S. 934: American Housing and Economic Mobility Act of 2025

The American Housing and Economic Mobility Act of 2025 is a comprehensive piece of legislation designed to improve housing affordability and access. It includes several key initiatives:

Housing Affordability Measures

The bill aims to enhance housing affordability through:

• Grants for Local Reforms: Local governments can receive funding to implement reforms related to land use that would support affordable housing development.
• Funding for Infrastructure: It allocates funds for the necessary infrastructure to support affordable housing projects.
• Addressing Discrimination: The bill includes provisions that aim to combat housing discrimination and improve accessibility for all individuals.
• Assistance for First-Time Homebuyers: There are initiatives specifically aimed at helping first-time homebuyers purchase their own homes.
• Supporting Community Development: The act supports community-led initiatives to promote housing and economic development.

Mortgage Regulations

Provisions are included that regulate the sale and transfer of covered mortgages, requiring:

• A notification period of at least 90 days to borrowers before a mortgage can be sold or transferred.
• Detailed information about loss mitigation options that borrowers can explore.
• Any subsequent purchasers must continue to offer comparable loss mitigation options and failure to do so restricts foreclosure actions.
• Properties sold under these mortgages should be aimed primarily at owner-occupants or directed towards affordable housing projects.

Evaluation of Financial Institutions

The bill establishes measures to evaluate financial institutions based on their contributions to community development, particularly in:

• Affordable housing initiatives.
• Lending practices that support underserved communities.

It requires public input regarding performance evaluations and community benefits plans. Furthermore, penalties are introduced for those institutions that do not meet adequate performance standards.

Regulations on Underserved Areas

Changes are made to definitions and regulations relating to underserved areas. Key components include:

• Federal credit unions are mandated to create plans addressing community needs.
• There will be oversight of adherence to these plans, along with compliance monitoring with investment limitations.
• The goal is to promote economic welfare by enhancing accessibility to financial services.
• Annual reporting on these measures will be required.

Amendments on Tax Provisions

The bill includes amendments regarding estate and gift tax regulations which entail:

• Setting the inclusion ratio to 1 for transfers to non-exempt persons and taxable terminations that do not have exempt beneficiaries.
• Defining "exempt person" for clarity in regulations.
• Establishing rules around the gift tax exclusion and valuation standards.
• Introducing a surcharge on high-income estates and trusts.
• Changes related to conservation easements are also proposed to enhance tax compliance and efficiency.

Relevant Companies

• None found