes, you may qualify for a VA Home Loan. Consult your lender regarding eligibility.”.”
GAO study— Not later than 18 months after the date of enactment of this Act, the Comptroller General of the United States shall conduct a study and submit to the Congress a report on whether or not less than 80-percent of lenders using the Uniform Residential Loan Application have included on that form the disclaimer required under section 1329 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992, as added by subsection (a).
Sec. 404 Family self-sufficiency escrow expansion pilot program
Title I of the United States Housing Act of 1937 (42 U.S.C. 1437 et seq.) is amended by adding at the end the following:
“39. Escrow expansion pilot program
“(a) Definitions—In this section:
“(1) Covered family—The term covered family means a family that—
“(A) receives assistance under section 8 or 9 of this Act;
“(B) is enrolled in the pilot program; and
“(C) has an adjusted income that does not exceed 80-percent of the area-median income at the time of enrollment in the pilot program.
“(2) Eligible entity—The term eligible entity means an entity described in subsection (c)(2) of section 23.
“(3) Pilot program—The term pilot program means the pilot program established under this section.
“(4) Welfare assistance—The term welfare assistance has the meaning given the term in section 984.103 of title 24, Code of Federal Regulations, or any successor regulation.
“(b) Program establishment—The Secretary shall, not later than 1 year after the date of the enactment of this section, establish a pilot program under which the Secretary shall select not more than 25 eligible entities to establish and manage escrow accounts for not more than a total of 5,000 covered families, in accordance with this section.
“(c) Escrow accounts
“(1) In general—An eligible entity selected to participate in the pilot program—
“(A) shall establish an interest-bearing escrow account and place into the account an amount equal to any increase in the amount of rent paid by each covered family in accordance with the provisions of section 3, 8(o), or 8(y), as applicable, that is attributable to increases in earned income by the covered family during the participation of such covered family in the pilot program; and
“(B) notwithstanding any other provision of law, may use existing funds made available to such entity at any time under section 8 or 9 for the purposes of making the escrow deposit for a covered family assisted under, or residing in a unit assisted under, section 8 or 9 provided that such amounts are offset by the increase in the amount of rent paid by the covered family.
“(2) Withdrawals—A covered family may withdraw funds, including any interest earned, from an escrow account established by an eligible entity under the pilot program for such covered family—
“(A) after the covered family ceases to receive welfare assistance; and
“(B)
“(i) not earlier than the date that is 5 years after the date on which the eligible entity establishes the escrow account under this subsection;
“(ii) not later than the date that is 7 years after the date on which the eligible entity establishes the escrow account under this subsection, if the covered family chooses to continue to participate in the pilot program after the date that is 5 years after the date on which the eligible entity establishes the escrow account;
“(iii) on the date the covered family ceases to receive housing assistance under section 8 or 9, if such date is earlier than 5 years after the date on which the eligible entity establishes the escrow account;
“(iv) earlier than 5 years after the date on which the eligible entity establishes the escrow account, if the covered family is using the funds to advance a self-sufficiency goal as approved by the eligible entity; or
“(v) under other circumstances for good cause as determined by the Secretary.
“(3) Interim recertification—For the purposes of the pilot program established under this section, a covered family shall recertify the income of such family not less than once each year.
“(4) Contract or plan—An eligible entity may not require a covered family to—
“(A) complete a contract that requires the participation of the covered family in the pilot program established under this section; or
“(B) participate in any individual training or services plan as a condition for participating in the pilot program.
“(d) Effect of increases in family income—The amount equal to any increase in the earned income of a covered family from the date of enrollment of the covered family in the pilot program established under this section through the date all funds are withdrawn from the escrow account established for such family under this section may not be considered as income or a resource for purposes of eligibility of the covered family for other benefits, or amount of benefits payable to the family, under any program administered by the Secretary.
“(e) Application
“(1) In general—An eligible entity seeking to participate in the pilot program shall submit to the Secretary an application—
“(A) at such time, in such manner, and containing such information as the Secretary may require by notice; and
“(B) that includes the number of covered families to which the eligible entity intends to provide escrow accounts under this section.
“(2) Geographic and entity variety—The Secretary shall ensure that eligible entities selected to participate in the pilot program—
“(A) are located across various States and in both urban and rural areas; and
“(B) vary by size and type, including both public housing agencies and private owners of projects receiving project-based rental assistance under section 8.
“(f) Notification and opt-out—An eligible entity participating in the pilot program shall—
“(1) notify each covered family of their enrollment in the pilot program;
“(2) provide each covered family with a detailed description of the pilot program, including how the pilot program will impact their rent and finances;
“(3) inform each covered family that the family may not simultaneously participate in the pilot program and the Family Self-Sufficiency program under this section; and
“(4) provide each covered family with the ability to elect not to participate in the pilot program—
“(A) not less than 2 weeks before the date on which the escrow account is established under subsection (c); and
“(B) at any point during the duration of the pilot program.
“(g) Maximum rents—During the term of participation by a covered family in the pilot program, the amount of rent paid by the covered family shall be calculated under the section 3 or 8(o), as applicable.
“(h) Pilot program timeline
“(1) Awards—Not later than 18 months after the date of enactment of this section, the Secretary shall select the eligible entities to participate in the pilot program.
“(2) Establishment and terms of accounts—An eligible entity selected to participate in the pilot program shall—
“(A) not later than 6 months after selection, establish escrow accounts under subsection (c) for covered families; and
“(B) maintain those escrow accounts for not less than 5 years, or until the date the family ceases to receive assistance under section 8 or 9, and, at the discretion of the covered family, not more than 7 years after the date on which the escrow account is established.
“(i) Nonparticipation and housing assistance
“(1) In general—A family that elects not to participate in the pilot program may not be delayed or denied assistance under section 8 or 9 for reason of such election.
“(2) No termination—Housing assistance may not be terminated as a consequence of participating, or not participating, in the pilot program under this section for any period of time.
“(j) Study—Not later than 8 years after the date the Secretary selects eligible entities to participate in the pilot program under this section, the Secretary shall conduct a study and submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives a report on outcomes for covered families that participated in the pilot program, which shall evaluate the effectiveness of the pilot program in assisting families to achieve economic independence and self-sufficiency, and the impact coaching and supportive services, or the lack thereof, had on individual incomes.
“(k) Waivers—The Secretary may, upon the written request of an eligible entity receiving amounts under this section, waive requirements under this section that relate to the administration of the pilot program for the eligible entity that submitted the request if such waiver would allow such eligible entity to effectively administer the pilot program and make the required escrow account deposits under this section.
changed
“(l) Termination—The pilot program established under this section shall terminate on the date that is 10 7 years after the date of enactment of this section.”
Sec. 406 Establishment of eviction helpline
changed
In general— The Secretary of Housing and Urban Development shall, not later than 1 year after the date of the enactment of this Act—Act, establish a program—
changed
to establish a hotline to provide tenants of covered federally assisted rental dwelling units with counseling, resources, and referrals to available assistance relating to eviction-related matters; and
changed
to provide information about such hotline to tenants of covered federally assisted rental dwelling units by publishing information about such hotline in common areas of each federally assisted rental dwellings and through other means determined appropriate by the Secretary.
added
Sunset— The program established under this section shall terminate on the date that is 7 years after the date of the enactment of this section.
renumbered
was (3)
Definitions— In this section:
renumbered
was (3)(3)
Assistance— The term assistance means any grant, loan, subsidy, contract, cooperative agreement, or other form of financial assistance, but such term does not include the insurance or guarantee of a loan, mortgage, or pool of loans or mortgages.
renumbered
was (3)(4)
Covered federally assisted rental dwelling unit— The term covered federally assisted rental dwelling unit means a residential dwelling unit—
renumbered
was (3)(4)(3)
that is made available for rental; and
added
removed
renumbered
was (3)(4)(4)(1)
for which assistance is provided, or that is part of a housing project for which assistance is provided, under any program administered by the Secretary of Housing and Urban Development, including—
renumbered
was (3)(4)(4)(1)(2)
the public housing program under the United States Housing Act of 1937 (42 U.S.C. 1437 et seq.);
renumbered
was (3)(4)(4)(1)(3)
the program for rental assistance under section 8 of the United States Housing Act of 1937 (42 U.S.C. 1437f);
renumbered
was (3)(4)(4)(1)(4)
the HOME Investment Partnerships program under title II of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12721 et seq.);
renumbered
was (3)(4)(4)(1)(5)
title IV of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11360 et seq.);
renumbered
was (3)(4)(4)(1)(6)
the Housing Trust Fund program under section 1338 of the Housing and Community Development Act of 1992 (12 U.S.C. 4568);
renumbered
was (3)(4)(4)(1)(7)
the program for supportive housing for the elderly under section 202 of the Housing Act of 1959 (12 U.S.C. 1701q);
renumbered
was (3)(4)(4)(1)(8)
the program for supportive housing for persons with disabilities under section 811 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 8013);
renumbered
was (3)(4)(4)(1)(9)
the AIDS Housing Opportunities program under subtitle D of title VIII of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12901 et seq.);
renumbered
was (3)(4)(4)(1)(10)
the program for Native American housing under the Native American Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 4101 et seq.); and
renumbered
was (3)(4)(4)(1)(11)
the program for housing assistance for Native Hawaiians under title VIII of the Native American Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 4221 et seq.); or
renumbered
was (3)(4)(4)(2)
that is a property, or is on or in a property, that has a federally backed mortgage loan or federally backed multifamily mortgage loan, as such terms are defined in section 4024(a) of the CARES Act (15 U.S.C. 9058(a)).
Sec. 407 Temperature Sensor pilot program
changed
In general— The Secretary of Housing and Urban Development shall establish a temperature sensor 3-year pilot program to provide grants to public housing agencies and owners of covered federally assisted rental dwelling units to acquire, install, and test the efficacy of approved temperature sensors in residential dwelling units to ensure such units remain in compliance with temperature requirements.
Eligibility—
In general— The Secretary shall, not later than 180 days after the date of the enactment of this Act, establish eligibility criteria for public housing agencies and owners of covered federally assisted rental dwelling units to participate in the pilot program established pursuant to subsection (a).
Criteria— In establishing the eligibility criteria described in paragraph (1), the Secretary shall ensure—
the pilot program includes a diverse range of participants that represent different geographic regions, climate regions, unit sizes, and types of housing; and
that the functionality of an approved temperature sensor will be installed and tested using amounts awarded under this section, including internet connectivity requirements.
Installation— Each public housing agency or owner of a covered federally assisted rental dwelling unit that acquires 1 or more approved temperature sensors under this section shall, after receiving written permission from the resident of a dwelling unit, install such temperature sensor and monitor the data from such temperature sensor.
Collection of complaint records—
In general— Each public housing agency or owner of a covered federally assisted rental dwelling unit that installs 1 or more approved temperature sensors under this section shall collect and retain information about temperature-related complaints and violations.
Definitions— The Secretary shall, not later than 180 days after the date of the enactment of this Act, define the terms “temperature-related complaints” and “temperature-related violations” for the purposes of this section.
Data collection—
In general— Data collected from temperature sensors acquired and installed by public housing agencies and owners of covered federally assisted rental dwelling units under this section shall be retained until the Secretary notifies the public housing agency or owner that the pilot program and the evaluation of the pilot program are complete.
Personally identifiable information— The Secretary shall, not later than 180 days after the date of the enactment of this Act, establish standards for the protection of personally identifiably information collected during the pilot program by public housing agencies, owners of federally assisted rental dwelling units, and the Secretary.
Pilot program evaluation—
Interim evaluation— Not later than 12 months after the establishment of the pilot program under this section, the Secretary shall publicly publish and submit to the Congress a report that—
examines the number of temperature-related complaints and violations in federally assisted rental dwelling units with temperature sensors, disaggregated by temperature sensor technology and climate region—
that occurred before the installation of such sensor, if known; and
that occurred after the installation of such sensor; and
identifies any barriers to full utility of temperature sensor capabilities, including broadband internet access and tenant participation.
Final evaluation— Not later than 36 months after the conclusion of the pilot program established by the Secretary under this section, the Secretary shall publicly publish and submit to the Congress a report that—
examines the number of temperature-related complaints and violations in federally assisted rental dwelling units with temperature sensors, disaggregated by temperature sensor technology and climate region—
that occurred before the installation of such sensor; and
that occurred after the installation of such sensor;
identifies any barriers to full utility of temperature sensor capabilities, including broadband internet access and tenant participation; and
compares the utility of various temperature sensor technologies based on—
climate zones;
cost;
features; and
any other factors identified by the Secretary.
added
Sunset— The pilot program established under this section shall terminate on the date that is 3 years after the date of the enactment of this section.
renumbered
was (8)
Definitions— For the purposes of this section:
renumbered
was (8)(3)
Approved temperature sensor— The term approved temperature sensor means an internet capable temperature reporting device able to measure ambient air temperature to the tenth degree Fahrenheit and Celsius selected from a list of such devices approved in advance by the Secretary.
renumbered
was (8)(4)
Assistance— The term assistance means any grant, loan, subsidy, contract, cooperative agreement, or other form of financial assistance, but such term does not include the insurance or guarantee of a loan, mortgage, or pool of loans or mortgages.
renumbered
was (8)(5)
Covered federally assisted rental dwelling unit— The term covered federally assisted rental dwelling unit means a residential dwelling unit that is made available for rental and for which assistance is provided, or that is part of a housing project for which assistance is provided, under—
renumbered
was (8)(5)(3)
the program for project-based rental assistance under section 8 of the United States Housing Act of 1937 (42 U.S.C. 1437f);
renumbered
was (8)(5)(4)
the public housing program under the United States Housing Act of 1937 (42 U.S.C. 1437 et seq.);
renumbered
was (8)(5)(5)
the program for supportive housing for the elderly under section 202 of the Housing Act of 1959 (12 U.S.C. 1701q); or
renumbered
was (8)(5)(6)
the program for supportive housing for persons with disabilities under section 811 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 8013).
renumbered
was (8)(6)
Owner— The term owner means—
renumbered
was (8)(6)(3)
with respect to the program for project-based rental assistance under section 8 of the United States Housing Act of 1937 (42 U.S.C. 1437f), any private person or entity, including a cooperative, an agency of the Federal Government, or a public housing agency, having the legal right to lease or sublease dwelling units;
renumbered
was (8)(6)(4)
with respect to the public housing program under the United States Housing Act of 1937 (42 U.S.C. 1437 et seq.), a public housing agency or an owner entity of public housing units as defined in section 905.108 of title 24, Code of Federal Regulations;
renumbered
was (8)(6)(5)
with respect to the program for supportive housing for the elderly under section 202 of the Housing Act of 1959 (12 U.S.C. 1701q), a private nonprofit organization as defined under section 202(k)(4) of the Housing Act of 1959; and
renumbered
was (8)(6)(6)
with respect to the program for supportive housing for persons with disabilities under section 811 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 8013), a private nonprofit organization as defined under section 811(k)(5) of the Cranston-Gonzalez National Affordable Housing Act.
Sec. 601 Community Bank Deposit Access
added
added
In general— Section 29 of the Federal Deposit Insurance Act (12 U.S.C. 1831f) is amended by adding at the end the following:
added “(j) Limited exception for custodial deposits
added “(1) In general—Custodial deposits of an eligible institution shall not be considered to be funds obtained, directly or indirectly, by or through a deposit broker to the extent that the total amount of such custodial deposits does not exceed an amount equal to 20 percent of the total liabilities of the eligible institution.
added “(2) Definitions—In this subsection:
added “(A) Custodial deposit—The term custodial deposit means a deposit that is not deposited at an insured depository institution in return for fees paid by the insured depository institution pursuant to an agreement with a third party and that would otherwise be considered to be obtained, directly or indirectly, by or through a deposit broker, if the deposit is deposited at 1 or more insured depository institutions, for the purpose of providing or maintaining deposit insurance for the benefit of a third party, by or through any of the following, each acting in a formal custodial or fiduciary capacity for the benefit of a third party:
added “(i) An insured depository institution serving as agent, trustee, or custodian.
added “(ii) A trust entity controlled by an insured depository institution serving as agent, trustee, or custodian.
added “(iii) A State-chartered trust company serving as agent, trustee, or custodian.
added “(iv) A plan administrator or investment advisor, acting in a formal custodial or fiduciary capacity for the benefit of a plan.
added “(B) Eligible institution—The term eligible institution means an insured depository institution that accepts custodial deposits, if the insured depository institution has less than $10,000,000,000 in total assets as reported on the consolidated report of condition and income as reported quarterly to the appropriate Federal banking agency and—
added “(i)
added “(I) when most recently examined under section 10(d) was assigned a composite rating of 1, 2, or 3 under the Uniform Financial Institutions Rating System (or an equivalent rating under a comparable rating system); and
added “(II) is well capitalized; or
added “(ii) has obtained a waiver pursuant to subsection (c).
added “(C) Plan—The term “plan” has the meaning given the term in section 3 of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1002).
added “(D) Plan administrator—The term plan administrator has the meaning given the term administrator in section 3 of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1002).
added “(E) Well capitalized—The term well capitalized has the meaning given the term in section 38(b).”
added
Interest rate restriction— Section 29 of the Federal Deposit Insurance Act (12 U.S.C. 1831f), as amended by subsection (a), is further amended by adding at the end the following:
added “(k) Restriction on interest rate paid on certain custodial deposits
added “(1) Definitions—In this subsection—
added “(A) the terms custodial deposit, eligible institution, and well capitalized have the meanings given those terms in subsection (j); and
added “(B) the term covered insured depository institution means an insured depository institution that while acting as an eligible institution under subsection (j), accepts custodial deposits while not well capitalized.
added “(2) Prohibition—A covered insured depository institution may not pay a rate of interest on custodial deposits that are accepted while not well capitalized that, at the time the funds or custodial deposits are accepted, significantly exceeds the limit set forth in paragraph (3).
added “(3) Limit on interest rates—The limit on the rate of interest referred to in paragraph (2) shall be not greater than—
added “(A) the rate paid on deposits of similar maturity in the normal market area of the covered insured depository institution for deposits accepted in the normal market area of the covered insured depository institution; or
added “(B) the national rate paid on deposits of comparable maturity, as established by the Corporation, for deposits accepted outside the normal market area of the covered insured depository institution.”
Sec. 602 Keeping Deposits Local
added
added
Amount of reciprocal deposits that are not considered to be funds obtained by or through a deposit broker— Section 29(i) of the Federal Deposit Insurance Act (12 U.S.C. 1831f(i)) is amended by striking paragraph (1) and inserting the following:
added “(1) In general—The sum of the following amounts of reciprocal deposits of an agent institution shall not be considered to be funds obtained, directly or indirectly, by or through a deposit broker:
added “(A) An amount equal to 50 percent of the portion of the total liabilities of the agent institution that is less than or equal to $1,000,000,000.
added “(B) An amount equal to 40 percent of the portion, if any, of the total liabilities of the agent institution that is greater than $1,000,000,000, but less than or equal to $10,000,000,000.
added “(C) An amount equal to 30 percent of the portion, if any, of the total liabilities of the agent institution that is greater than $10,000,000,000, but less than or equal to $250,000,000,000.”
added
Definition of Agent Institution— Section 29(i)(2)(A)(i) of the Federal Deposit Insurance Act (12 U.S.C. 1831f(i)(2)(A)(i)) is amended by striking subclause (I) and inserting the following:
added “(I) when most recently examined under section 10(d) was assigned a CAMELS rating of 1, 2, or 3 under the Uniform Financial Institutions Rating System (or an equivalent rating under a comparable rating system); and”
added
Reciprocal deposits study—
added
In general— The Federal Deposit Insurance Corporation, in consultation with the Board of Governors of the Federal Reserve System, shall carry out a study on reciprocal deposits.
added
Contents— The study required under paragraph (1) shall include—
added
an analysis of how reciprocal deposits have performed since 2018, which shall include—
added
the use of quantitative and qualitative data;
added
a breakdown of the usage of reciprocal deposits by size of insured depository institution;
added
the usage of reciprocal deposits during periods of stress; and
added
an analysis, to the extent practicable, of end-user depositors, such as municipalities, businesses, and non-profit organizations, that drive demand for reciprocal products;
added
an analysis, to the extent practicable, of how reciprocal deposits compare to other deposit arrangements; and
added
an analysis of the benefits and potential risks of reciprocal deposits.
added
Report— Not later than 6 months after the date of enactment of this Act, the Federal Deposit Insurance Corporation shall issue a report to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate containing all findings and determinations made in carrying out the study required under paragraph (1).
Sec. 603 Supervisory Modifications for Appropriate Risk-based Testing
added
added
Examination relief for certain well managed and well capitalized financial institutions—
added
Insured depository institutions— Section 10(d) of the Federal Deposit Insurance Act (12 U.S.C. 1820(d)) is amended by adding at the end the following:
added “(11) Examination relief for certain well managed and well capitalized insured depository institutions
added “(A) In general—The following shall apply to a well managed and well capitalized insured depository institution with $6,000,000,000 or less in consolidated assets:
added “(i) Alternating limited-scope examinations—After an insured depository institution receives a full-scope, on-site examination from the appropriate Federal banking agency, the next examination of the insured depository institution by the appropriate Federal banking agency shall be a limited-scope examination, as determined by the appropriate Federal banking agency.
added “(ii) Combined examinations—If an insured depository institution is otherwise subject to separate safety and soundness examinations, consumer compliance examinations, and information technology and cybersecurity examinations, the appropriate Federal banking agency shall, upon request of the insured depository institution, combine two or three such examinations, as specified by the insured depository institution, and carry them out at the same time.
added “(B) Exception—Subparagraph (A) shall not apply to an insured depository institution if—
added “(i) the insured depository institution is currently subject to a formal enforcement proceeding or order by the Corporation or the appropriate Federal banking agency; or
added “(ii) a person acquired control of the insured depository institution since the most recent full-scope, on-site examination of the insured depository institution from the appropriate Federal banking agency.
added “(C) Rulemaking—Not later than 12 months after the date of enactment of this paragraph, the Federal banking agencies shall issue rules to carry out subparagraph (A), including, with respect to an insured depository institution described under subparagraph (A), to—
added “(i) establish procedures for the limited-scope examinations described in subparagraph (A)(i);
added “(ii) establish procedures for reviewing insured depository institutions that—
added “(I) experience material changes in financial condition or operational risk profile between scheduled examinations; or
added “(II) have failed to comply with Federal or State banking laws and regulations; and
added “(iii) balance the goals of streamlining the examination cycle for individual insured depository institutions and reducing unnecessary regulatory burdens while maintaining sufficient oversight to ensure the continued safety and soundness of the insured depository institutions and compliance with all applicable laws and regulations.
added “(D) Rule of construction—Nothing in this paragraph may be construed to limit the authority of a Federal banking agency to conduct off-site monitoring, targeted reviews, or additional full-scope, on-site examinations of an insured depository institution if the Federal banking agency determines such monitoring, reviews, or examinations are necessary to ensure safety and soundness or compliance with applicable laws.
added “(E) Definitions—In this paragraph:
added “(i) Consumer compliance examination—The term “consumer compliance examination” means an examination to assess compliance with the requirements of Federal consumer financial law (as such term is defined in section 1002 of the Consumer Financial Protection Act of 2010).
added “(ii) Well capitalized—The term “well capitalized” has the meaning given that term in section 38(b).
added “(iii) Well managed—With respect to an insured depository institution, the term “well managed” means that, when the institution was most recently examined by the appropriate Federal banking agency, the institution was found to be well managed, and the institution’s composite condition was found to be satisfactory or outstanding.”
added
Insured credit unions— Section 204 of the Federal Credit Union Act (12 U.S.C. 1784) is amended by adding at the end the following:
added “(h) Examination relief for certain well managed and well capitalized insured credit unions
added “(1) In general—The following shall apply to a well managed and well capitalized insured credit union with $6,000,000,000 or less in consolidated assets:
added “(A) Alternating limited-scope examinations—After an insured credit union receives a full-scope, on-site examination from the National Credit Union Administration, the next examination of the insured credit union by the National Credit Union Administration shall be a limited-scope examination, as determined by the National Credit Union Administration.
added “(B) Combined examinations—If an insured credit union is otherwise subject to separate safety and soundness examinations, consumer compliance examinations, and information technology and cybersecurity examinations, the National Credit Union Administration shall, upon request of the insured credit union, combine two or three such examinations, as specified by the insured credit union, and carry them out at the same time.
added “(2) Exception—Paragraph (1) shall not apply to an insured credit union if the insured credit union is currently subject to a formal enforcement proceeding or order by the National Credit Union Administration.
added “(3) Rulemaking—Not later than 12 months after the date of enactment of this subsection, the National Credit Union Administration shall issue rules to carry out paragraph (1), including, with respect to an insured credit union described under paragraph (1), to—
added “(A) establish procedures for the limited-scope examinations described in paragraph (1)(A);
added “(B) establish procedures for reviewing insured credit unions that—
added “(i) experience material changes in financial condition or operational risk profile between scheduled examinations; or
added “(ii) have failed to comply with Federal or State banking laws and regulations; and
added “(C) balance the goals of streamlining the examination cycle for individual insured credit unions and reducing unnecessary regulatory burdens while maintaining sufficient oversight to ensure the continued safety and soundness of the insured credit unions and compliance with all applicable laws and regulations.
added “(4) Rule of construction—Nothing in this subsection may be construed to limit the authority of the National Credit Union Administration to conduct off-site monitoring, targeted reviews, or additional full-scope, on-site examinations of an insured credit union if the National Credit Union Administration determines such monitoring, reviews, or examinations are necessary to ensure safety and soundness or compliance with applicable laws.
added “(5) Definitions—In this paragraph:
added “(A) Consumer compliance examination—The term “consumer compliance examination” means an examination to assess compliance with the requirements of Federal consumer financial law (as such term is defined in section 1002 of the Consumer Financial Protection Act of 2010).
added “(B) Well capitalized—The term “well capitalized” has the meaning given that term in section 216(c).
added “(C) Well managed—With respect to an insured credit union, the term “well managed” means that, when the credit union was most recently examined by the National Credit Union Administration, the credit union was found to be well managed, and the credit union’s composite condition was found to be satisfactory or outstanding.”
added
Examination practices—
added
Insured depository institutions— Section 10(d) of the Federal Deposit Insurance Act (12 U.S.C. 1820(d)), as amended by subsection (a)(1), is further amended by adding at the end the following:
added “(12) Examination practices—With respect to on-site examination of an insured depository institution with less than $6,000,000,000 in total assets, the appropriate Federal banking agency shall—
added “(A) ensure the examination is led by, to the maximum extent practicable, an examiner with significant experience as an examiner;
added “(B) make every effort, to the maximum extent practicable, to minimize the number of examiners utilized and the amount of time spent at the institution to carry out the examination;
added “(C) make every effort, to the maximum extent practicable, to schedule the examination at a time that is convenient for the institution; and
added “(D) to the maximum extent practicable, give the institution advance notice of issues expected to be covered in the examination.
added “(13) Report—In its annual report to Congress, each Federal banking agency shall include—
added “(A) information on how the agency is complying with paragraphs (11) and (12); and
added “(B) aggregate data summarizing the agency’s examination practices with respect to insured depository institutions with less than $6,000,000,000 in total assets, including—
added “(i) the average experience of examiners, including the average number of years of examiner experience of those who lead on-site examinations;
added “(ii) the average number of examiners utilized; and
added “(iii) the average amount of time the agency spends visiting such institutions for on-site examinations.”
added
Insured credit unions— Section 204 of the Federal Credit Union Act (12 U.S.C. 1784), as amended by subsection (a)(2), is further amended by adding at the end the following:
added “(i) Examination practices—With respect to on-site examination of an insured credit union with less than $6,000,000,000 in total assets, the National Credit Union Administration shall—
added “(1) ensure the examination is led by, to the maximum extent practicable, an examiner with significant experience as an examiner;
added “(2) make every effort, to the maximum extent practicable, to minimize the number of examiners utilized and the amount of time spent at the credit union to carry out the examination;
added “(3) make every effort, to the maximum extent practicable, to schedule the examination at a time that is convenient for the credit union; and
added “(4) to the maximum extent practicable, give the credit union advance notice of issues expected to be covered in the examination.
added “(j) Report—In its annual report to Congress, the National Credit Union Administration shall include—
added “(1) information on how the Administration is complying with subsections (h) and (i); and
added “(2) aggregate data summarizing the Administration’s examination practices with respect to insured credit unions with less than $6,000,000,000 in total assets, including—
added “(A) the average experience of examiners, including the average number of years of examiner experience of those who lead on-site examinations;
added “(B) the average number of examiners utilized; and
added “(C) the average amount of time the Administration spends visiting such credit unions for on-site examinations.”
Sec. 604 Tailored Regulatory Updates for Supervisory Testing
addedadded Section 10(d) of the Federal Deposit Insurance Act (12 U.S.C. 1820(d)) is amended—
added
in paragraph (4)(A), by striking “$3,000,000,000” and inserting “$6,000,000,000”; and
added
in paragraph (10), by striking “$3,000,000,000” and inserting “$6,000,000,000”.
Sec. 605 Credit Union Board Modernization
addedadded Section 113 of the Federal Credit Union Act (12 U.S.C. 1761b) is amended—
added
by striking “monthly” each place such term appears;
added
in the matter preceding paragraph (1), by striking “The board of directors” and inserting the following:
added “(a) In general—The board of directors”
added
in subsection (a) (as so designated), by striking “shall meet at least once a month and”; and
added
by adding at the end the following:
added “(b) Meetings—The board of directors of a Federal credit union shall meet as follows:
added “(1) With respect to a de novo Federal credit union, not less frequently than monthly during each of the first five years of the existence of such Federal credit union.
added “(2) Not less than six times annually, with at least one meeting held during each fiscal quarter, with respect to a Federal credit union—
added “(A) with composite rating of either 1 or 2 under the Uniform Financial Institutions Rating System (or an equivalent rating under a comparable rating system); and
added “(B) with a capability of management rating under such composite rating of either 1 or 2.
added “(3) Not less frequently than once a month, with respect to a Federal credit union—
added “(A) with composite rating of either 3, 4, or 5 under the Uniform Financial Institutions Rating System (or an equivalent rating under a comparable rating system); or
added “(B) with a capability of management rating under such composite rating of either 3, 4, or 5.”
Sec. 606 Systemic Risk Authority Transparency
added
added
GAO review— Section 13(c)(4)(G)(iv) of the Federal Deposit Insurance Act (12 U.S.C. 1823(c)(4)(G)(iv)) is amended to read as follows:
added “(iv) GAO review
added “(I) In general—The Comptroller General of the United States shall, not later than 60 days after a determination is made under clause (i), and again 180 days thereafter, review and report to the Congress on the determination under clause (i), including—
added “(aa) the basis for the determination;
added “(bb) the purpose for which any action was taken pursuant to such clause;
added “(cc) the likely effect of the determination and such action on the incentives and conduct of insured depository institutions and uninsured depositors;
added “(dd) any mismanagement by the executives and board of the insured depository institution that contributed to the failure of the insured depository institution;
added “(ee) a review of the compensation practices of the insured depository institution;
added “(ff) any supervisory or regulatory shortcomings with respect to the appropriate Federal banking agency of the insured depository institution;
added “(gg) any actions taken by the Federal banking regulators, Financial Stability Oversight Council, Department of the Treasury, and other relevant financial regulators in relation to the failure of the insured depository institution; and
added “(hh) any additional relevant entities or activities that may have contributed to the failure of the insured depository institution, including with respect to auditing, accounting, credit rating agencies, investment bank underwriters, and emergency liquidity options such as loans from the Federal reserve banks or advances through the Federal Home Loan Bank system.
added “(II) Rule of construction—Nothing in this clause or a report issued pursuant to this clause may be construed to limit the authority of a Federal agency to enforce violations of Federal statutes, rules, or orders.”
added
Appropriate federal banking agency report— Section 13(c) of the Federal Deposit Insurance Act (12 U.S.C. 1823(c)) is amended by adding at the end the following:
added “(12) Appropriate federal banking agency report
added “(A) In general—The appropriate Federal banking agency of an insured depository institution about which a determination is made under paragraph (4)(G)(i) shall, not later than 90 days after the date of such determination, and again 210 days thereafter, submit a report to the Congress that discloses the following:
added “(i) Subject to such redactions as the appropriate Federal banking agency determines appropriate to protect personally identifiable information about customers and other financial institutions (as such term is defined under section 11(e)(9)(D)), all—
added “(I) reports of examination and inspection that relate to the failed insured depository institution in the previous 3-year period;
added “(II) formal communications of a material supervisory determination conveyed to the failed insured depository institution in the previous 3-year period; and
added “(III) any additional exam reports and correspondence that the appropriate Federal banking agency determines may be relevant to the failure of the insured depository institution.
added “(ii) An examination of any mismanagement by the executives and board of the insured depository institution that contributed to the failure of the insured depository institution.
added “(iii) Any supervisory or regulatory shortcomings by such appropriate Federal banking agency with respect to the insured depository institution.
added “(iv) Any dynamics that the appropriate Federal banking agency determines may have contributed to the failure of the insured depository institution.
added “(v) Any supervisory, regulatory, or legislative recommendations such appropriate Federal banking agency may have to improve the safety and soundness of similarly situated insured depository institutions, the banking system, and financial stability.
added “(B) Protection of sensitive information
added “(i) Effect on privilege—The provision of any information by a Federal banking agency under this paragraph may not be construed as—
added “(I) waiving, destroying, or otherwise affecting any privilege applicable to the information; or
added “(II) waiving any exemption applicable to the information under section 552 of title 5, United States Code (commonly known as the “Freedom of Information Act”).
added “(ii) Transparency
added “(I) In general—A Federal banking agency shall publish materials contained in a report required under subparagraph (A) to the fullest extent possible to promote transparency.
added “(II) Consultation on omitting materials—If a Federal banking agency determines particular materials described under subclause (I) should not be published, the Federal banking agency shall consult with the chair and ranking member of the Committee on Financial Services of the House of Representatives and the chair and ranking member of the Committee on Banking, Housing, and Urban Affairs of the Senate.
added “(III) Omitting materials—If, after the consultation required under subclause (II), the Federal banking agency determines there is a substantial public interest in not publishing such materials, the Federal banking agency shall provide those materials to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate with a written explanation describing the reasons for not publishing those materials.
added “(iii) Privilege—For purposes of this subparagraph, the term “privilege” includes any work-product, attorney-client, or other privilege recognized under Federal or State law.
added “(C) Report extension—A Federal banking agency may extend a deadline described under subparagraph (A) for an additional 60 days, if the Federal banking agency—
added “(i) faces ongoing circumstances that require the Federal banking agency to prioritize activities to promote stability of the U.S. banking system; and
added “(ii) notifies the Congress of such extension and the reasons for such extension.
added “(D) Consolidated reports—A Federal banking agency may consolidate multiple reports required under this paragraph so long as the individual reports being consolidated all meet the timing requirements under this paragraph.
added “(E) Rule of construction—Nothing in this paragraph or reports or materials provided pursuant to this paragraph may be construed to limit the authority of a Federal agency to enforce violations of Federal statutes, rules, or orders.”
Sec. 607 Least cost exception
added
added
In general— Section 13(c)(4) of the Federal Deposit Insurance Act (12 U.S.C. 1823(c)(4)) is amended—
added
in subparagraph (A)(ii), by inserting “except as provided in subparagraph (I),” before “the total amount”;
added
in subparagraph (E)(i), by inserting “and except as provided in subparagraph (I),” after “appropriate,”; and
added
by adding at the end the following:
added “(I) Least cost resolution exception
added “(i) In general—With respect to an exercise of authority by the Corporation described in subparagraph (A), the Corporation may, at the discretion of the Corporation, select an alternative method of exercising such authority that is not the least costly to the Deposit Insurance Fund, if—
added “(I) the Corporation determines that the selected alternative complies with the requirements of clause (iii); and
added “(II) the Corporation and the Board of Governors of the Federal Reserve System, after consultation with the Secretary of the Treasury, determine that the potential additional risks to the Deposit Insurance Fund of the selected alternative are outweighed by the reasonably expected benefits of limiting further concentration of the United States banking system in global systemically important banking organizations.
added “(ii) Maximum cost to the deposit insurance fund—Not later than 1 year after the date of enactment of this subparagraph, the Corporation, by rule, shall establish criteria for determining on a case-by-case basis the maximum allowable cost against the net worth of the Deposit Insurance Fund that may be utilized to account for any determination under clause (i).
added “(iii) Requirements described—The requirements for the selected alternative described in clause (i) are as follows:
added “(I) The selected alternative is the least costly to the Deposit Insurance Fund of all alternatives that do not involve a transaction with a global systemically important banking organization and that do not exceed the cost of liquidating the insured depository institution.
added “(II) The difference between the cost of the selected alternative and the cost of a covered alternative is less than or equal to the maximum cost to the Deposit Insurance Fund specified pursuant to the rule adopted under clause (ii).
added “(III) In the case of a selected alternative that involves another person purchasing assets of the insured depository institution or assuming deposit liabilities of the insured depository institution, such person agrees to pay an assessment to the Corporation comprised of payments—
added “(aa) made over a period to be determined by the Corporation, but which may not be less than 5 years; and
added “(bb) in an amount that takes into account, on a case-by-case basis, criteria the Corporation, by rule, shall establish, including a realistic discount rate, the aggregate amount equal to the difference calculated in subclause (II), and any bid inconsistent with the purposes of this Act, with such rule to be established by the Corporation not later than 1 year after the date of enactment of this subparagraph.
added “(iv) Report to congress—Not later than 30 days after selecting an alternative described in clause (i), the Corporation shall issue a report to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate containing an analysis of the economic difference between the cost to the Deposit Insurance Fund of the selected alternative and the cost to the Deposit Insurance Fund of the least costly alternative that would have been selected absent the application of this subparagraph.
added “(v) Cost determinations—All cost determinations required under this subparagraph shall be made in accordance with subparagraphs (B) and (C).
added “(vi) Definitions—In this subparagraph:
added “(I) Covered alternative—The term “covered alternative” means a method of exercising authority described in subparagraph (A) that is the least costly to the Deposit Insurance Fund of all such methods that involve a sale of all or substantially all assets of the insured depository institution to, and assumption of all or substantially all deposit liabilities of the insured depository institution by, a global systemically important banking organization.
added “(II) Global systemically important banking organization—The term “global systemically important banking organization” means a global systemically important BHC (as such term is defined in section 217.402 of title 12, Code of Federal Regulations, or any successor thereto) and any affiliate thereof.”
added
Rule of construction— Section 13(c)(4)(H) of the Federal Deposit Insurance Act (12 U.S.C. 1823(c)(4)(H)) does not apply to the amendments made by subsection (a).
Sec. 608 Failing Bank Acquisition Fairness
added
added
Concentration limit exceptions only available to avoid serious adverse economic or financial effects—
added
Concentration limits with respect to deposits—
added
Federal Deposit Insurance Act— The Federal Deposit Insurance Act (12 U.S.C. 1811 et seq.) is amended—
added
in section 18(c)(13)—
added
by amending subparagraph (B) to read as follows:
added “(B) Subparagraph (A) shall not apply to an interstate merger transaction if—
added “(i) such interstate merger transaction involves 1 or more insured depository institutions in default or in danger of default and the responsible agency determines, based on clear and convincing evidence, that consummation of the proposed interstate merger transaction is necessary to prevent significant economic disruption or significant adverse effects on financial stability, and the Corporation has not received any qualified bid from a company that is not subject to the prohibition in subparagraph (A); or
added “(ii) the Corporation provides assistance under section 13 to facilitate such interstate merger transaction and the responsible agency determines, based on clear and convincing evidence, that consummation of the proposed interstate merger transaction is necessary to prevent significant economic disruption or significant adverse effects on financial stability, and the Corporation has not received any qualified bid from a company that is not subject to the prohibition in subparagraph (A).”
added
in subparagraph (C)—
added
in clause (i), by striking “and” at the end;
added
in clause (ii), by striking the period at the end and inserting a semicolon; and
added
by adding at the end the following:
added “(iii) the term “qualified bid” means an application, proposed application, or bid from a company where—
added “(I) if applicable, the company, any affiliate insured depository institution, and any affiliate depository institution holding company are well capitalized and well managed, as of the date of the application, proposed application, or bid; and
added “(II) upon consummation of the transaction, the resulting insured depository institution is well capitalized;
added “(iv) the term “well capitalized”—
added “(I) with respect to an insured depository institution, has the meaning given such term in section 38(b) (12 U.S.C. 1831o(b));
added “(II) with respect to a bank holding company, has the meaning given such term in section 2(o)(1)(B) of the Bank Holding Company Act of 1956 (12 U.S.C. 1841(o)(1)(B));
added “(III) with respect to a savings and loan holding company, has the meaning given such term in section 238.2 of title 12, Code of Federal Regulations; and
added “(IV) with respect to a company that is not an insured depository institution, bank holding company, or savings and loan holding company, means maintaining equity capital that the Corporation determines is commensurate with the capital maintained by an insured depository institution that is well capitalized; and
added “(v) the term “well managed” has the meaning given such term in section 2(o)(9) of the Bank Holding Company Act of 1956 (12 U.S.C. 1841(o)(9)).”
added
in section 44, by amending subsection (e) to read as follows:
added “(e) Exception for Banks in Default or in Danger of Default
added “(1) General exception—The responsible agency may, without regard to paragraph (1), (3), (4), or (5) of subsection (b) or paragraph (2), (4), or (5) of subsection (a), approve an application under subsection (a)(1) for approval of a merger transaction if—
added “(A) the merger transaction involves 1 or more banks in default or in danger of default; or
added “(B) the Corporation provides assistance under section 13(c) to facilitate such merger transaction.
added “(2) Concentration limit exception—The responsible agency may, without regard to subsection (b)(2), approve an application under subsection (a)(1) for approval of a merger transaction if—
added “(A) the merger transaction involves 1 or more banks in default or in danger of default and the responsible agency determines, based on clear and convincing evidence, that consummation of the proposed interstate merger transaction is necessary to prevent significant economic disruption or significant adverse effects on financial stability, and the Corporation has not received any qualified bid from another institution that is not subject to the prohibition in subsection (b)(2); or
added “(B) the Corporation provides assistance under section 13(c) to facilitate such merger transaction and the responsible agency determines, based on clear and convincing evidence, that consummation of the proposed interstate merger transaction is necessary to prevent significant economic disruption or significant adverse effects on financial stability, and the Corporation has not received any qualified bid from another institution that is not subject to the prohibition in subsection (b)(2).
added “(3) Qualified bid defined—In this subsection, the term “qualified bid” has the meaning given that term in section 18(c)(13)(C).”
added
Bank Holding Company Act of 1956— The Bank Holding Company Act of 1956 (12 U.S.C. 1841 et seq.) is amended—
added
in section 3(d), by amending paragraph (5) to read as follows:
added “(5) Exception for banks in default or in danger of default
added “(A) General exception—The Board may, without regard to subparagraph (B) or (D) of paragraph (1) or paragraph (3), approve an application pursuant to paragraph (1)(A) if—
added “(i) the application is for an acquisition of 1 or more banks in default or in danger of default; or
added “(ii) the application is for an acquisition with respect to which assistance is provided under section 13(c) of the Federal Deposit Insurance Act.
added “(B) Concentration limit exception—The Board may, without regard to paragraph (2), approve an application pursuant to paragraph (1)(A) if—
added “(i) the application is for the acquisition of 1 or more banks in default or in danger of default and the Board determines, based on clear and convincing evidence, that consummation of the proposed acquisition is necessary to prevent significant economic disruption or significant adverse effects on financial stability, and the Corporation has not received any qualified bid from another institution that is not subject to the prohibition in paragraph (2); or
added “(ii) the application is for an acquisition with respect to which assistance is provided under section 13(c) of the Federal Deposit Insurance Act and the Board determines, based on clear and convincing evidence, that consummation of the proposed acquisition is necessary to prevent significant economic disruption or significant adverse effects on financial stability, and the Corporation has not received any qualified bid from another institution that is not subject to the prohibition in paragraph (2).
added “(C) Qualified bid defined—In this paragraph, the term “qualified bid” has the meaning given that term in section 18(c)(13)(C) of the Federal Deposit Insurance Act.”
added
in section 4(i)(8), by amending subparagraph (B) to read as follows:
added “(B) Exception—Subparagraph (A) shall not apply to an acquisition if—
added “(i) such acquisition involves an insured depository institution in default or in danger of default and the Board determines, based on clear and convincing evidence, that consummation of the proposed acquisition is necessary to prevent significant economic disruption or significant adverse effects on financial stability, and the Corporation has not received any qualified bid (as defined in section 18(c)(13)(C) of the Federal Deposit Insurance Act) from another institution that is not subject to the prohibition in paragraph (2); or
added “(ii) the Federal Deposit Insurance Corporation provides assistance under section 13 of the Federal Deposit Insurance Act to facilitate such acquisition and the Board determines, based on clear and convincing evidence, that consummation of the proposed acquisition is necessary to prevent significant economic disruption or significant adverse effects on financial stability, and the Corporation has not received any qualified bid (as defined in section 18(c)(13)(C) of the Federal Deposit Insurance Act) from another institution that is not subject to the prohibition in paragraph (2).”
added
Concentration limit with respect to consolidated liabilities— Section 14(c) of the Bank Holding Company Act of 1956 (12 U.S.C. 1852(c)) is amended—
added
by redesignating paragraphs (1), (2), and (3) as subparagraphs (A), (B), and (C), respectively;
added
by striking “With the” and inserting the following:
added “(1) In general—With the”
added
by adding at the end the following:
added “(2) Limitation—The Board may provide written consent for an acquisition described in paragraph (1)(A) or in paragraph (1)(B) only if the Board determines, based on clear and convincing evidence, that consummation of the proposed acquisition is necessary to prevent significant economic disruption or significant adverse effects on financial stability, and the Corporation has not received any qualified bid (as defined in section 18(c)(13)(C) of the Federal Deposit Insurance Act) from another institution that is not subject to the prohibition in subsection (b).”
added
Congressional notification and justification for waivers—
added
In general— Whenever the Board of Governors of the Federal Reserve System, the Comptroller of the Currency, or the Federal Deposit Insurance Corporation waives a concentration limit under section 18(c)(13)(B) or section 44(e) of the Federal Deposit Insurance Act or under section 3(d)(5), section 4(i)(8)(B), or section 14(c)(2) of the Bank Holding Company Act of 1956, in connection with the acquisition of a bank or insured depository institution in default or in danger of default, or in connection with an acquisition with respect to which the Federal Deposit Insurance Corporation provides assistance under section 13 of the Federal Deposit Insurance Act, the waiving agency and the Federal Deposit Insurance Corporation, jointly, shall, not later than 30 days after such waiver, submit a written report to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs in the Senate containing—
added
a justification for the waiver, including an analysis of why it was necessary to prevent significant economic disruption or significant adverse effects on financial stability;
added
a description of alternative bids or outcomes considered, including efforts to solicit and encourage bids from entities that would not require a waiver;
added
an explanation of why alternative bids were not selected, if applicable; and
added
any recommendations for legislative or regulatory changes to improve competition in future insured depository institution resolutions.
added
Public disclosure— The waiving agency submitting a report under paragraph (1) and the Federal Deposit Insurance Corporation shall make the report publicly available on their respective websites, subject to redactions for confidential supervisory information and any other information described under section 552(b) of title 5, United States Code.
added
Limitation on considering bad faith bids in least cost determination— Section 13(c)(4) of the Federal Deposit Insurance Act (12 U.S.C. 1823(c)(4)), as amended by section 607(a)(3), is further amended by adding at the end the following:
added “(J) Limitation on considering bad faith bids—In making a determination under this paragraph of whether an exercise of authority is the least costly to the Deposit Insurance Fund, the Corporation may not consider any application, proposed application, or bid from a company, if such application, proposed application, or bid would result in violation of—
added “(i) section 18(c)(13) or 44(b)(2); or
added “(ii) section 3(d)(2), 4(i)(8), or 14 of the Bank Holding Company Act of 1956.”
Sec. 609 Advancing the Mentor-Protégé Program for Small Financial Institutions
added
added
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:
added “(d) Financial Agent Mentor-Protégé Program
added “(1) In general—The Secretary of the Treasury shall establish a program to be known as the “Financial Agent Mentor-Protégé Program” (in this subsection referred to as the “Program”) under which a financial agent designated by the Secretary or a large financial institution may serve as a mentor, under guidance or regulations prescribed by the Secretary, to a small financial institution to allow such small financial institution—
added “(A) to be prepared to perform as a financial agent; or
added “(B) to improve capacity to provide services to the customers of the small financial institution.
added “(2) Outreach—The Secretary shall hold outreach events to promote the participation of financial agents, large financial institutions, and small financial institutions in the Program at least once a year.
added “(3) Exclusion—The Secretary shall issue guidance or regulations to establish a process under which a financial agent, large financial institution, or small financial institution may be excluded from participation in the Program.
added “(4) Report—The Secretary shall report to Congress information pertaining to the Program, including—
added “(A) the number of financial agents, large financial institutions, and small financial institutions participating in such Program; and
added “(B) the number of outreach events described in paragraph (2) held during the year covered by such report.
added “(5) Definitions—In this subsection:
added “(A) Financial agent—The term financial agent means any national banking association designated by the Secretary of the Treasury to be employed as a financial agent of the Government.
added “(B) Large financial institution—The term large financial institution means any entity regulated by the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, or the National Credit Union Administration that has total consolidated assets greater than or equal to $50,000,000,000.
added “(C) Rural depository institution—The term “rural depository institution” means a depository institution (as defined in section 3 of the Federal Deposit Insurance Act)—
added “(i) with total consolidated assets of less than $10,000,000,000; and
added “(ii) located in a rural area, as defined under section 1026.35(b)(2)(iv)(A) of title 12, Code of Federal Regulations.
added “(D) Small financial institution—The term small financial institution means—
added “(i) any entity regulated by the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, or the National Credit Union Administration that has total consolidated assets less than or equal to $2,000,000,000;
added “(ii) a minority depository institution; or
added “(iii) a rural depository institution.”
added
Effective date— This section and the amendment made by this section shall take effect 90 days after the date of the enactment of this Act.
Sec. 610 American Access to Banking
added
added
Streamlining application process and review of capital raising by de novo regulated institutions—
added
In general— Each of the Federal financial institutions regulatory agencies shall—
added
for the purpose of streamlining the process of applying to become a de novo regulated institution, conduct a review of any application forms related to such process;
added
to the extent practicable, gather information needed from applicants seeking to become a de novo regulated institution from other Federal Government agencies or public sources to minimize information requests of such applicants; and
added
in consultation with the Securities and Exchange Commission, review how de novo regulated institutions raise capital while maintaining investor protections, including the impact of—
added
general capital raising restrictions; and
added
capital raising restrictions related to individuals who are not accredited investors.
added
Report— Not later than 1 year after the date of the enactment of this section, and annually for 5 years thereafter, each of the Federal financial institutions regulatory agencies shall submit to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate and publish on a public website of such agency a report that contains—
added
a description of the actions taken by such agency pursuant to paragraph (1); and
added
as appropriate, any administrative or legislative recommendations with respect to the purpose described in paragraph (1)(C).
added
Improving communication with de novo regulated institutions—
added
In general— Each of the Federal financial institutions regulatory agencies shall, at the request of an applicant to become a de novo regulated institution, designate an employee of the agency as a caseworker, who may perform such duty in addition to the other duties of the employee.
added
Caseworker duties— Each caseworker described in paragraph (1) shall, to the maximum extent practicable—
added
meet with the lead organizers applying to become a de novo regulated institution to provide a tutorial with respect to the application process; and
added
be the primary point of contact of the respective Federal financial institutions regulatory agency for such organizers during the application process.
added
New caseworker— Each agency described in paragraph (1) may designate a new caseworker, as appropriate, to support continuity based on staffing and responsibilities assigned to the current caseworker.
added
De Novo Mentor-Protégé partnerships—
added
In general— At the request of an institution that seeks to become a de novo regulated institution, each of the Federal financial institutions regulatory agencies shall, to the maximum extent practicable, provide a list to such institution of similar types of institutions that—
added
were recently approved to become a de novo regulated institution; and
added
are interested in volunteering to serve as a mentor to provide advice about the de novo application process.
added
Mentorship information— Not later than 1 year after the date of the enactment of this section, each of the Federal financial institutions regulatory agencies shall provide public information and directions on how an institution may request a mentor or serve as a mentor as described in paragraph (1).
added
State and stakeholder engagement plan—
added
In general— Each of the Federal financial institutions regulatory agencies shall develop a plan to—
added
regularly consult with State regulators to promote cooperation between State and Federal banking and credit union agencies in the creation of de novo regulated institutions, including responding to any State regulator that requests assistance on how a State-chartered financial institution can request Federal insurance;
added
regularly consult with stakeholders, including applicants to become de novo regulated institutions and recently approved regulated institutions, to inform any reforms that may support the creation of de novo regulated institutions, including rural institutions, community development financial institutions, and minority depository institutions; and
added
provide guidance, training material, and regular workshops to assist any interested parties to understand such agencies’ processes.
added
Submission to Congress—
added
In general— Not later than 2 years after the date of the enactment of this section, and every 5 years thereafter, each of the Federal financial institutions regulatory agencies shall submit to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate the respective plan of such agency described in paragraph (1).
added
Public comment— With respect to developing the plan described in paragraph (1), each of the Federal financial institutions regulatory agencies shall—
added
provide an opportunity for public comments; and
added
take such public comments into consideration.
added
Definitions—
added
In general— In this section:
added
Federal banking agency— The term “Federal banking agency” has the meaning given the term in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813).
added
Federal financial institutions regulatory agencies— The term “Federal financial institutions regulatory agencies” has the meaning given the term in section 1003 of the Federal Financial Institutions Examination Council Act of 1978 (12 U.S.C. 3302).
added
Regulated institution— The term “regulated institution” means—
added
with respect to a Federal banking agency, a depository institution (as such term is defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813)) for which the Federal banking agency is the appropriate Federal banking agency (as such term is defined in such section 3); and
added
with respect to the National Credit Union Administration, an insured credit union (as such term is defined in section 101 of the Federal Credit Union Act (12 U.S.C. 1752)).
added
State— The term “State” means each of the several States, the District of Columbia, and each territory of the United States.
added
State regulator— The term “State regulator” means—
added
with respect to a Federal banking agency, a State banking regulator; and
added
with respect to the National Credit Union Administration, the State regulatory agency having jurisdiction over a State credit union (as such term is defined in section 101 of the Federal Credit Union Act (12 U.S.C. 1752)).
added
Rule of construction— For purposes of this section, the process of applying to become a de novo regulated institution shall include the process of applying for Federal deposit insurance, Federal share insurance, or membership in the Federal Reserve System.
Sec. 611 Promoting New Bank Formation
added
added
Pilot phase-in of capital standards— The Federal banking agencies may issue rules that provide for a 2-year phase-in period for a qualifying community bank or its depository institution holding company to meet any Federal capital requirements that would otherwise be applicable to the qualifying community bank or its depository institution holding company, beginning on—
added
the date on which the qualifying community bank became an insured depository institution; or
added
in the case of its depository institution holding company, the date on which the qualifying community bank of the depository institution holding company became an insured depository institution.
added
Pilot changes to business plans—
added
In general— During the 2-year period beginning on the date on which a qualifying community bank became an insured depository institution, the qualifying community bank or its depository institution holding company may request to deviate from a business plan that has been approved by the appropriate Federal banking agency by submitting a request to such agency pursuant to this section.
added
Review of changes— The appropriate Federal banking agency shall, not later than the end of the 90-day period beginning on the receipt of a request under paragraph (1)—
added
approve, conditionally approve, or deny such request; and
added
notify the applicant of such decision and, if the agency denies the request—
added
provide the applicant with the reason for such denial; and
added
suggest changes to the request that, if adopted, would allow the agency to approve such request.
added
Result of failure to act— If the appropriate Federal banking agency fails to approve or deny a request within the 90-day period required under paragraph (2), such request shall be deemed to be approved.
added
Pilot program study—
added
Study— The Federal banking agencies shall, jointly, carry out a study on the impact of the pilot program carried out pursuant to subsections (a) and (b) of this section on the formation of de novo insured depository institutions, including such institutions which are rural depository institutions, community development financial institutions, and minority depository institutions, taking into account safety and soundness, promoting competition, and expanding access to affordable financial products and services to underserved communities.
added
Report to Congress— Not later than December 31, 2031, the Federal banking agencies shall, jointly, issue a report to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate containing all findings and determinations made in carrying out the study required under paragraph (1).
added
Study on de novo insured depository institutions—
added
Study— The Federal banking agencies shall, jointly, carry out a study on—
added
the principal causes for the low number of de novo insured depository institutions in the 10-year period ending on the date of enactment of this subsection;
added
ways to promote more de novo insured depository institutions in areas currently underserved by insured depository institutions; and
added
ways to ensure de novo depository institutions, including institutions which are rural depository institutions, community development financial institutions, and minority depository institutions, can utilize the Community Bank Leverage Ratio.
added
Report to congress— Not later than the end of the 1-year period beginning on the date of enactment of this Act, the Federal banking agencies shall, jointly, issue a report to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate containing all findings and determinations made in carrying out the study required under paragraph (1).
added
Definitions— In this section:
added
Appropriate Federal banking agency— The term “appropriate Federal banking agency” has the meaning given the term in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813).
added
Depository institution— The term “depository institution” has the meaning given the term in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813).
added
Depository institution holding company— The term “depository institution holding company” has the meaning given the term in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813).
added
Federal banking agency— The term “Federal banking agency” has the meaning given the term in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813).
added
Insured depository institution— The term “insured depository institution” has the meaning given the term in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813).
added
Qualifying community bank— The term “qualifying community bank” means a depository institution that—
added
including its holding company and all of its subsidiaries and affiliates, has total combined assets of less than $10,000,000,000; and
added
became an insured depository institution between January 1, 2026, and December 31, 2028.
Sec. 612 Rural Depositories Revitalization Study
added
added
Study— The Federal banking agencies shall, jointly, carry out a study—
added
to identify methods to improve the growth, capital adequacy, and profitability of depository institutions in the United States that primarily serve rural areas; and
added
to identify Federal statutes (other than appropriations Acts) or regulations of the Federal banking agencies that limit—
added
the methods identified under paragraph (1); or
added
the establishment of de novo depository institutions in rural areas.
added
Report— Not later than 1 year after the date of enactment of this Act, the Federal banking agencies shall, jointly, issue a report to Congress containing all findings and determinations made in carrying out the study required under subsection (a).
added
Study on Rural Credit Unions— The National Credit Union Administration shall carry out a study—
added
to identify methods to improve the growth, capital adequacy, and profitability of credit unions in the United States that primarily serve rural areas; and
added
to identify Federal statutes (other than appropriations Acts) or regulations of the National Credit Union Administration that limit—
added
the methods identified under paragraph (1); or
added
the establishment of de novo credit unions in rural areas.
added
Report on Rural Credit Unions— Not later than 1 year after the date of enactment of this Act, the National Credit Union Administration shall issue a report to Congress containing all findings and determinations made in carrying out the study required under subsection (c).
added
Definitions— In this section:
added
Depository institution— The term depository institution has the meaning given that term in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813).
added
Federal banking agencies— The term Federal banking agencies means the Board of Governors of the Federal Reserve System, the Comptroller of the Currency, and the Federal Deposit Insurance Corporation.
added
Rural— With respect to an area, the term rural has the meaning given that term in section 1026.35(b)(2)(iv)(A) of title 12, Code of Federal Regulations.
Sec. 613 Discretionary Surplus Fund
added
added
In general— The dollar amount specified under section 7(a)(3)(A) of the Federal Reserve Act (12 U.S.C. 289(a)(3)(A)) is reduced by $115,000,000.
added
Effective date— The amendment made by subsection (a) shall take effect on September 30, 2035.