[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5783 Introduced in House (IH)]
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116th CONGRESS
2d Session
H. R. 5783
To amend title 23, United States Code, to modify the transportation
finance infrastructure and innovation program with respect to community
development financial institutions, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 6, 2020
Mr. DeSaulnier introduced the following bill; which was referred to the
Committee on Transportation and Infrastructure
_______________________________________________________________________
A BILL
To amend title 23, United States Code, to modify the transportation
finance infrastructure and innovation program with respect to community
development financial institutions, 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. SHORT TITLE.
This Act may be cited as the ``Equitable Transit Oriented
Development Support Act''.
SEC. 2. INFRASTRUCTURE FINANCE.
(a) Generally Applicable Provisions.--Section 601(a) of title 23,
United States Code, is amended--
(1) by inserting ``and section 611'' after ``609'';
(2) in paragraph (2)--
(A) in subparagraph (C) by striking ``; and'' and
inserting a semicolon;
(B) in subparagraph (D) by striking the period and
inserting ``; and''; and
(C) by adding at the end the following:
``(E) capitalizing a CDFI TOD account.'';
(3) in paragraph (12)--
(A) in subparagraph (E) by striking ``; and'' and
inserting a semicolon;
(B) in subparagraph (F) by striking the period and
inserting ``; and''; and
(C) by adding at the end the following:
``(G) the capitalization of a CDFI TOD account.'';
and
(4) by adding at the end the following:
``(23) CDFI.--The term `CDFI' has the meaning given the
term `community development financial institution' under
section 103 of the Riegle Community Development and Regulatory
Improvement Act of 1994 (12 U.S.C. 4702).
``(24) CDFI tod account.--The term `CDFI TOD account' means
an account--
``(A) established within a CDFI under section
611(c);
``(B) capitalized with the proceeds of a secured
loan made to a CDFI in accordance with sections 602 and
603;
``(C) for the purpose of making loans to sponsors
of transit-oriented development projects in accordance
with section 611.''.
(b) Determination of Eligibility and Project Selection.--Section
602 of title 23, United States Code, is amended--
(1) in subsection (a)--
(A) in paragraph (2) by adding at the end the
following:
``(C) CDFI.--Notwithstanding subparagraphs (A) and
(B), in a case in which the Federal credit instrument
is provided to a CDFI, the Secretary may rely upon a
credit assessment of the CDFI by the Secretary of
Treasury in lieu of investment grade ratings and credit
opinions from rating agencies.'';
(B) in paragraph (4) by inserting ``CDFI,'' after
``partnership,'';
(C) in paragraph (5)(B) by inserting at the end the
following:
``(v) CDFI tod accounts.--In the case of a
project capitalizing a CDFI TOD account,
eligible project costs shall not exceed
$100,000,000.'';
(D) in paragraph (6)--
(i) in subparagraph (C) by striking ``or'';
(ii) in subparagraph (D) by striking the
period and inserting ``; or''; and
(iii) by adding at the end the following:
``(E) in the case of a CDFI TOD account, the
unconditional promissory obligation of a CDFI.'';
(E) in paragraph (7)--
(i) by striking ``State or local government
or'' and inserting ``State or local
government,''; and
(ii) by inserting ``or a CDFI,'' before
``the project'';
(F) in paragraph (9)--
(i) by striking ``The Secretary'' and
inserting ``(A) In general--The Secretary'';
(ii) by redesignating subparagraphs (A),
(B), and (C) as clauses (i), (ii), and (iii);
and
(iii) by adding at the end the following:
``(B) CDFI tod accounts.--With respect to financial
assistance provided to a CDFI under the TIFIA program,
the Secretary shall deem that the project generates
beneficial effects.''; and
(G) in paragraph (10)--
(i) in subparagraph (A) by striking
``subparagraph (B)'' and inserting
``subparagraphs (B) and (C)''; and
(ii) by adding at the end the following:
``(C) CDFI tod account.--In the case of a project
capitalizing a CDFI TOD account, the CDFI shall
demonstrate to the Secretary, not later than two years
after the date on which a secured loan is obligated for
the project under the TIFIA program, that the CDFI has
executed a loan agreement with a project sponsor in
accordance with section 611. After the demonstration is
made, the CDFI may draw upon the secured loan. At the
end of the 2-year period, to the extent the CDFI has
not used the loan commitment, the Secretary may extend
the time period for using the loan commitment or
withdraw the loan commitment.''; and
(2) in subsection (b)(3)--
(A) by striking ``The Secretary'' and inserting
``(A) In general--The Secretary'';
(B) by redesignating subparagraphs (A) and (B) as
clauses (i) and (ii), respectively; and
(C) by adding at the end the following:
``(B) CDFI tod account.--Notwithstanding
subparagraph (A), in the case of an applicant that is a
CDFI, in lieu of a preliminary rating opinion letter,
the Secretary may rely upon a letter from the Secretary
of the Treasury that verifies the applicant is a CDFI
certified by the Community Development Financial
Institutions Fund of the Department of the Treasury.''.
(c) Secured Loans.--Section 603 of title 23, United States Code, is
amended--
(1) in subsection (a)(3) by striking ``section
602(b)(3)(B)'' and inserting ``section 603(b)(3)(A)(ii) or,
with respect to a CDFI, the letter of the Secretary of Treasury
under section 602(b)(3)(B)'';
(2) in subsection (b)--
(A) in paragraph (2)--
(i) in subparagraph (A) by striking
``subparagraph (B)'' and inserting
``subparagraphs (B) and (C)''; and
(ii) by adding at the end the following:
``(C) CDFI tod account.--In the case of a project
capitalizing a CDFI TOD account, the maximum amount of
a secured loan made to a CDFI shall be determined in
accordance with section 602(a)(5)(B)(v).'';
(B) in paragraph (3)(A)(i)--
(i) in subclause (IV) by striking ``; or''
and inserting ``;'';
(ii) in subclause (V) by striking ``; and''
and inserting ``; or''; and
(iii) by adding at the end the following:
``(VI) in the case of a secured
loan for a project capitalizing a CDFI
TOD account, any other revenue sources
available to a CDFI, including
repayments from loans made for projects
in accordance with section 611; and'';
(C) in paragraph (4)(B)--
(i) in the header by inserting ``and CDFI
TOD accounts'' after ``infrastructure
projects'';
(ii) in clause (i) by striking ``or a rural
projects fund'' and inserting ``, a rural
projects fund, or a CDFI TOD account''; and
(iii) in clause (ii) by striking ``and
rural project funds'' and inserting ``, rural
projects funds, and CDFI TOD accounts'';
(D) in paragraph (5)(B)--
(i) in the header by inserting ``and CDFI
TOD account'' after ``Rural projects fund'';
and
(ii) by inserting ``or CDFI TOD account''
after ``rural projects fund''; and
(E) in paragraph (9) by adding at the end the
following:
``(C) CDFI tod account.--A project capitalizing a
CDFI TOD account shall satisfy subparagraph (A) through
compliance with the Federal share requirement described
in section 611(c)(3)(A).''.
(d) Program Administration.--Section 605 of title 23, United States
Code, is amended--
(1) in subsection (d) by inserting ``, community
development,'' after ``field of municipal'';
(2) by redesignating subsections (e) and (f) as subsections
(g) and (h), respectively;
(3) by inserting after subsection (d) the following:
``(e) Assistance From the Secretary of Treasury.--The Secretary
shall consult with the Secretary of the Treasury in assessing the
creditworthiness of CDFI applicants and shall enter into a memorandum
of understanding pursuant to section 611(b) of this chapter through
which the Secretary of the Treasury provides assistance in the credit
underwriting, servicing, and monitoring of Federal credit instruments
provided to CDFI TOD accounts.
``(f) Implementation.--Not later than 180 days after enactment of
Section 611, the Secretary shall implement this section by releasing
program guidance and soliciting applications.''; and
(4) in subsection (h) (as so redesignated)--
(A) in the heading by inserting ``and CDFI TOD
accounts'' after ``small projects''; and
(B) in paragraph (1)--
(i) by striking ``608(a)(5)'' and inserting
``608(a)(6)'';
(ii) by striking ``$2,000,000'' and
inserting ``$4,000,000''; and
(iii) by striking ``$75,000,000'' and
inserting ``$100,000,000''.
(e) Funding.--Section 608(a) of title 23, United States Code, is
amended--
(1) by redesignating paragraphs (4) and (5) as paragraphs
(5) and (6), respectively;
(2) by inserting after paragraph (3) the following:
``(4) CDFI set aside.--
``(A) In general.--Of the total amount of funds
made available to carry out the TIFIA program for each
fiscal year, not more than 10 percent shall be set
aside for CDFI TOD accounts.
``(B) Reobligation.--Any amounts set aside under
subparagraph (A) that remain unobligated by June 1 of
the fiscal year for which the amounts were set aside
shall be available for obligation by the Secretary on
projects other than CDFI TOD accounts.''; and
(3) by adding at the end the following:
``(7) Reimbursements to the secretary of the treasury.--Of
the amounts authorized for the administration of the TIFIA
program under paragraph (6), the Secretary may use not more
than 10 percent for each fiscal year to reimburse the Secretary
of the Treasury for assistance provided pursuant to a
memorandum of understanding under section 611(b).''.
(f) Community Development Financial Institution Transit-Oriented
Development.--
(1) In general.--Chapter 6 of title 23, United States Code,
is amended by adding at the end the following:
``Sec. 611. Community development financial institution transit-
oriented development
``(a) Definitions.--In this section:
``(1) CDFI tod project.--The term `CDFI TOD project' means
a project located within one-half mile in an urban area or
three-fourths of a mile in a rural area of a fixed guideway
transit facility, passenger rail station, intercity bus station
or intermodal facility that supports--
``(A) commercial facilities or businesses that are
located in low-income communities and are--
``(i) owned by low-income persons;
``(ii) principally serve low-income persons
or low-income community residents; or
``(iii) principally employ low-income
persons;
``(B) community facilities that are located in low-
income communities or principally serve low-income
persons; or
``(C) housing that is principally affordable to
low-income persons.
``(2) Investment area.--The term `Investment Area' has the
meaning given the term in section 1805.201(b)(3)(B)(ii) of
title 12, Code of Federal Regulations (as in effect on the date
of enactment of this section).
``(3) Loan.--The term `loan' means any form of direct
financial assistance that is required to be repaid over a
period of time provided by a CDFI to a project sponsor for all
or part of the costs of a CDFI TOD project.
``(4) Low-income community.--The term `low-income
community' means a community that is located in an Investment
Area.
``(5) Low-income person.--The term `low-income person'
means a person whose income does not exceed the level
established for low-income (as such term is defined in section
1805.104 of title 12, Code of Federal Regulations, as in effect
on the date of enactment of this section).
``(6) Project sponsor.--The term `project sponsor' means a
public or private entity approved by a CDFI and developing a
CDFI TOD project in accordance with this section.
``(b) Memorandum of Understanding.--The Secretary shall enter into
a memorandum of understanding with the Secretary of Treasury to support
consultation with the Community Development Financial Institutions Fund
to provide the necessary credit underwriting, servicing, and monitoring
of CDFI applicants and participants in the TIFIA program.
``(c) CDFI TOD Accounts.--
``(1) In general.--The Secretary shall require any CDFI
participating in the program authorized in this section to
establish a CDFI TOD account into which the proceeds of a
secured loan made to the CDFI in accordance with sections 602
and 603 and any loan repayments from public or private entities
receiving loans made to fund CDFI TOD projects will be
deposited.
``(2) Amounts in account.--Any principal loan repayments
and any investment income derived from funds deposited to a
CDFI TOD account shall be--
``(A) credited to the account;
``(B) available for providing loans to project
sponsors;
``(C) available for repaying the secured loan made
to the CDFI in accordance with sections 602 and 603;
and
``(D) invested in such financing instruments as the
Secretary may approve to earn interest to augment the
lending capacity of the account.
``(3) Loans.--Any loan to a project sponsor funded from the
account shall--
``(A) be in an amount determined by the CDFI, but
in any case not exceed 80 percent of eligible project
costs;
``(B) commence repayment not later than 5 years
after the project has been completed;
``(C) have a final maturity not later than 30 years
after the date of the first payment on the loan;
``(D) be set at a rate not greater than the level
needed to fully reimburse the CDFI's administrative,
monitoring, servicing, and capital charges associated
with the loan; and
``(E) be secured and have a priority of payment as
determined by the CDFI.
``(4) Revolving loan structure.--The CDFI may apply loan
repayments to fund additional loans provided such relending
does not impair the ability of the CDFI to repay its secured
loan in full and timely fashion.
``(5) Delegated lending model.--The CDFI is authorized to
provide loans for CDFI TOD projects under a delegated lending
model. No provision of this section shall restrict the ability
of the CDFI to establish the terms and conditions of loans to
project sponsors under this section.
``(d) Discontinuance of Funding.--If the Secretary determines that
a CDFI is not implementing the CDFI TOD account in accordance with the
application of such account, the Secretary may prohibit the CDFI from
drawing down any additional proceeds from a secured loan commitment.
``(e) Forms of Assistance From a CDFI.--
``(1) In general.--A CDFI may, using funds deposited into
the CDFI TOD account, make loans to a public or private entity
to carry out a CDFI TOD project.
``(2) Subordination of loan.--The amount of a loan or other
form of credit assistance provided for a project described in
subsection (c)(3) may be subordinated to any other debt
financing for the project.
``(f) Annual Report to the Secretary.--Any CDFI participating in
this program shall make an annual report to the Secretary not later
than September 30 of each year and such other reports as the Secretary
may require under guidelines issued to carry out this section.
``(g) Applicability of Federal Law.--The requirements of this title
and title 49 that would otherwise apply to funds made available under
this chapter or such title and projects assisted with those funds shall
apply to CDFI TOD projects assisted by the CDFI under this chapter,
except to the extent the Secretary determines that any requirement of
such title is not applicable or is not consistent with the objectives
of this section.
``(h) United States Not Obligated.--The deposit of Federal funds
into a CDFI under this section shall not be construed as a commitment,
guarantee, or obligation on the part of the United States to any third
party, nor shall any third party have any right against the United
States for payment solely by virtue of the contribution. Any security
or debt financing instrument issued by the CDFI shall expressly state
that the security or instrument does not constitute a commitment,
guarantee, or obligation of the United States.
``(i) Program Administration.--For each fiscal year, a CDFI may not
expend more than 2 percent of the Federal assistance received under
this chapter to pay the reasonable costs of administering a CDFI TOD
account pursuant to this section.''.
(2) Clerical amendment.--The analysis for chapter 6 of
title 23, United States Code, is amended by adding at the end
the following:
``611. Community development financial institution transit-oriented
development.''.
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