A bill to make housing more affordable, and for other purposes.

II 116TH CONGRESS 1ST SESSION S. 787 To make housing more affordable, and for other purposes. IN THE SENATE OF THE UNITED STATES MARCH 13, 2019 Ms. WARREN (for herself, Mrs. GILLIBRAND, and Mr. MARKEY) 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 2019’’. 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 23:59 Mar 26, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6211 E:\BILLS\S787.IS S787 pamtmann on DSKBFK8HB2PROD with BILLS 2 •S 787 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 that have not recovered from the financial crisis. Sec. 203. Strengthening the Community Reinvestment Act of 1977. Sec. 204. Amendments relating to credit union service to underserved areas. 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 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; 12 (B) a unit of general local government; or 13 (C) a metropolitan area. 14 VerDate Sep 11 2014 23:59 Mar 26, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S787.IS S787 pamtmann on DSKBFK8HB2PROD with BILLS 3 •S 787 IS (3) INSTITUTION OF HIGHER EDUCATION.—The 1 term ‘‘institution of higher education’’ has the 2 meaning given the term in section 101 of the Higher 3 Education Act of 1965 (20 U.S.C. 1001). 4 (4) METROPOLITAN AREA; STATE; UNIT OF 5 GENERAL LOCAL GOVERNMENT.—The terms ‘‘metro- 6 politan area’’, ‘‘State’’, and ‘‘unit of general local 7 government’’ have the meanings given those terms in 8 section 102 of the Housing and Community Devel- 9 opment Act of 1974 (42 U.S.C. 5302). 10 (5) SECRETARY.—The term ‘‘Secretary’’ means 11 the Secretary of Housing and Urban Development. 12 (b) ESTABLISHMENT.—Not later than 1 year after 13 the date of enactment of this Act, the Secretary shall es- 14 tablish a program to make grants to eligible entities 15 that— 16 (1) reform local land use restrictions to bring 17 down the costs of producing affordable housing; and 18 (2) remove unnecessary barriers to building af- 19 fordable units in their communities. 20 (c) ELIGIBLE ACTIVITIES.—An eligible entity receiv- 21 ing a grant under this section may use funds to— 22 (1) carry out any of the activities described in 23 section 105 of the Housing and Community Devel- 24 opment Act of 1974 (42 U.S.C. 5305); 25 VerDate Sep 11 2014 23:59 Mar 26, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S787.IS S787 pamtmann on DSKBFK8HB2PROD with BILLS 4 •S 787 IS (2) carry out any of the activities permitted 1 under the program for national infrastructure in- 2 vestments (commonly known as the ‘‘Better Utilizing 3 Investments to Leverage Development (BUILD) dis- 4 cretionary grant program’’) authorized under title I 5 of division L of the Consolidated Appropriations Act, 6 2018 (Public Law 115–141) or a subsequent appro- 7 priations Act; or 8 (3) modernize, renovate, or repair facilities used 9 by public elementary schools, public secondary 10 schools, and public institutions of higher education, 11 including modernization, renovation, and repairs 12 that— 13 (A) promote physical, sensory, and envi- 14 ronmental accessibility; and 15 (B) are consistent with a recognized green 16 building rating system. 17 (d) APPLICATION.— 18 (1) IN GENERAL.—An eligible entity desiring a 19 grant under this section shall submit to the Sec- 20 retary an application that demonstrates that the eli- 21 gible entity has carried out, or is in the process of 22 carrying out, initiatives that facilitate the expansion 23 of the supply of well-located affordable housing. 24 VerDate Sep 11 2014 23:59 Mar 26, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S787.IS S787 pamtmann on DSKBFK8HB2PROD with BILLS 5 •S 787 IS (2) ACTIVITIES.—Initiatives that meet the cri- 1 teria described in paragraph (1)— 2 (A) include— 3 (i) establishing ‘‘by-right’’ develop- 4 ment, which allows jurisdictions to admin- 5 istratively approve new developments that 6 are consistent with their zoning code; 7 (ii) revising or eliminating off-street 8 parking requirements to reduce the cost of 9 housing production; 10 (iii) instituting measures that 11 incentivize owners of vacant land to rede- 12 velop the space into affordable housing or 13 other productive uses; 14 (iv) revising minimum lot size require- 15 ments and bans or limits on multifamily 16 construction to allow for denser and more 17 affordable development; 18 (v) instituting incentives to promote 19 dense development, such as density bo- 20 nuses; 21 (vi) passing inclusionary zoning ordi- 22 nances that require a portion of newly de- 23 veloped units to be reserved for low- and 24 moderate-income renters or homebuyers; 25 VerDate Sep 11 2014 23:59 Mar 26, 2019 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S787.IS S787 pamtmann on DSKBFK8HB2PROD with BILLS 6 •S 787 IS (vii) streamlining regulatory require- 1 ments and shortening processes, reforming 2 zoning codes, or other initiatives that re- 3 duce barriers to housing supply elasticity 4 and affordability; 5 (viii) allowing accessory dwelling 6 units; 7 (ix) using local tax incentives to pro- 8 mote development of affordable housing; 9 and 10 (x) implementing measures that pro- 11 tect tenants from harassment and displace- 12 ment, including access to counsel for ten- 13 ants facing eviction, the prohibition of evic- 14 tion except for just cause, and measures 15 intended to prevent or mitigate sudden in- 16 creases in rents, or repealing laws that 17 prevent localities from implementing those 18 measures; and 19 (B) do not include activities that alter or- 20 dinances that govern wage and hour laws, fam- 21 ily and medical leave laws, or protections for 22 workers’ health and safety, anti-discrimination, 23 and right to organize. 24 (e) LABOR LAWS.— 25 VerDate Sep 11 2014 23:59 Mar 26, 2019 Jkt 089200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S787.IS S787 pamtmann on DSKBFK8HB2PROD with BILLS 7 •S 787 IS (1) IN GENERAL.—All laborers and mechanics 1 employed by contractors or subcontractors in the 2 performance of construction work financed in whole 3 or in part with a grant received under this section 4 shall be paid wages at rates not less than those pre- 5 vailing on similar construction in the locality, as de- 6 termined by the Secretary of Labor in accordance 7 with subchapter IV of chapter 31 of title 40, United 8 States Code (commonly known as the ‘‘Davis-Bacon 9 Act’’). 10 (2) EXCEPTION.—Paragraph (1) shall not 11 apply with respect to— 12 (A) the rehabilitation of residential prop- 13 erty if the property contains less than 8 units; 14 or 15 (B) construction carried out by employees 16 of the eligible entity receiving the grant under 17 this section. 18 (f) AUTHORIZATION OF APPROPRIATIONS.—There is 19 authorized to be appropriated to carry out this section 20 $2,000,000,000 for each of fiscal years 2020 through 21 2024. 22 VerDate Sep 11 2014 23:59 Mar 26, 2019 Jkt 089200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S787.IS S787 pamtmann on DSKBFK8HB2PROD with BILLS 8 •S 787 IS SEC. 102. INVESTING IN AFFORDABLE HOUSING INFRA- 1 STRUCTURE. 2 (a) HOUSING TRUST FUND.—Section 1338(a) of the 3 Federal Housing Enterprises Financial Safety and Sound- 4 ness Act of 1992 (12 U.S.C. 4568(a)) is amended by add- 5 ing at the end the following: 6 ‘‘(3) AUTHORIZATION OF APPROPRIATIONS.— 7 There is authorized to be appropriated to the Hous- 8 ing Trust Fund $44,500,000,000 for each of fiscal 9 years 2020 through 2029.’’. 10 (b) CAPITAL MAGNET FUND.—Section 1339 of the 11 Federal Housing Enterprises Financial Safety and Sound- 12 ness Act of 1992 (12 U.S.C. 4569) is amended by adding 13 at the end the following: 14 ‘‘(k) AUTHORIZATION OF APPROPRIATIONS.—There 15 is authorized to be appropriated to the Capital Magnet 16 Fund $2,500,000,000 for each of fiscal years 2020 17 through 2029.’’. 18 (c) PUBLIC HOUSING CAPITAL FUND.—Section 19 9(c)(2)(B) of the United States Housing Act of 1937 (42 20 U.S.C. 1437g(c)(2)(B)) is amended to read as follows: 21 ‘‘(B) CAPITAL FUND.—For allocations of 22 assistance from the Capital Fund, 23 $3,592,000,000 for fiscal year 2020.’’. 24 (d) INDIAN HOUSING BLOCK GRANT PROGRAM.— 25 Section 108 of the Native American Housing Assistance 26 VerDate Sep 11 2014 23:59 Mar 26, 2019 Jkt 089200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S787.IS S787 pamtmann on DSKBFK8HB2PROD with BILLS 9 •S 787 IS and Self-Determination Act of 1996 (25 U.S.C. 4117) is 1 amended— 2 (1) by striking ‘‘such sums as may be necessary 3 for each of fiscal years 2009 through 2013’’ and in- 4 serting ‘‘$2,500,000,000 for fiscal year 2020 and 5 such sums as may be necessary for each of fiscal 6 years 2021 through 2029’’; and 7 (2) by striking the second sentence. 8 (e) NATIVE HAWAIIAN HOUSING BLOCK GRANT PRO- 9 GRAM.—Section 824 of the Native American Housing As- 10 sistance and Self-Determination Act of 1996 (25 U.S.C. 11 4243) is amended by striking ‘‘such sums as may be nec- 12 essary for each of fiscal years 2001, 2002, 2003, 2004, 13 and 2005’’ and inserting ‘‘$8,000,000 for fiscal year 14 2020’’. 15 (f) RURAL HOUSING PROGRAMS.—Out of funds in 16 the Treasury not otherwise appropriated, there is appro- 17 priated for fiscal year 2020— 18 (1) to provide direct loans under section 502 of 19 the Housing Act of 1949 (42 U.S.C. 1472), 20 $140,000,000; 21 (2) to provide assistance under section 514 of 22 such Act (42 U.S.C. 1484), $28,000,000; 23 (3) to provide assistance under section 515 of 24 such Act (42 U.S.C. 1485), $180,000,000; 25 VerDate Sep 11 2014 23:59 Mar 26, 2019 Jkt 089200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S787.IS S787 pamtmann on DSKBFK8HB2PROD with BILLS 10 •S 787 IS (4) to provide assistance under section 516 of 1 such Act (42 U.S.C. 1486), $100,000,000; and 2 (5) to provide grants under section 523 of such 3 Act (42 U.S.C. 1490c), $75,000,000. 4 (g) MIDDLE CLASS HOUSING EMERGENCY FUND.— 5 (1) DEFINITION.—In this subsection, the term 6 ‘‘affordable rental housing unit’’ means a unit for 7 which monthly rent is 30 percent or less than the 8 monthly area median income. 9 (2) ESTABLISHMENT.—The Secretary of Hous- 10 ing and Urban Development shall establish and 11 manage a fund, to be known as the ‘‘Middle Class 12 Housing Emergency Fund’’, which shall be funded 13 with any amounts as may be appropriated, trans- 14 ferred, or credited to the Fund under any provision 15 law. 16 (3) GRANTS.—From amounts available in the 17 fund established under paragraph (2), the Secretary 18 of Housing and Urban Development shall award 19 grants on a competitive basis to State housing fi- 20 nance agencies located in a State in which— 21 (A) there is a shortage of affordable rental 22 housing units available to individuals with an 23 income that is at or below the area median in- 24 come and median rents have risen on average 25 VerDate Sep 11 2014 23:59 Mar 26, 2019 Jkt 089200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S787.IS S787 pamtmann on DSKBFK8HB2PROD with BILLS 11 •S 787 IS over the preceding 3 years substantially faster 1 than the area median income; or 2 (B) there is a shortage of housing units 3 available for sale that are affordable to individ- 4 uals with an income that is at or below the area 5 median income and median home prices have 6 risen on average over the preceding 3 years 7 substantially faster than the area median in- 8 come. 9 (4) USE OF FUNDS.—Grants received under 10 this subsection shall be used to fund— 11 (A) the construction of rental housing 12 units or units for purchase that are affordable 13 to residents making less than 120 percent of 14 the area median income; and 15 (B) measures to prevent tenant displace- 16 ment and harassment, including the provision 17 of legal advice and representation for tenants 18 facing eviction, enforcement of anti-harassment 19 laws, emergency rental assistance, and other 20 measures as specified by the Secretary of Hous- 21 ing and Urban Development. 22 (5) LABOR LAWS.— 23 (A) IN GENERAL.—All laborers and me- 24 chanics employed by contractors or subcontrac- 25 VerDate Sep 11 2014 23:59 Mar 26, 2019 Jkt 089200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\S787.IS S787 pamtmann on DSKBFK8HB2PROD with BILLS 12 •S 787 IS tors in the performance of construction work fi- 1 nanced in whole or in part with a grant received 2 under this subsection shall be paid wages at 3 rates not less than those prevailing on similar 4 construction in the locality as determined by 5 the Secretary of Labor in accordance with sub- 6 chapter IV of chapter 31 of title 40, United 7 States Code (commonly known as the ‘‘Davis- 8 Bacon Act’’). 9 (B) EXCEPTION.—Subparagraph (A) shall 10 not apply with respect to— 11 (i) the rehabilitation of residential 12 property if the property contains less than 13 8 units; or 14 (ii) construction carried out by em- 15 ployees of the eligible entity receiving the 16 grant under this section. 17 (6) REGULATIONS.—The Secretary of Hou [Text truncated for display. 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