1. Short title This Act may be cited as Clarifying Commercial Real Estate Loans . 2. Capital requirements for certain acquisition, development, or construction loans The Federal Deposit Insurance Act is amended by adding at the end the following new section: 51. Capital requirements for certain acquisition, development, or construction loans (a) In general The appropriate Federal banking agencies may only subject a depository institution to higher capital standards with respect to a high volatility commercial real estate (HVCRE) exposure (as defined under section 324.2 of title 12, Code of Federal Regulations, as in effect on the day before the date of the enactment of this section) if such exposure is an HVCRE ADC loan. (b) HVCRE ADC loan defined For purposes of this section and with respect to a depository institution, the term HVCRE ADC loan — (1) means a credit facility secured by land or improved real property that, prior to being reclassified by the depository institution as a Non-HVCRE ADC loan pursuant to subsection (d)— (A) finances or has financed the acquisition, development, or construction of real property; (B) has the purpose of providing financing to acquire, develop, or improve such real property into income-producing real property; and (C) is dependent upon future income or sales proceeds from, or refinancing of, such real property for the repayment of such credit facility; (2) does not include a credit facility financing— (A) the acquisition, development, or construction of properties that are— (i) one- to four-family residential properties; (ii) real property that would qualify as an investment in community development; or (iii) agricultural land; (B) the acquisition or refinance of existing income-producing real property secured by a mortgage on such property