S1439-119

3. Adding credit unions and community development financial institutions to the definition of community financial institutions Section 2(10) of the Federal Home Loan Bank Act (12 U.S.C. 1422(10)) is amended— in subparagraph (A), by striking clauses (i) and (ii) and inserting the following: the deposits of which are insured under the Federal Deposit Insurance Act (12 U.S.C. 1811 et seq.) or the Federal Credit Union Act (12 U.S.C. 1751 et seq.), or that qualifies under section 4(a)(5) to be treated as an insured depository institution for purposes of determining eligibility for membership; and that has, as of the date of the transaction at issue, less than $1,000,000,000 in average total assets, based on an average of total assets over the 3 years preceding that date; or that has been certified as a community development financial institution (as defined in section 103 of the Riegle Community Development and Regulatory Improvement Act of 1994 (12 U.S.C. 4702)) by the Secretary of the Treasury. in subparagraph (B), by striking (A)(ii) and inserting (A)(i)(II). (i)(I)the deposits of which are insured under the Federal Deposit Insurance Act (12 U.S.C. 1811 et seq.) or the Federal Credit Union Act (12 U.S.C. 1751 et seq.), or that qualifies under section 4(a)(5) to be treated as an insured depository institution for purposes of determining eligibility for membership; and(II)that has, as of the date of the transaction at issue, less than $1,000,000,000 in average total assets, based on an average of total assets over the 3 years preceding that date; or(ii)that has been certified as a community development financial institution (as defined in section 103 of the Riegle Community Development and Regulatory Improvement Act of 1994 (12 U.S.C. 4702)) by the Secretary of the Treasury.; and

4. Affordable housing program Section 10 of the Federal Home Loan Bank Act (12 U.S.C. 1430) is amended— in the section heading, by inserting and grants after Advances; and in subsection (j)— by striking paragraph (1) and inserting the following: Pursuant to regulations promulgated by the Director, each Bank shall establish an affordable housing program (in this subsection referred to as the Program) to finance long-term, low- or moderate-income, owner-occupied and affordable rental housing by subsidizing the interest rate on advances, or providing grants, to members, provided that the interest rate on any loan issued by a member and funded by a subsidized Bank advance shall also be subsidized. in paragraph (2), in the matter preceding subparagraph (A)— by striking Board's and inserting Director's; and by inserting and provide grants after advances; in paragraph (3)— in the paragraph heading, by inserting or grants after advances; in the matter preceding subparagraph (A)— by inserting or grants after advances; and by striking as the following: and inserting as—; in subparagraph (A)— by inserting the before purchase; and by striking area, and inserting area; and; by striking subparagraph (B); by redesignating subparagraph (C) as subparagraph (B); and in subparagraph (B), as so redesignated, by inserting the before purchase; in paragraph (4)— by inserting or grants after receiving advances; by inserting or grants after such advances; by inserting or grants after of advances; and by striking this program and inserting the Program; in paragraph (5)— in the matter preceding subparagraph (A)— by inserting or grants after advances; and by striking Affordable Housing; in subparagraph (C), by striking 1995, and subsequent years and inserting 1995 and years subsequent through 2025; and by adding at the end the following: In 2025, and subsequent years, 30 percent of the preceding year's net income, or such prorated sums as may be required to assure that the aggregate contribution of the Banks shall not be less than $200,000,000 for each such year, except that a Bank may, after consultation with its Advisory Council, allocate up to 15 percent of that preceding year’s net income to be used for non-competitive grants, subsidized loans, or investments that would generate below market rates of return for affordable housing or community economic needs of low- or moderate-income households or neighborhoods, including in low-income, Tribal, or rural communities, under programs other than the Program, as follows: Any community investment cash advance or grant program established by the Bank. Another affordable housing or community development program established by the Bank that provides the funds directly or indirectly to organizations meeting the requirements and limitations necessary to qualify as a charitable contribution for which an income tax deduction is allowable under section 170 of the Internal Revenue Code of 1986 or otherwise approved by the Director in regulation, and that benefits persons who are residents of the States of the district in which the Bank is headquartered. in paragraph (6)— in subparagraph (A), by striking this paragraph and inserting paragraph (5); in subparagraph (C), by striking Board's and inserting Director's; in subparagraph (E), by striking Affordable Housing; and in subparagraph (F), by inserting Notification.— before The Director; in paragraph (9)— by striking this program each place it appears and inserting the Program; and by inserting and grants after advances each place it appears; in paragraph (10), by inserting and grant after advance; in paragraph (11), in second sentence, by inserting and grants after advances; by amending paragraph (12) to read as follows: Following a declaration of a disaster declared by the President or a Federal agency or under State or Tribal law, the Director may— allow vacant rental project units assisted under the Program of a Bank to be leased temporarily to households displaced by that declared disaster regardless of income, notwithstanding the income targeting requirements of paragraphs (2)(B) and (13) under conditions established by the Director; and temporarily suspend any other requirements of this subsection and its implementing regulations to further recovery from declared disasters, including recovery for displaced households, subject to conditions appropriate to facilitate eligible uses of Program funds to assist recovery. in paragraph (13), in the matter preceding subparagraph (A), by striking subsection— and inserting subsection:. (1)In generalPursuant to regulations promulgated by the Director, each Bank shall establish an affordable housing program (in this subsection referred to as the Program) to finance long-term, low- or moderate-income, owner-occupied and affordable rental housing by subsidizing the interest rate on advances, or providing grants, to members, provided that the interest rate on any loan issued by a member and funded by a subsidized Bank advance shall also be subsidized.; (D)In 2025, and subsequent years, 30 percent of the preceding year's net income, or such prorated sums as may be required to assure that the aggregate contribution of the Banks shall not be less than $200,000,000 for each such year, except that a Bank may, after consultation with its Advisory Council, allocate up to 15 percent of that preceding year’s net income to be used for non-competitive grants, subsidized loans, or investments that would generate below market rates of return for affordable housing or community economic needs of low- or moderate-income households or neighborhoods, including in low-income, Tribal, or rural communities, under programs other than the Program, as follows:(i)Any community investment cash advance or grant program established by the Bank.(ii)Another affordable housing or community development program established by the Bank that provides the funds directly or indirectly to organizations meeting the requirements and limitations necessary to qualify as a charitable contribution for which an income tax deduction is allowable under section 170 of the Internal Revenue Code of 1986 or otherwise approved by the Director in regulation, and that benefits persons who are residents of the States of the district in which the Bank is headquartered.; (12)Temporary suspension of requirements following disastersFollowing a declaration of a disaster declared by the President or a Federal agency or under State or Tribal law, the Director may—(A)allow vacant rental project units assisted under the Program of a Bank to be leased temporarily to households displaced by that declared disaster regardless of income, notwithstanding the income targeting requirements of paragraphs (2)(B) and (13) under conditions established by the Director; and (B)temporarily suspend any other requirements of this subsection and its implementing regulations to further recovery from declared disasters, including recovery for displaced households, subject to conditions appropriate to facilitate eligible uses of Program funds to assist recovery.; and