Congressional Research Service R46434.2 (HEROES Act, Division K—COVID-19 Housing, Economic Relief, and Oversight Act)
Summary
CRS report R46434, HEROES Act, Division K—COVID-19 Housing, Economic Relief, and Oversight Act, dated June 29, 2020. It notes that the House passed the HEROES Act (H.R. 6800) on May 15, 2020 by a vote of 208 to 199, a bill of Divisions A through T, after four enacted COVID-19 relief laws, including the CARES Act (P.L. 116-136) and P.L. 116-139. The report gives an overview of Division K, which has nine titles covering housing assistance, student loan forgiveness, medical equipment, credit reporting and debt collection, funding for Community Development Financial Institutions and oversight of COVID-19-related government loans to businesses. Among its provisions, Division K would authorize appropriations of $100 billion for short- and medium-term rental assistance for those who are homeless or at risk of homelessness.
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HEROES Act, Division K—COVID-19
Housing, Economic Relief, and Oversight Act
June 29, 2020
Congressional Research Service
https://crsreports.congress.gov
R46434
HEROES Act, Division K—COVID-19 Housing, Economic Relief and Oversight Act
Overview
Many economic effects of the Coronavirus Disease 2019 (COVID-19) pandemic intensified in
April and May 2020, including historically high levels of unemployment and related housing
affordability issues, consumption and spending reductions, and state and local government
financial strains. In an attempt to mitigate a range of issues stemming from COVID-19, the House
of Representatives on May 15, 2020, passed the HEROES Act (H.R. 6800), by a vote of 208 to
199. This wide-ranging bill, consisting of Divisions A through T, would provide a new round of
economic stimulus checks to individuals and tax credits to certain COVID-19-affected businesses
and employees; extend certain federal unemployment benefits; grant some student loan
forgiveness; provide rental and mortgage assistance; provide certain health care equipment; and
offer economic assistance to state and local governments, among other provisions. Prior to the
House’s passage of H.R. 6800, four other COVID-19-relief bills were enacted:
The Paycheck Protection Program and Health Care Enhancement Act (P.L. 116-
139) was signed into law on April 24, 2020.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act (P.L. 116-
136) was signed into law on March 27, 2020.
The Families First Coronavirus Response Act (P.L. 116-127) was signed into law
on March 18, 2020.
The Coronavirus Preparedness and Response Supplemental Appropriations Act,
2020 (P.L. 116-123) was signed into law on March 6, 2020.
This report provides an overview of the HEROES Act’s Division K—the COVID-19 Housing,
Economic Relief, and Oversight Act—which includes provisions for housing assistance, student
loan forgiveness, the provision of medical equipment, credit reporting and debt collection, greater
funding for Community Development Financial Institutions, and increased oversight of COVID-
19-related government loans to businesses, among other measures. More specifically, Division K
consists of nine titles, which, among other changes, would
provide personal protective equipment (PPE), diagnostic tests, and other medical
equipment to the health care sector;
authorize appropriations of $100 billion for short- and medium-term rental
assistance and rent-related costs (such as utilities) for those who are homeless or
at risk of homelessness;
authorize appropriations of $75 billion toward preventing mortgage defaults,
foreclosures, and displacement of households experiencing financial hardship;
make changes to eviction moratorium and mortgage provisions in the CARES
Act;
authorize additional FY2020 appropriations of $309 million for rural rental
assistance;
authorize additional FY2020 appropriations of $2 billion for public housing
funds and $3 billion for tenant-based rental assistance;
authorize additional FY2020 appropriations of $1.465 billion for certain Housing
and Urban Development (HUD) housing programs, including for the elderly,
those with disabilities, and for low-income individuals, and another $100 million
for housing services;
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HEROES Act, Division K—COVID-19 Housing, Economic Relief and Oversight Act
authorize appropriations of $11.5 billion to assist people who are homeless or at
risk of homelessness as defined under the Emergency Solutions Grants (ESG)
program;
authorize appropriations of $1 billion for FY2020 for incremental emergency
rental vouchers for families who are homeless or at risk of homelessness;
make changes to creditor and debt collector practices when credit reporting and
debt collecting;
appropriate $45 billion for student loan forgiveness;
make changes to debt collection practices and credit facilities for small
businesses, minority-owned businesses, and nonprofits;
authorize appropriations of $2 billion for the Community Development Financial
Institutions (CDFI) Fund;
authorize appropriations of $5 billion for Community Development Block Grants
(CDBG);
make changes to the Federal Reserve’s Municipal Liquidity Facility (MLF) debt
terms; and
add increased oversight provisions for funds appropriated in the CARES Act.
Table 1 provides a detailed section-by-section summary of Division K and lists CRS products
and experts for each section.
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HEROES Act, Division K—COVID-19 Housing, Economic Relief and Oversight Act
Table 1. Division K of the HEROES Act (H.R. 6800)
(COVID-19 Housing, Economic Relief, and Oversight Act)
Effective CRS Experts/
Provision Description Dates Resources
Title 1—Providing Medical Equipment for First Responders and Essential Workers
Section 110101. Determination on Emergency Supplies and Relationship to Upon Michael Cecire, Analyst
COVID-19 State and Local Efforts enactment. in Intergovernmental
Emergency Subsection 110101(a) would designate COVID-19-relevant health Relations and
Medical Supplies resources as “scarce and critical materials,” as defined in Section Economic
Enhancement 101 of the Defense Production Act (DPA) of 1950 (P.L. 81-774, 50 Development Policy
U.S.C. §§4501 et seq.): diagnostic tests, personal protective Heidi Peters, Analyst in
equipment, medical ventilators, pharmaceuticals, and any other U.S. Defense
medical equipment or supplies as determined by the Health and Acquisition Policy
Human Services or Homeland Security Secretaries. The section
would also provide for the President to make use of DPA Title I
prioritization or allocation authorities—other than the previously For background on
defined health resources—on behalf of state and local governments DPA’s history and
and would provide timelines and reporting requirements for their authorities, see CRS
use. Report R43767, The
Defense Production Act
of 1950: History,
Authorities, and
Considerations for
Congress, by Michael H.
Cecire and Heidi M.
Peters.
For information and
analysis on the use of
DPA authorities in
response to the
COVID-19 pandemic,
see CRS Insight
IN11387, COVID-19:
Defense Production Act
(DPA) Developments and
Issues for Congress, by
Michael H. Cecire and
Heidi M. Peters; CRS
Insight IN11337, The
Defense Production Act
(DPA) and the COVID-19
Pandemic: Recent
Developments and Policy
Considerations, by
Michael H. Cecire and
Heidi M. Peters; CRS
Insight IN11280,
COVID-19: Industrial
Mobilization and Defense
Production Act (DPA)
Implementation, by
Michael H. Cecire and
Heidi M. Peters; and
CRS Insight IN11231,
The Defense Production
Act (DPA) and COVID-
19: Key Authorities and
Policy Considerations, by
Congressional Research Service 3
HEROES Act, Division K—COVID-19 Housing, Economic Relief and Oversight Act
Effective CRS Experts/
Provision Description Dates Resources
Michael H. Cecire and
Heidi M. Peters.
Engagement with the Private Sector Upon
Subsection 110101(b) would acknowledge and coordinate private- enactment.
sector interest in producing supplies in response to the COVID-19
emergency through an “outreach representative.” The
representative would act as the government-wide single point of
contact during the pandemic for coordinating with private-sector
actors to produce medical supplies and equipment, including
encouraging partnerships consistent with the government COVID-
19 response, and with the ability to make use of DPA Title VII
authorities to convene industry and establish voluntary agreements
to coordinate emergency efforts free of potential antitrust action.
Enhancement of Supply Chain Protection Upon
Subsection 110101(c) would direct the President to ensure support enactment.
under DPA Title III authorities for expanding production capacity is
provided to suppliers of “reagents, components, raw materials, and
other materials” to produce the essential resources described in
subsection (a).
Oversight of Current Activity and Needs: Response to The report is
Immediate Needs due seven days
Subsection 110101(d)(1) would provide various reporting after enactment
requirements for congressional oversight. Seven days after and shall be
enactment, the President is directed to submit a report to updated every
Congress assessing immediate needs to combat the pandemic, 14 days
including (1) an assessment of needed medical supplies and thereafter.
equipment, personal protective equipment for healthcare and other
essential workers, and quantities of equipment and supplies in the
Strategic National Stockpile (SNS); (2) an identification of industry
sectors and manufacturers “most ready” to fulfill needed supplies
and equipment purchase orders under DPA Title III authorities,
non-SNS government and private stockpiles of such equipment and
supplies that could be made available, previously distributed critical
supplies that could be redistributed based on current need, and
critical areas of need in the United States; and (3) a description of
relevant authorities.
The report must also include a plan for meeting pandemic needs,
including each government contract engaged to meet such needs;
each contract the government intends to enter into within 14 days
after the report’s submission; and whether any of those contracts
will have a DPA Title I priority rating.
The President is directed to update the report every 14 days and
make the report (and its updates) available to the public, including
on a government website.
Oversight of Current Activity and Needs: Response to Longer- The report is
Term Needs due 14 days
Subsection 110101(d)(2) would direct the President to submit a after the act’s
report containing an assessment of the longer-term needs no later enactment and
than 14 days after the act’s enactment. The report must evaluate shall be updated
attributes in the Section 110101(d)(1) assessment, including medical every 14 days
supplies and equipment needs in response to the pandemic; thereafter.
personal protective equipment needs for health and other essential
workers; industry sectors and manufacturers “most ready” to fulfill
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HEROES Act, Division K—COVID-19 Housing, Economic Relief and Oversight Act
Effective CRS Experts/
Provision Description Dates Resources
purchase orders for needed supplies and equipment under DPA
Title III; and identify non-SNS government and private stockpiles
potentially available for use. The report must also assess the needs
related to COVID-19 vaccines and any additional services, such as
contact tracing.
The President is directed to update the report every 14 days after
initial submission and make the report publicly available, including
on a government website.
Oversight of Current Activity and Needs: Report on Exercising The report is
Authorities Under the Defense Production Act of 1950 due 14 days
Subsection 110101(d)(3) would direct the President to submit a after enactment
report to Congress on exercising DPA authorities under Titles I, III, and shall be
and VII. The report, and its updates, shall include an explanation of updated every
the purpose of each DPA Title I action; the cost of each action; and, 14 days
if applicable, the amount of goods purchased or allocated, the thereafter.
identities of awardees, and the identities of entities that had
shipments delayed as a result of DPA actions.
The President is directed to update the report every 14 days after
initial submission and make the report publicly available, including
on a government website.
Oversight of Current Activity and Needs: Quarterly Reporting A report is due
Subsection 110101(d)(4) would direct the President to submit a quarterly.
publicly available (including on a government website) quarterly
report to Congress detailing all expenditures made pursuant to
DPA Titles I, III, and VII.
Oversight of Current Activity and Needs: Sunset The later of
Subsection 110101(d)(5) would terminate the requirements under December 31,
Section 110101(d) on the later of December 31, 2021, or the end 2021, or the
of the COVID-19 emergency. end of the
COVID-19
emergency.
Enhancements to the Defense Production Act of 1950 Upon
Subsection 110101(e) would amend the DPA statute. This includes enactment.
the designation of a Health Emergency Authority, which provides
the Health and Human Services (HHS) Secretary and the Federal
Emergency Management Agency (FEMA) Administrator with the
authority to carry out DPA authorities to the same extent as the
President. The section would amend small business preferences in
the DPA by adding preferences for businesses of any size owned by
women, minorities, veterans, and the disabled, and special
consideration for eligible preferred businesses located in areas of
“high unemployment or areas that have demonstrated a continuing
pattern of economic decline” identified by the Secretary of Labor.
Section 110101(e) would also define the term minority for the
purposes of the subsection, and it would expand the reporting
obligations of the DPA Fund manager as laid out in Section 304(f) of
the DPA to include information on Title III awards made to
preferred classes. In addition, Section 110101(e) would expand the
definition in the DPA statute of national defense to include “health
emergency preparedness and response activities.”
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Effective CRS Experts/
Provision Description Dates Resources
Title I1—Protecting Renters And Homeowners From Evictions And Foreclosures
Section 110201. Section 110201 would authorize appropriations of $100 billion to Authorization of Libby Perl, Specialist in
Emergency be allocated to Housing and Urban Development’s (HUD’s) FY2020 Housing Policy
Rental Emergency Solutions Grants (ESG) program for short- and medium- appropriations
Assistance term rental assistance and rent-related costs (such as utilities) for effective upon
people who are homeless or at risk of homelessness as defined in enactment.
the bill. Eligible renters would be those whose incomes, as
measured at the time of application, are at or below 80% of area
median income (AMI) and who are unable to attain or maintain Funds for tribes
housing stability or unable to pay for rent or utilities due to financial and territories
hardship. At least 40% of funds must assist renters at or below 30% must be
of AMI and at least 70% must assist renters at or below 50% of allocated within
AMI. 30 days of
enactment.
Tribes would receive 2% of funds according to the Native American Within seven
Housing Assistance and Self Determination Act formula. Territories days of
(the U.S. Virgin Islands, Guam, American Samoa, and the enactment, the
Commonwealth of the Northern Mariana Islands) would receive portion of funds
0.3% of funds. Of the remaining funds, half would be distributed to subject to the
states, metropolitan cities, and urban counties using the statutory ESG formula
ESG formula. Remaining funds would be distributed based on a must be
HUD formula using factors including severe housing cost burdens allocated to
among renters at or below 30% and 50% of AMI and disruptions in states,
housing and economic conditions. metropolitan
Division A, Title IX of H.R. 6800 would appropriate the authorized cities, and urban
funding. counties, with
the remaining
funds, subject to
a formula
developed by
the HUD
Secretary,
distributed
within 45 days.
Of the funds,
60% must be
expended
within two
years and the
remaining funds
within three
years.
Section 110202. Section 110202 would authorize appropriations of $75 billion for a Authorization of Katie Jones, Analyst in
Homeowner new Homeowner Assistance Fund at the Department of the FY2020 Housing Policy
Assistance Fund Treasury. The program would provide funds to state housing appropriations
finance agencies (HFAs) to use to prevent mortgage defaults, effective upon
foreclosures, and displacement of households experiencing financial enactment.
hardship after January 21, 2020. Eligible activities would include, but
are not limited to, assistance with mortgage payments (e.g., to
reinstate a mortgage or make mortgage payments more affordable); Treasury must
taxes, insurance, or homeowners’ association fees; and utility announce state
payments. At least 60% of funds must be used for households with allocations, and
incomes at or below 80% of AMI, as measured at the time of the method
application (or, in the case of assistance with past-due mortgage used for
payments, at the time those payments were due). Treasury must determining
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HEROES Act, Division K—COVID-19 Housing, Economic Relief and Oversight Act
Effective CRS Experts/
Provision Description Dates Resources
approve state plans for using the funds and would be subject to such allocations,
reporting requirements on the uses of funds. by the end of
Treasury would establish criteria for allocating funds to states, the 14-day
taking into account the state’s relative number of unemployment period that
claims. States would be eligible for a minimum allocation of $250 begins on the
million. Tribes would receive 5% of funds, to be allocated according date of
to the Native American Housing Assistance and Self Determination enactment.
Act (24 C.F.R. Part 1000, Subpart D) formula; of that amount, 0.3%
would be provided to the Department of Hawaiian Home Lands. State HFA plans
Territories (the U.S. Virgin Islands, Guam, American Samoa, and the must provide
Commonwealth of the Northern Mariana Islands) would receive a for states
set-aside of $200 million, to be distributed among the territories beginning to
based on relative population. Treasury could allocate up to 5% of receive and fund
funds for administration, oversight, and technical assistance, and for homeowner
the Treasury Department Inspector General to provide program applications by
oversight. the end of the
Division A, Title III of H.R. 6800 would appropriate the authorized 6-month period
funding. beginning on the
date Treasury
approves the
state’s plan.
Treasury would
have 30 days
after a state
submits a plan
to approve or
disapprove it.
Section 110203. Section 110203 would make several changes to eviction
Protecting moratorium and mortgage provisions in the CARES Act, and it
Renters and would include certain other mortgage-related provisions.
Homeowners Changes to CARES Act Temporary Eviction Moratorium The temporary Maggie McCarty,
from Evictions eviction Specialist in Housing
and Section 4024 of the CARES Act (15 U.S.C. §9058) prohibits
evictions of certain tenants for nonpayment of rent or other fees or moratorium Policy
Foreclosures would apply for
charges for 120 days beginning on March 27, 2020. It also prohibits David Carpenter,
the charging of fees, penalties, or other charges related to the twelve months Legislative Attorney
nonpayment of rent during the same period. Additionally, it from the date of
requires a 30-day notice prior to requiring a tenant to vacate the enactment of
property after the eviction moratorium expires. These CARES Act the CARES Act CRS Insight IN11320,
prohibitions apply to tenants of properties with federal assistance (March 27, CARES Act Eviction
or federally backed mortgage loans. 2020). Moratorium, by Maggie
McCarty and David H.
Section 110203(a) of H.R. 6800 would broaden the CARES Act Carpenter
eviction moratorium to temporarily prohibit eviction of tenants for
nonpayment of rent or other fees or charges in all residential rental
properties and would extend the moratorium to last for 12 months
beginning on March 27, 2020. Like the CARES Act, Section 110203
would require a 30-day notice prior to requiring the tenant to
vacate the property after expiration of the eviction moratorium,
but unlike the CARES Act, the provision would only apply to
notices to vacate for nonpayment of rent or other charges. Section
110203 would not include the CARES Act prohibition on the
assessment of fees, penalties, or other charges related to the
nonpayment of rent during the moratorium.
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HEROES Act, Division K—COVID-19 Housing, Economic Relief and Oversight Act
Changes to CARES Act Single-Family Mortgage Provisions Borrowers Katie Jones, Analyst in
Section 4022 of the CARES Act (15 U.S.C. §9056) allows could request Housing Policy
borrowers with federally backed single-family mortgage loans who forbearance Andrew Scott, Analyst
are experiencing COVID-19-related financial hardships to request during the in Financial Economics
and receive up to 180 days of forbearance (with an extension of up covered period,
to an additional 180 days). It also suspends foreclosure actions on which ends 12
federally backed single-family mortgages for 60 days beginning on months from CRS Insight IN11334,
March 18, 2020, other than for vacant or abandoned properties. the date of Mortgage Provisions in
enactment of the Coronavirus Aid,
the CARES Act Relief, and Economic
Section 110203(b)(1)-(b)(6) would amend Section 4022 of the (March 27, Security (CARES) Act, by
CARES Act to 2020). Katie Jones and
expand the forbearance protections beyond federally backed Andrew P. Scott
mortgages to most mortgage loans;
provide for an automatic 60-day forbearance for borrowers The prohibition
who became 60 days delinquent between March 13, 2020, and on foreclosure
the enactment of the HEROES Act, and for those who become actions and
60 days delinquent between the date of enactment of the repossessions
HEROES Act and the end of the covered period (12 months would last for
from the date of enactment of the CARES Act). Such six months from
borrowers could request and receive up to an additional 120 the date of
days of forbearance and an extension of up to 180 days, for a enactment of
maximum of 360 days; the HEROES
make changes to the existing forbearance requirements, Act.
including specifying that, for borrowers who have not received
automatic forbearance, a borrower’s request for forbearance
can be made orally or in writing; that the borrower’s COVID
19-related financial hardship must be preventing the borrower Requirements
from making timely mortgage payments; that the servicer shall for servicers to
grant the forbearance for the period the borrower requests, provide certain
up to an initial length of 180 days; and that the borrower can information on
request extensions for a total forbearance period of up to 12 the availability
months; of forbearance
on their
specify that servicers can grant an initial forbearance term of
websites and in
no less than 90 days, provided that it is automatically extended
oral
by 90 days unless the servicer confirms that the borrower no
communications
longer wants to receive forbearance or is no longer
involving
experiencing a COVID-19-related financial hardship that
delinquent
prevents the borrower from making mortgage payments;
borrowers
provide a six-month extension of certain deadlines related to would begin 90
foreclosure on FHA-insured reverse mortgage loans that days after
become due and payable or enter default during the covered enactment and
period and provide for automatic forbearance and a last through the
prohibition on initiating foreclosure during that period. The end of the
forbearance could be extended for an additional 180 days at covered period.
the request of the borrower, non-borrowing spouse, or
successor-in-interest experiencing a financial hardship due to
COVID-19;
suspend foreclosure actions on most mortgages and
repossession of personal property used as a dwelling, for six
months;
add additional servicer requirements related to notices, loss
mitigation procedures, and certain post-forbearance
repayment options. For example, servicers would be required
to provide information on their websites related to the
availability of forbearance and notify delinquent borrowers that
they may be eligible to request forbearance during any oral
communication with or to the borrower. They would also be
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HEROES Act, Division K—COVID-19 Housing, Economic Relief and Oversight Act
Effective CRS Experts/
Provision Description Dates Resources
subject to additional notice requirements, including providing
borrowers notices related to forbearance terms and additional
forbearance and loss mitigation options within certain time
frames, and offering borrowers in forbearance certain
repayment options no later than 30 days before the end of a
forbearance period;
provide for certain loss mitigation procedures for FHA-insured
reverse mortgage loans and make certain statutory changes to
the loss mitigation options available for certain USDA rural
housing mortgages.
Changes to CARES Act Multifamily Forbearance Multifamily
Provisions mortgage
Section 4023 of the CARES Act (15 U.S.C. §9057) allows borrowers
borrowers with federally backed multifamily mortgage loans who would be able
are experiencing COVID-19-related financial hardships to request to receive
and receive forbearance for up to 30 days (with up to two forbearance that
additional 30-day extensions). Multifamily borrowers who receive could last up to
forbearance may not pursue evictions solely for nonpayment of rent the end of the
or other fees, nor charge late fees or other charges related to late 12-month
rent payments, during the forbearance. period beginning
on the date of
Section 110203(b)(7) of H.R. 6800 would amend Section 4023 of enactment of
the CARES Act to extend multifamily forbearance provisions to all the CARES Act.
multifamily mortgages and lengthen the allowable period of
forbearance to up to the end of the 12-month period from the date
of enactment of CARES Act (aligning it with the period covered by
the eviction moratorium). It would also establish certain
requirements for servicers following forbearance, including that
borrowers be given 12 months following the end of the forbearance
period to repay the past due amounts.
Expansion of CARES Act Renter Protections During
Mortgage Forbearance
Section 110203(b)(8) would provide that both single-family and
multifamily borrowers who receive forbearance pursuant to Section
4022 or 4023 of the CARES Act must abide by certain renter
protections during the forbearance period. Borrowers who receive
forbearance would be prohibited from evicting or initiating the
eviction of a tenant solely for nonpayment of rent or other fees or
charges, or charging any late fees, penalties, or other charges for
late rent payments, during the forbearance. (Currently, Section
4023 of the CARES Act includes similar provisions related to
multifamily mortgage forbearance, but such provisions are not
included in Section 4022 related to single-family forbearance.)
Extension of QM Patch The QM patch Darryl Getter,
Section 110203(b)(9) would extend the sunset date of the “QM extension Specialist in Financial
Patch” from mortgages consummated on or before January 10, would apply to Economics
2021, to mortgages consummated before June 1, 2022. The QM transactions CRS In Focus IF11413,
Patch provides that mortgages backed by Fannie Mae and Freddie consummated The Qualified Mortgage
Mac can be considered “qualified mortgages” under the Consumer prior to June 1, (QM) Rule and the QM
Financial Protection Bureau’s Ability to Repay rule. 2022. Patch, by Darryl E.
Getter
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Provision Description Dates Resources
Safe Harbor
Section 110203(b)(10) would establish a safe harbor for mortgage
servicers and other entities, providing that they shall not be deemed
to have violated any duties or contractual obligations if they engage
in single-family or multifamily mortgage forbearance during the
covered period in accordance with Sections 4022 and 4023 of the
CARES Act, or engage in post-forbearance loss mitigation in
accordance with those sections (including after the covered period),
in good faith.
Bankruptcya Section Kevin Lewis, Legislative
Section 110203(c) would amend the Bankruptcy Codeb to 110203(c)’s Attorney
temporary
exclude certain federal coronavirus relief payments from the provisions
property of a debtor’s estate;c would apply to
prohibit mortgage creditors and services from refusing to Chapter 13
provide “forbearance, assistance, or loan modification relief” to cases filed
persons because they have filed a bankruptcy petition or within three
received a discharge under the Bankruptcy Code; years of the
increase the federal homestead exemption available to HEROES Act’s
individual debtors;d enactment, as
well as Chapter
allow certain debtors to claim the increased homestead 13 cases
exemption described above even if they live in a state that pending on the
provides a less favorable homestead exemption;e date of the
forbid bankruptcy courts from denying a dischargef to a HEROES Act’s
Chapter 13g debtor on the sole ground that the debtor has enactment, so
failed to make six or fewer payments on a debt secured by real long as the
property; bankruptcy
allow a bankruptcy court to grant a Chapter 13 debtor a court did not
discharge earlier than applicable law might otherwise allow if confirm a
the debtor: Chapter 13 plan
in the case
has made payments under a confirmed Chapter 13 planh before March
for at least a year and 27, 2020.
has experienced material hardship because of the
COVID-19 pandemic;
expand the universe of debtors who are eligible to file for
bankruptcy under Chapter 13 of the Bankruptcy Code by
raising statutory caps on the amount of debt a debtor may
owe before he or she becomes ineligible for Chapter 13 relief;
and
temporarily grant Chapter 13 debtors experiencing material
hardships because of the COVID-19 pandemic an extended
period of time to cure certain defaults.
Section 110204. Section 110204 would require the Treasury Secretary to provide CARES Act Darryl E. Getter,
Liquidity for covered mortgage loan servicers (as defined under Sections 4022 funding is only Specialist in Financial
Mortgage and 4023 of the CARES Act) with the opportunity to participate in available to Economics
Servicers and COVID-relief programs backed by Title IV of the CARES Act funds. create new
Residential These programs take two forms—Treasury loans and loan loan, loan
guarantee programs and Federal Reserve emergency liquidity guarantees, or CRS Insight IN11404,
Rental Property HEROES Act (H.R.
Owners programs. However, these loans and loan guarantees were made Federal Reserve
available only to the passenger air industry, commercial air industry, liquidity 6800): Selected Federal
and industries critical to national security. programs until Reserve Provisions, by
the end of 2020. Marc Labonte
Mortgage servicers that receive Treasury financial support must
abide by various stipulations limiting the funds’ usage. For example,
Congressional Research Service 10
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Provision Description Dates Resources
any funds received from Treasury must be used for borrower CRS Report R46329,
assistance, such as advancing funds as a result of granting Treasury and Federal
forbearance, or other loss mitigation relief to borrowers. The funds Reserve Financial
may not be used to pay dividends to common stock shareholders, Assistance in Title IV of
initiate buybacks, or repurchase their own shares. Mortgage the CARES Act (P.L. 116-
servicers may not prepay; that is, repay any debt obligation to 136), coordinated by
Treasury ahead of schedule. In addition, mortgage servicers must be Andrew P. Scott
able to demonstrate that they are following policies and procedures
that result in forbearance and post-forbearance assistance being
made available to all borrowers in a nondiscriminatory fashion.
Participating servicers would also be subject to the terms and
conditions of Title IV of the CARES Act.
The Federal Reserve would be required to establish a temporary
credit facility under Title IV of the CARES Act for residential
property owners that have documented financial losses as a result
of rent reductions. The credit facility would provide long-term, low-
cost loans with deferred payments for six months following the
enactment of H.R. 6800. For the duration of these loans, the
borrowers would not be allowed to evict or initiate the eviction of
a tenant solely for nonpayment of rent, fees, or other charges;
charge any late rent payment fees; or discriminate on the basis of
source of income. The Federal Reserve would also be required to
issue a report to Congress summarizing various program-related
metrics, such as the total number of borrowers that received
assistance, the average loan amount, the number of rental units
owned by each borrower, and the average rent charged by each
borrower. Furthermore, the Federal Reserve should identify any
person or entity that owns or holds a controlling interest in more
than 100 rental units located within a single Metropolitan Statistical
Area, more than 1,000 rental units nationwide, or rental units in
three or more states.
Section 110205. Section 110205 would authorize additional appropriations of $309 Authorization of Maggie McCarty,
Rural Rental million for FY2020 for rural rental assistance (administered by the FY2020 Specialist in Housing
Assistance Department of Agriculture [USDA]); of which up to $25 million is appropriations Policy
for additional rural housing vouchers (under the Section 542 effective upon
program) and the remainder is for rental assistance agreements enactment.
between USDA and private owners (under the Section 521
program) both to cover anticipated increased costs and to assist
additional eligible households.
Division A, Title I of H.R. 6800 would appropriate the authorized
funding.
Section 110206. Section 110206 would authorize additional appropriations of $2 Authorization of Maggie McCarty,
Funding for billion for FY2020 for the public housing operating fund and $3 FY2020 Specialist in Housing
Public Housing billion for the tenant-based rental assistance account, which, appropriations Policy
and Tenant- respectively, fund the public housing program and Housing Choice effective upon
Based Rental Voucher program. The funds are to be subject to any waivers or enactment.
Assistance alternate requirements applicable to the funding provided under the
CARES Act.
Division A, Title IX of H.R. 6800 would appropriate the authorized
funding.
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Section 110207. Section 110207 would authorize a total of $1.465 billion in Authorization of Libby Perl, Specialist in
Supplemental appropriations for additional assistance for certain HUD housing FY2020 Housing Policy
Funding for programs. Of the total, $500 million would be authorized for the appropriations
Supportive Section 202 Supportive Housing for the Elderly program—$200 effective upon
Housing for the million would pay for rental assistance and the remaining $300 enactment.
Elderly, million would fund one-year Service Coordinator grants. The
Supportive Service Coordinator grants would be available for Section 811
Housing for Supportive Housing for Persons with Disabilities housing
Persons with developments as well as Section 202 housing, for the purposes of
Disabilities, responding to COVID-19. The bill would further authorize
Supportive appropriations of $200 million for Section 811, $15 million for
Housing for Housing Opportunities for Persons with AIDS (HOPWA), and $750
Persons with million for Section 8 project-based rental assistance.
AIDS, and Division A, Title IX of H.R. 6800 would appropriate the authorized
Project-Based funding.
Section 8 Rental
Assistance
Section 110208. Section 110208 would authorize appropriations of $4 million for Authorization of Libby Perl, Specialist in
Fair Housing the Fair Housing Initiatives Program (FHIP) for existing grantees to FY2020 Housing Policy
engage in fair housing activities and to meet their technological appropriations
needs in responding to COVID-19. An additional $10 million would effective upon
be authorized for FHIP Education and Outreach grants to educate enactment.
the public about their housing rights during the COVID-19 The $4 million
emergency period. in FHIP funding
Division A, Title IX of H.R. 6800 would appropriate the authorized would remain
funding. available for
three years
from allocation.
Section 110209. Section 110209 would authorize additional appropriations for Authorization of Katie Jones, Analyst in
Funding for FY2020 of $100 million for the Neighborhood Reinvestment FY2020 Housing Policy
Housing Corporation (NeighborWorks America) to be used specifically for appropriations
Counseling housing counseling activities. NeighborWorks would provide grants effective upon
Services to HUD-approved housing counseling intermediaries, state housing enactment.
finance agencies, or (up to 15% of total funds) to NeighborWorks
organizations. At least 40% of funds must be provided to counseling
organizations that target services to minority and low-income NeighborWorks
individuals or households or provide services in neighborhoods would be
with high concentrations of such individuals or households. directed to
disburse any
At NeighborWorks’s discretion, funds could be used for direct appropriated
housing counseling services, including counseling for homeowners, funds “as
renters, and those who are homeless or at risk of homelessness; expeditiously as
public education and outreach; equipment and technology, including possible.”
technology upgrades needed to ensure timely counseling services;
training, including delivery of remote counseling and enhanced
network security; and administration and oversight.
Congressional Research Service 12
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Provision Description Dates Resources
Title II1—Protecting People Experiencing Homelessness
Section 110301. Section 110301 would authorize appropriations of $11.5 billion for Authorization of Libby Perl, Specialist in
Homeless the Emergency Solutions Grants (ESG) program to assist people FY2020 Housing Policy
Assistance who are homeless or at risk of homelessness, as defined in the ESG appropriations
Funding statute. Funds could be used for emergency shelter, short- and effective upon
medium-term rental assistance, homelessness prevention activities, enactment.
and supportive services. The bill would also authorize the use of
funds for training staff on disease prevention and mitigation and for
hazard pay. The bill would waive environmental and habitability The initial
review standards for needed emergency shelters to prevent the allocation of
spread of COVID-19 and would waive matching requirements. assistance is to
be made within
Of the total funding, $4 billion would be distributed to territories, 30 days of
states, metropolitan cities, and urban counties using the ESG enactment.
formula. The remaining funds would be distributed according to a
formula developed by the Secretary taking into account risk of
COVID-19 transmission, the rate of sheltered and unsheltered
homelessness, and economic and housing market conditions.
Section 110301 would also require HUD to distribute FY2020
Continuum of Care program funding (appropriated as part of P.L.
116-94) based on the FY2019 competition for funds.
Section 110302. Section 110302 would authorize additional appropriations for Authorization of Maggie McCarty,
Emergency FY2020 of $1 billion for new incremental emergency rental FY2020 Specialist in Housing
Rental vouchers for families who are homeless, at risk of homelessness, or appropriations Policy
Assistance fleeing or attempting to flee domestic violence, dating violence, effective upon
Voucher sexual assault, or stalking. enactment.
Program
HUD is to
allocate 50% of
funds not later
than 60 days
from
enactment.
Title IV—Suspending Negative Credit Reporting and Strengthening Consumer and Investor Protections
Section 110401. Section 110401 would create a moratorium on furnishing adverse Begins on the Cheryl Cooper,
Reporting of information to the credit bureaus during the COVID-19 emergency date when the Analyst in Financial
Information period and other major natural disasters in the future. Consumers President Economics
during Major could request to delete adverse information during the covered declares a major CRS Report R44125,
Disasters period and for 270 days afterwards if economic hardship is disaster under Consumer Credit
reported. Moreover, medical debt related to COVID-19 treatments 401 or 501 of Reporting, Credit
or another major disaster would not be furnished or included in the Robert T. Bureaus, Credit Scoring,
credit report. New credit scoring models could not be Stafford and Related Policy Issues,
implemented during a major natural disaster period if it would Disaster Relief by Cheryl R. Cooper
identify a significant percentage of consumers as being less and Emergency and Darryl E. Getter
creditworthy than the previous model. Assistance Act
(42 U.S.C.
§5174). For the
COVID-19
pandemic, this
date is March
13, 2020. Ends
120 days after
the major
disaster is
declared over
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(or for the
COVID-19
pandemic, 120
days after this
section is
enacted,
whichever is
later).
Section 110402. Section 110402 would ban creditors and debt collectors from Begins on date Cheryl Cooper,
Restrictions on collecting on a debt (e.g., garnishment or seizing bank account of enactment; Analyst in Financial
Collections of assets), enforcing a security interest (e.g., repossession or ends 120 days Economics
Consumer Debt foreclosure), or threatening to take an action on a debt during the after the major CRS Report R46356,
During a COVID-19 pandemic and for 120 days afterwards. Section 110402 disaster COVID 19: Consumer
National would also ban creditors or debt collectors from charging additional declared by the Loan Forbearance and
Disaster or fees and interest to debts past due during this period. President on Other Relief Options,
Emergency (This section excludes mortgages covered under the CARES Act, March 13, 2020, coordinated by Cheryl
addressed in Title II of this Division of the Act.) ends. R. Cooper
Section 110403. Section 110403 would define appropriate repayment periods for n/a Cheryl Cooper,
Repayment different types of past due debt, after the Section 110402 period Analyst in Financial
Period and ends. For example, for debt with defined terms (such as a mortgage Economics
Forbearance for or auto loan), the term of the loan would be extended by at least as CRS Report R46356,
Consumers many periods as the consumer missed payments, so the payment COVID 19: Consumer
amount remains the same for consumers. After the missed payment Loan Forbearance and
period, the terms of open ended debts (such as credit card debt) Other Relief Options,
would be paid according to similar contract rules as before the coordinated by Cheryl
COVID-19 pandemic. Generally, for other types of debt (that do R. Cooper
not have set terms), the larger the debt, the more time consumers
would be allowed to pay it off.
Private-sector creditors and debt collectors could use the credit
facility established in Section 110404 if they automatically grant loan
forbearance to consumers who are experiencing financial hardship
and request it during the COVID-19 pandemic and 120 days
afterwards.
(This section excludes mortgages covered under the CARES Act,
addressed in Title II of this Division of the Act.)
Section 110404. Section 110404 would require the Federal Reserve to create a New facilities Marc Labonte,
Credit Facility facility backed by CARES Act funds that provides long-term, low- backed by Specialist in
cost loans to creditors and debt collectors who have losses caused CARES Act Macroeconomic Policy
by offering loan forbearance to consumers and participate in the funds are CRS Insight IN11404,
forbearance program established in Section 110403. Payments on authorized until HEROES Act (H.R.
these loans would be deferred until borrowers resume repayment, December 31, 6800): Selected Federal
as required by the bill. Eligibility includes private creditors and debt 2020. Reserve Provisions, by
collectors of most types of consumer debt (except federally-backed Marc Labonte
mortgages.)
CRS Report R44185,
Federal Reserve:
Emergency Lending, by
Marc Labonte
Congressional Research Service 14
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Title V—Forgiving Student Loan Debt and Protecting Student Borrowers
Section 110501. Section 110501 would direct the Secretary of the Treasury to make Enactment Kyle D. Shohfi, Analyst
Payments for monthly payments on private education loans on behalf of through in Education Policy
Private economically distressed borrowers through September 30, 2021. September 30,
Education Loan Aggregate payments would be capped at $10,000 per borrower. 2021.
Borrowers as a Private education loan borrowers would qualify as economically
Result of the distressed if their loan were in default; if their loan payment were at
COVID-19 least 90 days past due; if the loan were in forbearance or deferment
National based on financial hardship or other conditions; or if the borrower
Emergency would qualify for a monthly payment of $0 under an income-
contingent or income-based repayment plan if the loan were a
federal student loan rather than a private one. A private education
loan would be defined as a loan provided by a private lender for
postsecondary education expenses that is not made, insured, or
guaranteed under Title IV of the Higher Education Act of 1965 (P.L.
89-329).
This section would require the Secretary to ensure that any loan
payments that the Secretary makes on behalf of borrowers would
be reported to consumer credit reporting agencies as if the
borrowers made the payments. It would require loan servicers to
grant mandatory forbearance to borrowers of any loan for which
the Secretary makes payments, and such forbearance would be
made retroactive for loans that were in delinquent, but not in
default, status prior to the commencement of the Secretary’s
payments.
This section would also prohibit any involuntary collections actions
or adverse reporting to consumer credit reporting agencies
concerning private education loans of economically distressed
borrowers through September 30, 2021. Within 15 days of
enactment and monthly thereafter through September 30, 2021, the
Secretary would be required to inform economically distressed
borrowers of the temporary benefits provided under Section
110501 and provide an easily accessible method for borrowers to
opt out. Holders of eligible loans would not be permitted to opt
out.
Section 110501(b) would appropriate $45 billion to carry out
Sections 110501 and 110502 and the amendments they would
make.
Section 110502. Section 110502 would require any private education loan holder Loan relief Kyle D. Shohfi, Analyst
Additional that receives Treasury loan payments under Section 110501 to program must in Education Policy
Protections for modify its private loan contracts to offer economically distressed be carried out
Private Student private education loan borrowers the same repayment plan and within 90 days
Loan Borrowers loan forgiveness options available to federal direct loan borrowers of September
under 34 C.F.R. §685.209(c) for the remaining life of the loans. 30, 2021.
After September 30, 2021, economically distressed borrowers
whose private education loan payments were made by the
Secretary under Section 110501 would receive loan relief equal to
either the amount of their outstanding private education loan
balance or $10,000 minus the aggregate amount of payments made
on their behalf by the Secretary, whichever is less. This section
would allow borrowers to select the private education loan to
which this amount of relief would be applied, and the bill would
prohibit creditors and debt collectors from pressuring borrowers
regarding this selection. If a borrower did not make a selection, the
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Provision Description Dates Resources
amount would be automatically applied to the borrower’s private
education loan with the highest interest rate.
Title VI—Standing Up For Small Businesses, Minority-Owned Businesses, and Non-Profits
Section 110601. Section 110601 would prohibit creditors and debt collectors, Begins on date Raj Gnanarajah, Analyst
Restrictions on including federal and state governments, from collecting on a debt of enactment; in Financial Economics.
Collections of from small business or nonprofits during the COVID-19 pandemic ends 120 days
Small Business and for 120 days afterwards. Some of the prohibited activities after the major
and Nonprofit include repossession, foreclosing, or eviction from real and personal disaster
Debt During a property, garnishment of payments, seizing bank account assets, declared by the
National disconnecting or terminating service from a utility, enforcing prior President on
Disaster or arbitration agreements or waivers on a debt. This section also March 13, 2020,
Emergency. would prohibit creditors or debt collectors from charging additional ends.
fees and interest to debts past due during this period.
(This section excludes mortgages covered under the CARES Act,
addressed in Title II of this Division of the Act.)
Section 110602. Debt collectors—as defined under Section 110601 to include The covered Darryl E. Getter,
Repayment creditors—that would participate in a credit facility established by period refers to Specialist in Financial
Period and the Board of Governors of the Federal Reserve System under the period Economics
Forbearance for Section 110603 must establish forbearance programs that extend beginning on the
Small Business various consumer credit protections to small businesses and date on which
and Nonprofit nonprofits. Participating debt collectors must automatically grant the HHS
Organizations forbearance to small businesses and nonprofit organizations Secretary
experiencing a financial hardship due, directly or indirectly, to declared a
COVID-19 until the end of the covered period defined under public health
Section 110601. Debt collectors should not impose fees, penalties, emergency with
or interest in connection with the forbearance. respect to
Following the expiration of the covered period, a debt collector (as COVID-19 and
defined in Section 110601) shall extend the time to repay past-due ending on the
loans by one payment period for each missed payment plus an date that is 60
additional payment period. The payments should be the same days after the
amount and due in the same intervals as the pre-existing payment date on which
schedule. Higher interest rates, fees, and finance charges should not that public
be applied to past-due credit card debt obligations. In addition to health
loans with more traditional features, forbearance should also be emergency
extend for loans with features that may not already be covered by terminates.
various statutes. Generally speaking, small businesses or nonprofit
organizations with past-due balances of $2,000 or less may have at
least 12 months to repay; past-due balances of $2,001-$5,000 may
have at least 24 months to repay; and past-due balances of $5,001
or greater may have at least 36 months to repay. Debt collectors
have the option to extend these repayment periods. The Director
of the Bureau of Consumer Financial Protection (CFPB) has the
authority to extend forbearance periods for debts covered under
this section.
Section 110602 would not preempt state law in cases where
existing state law would offer greater protections for small
businesses and nonprofit organizations.
Section 110603. Section 110603 would require the Federal Reserve to create a New facilities Marc Labonte,
Credit Facility facility backed by CARES Act funds that would provide long-term, backed by Specialist in
low-cost loans to creditors and debt collectors that incur losses CARES Act Macroeconomic Policy
due to loan forbearance to small businesses and nonprofits (as funds are CRS Insight IN11404,
defined by the bill) and participate in the forbearance program authorized until HEROES Act (H.R.
established in Section 110602. Payments on these loans would be December 31, 6800): Selected Federal
deferred until borrowers resume repayment, as required by the bill. 2020.
Congressional Research Service 16
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Provision Description Dates Resources
Reserve Provisions, by
Marc Labonte
CRS Report R44185,
Federal Reserve:
Emergency Lending, by
Marc Labonte
Section 110604. On April 9, the Federal Reserve announced the Main Street Lending Changes must Marc Labonte,
Credit Facility Program (MSLP) to help businesses facing COVID-19 disruptions to be made within Specialist in
make payroll. The MSLP purchases loans from depository 5 days of Macroeconomic Policy
institutions to businesses with up to 15,000 employees or up to $5 enactment. CRS Insight IN11404,
billion in revenues. Principal repayments are deferred for two years HEROES Act (H.R.
and interest repayments are deferred for one year, and the 6800): Selected Federal
businesses must make a “reasonable effort” to retain employees. Reserve Provisions
Currently, the facility is not available to nonprofits, but the Federal
Reserve proposed to make it available to nonprofits on June 15, CRS Report R44185,
2020. Federal Reserve:
Emergency Lending, by
Section 110604 would require the Federal Reserve to make Marc Labonte
nonprofits eligible for the MSLP and allow Treasury to forgive these
loans for certain nonprofits serving low-income communities.
Section 110605. The Federal Reserve’s MSLP (see Section 110604) has a minimum Changes must Marc Labonte,
Options for loan size, depending on the type of loan, of $250,000 or $10 million. be made within Specialist in
Small Businesses Section 110605 would require the Federal Reserve to offer a MSLP 5 days of Macroeconomic Policy
and Non-Profits for small businesses, smaller institutions of higher education, and enactment. CRS Insight IN11404,
under the Main nonprofits without a minimum loan size. HEROES Act (H.R.
Street Lending 6800): Selected Federal
Program Reserve Provisions, by
Marc Labonte
CRS Report R44185,
Federal Reserve:
Emergency Lending, by
Marc Labonte
Section 110606. Banks are subject to federal anti-money laundering laws (AML) and n/a David Carpenter,
SAFE Banking Bank Secrecy Act (BSA; P.L. 91-508) provisions requiring them to Legislative Attorney
take steps to prevent illicit transactions.i Because cannabis is illegal CRS In Focus IF11373,
under federal law, banks largely have chosen not to provide services Financial Services for
to cannabis businesses to ensure BSA/AML compliance, even if the Marijuana Businesses, by
businesses are legal under state law. This purportedly has led to David H. Carpenter
cannabis businesses dealing exclusively in cash, raising public safety
and tax collection concerns, among others.j Section 110606 would
prohibit federal bank regulators from taking actions against banks
for providing services to state-legal cannabis businesses and would
protect banks and bank employees from liability from doing so.k
Title VII—Empowering Community Financial Institutions
Section 110701. Section 110701 would authorize $2 billion in appropriations for the FY2020 Sean Lowry, Analyst in
Community Community Development Financial Institutions (CDFI) Fund for Public Finance
Development financial assistance (FA) and technical assistance (TA) made in
Financial FY2020 to certified CDFIs. Of this amount, no less than
Institutions $800,000,000 would be set aside for FA and TA awards to minority
Fund lending institutions. A minority lending institution is defined as a
depository institution, loan fund, or other financial institution that is
at least 51% owned by “socially and economically disadvantaged
individuals” or is a mutual financial institution that primarily serves
Black, Native, Hispanic, or Asian Americans. The 1:1 nonfederal
Congressional Research Service 17
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Provision Description Dates Resources
government matching funds requirement and limits to any single
CDFI would also be waived for CDFI Fund award recipients.
For comparison, P.L. 116-93 enacted the following FY2020
appropriation amounts for the CDFI Fund: $165 million (CDFI FA
and TA), $16 million (Native American CDFI FA and TA), and $22
million (Healthy Food Financing Initiative).
Division A Title III of H.R. 6800 would appropriate $1 billion for the
CDFI Fund Program Account.
Section 110702. Section 110702 incorporates H.R. 5322, the Ensuring Diversity in n/a Darryl E. Getter,
Ensuring Community Banking Act of 2019. This section would include in the Specialist in Financial
Diversity in definition of a minority depository institution (under 12 USC §1463) Economics
Community those institutions with more than 50% of their outstanding shares
Banking held by one or more women or in which the majority of their
board directors are women. This section would create a new
designation, an impact bank, for banks that lend primarily to low-
income communities. (Both minority and nonminority banking
institutions would be eligible for the impact bank designation.) Each
covered depositor regulator would establish an advisory
committee, called the Minority Depository Institutions Advisory
Committee, that would provide advice on preserving the present
number of covered minority institutions and preserving the
minority character of minority-owned institutions in cases involving
mergers or acquisitions, provide technical assistance, and encourage
the creation of new covered minority institutions. This section
would also call for a custodial deposit program for minority
depository institutions and impact banks.
Title VIII—Providing Assistance for State, Territory, Tribal, and Local Governments
Section 110801. Currently, the Federal Reserve can purchase securities in two Changes to Marc Labonte,
Emergency ways—directly through open market operations and through open market Specialist in
Relief for State, emergency Section 13(3) facilities using special purpose vehicles operations Macroeconomic Policy
Territorial, (SPV). authority are CRS Insight IN11404,
Tribal and Local The securities it is authorized to purchase directly are limited. For permanent; HEROES Act (H.R.
Governments municipal debt, it can only purchase debt that has a maturity of less MLF until 6800): Selected Federal
than six months and is backed by anticipated taxes or assured December 31, Reserve Provisions, by
revenues. Section 110801 would remove these restrictions and 2021. Marc Labonte
would make debt issued by the District of Columbia, U.S. CRS Report R44185,
territories, and “federally recognized Indian tribe(s)” eligible for Federal Reserve:
purchase in “unusual and exigent circumstances.” Emergency Lending, by
On April 9, the Federal Reserve announced the Municipal Liquidity Marc Labonte
Facility (MLF) to purchase state and municipal debt in response to
higher yields and reduced liquidity in that market. The facility will
purchase only debt with a maturity up to three years issued by
states, the District of Columbia, counties with more than 500,000
residents, and cities with more than 250,000 residents. However, at
least two municipalities from each state can be designated to
participate.
Section 110801 would make changes to MLF terms, including
extending its expiration date to the end of 2021, extending the
maturity of eligible debt to 10 years, setting the implicit yield on
debt purchased equal to the Fed’s discount rate, making debt of
U.S. territories eligible, and reducing the minimum eligible
population size for an issuer to 50,000.
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Provision Description Dates Resources
Section 110802. Section 110802 would authorize appropriations of $5 billion for Directs that Joseph V. Jaroscak,
Community Community Development Block Grant (CDBG) programs, to be funds be Analyst in Economic
Development allocated to entitlement communities, states, and insular areas, allocated within Development Policy
Block Grants pursuant to Section 106 of the Housing and Community 30 days after
Development Act of 1974 (42 U.S.C. §5306). The section would enactment and
extend the term for eligible use of CDBG funds as emergency grant that funds
payments from 3 consecutive months to 121 consecutive months. remain available
Additionally, the section would waive any matching requirements until September
for administrative costs in the CDBG state program and would 30, 2023.
direct the HUD Secretary to make available the relevant Directs that
Consolidated Annual Performance Evaluation Reports (CAPER) on CAPER
a quarterly basis. All waivers and alternative requirements made by information
the HUD Secretary pursuant to the CARES Act would apply to this remain available
section. from enactment
Division A, Title IX of H.R. 6800 would appropriate $5 billion to date through
the Community Development Fund which administers CDBG the date of
programs. termination by
FEMA of the
emergency
declaration.
Title IX—Providing Oversight and Protecting Taxpayers
Section 110901. Section 110901 would amend Section 4026(b)(1)(A)(iii) of the n/a Ben Wilhelm, Analyst
Mandatory CARES Act by adding further information to the financial in Government
Reports to statements the Treasury is required to submit regarding Organization and
Congress transactions under Title IV of the CARES Act. The section would Management
also require the Treasury to report monthly on specified CRS Report R46315,
transactions under Title IV of the CARES Act. Congressional Oversight
Provisions in the
Coronavirus Aid, Relief,
and Economic Security
(CARES) Act (P.L. 116-
136), by Ben Wilhelm
and William T. Egar
Section 110902. Section 110902 would amend Section 4020(b) of the CARES Act to n/a William Egar, Analyst in
Discretionary provide that the Congressional Oversight Commission may, in American National
Reports to addition to its mandatory reporting requirements, submit further Government
Congress reports to Congress as it deems appropriate. CRS Insight IN11304,
COVID-19 Congressional
Oversight Commission
(COC), by Jacob R.
Straus and William T.
Egar
Section 110903. Section 110903 would amend Sections 15010(a)(2) and 19010(a)(1) n/a Ben Wilhelm, Analyst
Definition of of the CARES Act to add the Senate Committee on Banking, in Government
Appropriate Housing, and Urban Affairs and the House Committee on Financial Organization and
Congressional Services to the list of committees to which the Pandemic Response Management
Committees Accountability Committee, the Treasury, and the Federal Reserve CRS Insight IN11343,
must submit reports. The Pandemic Response
Accountability
Committee: Organization
and Duties, by Ben
Wilhelm
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Provision Description Dates Resources
Section 110904. Section 110904 would require the inspectors general of specified n/a Ben Wilhelm, Analyst
Reporting by agencies to include COVID-19 related findings in their semiannual in Government
Inspectors reports. Specifically, they would be required to report any findings Organization and
General on the effectiveness of (1) agency rulemaking related to COVID-19 Management
and (2) agency oversight of entities participating in the agency’s
response to COVID-19.
Source: Congressional Research Service.
a. CRS Legislative Attorney Kevin M. Lewis prepared the legal analysis under the table’s “Bankruptcy”
subheading.
b. For an introductory overview of the Bankruptcy Code, see CRS Report R45137, Bankruptcy Basics: A Primer,
by Kevin M. Lewis.
c. For the definition of “estate,” see id. at 5-6.
d. For background on bankruptcy exemptions, see CRS Legal Sidebar LSB10246, Veterans’ Benefits and
Bankruptcy, by Kevin M. Lewis.
e. For analysis of the interaction between federal bankruptcy exemptions and state and federal nonbankruptcy
exemptions, see id.
f. For the definition of “discharge,” see Lewis, supra note b, at 25-26.
g. For an overview of Chapter 13 of the Bankruptcy Code, see id. at 19-22.
h. For background on Chapter 13 plans and plan confirmation, see b.
i. Anti-money laundering at 18 U.S.C. §1956-1957; Bank Secrecy Act at 31 U.S.C. §5311 et seq.
j. U.S. Congress, House Committee on Financial Services, SAFE Banking Act of 2019, 116 th Cong., 1st sess.,
June 5, 2019, H.Rept. 116-104 Part 1, pp. 6-9.
k. This brief description was written by CRS Specialist David Perkins. Congressional staff with questions about
the legal issues related to providing financial services to cannabis and marijuana businesses should contact
CRS Legislative Attorney David Carpenter.
Congressional Research Service 20
HEROES Act, Division K—COVID-19 Housing, Economic Relief and Oversight Act
Author Information
Rena S. Miller, Coordinator Sean Lowry
Specialist in Financial Economics Analyst in Public Finance
Michael H. Cecire Maggie McCarty
Analyst in Intergovernmental Relations and Specialist in Housing Policy
Economic Development Policy
Cheryl R. Cooper David W. Perkins
Analyst in Financial Economics Specialist in Macroeconomic Policy
Darryl E. Getter Libby Perl
Specialist in Financial Economics Specialist in Housing Policy
Raj Gnanarajah Andrew P. Scott
Analyst in Financial Economics Analyst in Financial Economics
Joseph V. Jaroscak Kyle D. Shohfi
Analyst in Economic Development Policy Analyst in Education Policy
Katie Jones Ben Wilhelm
Analyst in Housing Policy Analyst in Government Organization and
Management
Marc Labonte
Specialist in Macroeconomic Policy
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Congressional Research Service R46434 · VERSION 2 · NEW 21
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