American Housing and Economic Mobility Act of 2021

II 117TH CONGRESS 1ST SESSION S. 1368 To make housing more affordable, and for other purposes. IN THE SENATE OF THE UNITED STATES APRIL 26, 2021 Ms. WARREN (for herself, Mr. MARKEY, Mrs. GILLIBRAND, Mr. SANDERS, Ms. HIRONO, and Mr. MERKLEY) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To make housing more affordable, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 3 (a) SHORT TITLE.—This Act may be cited as the 4 ‘‘American Housing and Economic Mobility Act of 2021’’. 5 (b) TABLE OF CONTENTS.—The table of contents for 6 this Act is as follows: 7 Sec. 1. Short title; table of contents. TITLE I—MAKING HOUSING MORE AFFORDABLE Sec. 101. Local housing innovation grants. Sec. 102. Investing in affordable housing infrastructure. Sec. 103. Conditions for the sale of real estate-owned properties and non-per- forming loans. VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6211 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 2 •S 1368 IS TITLE II—TAKING THE FIRST STEPS TO REVERSE THE LEGACY OF HOUSING DISCRIMINATION AND GOVERNMENT NEGLIGENCE Sec. 201. Down payment assistance program for communities formerly seg- regated by law. Sec. 202. Formula grant program for communities with an appraisal gap. Sec. 203. Strengthening the Community Reinvestment Act of 1977. Sec. 204. Amendments relating to credit union service to underserved areas. Sec. 205. Eligibility of certain direct descendants of certain veterans for hous- ing loans guaranteed by the Secretary of Veterans Affairs. TITLE III—REMOVING BARRIERS THAT ISOLATE COMMUNITIES Sec. 301. Expanding rights under the Fair Housing Act. Sec. 302. Improving outcomes in housing assistance programs. TITLE IV—ESTATE TAX REFORM Sec. 401. Amendment to Internal Revenue Code of 1986. Sec. 402. Rate adjustment. Sec. 403. Required minimum 10-year term, etc., for grantor retained annuity trusts. Sec. 404. Certain transfer tax rules applicable to grantor trusts. Sec. 405. Elimination of generation-skipping transfer tax exemption for certain trusts. Sec. 406. Simplifying gift tax exclusion for annual gifts. TITLE V—ACCESSIBILITY REQUIREMENTS Sec. 501. Accessibility requirements. TITLE I—MAKING HOUSING 1 MORE AFFORDABLE 2 SEC. 101. LOCAL HOUSING INNOVATION GRANTS. 3 (a) DEFINITIONS.—In this section: 4 (1) ELEMENTARY SCHOOL; SECONDARY 5 SCHOOL.—The terms ‘‘elementary school’’ and ‘‘sec- 6 ondary school’’ have the meanings given those terms 7 in section 8101 of the Elementary and Secondary 8 Education Act of 1965 (20 U.S.C. 7801). 9 (2) ELIGIBLE ENTITY.—The term ‘‘eligible enti- 10 ty’’ means— 11 (A) a State; or 12 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 3 •S 1368 IS (B) a unit of general local government. 1 (3) INSTITUTION OF HIGHER EDUCATION.—The 2 term ‘‘institution of higher education’’ has the 3 meaning given the term in section 101 of the Higher 4 Education Act of 1965 (20 U.S.C. 1001). 5 (4) METROPOLITAN AREA; STATE; UNIT OF 6 GENERAL LOCAL GOVERNMENT.—The terms ‘‘metro- 7 politan area’’, ‘‘State’’, and ‘‘unit of general local 8 government’’ have the meanings given those terms in 9 section 102 of the Housing and Community Devel- 10 opment Act of 1974 (42 U.S.C. 5302). 11 (5) SECRETARY.—The term ‘‘Secretary’’ means 12 the Secretary of Housing and Urban Development. 13 (b) ESTABLISHMENT.—Not later than 1 year after 14 the date of enactment of this Act, the Secretary shall es- 15 tablish a program to make grants to eligible entities 16 that— 17 (1) reform local land use restrictions to bring 18 down the costs of producing affordable housing; and 19 (2) remove unnecessary barriers to building af- 20 fordable units in their communities. 21 (c) ELIGIBLE ACTIVITIES.—An eligible entity receiv- 22 ing a grant under this section may use funds to— 23 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 4 •S 1368 IS (1) carry out any of the activities described in 1 section 105 of the Housing and Community Devel- 2 opment Act of 1974 (42 U.S.C. 5305); 3 (2) carry out any of the activities permitted 4 under the program for national infrastructure in- 5 vestments (commonly known as the ‘‘Better Utilizing 6 Investments to Leverage Development (BUILD) dis- 7 cretionary grant program’’) authorized under the 8 heading ‘‘NATIONAL INFRASTRUCTURE INVEST- 9 MENTS’’ under the heading ‘‘OFFICE OF THE SEC- 10 RETARY’’ in title I of division L of the Consolidated 11 Appropriations Act, 2018 (Public Law 115–141; 12 132 Stat. 972) or a subsequent appropriations Act; 13 or 14 (3) modernize, renovate, or repair facilities used 15 by public elementary schools, public secondary 16 schools, and public institutions of higher education, 17 including modernization, renovation, and repairs 18 that— 19 (A) promote physical, sensory, and envi- 20 ronmental accessibility; and 21 (B) are consistent with a recognized green 22 building rating system. 23 (d) APPLICATION.— 24 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 5 •S 1368 IS (1) IN GENERAL.—An eligible entity desiring a 1 grant under this section shall submit to the Sec- 2 retary an application that demonstrates that the eli- 3 gible entity has carried out, or is in the process of 4 carrying out, initiatives that facilitate the expansion 5 of the supply of well-located affordable housing. 6 (2) ACTIVITIES.—Initiatives that meet the cri- 7 teria described in paragraph (1)— 8 (A) include— 9 (i) establishing ‘‘by-right’’ develop- 10 ment, which allows jurisdictions to admin- 11 istratively approve new developments that 12 are consistent with their zoning code; 13 (ii) revising or eliminating off-street 14 parking requirements to reduce the cost of 15 housing production; 16 (iii) instituting measures that 17 incentivize owners of vacant land to rede- 18 velop the space into affordable housing or 19 other productive uses; 20 (iv) revising minimum lot size require- 21 ments and bans or limits on multifamily 22 construction to allow for denser and more 23 affordable development; 24 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 6 •S 1368 IS (v) instituting incentives to promote 1 dense development, such as density bo- 2 nuses; 3 (vi) passing inclusionary zoning ordi- 4 nances that require a portion of newly de- 5 veloped units to be reserved for low- and 6 moderate-income renters or homebuyers; 7 (vii) streamlining regulatory require- 8 ments and shortening processes, reforming 9 zoning codes, or other initiatives that re- 10 duce barriers to housing supply elasticity 11 and affordability; 12 (viii) allowing accessory dwelling 13 units; 14 (ix) using local tax incentives to pro- 15 mote development of affordable housing; 16 and 17 (x) implementing measures that pro- 18 tect tenants from harassment and displace- 19 ment, including— 20 (I) providing access to counsel 21 for tenants facing eviction; 22 (II) the prohibition of eviction ex- 23 cept for just cause; 24 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 7 •S 1368 IS (III) measures intended to pre- 1 vent or mitigate sudden increases in 2 rents; 3 (IV) the repeal of laws that pre- 4 vent localities from implementing a 5 measure described in subclause (I), 6 (II), or (III); 7 (V) protections against construc- 8 tive eviction; 9 (VI) tenant right-to-organize 10 laws; 11 (VII) a cause of action for ten- 12 ants to sue landlords who threaten or 13 begin an illegal eviction; and 14 (VIII) landlord-tenant mediation 15 or other non-eviction diversion pro- 16 grams; and 17 (B) do not include activities that alter or- 18 dinances that govern wage and hour laws, fam- 19 ily and medical leave laws, health and safety re- 20 quirements, prevailing wage laws, or protections 21 for workers’ health and safety, anti-discrimina- 22 tion, and right to organize. 23 (3) RELATION TO CONSOLIDATED PLAN.—An 24 eligible entity shall include in an application sub- 25 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 8 •S 1368 IS mitted under paragraph (1) a description of how the 1 planning and development of eligible activities de- 2 scribed in subsection (c) may advance an objective, 3 or an aspect of an objective, included in the com- 4 prehensive housing affordability strategy and com- 5 munity development plan of the eligible entity under 6 part 91 of title 24, Code of Federal Regulations, or 7 any successor regulation (commonly referred to as a 8 ‘‘consolidated plan’’). 9 (e) LABOR LAWS.— 10 (1) IN GENERAL.—All laborers and mechanics 11 employed by contractors or subcontractors in the 12 performance of construction work financed in whole 13 or in part with a grant received under this section 14 shall be paid wages at rates not less than those pre- 15 vailing on similar construction in the locality, as de- 16 termined by the Secretary of Labor in accordance 17 with subchapter IV of chapter 31 of title 40, United 18 States Code (commonly known as the ‘‘Davis-Bacon 19 Act’’). 20 (2) AUTHORITY AND FUNCTIONS.—With re- 21 spect to the labor standards specified in paragraph 22 (1), the Secretary of Labor shall have the authority 23 and functions set forth in Reorganization Plan 24 Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C. 25 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 9 •S 1368 IS App.) and section 3145 of title 40, United States 1 Code. 2 (f) AUTHORIZATION OF APPROPRIATIONS.—There is 3 authorized to be appropriated to carry out this section 4 $2,000,000,000 for each of fiscal years 2022 through 5 2026. 6 SEC. 102. INVESTING IN AFFORDABLE HOUSING INFRA- 7 STRUCTURE. 8 (a) HOUSING TRUST FUND.—Section 1338(a) of the 9 Federal Housing Enterprises Financial Safety and Sound- 10 ness Act of 1992 (12 U.S.C. 4568(a)) is amended by add- 11 ing at the end the following: 12 ‘‘(3) AUTHORIZATION OF APPROPRIATIONS.— 13 There is authorized to be appropriated to the Hous- 14 ing Trust Fund $44,500,000,000 for each of fiscal 15 years 2022 through 2031.’’. 16 (b) CAPITAL MAGNET FUND.—Section 1339 of the 17 Federal Housing Enterprises Financial Safety and Sound- 18 ness Act of 1992 (12 U.S.C. 4569) is amended by adding 19 at the end the following: 20 ‘‘(k) AUTHORIZATION OF APPROPRIATIONS.—There 21 is authorized to be appropriated to the Capital Magnet 22 Fund $2,500,000,000 for each of fiscal years 2022 23 through 2031.’’. 24 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 10 •S 1368 IS (c) PUBLIC HOUSING CAPITAL FUND.—Section 1 9(c)(2)(A) of the United States Housing Act of 1937 (42 2 U.S.C. 1437g(c)(2)(A)) is amended to read as follows: 3 ‘‘(A) CAPITAL FUND.—For allocations of 4 assistance from the Capital Fund, 5 $3,592,000,000 for fiscal year 2022.’’. 6 (d) INDIAN HOUSING BLOCK GRANT PROGRAM.— 7 Section 108 of the Native American Housing Assistance 8 and Self-Determination Act of 1996 (25 U.S.C. 4117) is 9 amended— 10 (1) by striking ‘‘such sums as may be necessary 11 for each of fiscal years 2009 through 2013’’ and in- 12 serting ‘‘$2,500,000,000 for fiscal year 2022 and 13 such sums as may be necessary for each of fiscal 14 years 2023 through 2031’’; and 15 (2) by striking the second sentence. 16 (e) NATIVE HAWAIIAN HOUSING BLOCK GRANT PRO- 17 GRAM.—Section 824 of the Native American Housing As- 18 sistance and Self-Determination Act of 1996 (25 U.S.C. 19 4243) is amended by striking ‘‘such sums as may be nec- 20 essary for each of fiscal years 2001, 2002, 2003, 2004, 21 and 2005’’ and inserting ‘‘20,000,000 for fiscal year 2022 22 and such sums as may be necessary for each of fiscal years 23 2023 through 2031’’. 24 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 11 •S 1368 IS (f) RURAL HOUSING PROGRAMS.—Out of funds in 1 the Treasury not otherwise appropriated, there is appro- 2 priated for fiscal year 2022— 3 (1) to provide direct loans under section 502 of 4 the Housing Act of 1949 (42 U.S.C. 1472), 5 $140,000,000; 6 (2) to provide assistance under section 514 of 7 such Act (42 U.S.C. 1484), $28,000,000; 8 (3) to provide assistance under section 515 of 9 such Act (42 U.S.C. 1485), $140,000,000; 10 (4) to provide assistance under section 516 of 11 such Act (42 U.S.C. 1486), $20,000,000; 12 (5) to provide grants under section 523 of such 13 Act (42 U.S.C. 1490c), $75,000,000; and 14 (6) to provide funding to carry out the Multi- 15 family Preservation and Revitalization Demonstra- 16 tion Program of the Rural Housing Service (as au- 17 thorized under sections 514, 515, and 516 of such 18 Act (42 U.S.C. 1484, 1485, 1486)), $120,000,000. 19 (g) MIDDLE CLASS HOUSING EMERGENCY FUND.— 20 (1) DEFINITIONS.—In this subsection— 21 (A) the term ‘‘affordable rental housing 22 unit’’ means a unit for which monthly rent is 23 30 percent or less than the monthly area me- 24 dian income; and 25 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 12 •S 1368 IS (B) the term ‘‘State’’ has the meaning 1 given the term in section 3(b)(7) of the United 2 States Housing Act of 1937 (42 U.S.C. 3 1437a(b)(7)). 4 (2) ESTABLISHMENT.—The Secretary of Hous- 5 ing and Urban Development shall establish and 6 manage a fund, to be known as the ‘‘Middle Class 7 Housing Emergency Fund’’, which shall be funded 8 with any amounts as may be appropriated, trans- 9 ferred, or credited to the Fund under any provision 10 law. 11 (3) GRANTS.—From amounts available in the 12 fund established under paragraph (2), the Secretary 13 of Housing and Urban Development shall award 14 grants on a competitive basis to State housing fi- 15 nance agencies located in a State in which— 16 (A) there is a shortage of affordable rental 17 housing units available to individuals with an 18 income that is at or below the area median in- 19 com [Text truncated for display. 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