Congresswoman Maxine Waters (D-CA), Chairwoman of the House Committee on Financial Services, made the following statement during floor debate on the updated Heroes Act:
“Democrats have been working every single day to respond to this pandemic and provide much-needed relief and protections for families across the country,” said Chairwoman Waters. “139 days ago, House Democrats voted to pass the Heroes Act. Unfortunately, President Trump, Mitch McConnell and Senate Republicans have blocked the bill, and prevented the essential relief the legislation provides from reaching our neighborhoods and our communities. Meanwhile, the nation continues to suffer during this crisis...This bill isn’t everything that is needed, but it is a good faith effort to bridge the gap in negotiations with our Republican colleagues. It’s time for Republicans to stop blocking coronavirus relief and support this legislation.”
See herefor Chairwoman Waters’ full floor statement on the updated Heroes Act.
See herefor a section-by-section summary of Division O, the financial services and housing provisions of the updated version of the Heroes Act.
The legislation includes the following:
TITLE I—PROVIDING MEDICAL EQUIPMENT FOR FIRST RESPONDERS AND ESSENTIAL WORKERS
Sec. 101. COVID–19 Emergency Medical Supplies Enhancement.
This section has elements from Representative Vargas’ (D-CA) bill H.R. 6858, which would expand the use and oversight of Defense Production Act (DPA) authorities to: increase the production and supply of critical medical supplies and equipment, such as diagnostic tests, treatments, and personal protection equipment; focus efforts on supply chain mobilization; decrease the disruption of critical deliveries to state and local governments; and require assessments for both immediate and longer term needs and plans to meet those needs, as well as requiring longer-term planning to ensure that the United States is better prepared for future pandemics.
TITLE II—PROTECTING RENTERS AND HOMEOWNERS FROM EVICTIONS AND FORECLOSURES
Sec. 201. Emergency rental assistance.
This section has elements from Representative Denny Heck’s (D-WA) bill H.R. 6820 and authorizes $50 billion for an Emergency Rental Assistance program that would allocate funding to states, territories, counties, and cities to help renters pay their rent and utility bills during the COVID-19 pandemic, and help rental property owners of all sizes continue to cover their costs.
Sec. 202. Homeowner Assistance Fund.
This section has elements from Representative David Scott’s (D-GA) bill, H.R. 6729, which would authorize $21 billion to states, territories, and tribes to address the ongoing needs of homeowners struggling to afford their housing due directly or indirectly to the impacts of the COVID-19 pandemic by providing direct assistance for mortgage payments, property taxes, property insurance, utilities, and other housing related costs.
Sec. 203. Protecting renters and homeowners from evictions and foreclosures.
This section has elements from Representative Wm. Lacy Clay’s (D-MO) bill H.R. 6741 and Representative Jesús “Chuy” Garcia’s (D-IL) bill, H.R. 7402, and would extend and expand the eviction moratorium and foreclosure moratorium in the CARES Act to include all renters and homeowners, improve the forbearance provided under the CARES Act, and specify the loan modifications and loss mitigation that should be available to homeowners following a moratorium to prevent any homeowner from facing a lump sum payment that they cannot afford.
Sec. 204. Promoting access to credit for homebuyers.
This section has elements from Representative Juan Vargas’ (D-CA) bill, H.R. 6794, which would prevent Fannie Mae, Freddie Mac, and the Federal Housing Administration from imposing additional restrictions or costs on borrowers who have inquired about, requested, or received forbearance during the pandemic.
Sec. 205. Liquidity for mortgage servicers and residential rental property owners.
This section has elements from Representative Wm. Lacy Clay’s (D-MO) bill, H.R. 6741, and would require the Federal Reserve facility established by Section 4003 of the CARES Act to be implemented for the benefit of mortgage servicers and residential rental property owners, contingent on compliance with certain reporting requirements and protections for borrowers and renters.
Rural Housing Service.
Elements of Representative Cindy Axne’s (D-IA) bill, H.R. 6736, are included in the Appropriations Committee Division, which has language to authorize $309 million in supplemental funding for USDA’s rental assistance programs to absorb reductions in tenant rent contributions and to provide rental assistance to unassisted households living in USDA subsidized properties who are struggling to pay rent during the COVID-19 pandemic.
Sec. 206. Supplemental funding for supportive housing for the elderly and persons with disabilities.
This section contains elements from Representative Katie Porter’s (D-CA) bill, H.R. 6873, which would authorize $500 million in funding for the HUD Section 202 Supportive Housing for the Elderly program to ensure sufficient staffing, services, and other resources for 3,500 senior and disabled resident communities during the COVID-19 pandemic.
Funding for public housing and tenant-based rental assistance.
Elements from Representative Nydia Velázquez’s (D-NY) bill, H.R. 6859, are included in the Appropriations Committee division, and would authorize $2 billion for the public housing operating fund and $3 billion for the Housing Choice Voucher program, including $500 million for administrative fees, to help public housing authorities (PHAs) absorb reductions in tenant rent contributions and mitigate other costs associated with the COVID-19 pandemic.
Sec. 207 Fair Housing.
This section contains elements from Representative Al Green’s (D-TX) bill, H.R. 6760, and would authorize $14 million to ensure individuals are protected from housing-related hate crimes and increasing forms of housing discrimination from Coronavirus-motivated bias through adequate and accessible housing discrimination complaint intake, investigations, and public education of housing rights.
Housing Counseling Assistance.
Elements of Representative Cindy Axne’s (D-IA) bill H.R. 6704 are included in the Appropriations Committee division, and would authorize $100 million in funding to support housing counseling services through the Neighborhood Reinvestment Corporation to help homeowners, renters, and people experiencing or at-risk of homelessness navigate their housing options and rights, including protections and resources provided through COVID-19 relief legislation.
TITLE III—PROTECTING PEOPLE EXPERIENCING HOMELESSNESS
Sec. 301. Homeless assistance funding.
Elements of Representative Ayanna Pressley’s (D-MA) bill, H.R. 6724 , to authorize $5 billion to the Emergency Solutions Grants program to assist individuals and families experiencing homelessness during the pandemic. This section also includes elements of Representative Vicente Gonzalez’s (D-TX) bill, H.R. 6867 , that would renew funding for homeless service providers who were awarded Continuum of Care funding in 2019.
Emergency rental assistance voucher program.
Elements of Chairwoman Maxine Waters’ (D-CA) bill, H.R. 7084, are included in the Appropriations division and would authorize $1 billion for Housing Choice Vouchers targeted to individuals or families at risk of homelessness and survivors of domestic violence.
TITLE IV—SUSPENDING NEGATIVE CREDIT REPORTING AND STRENGTHENING CONSUMER PROTECTIONS
Sec. 401. Reporting of information during major disasters.
This section contains elements from Representative Brad Sherman’s (D-CA) bill, H.R. 6370, and would suspend negative credit reporting and prohibit new credit scoring models that would lower existing consumer credit scores during the pandemic. This section also permanently bans reporting of medical debt that arises out of COVID-19 treatments.
Sec. 402. Restrictions on collections of consumer debt during a national disaster or emergency.
This section contains elements from Representative Joyce Beatty’s (D-OH) bill, H.R. 6332, and would provide a temporary moratorium on consumer debt collecting during the pandemic and for 120 after the pandemic is declared over.
Sec. 403. Repayment period and forbearance for consumers.
This section contains elements from Representative Joyce Beatty’s (D-OH) bill, H.R. 6332, and would provide forbearance and repayment options for consumers when payments resume following the moratorium provided by Section 402 of this title.
Sec. 404. Credit facility.
This section contains elements from Representative Joyce Beatty’s (D-OH) bill, H.R. 6332, and would instruct the Federal Reserve to create a facility from which creditors can apply to receive low-interest, long-term loans that offset short term losses incurred as a result of consumers not paying debts.
TITLE V—PROTECTING STUDENT BORROWERS
Sec. 501. Payments for private education loan borrowers as a result of the COVID–19 national emergency.
This section contains elements from Representative Madeleine Dean’s (D-PA) bill, H.R. 6316, and Representative Alma Adams’ amendment to the FY21 NDAA, which would extend CARES Act protections for Federal student loan borrowers, such as debt collection prohibitions, to private student loan borrowers. This section also requires the Treasury Department to make monthly payments for economically distressed private student loan borrowers until February 1, 2021 , with an aggregate cap of $10,000 in relief.
Sec. 502. Additional Protections for Private Student Loan Borrowers.
This section contains elements from Representative Madeleine Dean’s (D-PA) bill, H.R. 6316, and Representative Madeleine Dean’s amendment to the FY21 NDAA, which would provide, following the monthly payments provided under Section 501, any unused portion of $10,000 in debt relief for economically distressed borrowers to pay down any outstanding private student loan balance when payments resume. Servicers receiving funds under Section 501 would be required to offer income driven repayment plans, and clarifying that payments and forbearance under this title would not impact applicable State statutes of limitation.
TITLE VI—STANDING UP FOR SMALL BUSINESSES, MINORITY-OWNED BUSINESSES, AND NON-PROFITS
Sec. 601. Restrictions on collections of small business and nonprofit debt during a national disaster or emergency.
This section contains elements from Representative Ed Perlmutter’s (D-CO) bill, H.R. 6361, and would provide a temporary moratorium on small business and nonprofit debt collection, excluding mortgage loans, during the pandemic and for 120 days after the pandemic is declared over.
Sec. 602. Repayment period and forbearance for small businesses and non-profit organizations.
This section contains elements from Representative Ed Perlmutter’s (D-CO) bill, H.R. 6361, and would provide reasonable forbearance and repayment options for small businesses and non-profit organizations once payments resume following the moratorium provided in Section 601 in this title.
Sec. 603. Credit facility.
This section contains elements from Representative Ed Perlmutter’s (D-CO) bill, H.R. 6361, and would instruct the Federal Reserve to create a facility from which creditors can apply to receive low-interest, long-term loans that offset short term losses incurred as a result of small businesses and non-profits not paying debts as a result of the moratorium and forbearance provided by this title.
Sec. 604. Main Street Lending Program requirements.
This section contains elements from Representative Joyce Beatty’s (D-OH) bill, H.R. 6892, which would mandate that the Federal Reserve’s Main Street Lending Program (MSLP) include most non-profit organizations and public universities as eligible borrowers, extend the loan maturities to no less than 7 years, and prohibit lenders from requiring any collateral beyond what the Fed requires for collateral under the program.
Sec. 605. Options for small businesses and non-profits under the Main Street Lending Program.
This section contains elements from Representative Joyce Beatty’s (D-OH) bill, H.R. 6892, and would mandate the Federal Reserve’s Main Street Lending Program (MSLP) provide a low-cost loan option for small businesses, small non-profits, and small public universities that does not have a minimum loan size, overriding the current $250,000 minimum loan threshold.
Sec. 606. SAFE Banking.
This section contains elements from Representative Ed Perlmutter’s (D-CO) bill, H.R. 1595, and would allow cannabis-related legitimate businesses that operate under state regulation, and their service providers, access to banking services and products, as well as insurance.
Sec. 607. Support for Restaurants.
This section contains elements from Representative Earl Blumenauer’s (D-OR) bill, H.R. 7197, which would establish a program administered by the Treasury Department to provide restaurants, bars, food trucks, and other similar businesses with a grant to cover the difference between a business’s 2019 revenues and estimated 2020 revenues for each quarter, to be used for payroll and other eligible expenses. These businesses can also receive additional funds to provide 10 paid sick days for their employees. This section would require the collection and reporting of demographic data, and it would prohibit grants from compensating private equity firms that may own such restaurants.
Sec. 608. Codification of the Minority Business Development Administration.
This section contains elements from Rep. Al Green’s (D-TX) bill, H.R. 6869, which would permanently codify the Minority Business Development Administration (MBDA), which has provided critical support to minority- and women-owned business during the pandemic, as an independent federal agency.
Sec. 609. Emergency Grants to Minority Business Enterprises.
This section contains language from Representative Sylvia Garcia’s (D-TX) bill, H.R. 6348, which would authorize $3 billion in grants directly to minority business enterprises through the Minority Business Development Administration.
TITLE VII—EMPOWERING COMMUNITY FINANCIAL INSTITUTIONS
Sec. 701. Short Title.
This section notes the title may be cited as “Promoting and Advancing Communities of Color through Inclusive Lending Act.” Many elements of Title VII, including this short title, come from a bill co-led by Chairwoman Maxine Waters (D-CA) and Representative Gregory Meeks (D-NY), H.R. 7993, the Promoting and Advancing Communities of Color Through Inclusive Lending Act.
Sec. 702. Findings; Sense of Congress.
This section contains elements of H.R. 7993, co-led by Chairwoman Maxine Waters (D-CA) and Representative Gregory Meeks (D-NY), which would provide findings that underscore the importance of minority depository institutions (MDIs), community development institutions (CDFIs), and the critical need for further support so that they may continue their work in low-income and minority communities.
Sec. 703. Purpose.
This section contains elements of H.R.7709, Jobs and Neighborhood Investment Act sponsored by Representative Gregory Meeks (D-NY), which would provide that the purpose of Title VII is to support community financial institutions in serving low to moderate-income (LMI) and minority communities, and responding to the significant loss of Black-owned businesses and unemployment during the pandemic.
Sec. 704. Considerations; Requirements for Creditors.
This section contains elements of H.R.7709, Jobs and Neighborhood Investment Act sponsored by Representative Gregory Meeks (D-NY), which would provide a list of considerations for the Treasury Secretary in carrying out this title, along with a reaffirmation that fair lending requirements apply to creditors.
Sec. 705. Neighborhood Capital Investment Program.
This section contains elements from Representative Al Green’s (D-TX) bill, H.R. 6868, which would require the Treasury Department to use $13 billion provided under Section 4027 of the CARES Act to establish the Neighborhood Capital Investment Program. This program would provide long-term direct capital investments from the Treasury to MDIs and CDFIs, as well as public-private capital investments provided by banks and Treasury, through an Equity Equivalent Investment Option (EQ2 option). Recipients would be subject to executive compensation, share buyback, and dividend restrictions.
Sec. 706. Emergency Support for CDFIs and Communities.
This section contains language from Representative Alma Adams’ (D-NC) bill, H.R. 7121, to authorize $2 billion for grants and awards provided by the Community Development Financial Institutions (CDFI) Fund to CDFIs. $800 million of these funds would be set aside for minority lending institutions, $400 million would support expanded lending and investments in LMI minority communities, and $160 million would provide technical support for CDFIs.
Sec. 707. Ensuring diversity in community banking.
This section contains elements of Representative Gregory Meeks’ (D-NY) bill, H.R. 5322, to strengthen Minority Depository Institutions (MDIs) and newly designated “impact banks” that predominantly lend to low-income communities through partnerships, investments, Federal deposits, and increased engagement with government agencies.
Sec. 708. Establishment of Financial Agent Partnership Program.
This section contains elements of Representative Joyce Beatty’s (D-OH) bill, H.R. 5315, which would codify and enhance a Treasury Department program that encourages partnership and mentorship opportunities for community financial institutions and MDIs with larger banks.
Sec. 709. Strengthening Minority Lending Institutions.
This section has elements of the bill co-led by Chairwoman Maxine Waters (D-CA) and Representative Gregory Meeks (D-NY), H.R. 7993, which would establish a permanent set aside of 40 percent of CDFI Fund appropriations reserved for award, guarantee, and grant programs for minority lending institutions, and requires reporting on such activities. The section also establishes a new Office of Minority Community Development Financial Institutions to administer these funds led by a new Deputy Director of Minority Community Development Financial Institutions.
Sec. 710. CDFI Bond Guarantee Reform.
This section contains elements of Representative Dean Phillips’ (D-MN) bill, H.R. 6830, which would reduce the minimum issuance amount under the CDFI Bond Guarantee Program from $100 million to $50 million to support community development projects in low-income urban and rural communities.
Sec. 711. Reports.
This section contains elements of H.R.7709, Jobs and Neighborhood Investment Act sponsored by Representative Gregory Meeks (D-NY), which would require monthly reporting of transactions made under this title.
Sec. 712. Inspector General Oversight.
This section contains elements of H.R.7709, Jobs and Neighborhood Investment Act sponsored by Representative Gregory Meeks (D-NY), which would clarify that the Department of the Treasury’s Inspector General would oversee the implementation of this title, and provide no less than two reports a year on its oversight work.
Sec. 713. Study and Report with Respect to Impact of Programs on Low- and Moderate-Income and Minority Communities.
This section contains elements of H.R.7709, Jobs and Neighborhood Investment Act sponsored by Representative Gregory Meeks (D-NY), which would require Treasury to conduct a study on the impact of the programs under this title 18 months after enactment.
TITLE VIII—PROVIDING ASSISTANCE FOR STATE, TERRITORY, TRIBAL, AND LOCAL GOVERNMENTS
Sec. 801. Emergency relief for State, territorial, Tribal, and local governments.
This section contains elements from Representative Rashida Tlaib’s (D-MI) bill, H.R. 7717, to expand the Federal Reserve’s assistance to local governments by allowing U.S. territories, as well as a greater number of cities and counties, to be eligible issuers in the Federal Reserve’s municipal liquidity facility, extending the program to February 2021 as well as the maturity date for bonds purchased by the facility, and effectively eliminating the penalty rates currently applied to the facility.
Sec. 802. Community development block grants.
This section contains elements of Representative Stephen Lynch’s (D-MA) bill, H.R. 6358, that would authorize $5 5 billion in Community Development Block Grant funding to provide states and local governments with additional flexible resources to mitigate and address the health and economic impacts of COVID-19.
TITLE IX—SUPPORT FOR A ROBUST GLOBAL RESPONSE TO THE COVID–19 PANDEMIC
Sec. 901. United States Policies.
This section contains key elements from Representative Jesús “Chuy” Garcia’s (D-IL) bill H.R. 6581, including an instruction to the Secretary of Treasury and the U.S. Executive Directors at the International Monetary Fund (IMF) to support the allocation of 2 trillion Special Drawing Rights by the IMF to provide countries additional resources to respond to the health and economic impacts of the COVID-19 pandemic, at no cost to the United States.
TITLE X—PROVIDING OVERSIGHT AND PROTECTING TAXPAYERS
Sec. 1001. Mandatory Reports to Congress.
This section would amend the CARES Act by requiring the Treasury Secretary to provide the same reports to Congress for its programs that the Federal Reserve submits for Federal Reserve programs under Section 13(3)(C) of the Federal Reserve Act and to submit to Congress and the Special Inspector General for Pandemic Recovery monthly summaries of Treasury’s CARES Act and related activities.
Sec. 1002. Discretionary reports to Congress.
This section contains elements from Representative Dean Phillips’ (D-MN) bill, H.R. 6831, to amend the CARES Act by authorizing the Congressional Oversight Commission to share additional information with the Financial Services Committee beyond the existing specifications listed under “Regular Reports” (Section 4020(b)(2)).
Sec. 1003. Definition of appropriate congressional committees.
This section would amend the CARES Act by adding the Financial Services Committee to the list of appropriate congressional committees that receive reports from (1) the Pandemic Response Accountability Committee and (2) the GAO.
Sec. 1004. Reporting by inspectors general.
This section would (1) require inspectors general at certain federal agencies to include in their semiannual reports information about their respective agencies' COVID-related rulemaking, supervisory, and oversight activities and (2) in addition to reporting such information in their semiannual report, Inspectors General must also provide such information to the Special Inspector General for Pandemic Recovery, the Pandemic Response Accountability Committee, and the Congressional Oversight Commission.
Sec. 1005. Additional reporting on funding for diverse-owned businesses.
This section would require the Pandemic Response Accountability Committee to submit to Congress, quarterly reports that include an analysis of federal funds provided during the pandemic used to support communities of color, including minority-owned businesses and minority depository institutions.
