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Apr 10, 2025
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Finance and Financial Sector
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Apr 10, 2025
Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
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Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
Type: IntroReferral
| Source: Senate
Apr 10, 2025
Introduced in Senate
Type: IntroReferral
| Source: Library of Congress
| Code: 10000
Apr 10, 2025
Subjects (1)
Finance and Financial Sector
(Policy Area)
Full Bill Text
Length: 13,420 characters
Version: Introduced in Senate
Version Date: Apr 10, 2025
Last Updated: Nov 21, 2025 6:22 AM
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 1439 Introduced in Senate
(IS) ]
<DOC>
119th CONGRESS
1st Session
S. 1439
To reaffirm and improve the participation of members of the Federal
Home Loan Bank System to meet the short- and long-term housing,
including affordable housing, agricultural and small business lending,
and community economic development financing needs of the communities
they serve, including rural, urban, low-income, and Tribal communities,
improve the ability of community development financial institutions and
credit unions to meet community economic development financing needs
for their communities, and aligning executive compensation to mission
achievements, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
April 10, 2025
Ms. Cortez Masto introduced the following bill; which was read twice
and referred to the Committee on Banking, Housing, and Urban Affairs
_______________________________________________________________________
A BILL
To reaffirm and improve the participation of members of the Federal
Home Loan Bank System to meet the short- and long-term housing,
including affordable housing, agricultural and small business lending,
and community economic development financing needs of the communities
they serve, including rural, urban, low-income, and Tribal communities,
improve the ability of community development financial institutions and
credit unions to meet community economic development financing needs
for their communities, and aligning executive compensation to mission
achievements, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
[From the U.S. Government Publishing Office]
[S. 1439 Introduced in Senate
(IS) ]
<DOC>
119th CONGRESS
1st Session
S. 1439
To reaffirm and improve the participation of members of the Federal
Home Loan Bank System to meet the short- and long-term housing,
including affordable housing, agricultural and small business lending,
and community economic development financing needs of the communities
they serve, including rural, urban, low-income, and Tribal communities,
improve the ability of community development financial institutions and
credit unions to meet community economic development financing needs
for their communities, and aligning executive compensation to mission
achievements, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
April 10, 2025
Ms. Cortez Masto introduced the following bill; which was read twice
and referred to the Committee on Banking, Housing, and Urban Affairs
_______________________________________________________________________
A BILL
To reaffirm and improve the participation of members of the Federal
Home Loan Bank System to meet the short- and long-term housing,
including affordable housing, agricultural and small business lending,
and community economic development financing needs of the communities
they serve, including rural, urban, low-income, and Tribal communities,
improve the ability of community development financial institutions and
credit unions to meet community economic development financing needs
for their communities, and aligning executive compensation to mission
achievements, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1.
This Act may be cited as the ``Federal Home Loan Banks' Mission
Activities Act''.
SEC. 2.
The purpose of this Act is to reaffirm and improve the
participation of members of the Federal Home Loan Bank System in
financing that meets the short- and long-term housing, including
affordable housing, agricultural, and small business lending and
community economic development financing needs of the communities they
serve, including rural, urban, low-income and Tribal communities, by--
(1) expanding the ability of the Federal Home Loan Banks to
support the housing, including affordable housing, small
business, agricultural and economic development activities of
the members of the Federal Home Loan Banks, including credit
unions, community development financial institutions, insurance
companies, and housing finance agencies;
(2) clarifying that the Federal Home Loan Bank Act (12
U.S.C. 1421 et seq.) permits a broad range of activities that
enable the Federal Home Loan Banks to support the housing and
community development activities of their members, including
providing grants, subsidized financing and advances, and credit
enhancement; and
(3) simplifying executive compensation and aligning it with
mission achievements.
SEC. 3.
INSTITUTIONS TO THE DEFINITION OF COMMUNITY FINANCIAL
INSTITUTIONS.
INSTITUTIONS.
Section 2
(10) of the Federal Home Loan Bank Act (12 U.
(10) of the Federal Home Loan Bank Act (12 U.S.C.
1422
(10) ) is amended--
(1) in subparagraph
(A) , by striking clauses
(i) and
(ii) and inserting the following:
``
(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
(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.
Development and Regulatory Improvement Act of
1994 (12 U.S.C. 4702)) by the Secretary of the
Treasury.''; and
(2) in subparagraph
(B) , by striking ``
(A)
(ii) '' and
inserting ``
(A)
(i)
(II) ''.
1994 (12 U.S.C. 4702)) by the Secretary of the
Treasury.''; and
(2) in subparagraph
(B) , by striking ``
(A)
(ii) '' and
inserting ``
(A)
(i)
(II) ''.
SEC. 4.
Section 10 of the Federal Home Loan Bank Act (12 U.
amended--
(1) in the section heading, by inserting ``and grants''
after ``advances''; and
(2) in subsection
(j) --
(A) by striking paragraph
(1) and inserting the
following:
``
(1) In general.--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.'';
(B) in paragraph
(2) , in the matter preceding
subparagraph
(A) --
(i) by striking ``Board's'' and inserting
``Director's''; and
(ii) by inserting ``and provide grants''
after ``advances'';
(C) in paragraph
(3) --
(i) in the paragraph heading, by inserting
``or grants'' after ``advances'';
(ii) in the matter preceding subparagraph
(A) --
(I) by inserting ``or grants''
after ``advances''; and
(II) by striking ``as the
following:'' and inserting ``as--'';
(iii) in subparagraph
(A) --
(I) by inserting ``the'' before
``purchase''; and
(II) by striking ``area,'' and
inserting ``area; and'';
(iv) by striking subparagraph
(B) ;
(v) by redesignating subparagraph
(C) as
subparagraph
(B) ; and
(vi) in subparagraph
(B) , as so
redesignated, by inserting ``the'' before
``purchase'';
(D) in paragraph
(4) --
(i) by inserting ``or grants'' after
``receiving advances'';
(ii) by inserting ``or grants'' after
``such advances'';
(iii) by inserting ``or grants'' after ``of
advances''; and
(iv) by striking ``this program'' and
inserting ``the Program'';
(E) in paragraph
(5) --
(i) in the matter preceding subparagraph
(A) --
(I) by inserting ``or grants''
after ``advances''; and
(II) by striking ``Affordable
Housing'';
(ii) in subparagraph
(C) , by striking
``1995, and subsequent years'' and inserting
``1995 and years subsequent through 2025''; and
(iii) by adding at the end the following:
``
(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
(1) in the section heading, by inserting ``and grants''
after ``advances''; and
(2) in subsection
(j) --
(A) by striking paragraph
(1) and inserting the
following:
``
(1) In general.--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.'';
(B) in paragraph
(2) , in the matter preceding
subparagraph
(A) --
(i) by striking ``Board's'' and inserting
``Director's''; and
(ii) by inserting ``and provide grants''
after ``advances'';
(C) in paragraph
(3) --
(i) in the paragraph heading, by inserting
``or grants'' after ``advances'';
(ii) in the matter preceding subparagraph
(A) --
(I) by inserting ``or grants''
after ``advances''; and
(II) by striking ``as the
following:'' and inserting ``as--'';
(iii) in subparagraph
(A) --
(I) by inserting ``the'' before
``purchase''; and
(II) by striking ``area,'' and
inserting ``area; and'';
(iv) by striking subparagraph
(B) ;
(v) by redesignating subparagraph
(C) as
subparagraph
(B) ; and
(vi) in subparagraph
(B) , as so
redesignated, by inserting ``the'' before
``purchase'';
(D) in paragraph
(4) --
(i) by inserting ``or grants'' after
``receiving advances'';
(ii) by inserting ``or grants'' after
``such advances'';
(iii) by inserting ``or grants'' after ``of
advances''; and
(iv) by striking ``this program'' and
inserting ``the Program'';
(E) in paragraph
(5) --
(i) in the matter preceding subparagraph
(A) --
(I) by inserting ``or grants''
after ``advances''; and
(II) by striking ``Affordable
Housing'';
(ii) in subparagraph
(C) , by striking
``1995, and subsequent years'' and inserting
``1995 and years subsequent through 2025''; and
(iii) by adding at the end the following:
``
(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.
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.'';
(F) in paragraph
(6) --
(i) in subparagraph
(A) , by striking ``this
paragraph'' and inserting ``paragraph
(5) '';
(ii) in subparagraph
(C) , by striking
``Board's'' and inserting ``Director's'';
(iii) in subparagraph
(E) , by striking
``Affordable Housing''; and
(iv) in subparagraph
(F) , by inserting
``Notification.--'' before ``The Director'';
(G) in paragraph
(9) --
(i) by striking ``this program'' each place
it appears and inserting ``the Program''; and
(ii) by inserting ``and grants'' after
``advances'' each place it appears;
(H) in paragraph
(10) , by inserting ``and grant''
after ``advance'';
(I) in paragraph
(11) , in second sentence, by
inserting ``and grants'' after ``advances'';
(J) by amending paragraph
(12) to read as follows:
``
(12) Temporary suspension of requirements following
disasters.--Following 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
(K) in paragraph
(13) , in the matter preceding
subparagraph
(A) , by striking ``subsection--'' and
inserting ``subsection:''.
regulation, and that benefits persons who are
residents of the States of the district in
which the Bank is headquartered.'';
(F) in paragraph
(6) --
(i) in subparagraph
(A) , by striking ``this
paragraph'' and inserting ``paragraph
(5) '';
(ii) in subparagraph
(C) , by striking
``Board's'' and inserting ``Director's'';
(iii) in subparagraph
(E) , by striking
``Affordable Housing''; and
(iv) in subparagraph
(F) , by inserting
``Notification.--'' before ``The Director'';
(G) in paragraph
(9) --
(i) by striking ``this program'' each place
it appears and inserting ``the Program''; and
(ii) by inserting ``and grants'' after
``advances'' each place it appears;
(H) in paragraph
(10) , by inserting ``and grant''
after ``advance'';
(I) in paragraph
(11) , in second sentence, by
inserting ``and grants'' after ``advances'';
(J) by amending paragraph
(12) to read as follows:
``
(12) Temporary suspension of requirements following
disasters.--Following 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
(K) in paragraph
(13) , in the matter preceding
subparagraph
(A) , by striking ``subsection--'' and
inserting ``subsection:''.
SEC. 5.
Section 7 of the Federal Home Loan Bank Act (12 U.
amended--
(1) in the first subsection
(l) (relating to withholding of
compensation)--
(A) in the subsection heading, by striking
``Withholding of Compensation'' and inserting
``Compensation of Executive Officers'';
(B) by striking ``Notwithstanding'' and inserting
the following:
``
(1) Withholding of compensation.--Notwithstanding''; and
(C) by adding at the end the following:
``
(2) Setting compensation.--
``
(A) In general.--Notwithstanding
(1) in the first subsection
(l) (relating to withholding of
compensation)--
(A) in the subsection heading, by striking
``Withholding of Compensation'' and inserting
``Compensation of Executive Officers'';
(B) by striking ``Notwithstanding'' and inserting
the following:
``
(1) Withholding of compensation.--Notwithstanding''; and
(C) by adding at the end the following:
``
(2) Setting compensation.--
``
(A) In general.--Notwithstanding
section 1318
(d) of the Federal Housing Enterprises Financial Safety and
Soundness Act of 1992 (12 U.
(d) of the Federal Housing Enterprises Financial Safety and
Soundness Act of 1992 (12 U.S.C. 4518
(d) ), the Director
shall, in accordance with regulations issued by the
Director, establish compensation for any executive
officer of a Bank that is reasonable and comparable to
compensation for employment at a regional Federal
Reserve Bank or other similar publicly-subsidized
financial institutions or financial services companies
involving similar duties and responsibilities.
``
(B) Mission investments.--In determining the
compensation for an executive officer of a Bank under
subparagraph
(A) , the Director--
``
(i) shall consider the level of mission
investments, including--
``
(I) the percentage of member
institutions that provided community
investment program advances, community
investment cash advances, and letters
of credit;
``
(II) the percentage of member
institutions that sponsored affordable
housing programs under
Soundness Act of 1992 (12 U.S.C. 4518
(d) ), the Director
shall, in accordance with regulations issued by the
Director, establish compensation for any executive
officer of a Bank that is reasonable and comparable to
compensation for employment at a regional Federal
Reserve Bank or other similar publicly-subsidized
financial institutions or financial services companies
involving similar duties and responsibilities.
``
(B) Mission investments.--In determining the
compensation for an executive officer of a Bank under
subparagraph
(A) , the Director--
``
(i) shall consider the level of mission
investments, including--
``
(I) the percentage of member
institutions that provided community
investment program advances, community
investment cash advances, and letters
of credit;
``
(II) the percentage of member
institutions that sponsored affordable
housing programs under
section 10
(j) and other grant programs created
voluntarily or by regulation;
``
(III) the share of all advances
provided to community financial
institutions;
``
(IV) investments in municipal and
housing finance agency bonds; and
``
(V) other mission investments
that are reasonable in accordance with
regulations promulgated by the
Director; and
``
(ii) may pay compensation at a level that
is higher than the compensation for a regional
Federal Reserve Bank with achievement of goals
aligned with mission achievements as
established by the Director.
(j) and other grant programs created
voluntarily or by regulation;
``
(III) the share of all advances
provided to community financial
institutions;
``
(IV) investments in municipal and
housing finance agency bonds; and
``
(V) other mission investments
that are reasonable in accordance with
regulations promulgated by the
Director; and
``
(ii) may pay compensation at a level that
is higher than the compensation for a regional
Federal Reserve Bank with achievement of goals
aligned with mission achievements as
established by the Director.''; and
(2) by striking the second subsection
(l) .
SEC. 6.
Section 10 of the Federal Home Loan Bank Act (12 U.
amended by adding at the end the following:
``
(l) Report to Congress.--The Director shall annually report to
the Committee on Banking, Housing, and Urban Affairs of the Senate and
the Committee on Financial Services of the House of Representatives on
the collateral pledged to the Banks, including an analysis of
collateral by type and by Bank district.''.
<all>
``
(l) Report to Congress.--The Director shall annually report to
the Committee on Banking, Housing, and Urban Affairs of the Senate and
the Committee on Financial Services of the House of Representatives on
the collateral pledged to the Banks, including an analysis of
collateral by type and by Bank district.''.
<all>