[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 2616 Introduced in Senate (IS)]
<DOC>
117th CONGRESS
1st Session
S. 2616
To create livable communities through coordinated public investment and
streamlined requirements, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
August 5, 2021
Mr. Menendez (for himself, Ms. Cortez Masto, Mr. Van Hollen, Mr. Wyden,
Mr. Reed, Mrs. Gillibrand, Mr. Padilla, and Mr. Blumenthal) introduced
the following bill; which was read twice and referred to the Committee
on Banking, Housing, and Urban Affairs
_______________________________________________________________________
A BILL
To create livable communities through coordinated public investment and
streamlined requirements, 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 ``Livable Communities Act of 2021''.
SEC. 2. FINDINGS.
Congress finds that--
(1) key Federal programs can boost economic growth at the
local and regional level through better coordination of
housing, transportation, and related infrastructure
investments;
(2) Federal regulations and policies should support
community efforts to implement and sustain progress toward the
achievement of locally-defined development goals, in terms of--
(A) geographic location and proximity to existing
resources;
(B) developing transportation choices that serve
the needs of all users and fit within the context of
the community;
(C) maintaining structural and indoor environmental
quality and minimizing health hazards; and
(D) ensuring that minority and low-income
communities have greater access to existing and future
transportation services and healthy and affordable
housing resources;
(3) greater coordination of public investment will provide
direct support for immediate job creation and lay the
groundwork for long-term resilience and prosperity by
leveraging significant private sector and philanthropic
investment to make the most of Federal funding; and
(4) improved coordination of Federal housing,
transportation, water infrastructure, and climate and
resiliency investments will strengthen local communities'
ability to plan for and respond to the effects of climate
change.
SEC. 3. PURPOSES.
The purposes of this Act are--
(1) to strengthen rural, suburban, and urban economies by
enabling communities to establish goals for the future and to
chart a course for achieving such goals;
(2) to promote local leadership by encouraging communities
to develop innovative solutions that reflect the unique
economic assets and needs of the communities;
(3) to maximize returns on Federal funding of housing,
transportation, and environmental infrastructure and resiliency
projects through the coordination of Federal grant programs and
improving the efficiency and effectiveness of programs and
policies of the Department of Housing and Urban Development,
the Department of Transportation, the Environmental Protection
Agency, and other Federal agencies, as appropriate;
(4) to ensure that Federal funding supports locally defined
long range development goals;
(5) to make investments in housing, transportation,
environmental, and resiliency projects in and for the benefit
of historically disadvantaged or underserved minority and low-
income communities;
(6) to support a Federal initiative to support healthy
housing and reduce the prevalence and severity of housing-
related health hazards; and
(7) to support the efforts of local communities to address
the impact of climate change, including increased resilience to
extreme weather events.
SEC. 4. DEFINITIONS.
In this Act, the following definitions shall apply:
(1) Affordable housing.--The term ``affordable housing''
means housing, the cost of which does not exceed 30 percent of
the income of low-, very low-, and extremely low-income
families.
(2) Comprehensive regional plan.--The term ``comprehensive
regional plan'' means a plan that--
(A) uses a cooperative, locally controlled, and
inclusive public engagement process to identify needs
and goals across a region and to integrate related
planning processes;
(B) prioritizes projects for implementation,
including healthy housing projects; and
(C) is tied to capital improvement programs and
annual budgets.
(3) Department.--The term ``Department'' means the
Department of Housing and Urban Development.
(4) Director.--The term ``Director'' means the Director of
the Office of Sustainable Housing and Communities established
under section 5.
(5) Extremely low-income family.--The term ``extremely low-
income family'' has the meaning given that term in section 3(b)
of the United States Housing Act of 1937 (42 U.S.C. 1437a(b)).
(6) Healthy housing.--The term ``healthy housing'' means
housing, including senior housing and residential care
facilities, that is designed, constructed, rehabilitated, and
maintained in a manner that supports the health of the
occupants of the housing.
(7) High-poverty community.--The term ``high-poverty
community'' means a census tract with a poverty rate of not
less than 25 percent, according to the most recent 5-year
estimate of the American Community Survey of the Bureau of the
Census.
(8) Housing-related health hazard.--The term ``housing-
related health hazard'' means any biological, physical, or
chemical source of exposure or condition in, or immediately
adjacent to, housing that could adversely affect human health.
(9) Indian tribe.--The term ``Indian tribe'' has the
meaning given the term in section 4(e) of the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 450b(e)).
(10) Livable community.--The term ``livable community''
means a metropolitan, urban, suburban, or rural community
that--
(A) provides transportation choices that are safe,
reliable, affordable, accessible, and accommodative for
individuals with disabilities;
(B) provides long-term affordable housing that
provides accessible, energy-efficient, and location-
efficient choices for people of all ages, incomes,
races, and ethnicities;
(C) supports, revitalizes, and encourages the
growth of existing communities and maximizes the cost-
effectiveness of existing infrastructure;
(D) promotes economic development and economic
competitiveness;
(E) preserves the environment and natural resources
and increases community resilience to natural or
anthropogenic environmental disasters;
(F) protects agricultural land, rural land, and
green spaces; and
(G) supports public health and improves the quality
of life for residents of, and workers in, the
community.
(11) Location-efficient.--The term ``location-efficient''
characterizes mixed-use development or neighborhoods that
integrate housing, transportation choices, commercial
development, and facilities and amenities--
(A) to lower living expenses for working families;
(B) to enhance economic and physical mobility;
(C) to encourage private investment in transit-
oriented development; and
(D) to encourage private sector infill development
and maximize the use of existing infrastructure.
(12) Long-term affordable housing.--The term ``long-term
affordable housing'' means housing that is affordable housing
for a period of not less than 30 years.
(13) Low-income family.--The term ``low-income family'' has
the meaning given the term in section 3(b) of the United States
Housing Act of 1937 (42 U.S.C. 1437a(b)).
(14) Metropolitan planning organization.--The term
``metropolitan planning organization'' means a metropolitan
planning organization described in section 134(b) of title 23,
United States Code or section 5303(b) of title 49, United
States Code.
(15) Office.--The term ``Office'' means the Office of
Sustainable Housing and Communities established under section
5.
(16) Regional council.--The term ``regional council'' means
a multiservice regional organization with State and locally
defined boundaries that is--
(A) accountable to units of general local
government;
(B) delivers a variety of Federal, State, and local
programs; and
(C) performs planning functions and provides
professional and technical assistance.
(17) Rural planning organization.--The term ``rural
planning organization'' means a voluntary regional organization
of local elected officials and representatives of local
transportation systems--
(A) that--
(i) works in cooperation with the
department of transportation (or equivalent
entity) of a State to plan transportation
networks and advise officials of the State on
transportation planning; and
(ii) is located in a rural area--
(I) with a population of not less
than 5,000; and
(II) that is not located in an area
represented by a metropolitan planning
organization; or
(B) that is a regional transportation planning
organization, as defined in section 5303 of title 49,
United States Code.
(18) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
(19) State.--The term ``State'' has the meaning given the
term in section 5302 of title 49, United States Code.
(20) Sustainable development.--The term ``sustainable
development'' means development that--
(A) fulfills a current and future social need of a
community;
(B) promotes economic competitiveness or growth and
creates new economic opportunity; and
(C) uses natural resources responsibly, minimizes
ecological and environmental impacts, and improves
community resilience to natural disasters while
preserving the ability of future generations to meet
their own needs.
(21) Transit-oriented development.--The term ``transit-
oriented development'' means high-density, walkable, accessible
to individuals with disabilities, and location-efficient mixed-
use development, including commercial development, and
affordable and market-rate housing, that is within walking
distance of and accessible to 1 or more public transportation
facilities with frequent service.
(22) Unit of general local government.--The term ``unit of
general local government'' means--
(A) a city, county, town, township, parish,
village, or other general purpose political subdivision
of a State; or
(B) a combination of general purpose political
subdivisions, as determined by the Secretary.
(23) Unit of special purpose local government.--The term
``unit of special purpose local government''--
(A) means a division of a unit of general local
government that serves a special purpose and does not
provide a broad array of services; and
(B) includes an entity such as a school district, a
housing agency, a transit agency, and a parks and
recreation district.
(24) Very low-income family.--The term ``very low-income
family'' has the meaning given the term in section 3(b) of the
United States Housing Act of 1937 (42 U.S.C. 1437a(b)).
SEC. 5. OFFICE OF SUSTAINABLE HOUSING AND COMMUNITIES.
(a) Office Established.--There is established in the Department an
Office of Sustainable Housing and Communities, which shall--
(1) coordinate the policies of the Department with those of
other Federal agencies that--
(A) encourage locally directed comprehensive and
integrated planning and development at the State,
regional, and local levels;
(B) encourage coordinated public investments
through the development of comprehensive regional
plans;
(C) provide long-term affordable housing that
provides accessible, energy-efficient, healthy, and
location-efficient choices for people of all ages,
incomes, races, and ethnicities and individuals with
disabilities, particularly for low-, very low-, and
extremely low-income families; and
(D) achieve other goals consistent with the
purposes of this Act;
(2) review Federal programs and policies to determine
barriers to interagency collaboration and make recommendations
to promote the ability of local communities, including high-
poverty communities, to access resources in the Department and
throughout the Federal Government and coordinate with and
conduct outreach to Federal agencies, including the Department
of Transportation and the Environmental Protection Agency, on
methods to improve the efficiency and effectiveness of programs
within the Department of Transportation, the Environmental
Protection Agency, the Department of Agriculture, and the
Department;
(3) review Federal programs and policies to--
(A) identify barriers to high-poverty individuals
and communities' access to Federal State, local, and
private resources; and
(B) make recommendations--
(i) to promote the ability of high-poverty
communities to access resources in the
Department and throughout the Federal
Government and coordinate with and conduct
outreach to Federal agencies, including the
Department of Transportation and the
Environmental Protection Agency; and
(ii) for methods to improve the access of
high-poverty communities to Federal resources
and programs within the Department of
Transportation, the Environmental Protection
Agency, and the Department;
(4) conduct research and advise the Secretary on the
research agenda of the Department relating to coordinated
development, in collaboration with the Office of Policy
Development and Research of the Department;
(5) implement and oversee the grant programs established
under this Act;
(6) provide guidance, information on best practices, and
technical assistance to communities seeking to adopt
sustainable development policies and practices;
(7) administer initiatives of the Department relating to
the policies described in paragraph (1), as determined by the
Secretary; and
(8) work with the Federal Transit Administration and the
Federal Highway Administration of the Department of
Transportation and other offices and administrations of the
Department of Transportation, as appropriate--
(A) to encourage transit-oriented development;
(B) to coordinate Federal housing, community
development, and transportation policies, including the
policies described in paragraph (1); and
(C) to address combined household housing and
transportation expenses in a coordinated manner.
(b) Director.--The head of the Office shall be the Director of the
Office of Sustainable Housing and Communities.
(c) Duties Relating to Grant Programs.--
(1) In general.--The Director shall carry out the grant
programs established under this Act.
(2) Small and rural communities grant program.--The
Director shall coordinate with the Secretary of Agriculture to
make grants to small and rural communities under sections 7 and
8.
(3) Technical assistance for grant recipients and
applicants.--The Director may--
(A) coordinate with other Federal agencies to
establish interagency and multidisciplinary teams to
provide technical assistance to recipients of, and
prospective applicants for, grants under this Act;
(B) by Federal interagency agreement, transfer
funds to another Federal agency to facilitate and
support technical assistance; and
(C) make contracts with third parties to provide
technical assistance to grant recipients and
prospective applicants for grants.
SEC. 6. COMPREHENSIVE PLANNING GRANT PROGRAM.
(a) Definitions.--In this section:
(1) Consortium of units of general local governments.--The
term ``consortium of units of general local governments'' means
a consortium of geographically contiguous units of general
local government that the Secretary determines--
(A) represents all or part of a metropolitan
statistical area, a micropolitan statistical area, or a
noncore area, as those terms are defined by the Office
of Management and Budget;
(B) has the authority under State, Tribal, or local
law to carry out planning activities, including
surveys, land use studies, environmental or public
health analyses, and development of urban
revitalization plans; and
(C) has provided documentation to the Secretary
sufficient to demonstrate that the purpose of the
consortium is to carry out a project using a grant
awarded under this Act.
(2) Eligible entity.--The term ``eligible entity'' means--
(A) a partnership between a consortium of units of
general local government and an eligible partner, which
shall designate a lead applicant to be the entity to
establish the direct grant relationship with the
Secretary; or
(B) an Indian tribe, if the Indian tribe has a
Tribal entity that performs--
(i) housing and land use planning
functions; or
(ii) transportation or transportation
planning functions.
(3) Eligible partner.--The term ``eligible partner''
means--
(A) a metropolitan planning organization, a rural
planning organization, or a regional council; or
(B) a metropolitan planning organization, a rural
planning organization, or a regional council, and--
(i) a State;
(ii) an Indian Tribe;
(iii) a State and an Indian Tribe;
(iv) a community development corporation;
or
(v) an institution of higher education.
(4) Grant program.--The term ``grant program'' means the
comprehensive planning grant program established under
subsection (b).
(5) Noncore area.--The term ``noncore area'' means a county
or group of counties that are not designated by the Office of
Management and Budget as a micropolitan statistical area or
metropolitan statistical area.
(b) Comprehensive Planning Grant Program Established.--The Director
shall establish a comprehensive planning grant program to make grants
to eligible entities to carry out a project--
(1) to coordinate locally defined planning processes across
jurisdictions and agencies;
(2) to identify regional partnerships for developing and
implementing a comprehensive regional plan that advances the
sustainability goals of the region;
(3) to conduct or update assessments to determine regional
needs and promote economic and community development;
(4) to develop or update--
(A) a comprehensive regional plan; or
(B) goals and strategies to implement an existing
comprehensive regional plan and other related
activities; and
(5) to identify local zoning and other code or policy
changes necessary to implement a comprehensive regional plan
and promote sustainable development and fair housing.
(c) Grants.--
(1) Diversity of grantees.--The Director shall ensure
geographic diversity among and adequate representation from
each of the following categories:
(A) Small and rural communities.--Eligible entities
that represent all or part of a noncore area, a
micropolitan area, or a small metropolitan statistical
area with a population of not more than 200,000.
(B) Mid-sized metropolitan communities.--Eligible
entities that represent all or part of a metropolitan
statistical area with a population of more than 200,000
and not more than 500,000.
(C) Large metropolitan communities.--Eligible
entities that represent all or part of a metropolitan
statistical area with a population of more than
500,000.
(D) Indian tribes.--Eligible entities that are
Indian tribes.
(2) Award of funds to small and rural communities.--
(A) In general.--The Director shall--
(i) award not less than 15 percent of the
funds under the grant program to eligible
entities described in paragraph (1)(A); and
(ii) ensure diversity among the geographic
regions and the size of the population of the
communities served by recipients of grants that
are eligible entities described in paragraph
(1)(A).
(B) Insufficient applications.--If the Director
determines that insufficient approvable applications
have been submitted by eligible entities described in
paragraph (1)(A), the Director may award less than 15
percent of the funds under the grant program to
eligible entities described in paragraph (1)(A).
(3) Award of funds to high-poverty communities.--
(A) In general.--The Director shall award not less
than 25 percent of the funds under the grant program to
eligible entities within the jurisdiction of which
there are not fewer than 3 census tracts with a poverty
rate of not less than 25 percent, according to the most
recent 5-year estimate of the American Community Survey
of the Bureau of the Census.
(B) Insufficient applications.--If the Director
determines that insufficient approvable applications
have been submitted by eligible entities described in
subparagraph (A)--
(i) the Director may award less than 25
percent of the funds under the grant program to
eligible entities described in subparagraph
(A);
(ii) the Office of the Director shall
conduct further educational outreach to
eligible entities within high-poverty
communities;
(iii) the Director shall keep an open
application period until the Director
determines there is an appropriate amount of
approvable applications that can be awarded
within the period of availability; and
(iv) the Director shall provide technical
assistance to eligible entities within the
jurisdiction of which are high-poverty
communities.
(4) Availability of funds.--
(A) In general.--An eligible entity that receives a
grant under the grant program shall--
(i) obligate any funds received under the
grant program not later than 1 year after the
date on which the grant agreement under
subsection (g) is made; and
(ii) expend any funds received under the
grant program not later than 4 years after the
date on which the grant agreement under
subsection (g) is made.
(B) Unobligated amounts.--After the date described
in subparagraph (A)(i), the Secretary may--
(i) grant an extension to the eligible
entity if the eligible entity has--
(I) demonstrated progress in
executing the grant; and
(II) certified that the eligible
entity needs additional time to
obligate grant funds; or
(ii) award to another eligible entity, to
carry out activities under this section, any
amounts that an eligible entity has not
obligated under subparagraph (A)(i).
(d) Application.--
(1) In general.--The lead applicant of an eligible entity
that desires a grant under this section shall submit to the
Director an application, at such time and in such manner as the
Director shall prescribe, that contains--
(A) a description of the project proposed to be
carried out by the eligible entity;
(B) a budget for the project that includes the
anticipated Federal share of the cost of the project
and a description of the source of the non-Federal
share;
(C) the designation of lead applicant to receive
and manage any funds received by the eligible entity
under the grant program;
(D) a signed copy of a memorandum of understanding
among local jurisdictions, including, as appropriate, a
State, an Indian tribe, units of general local
government, units of special purpose local government,
metropolitan planning organizations, rural planning
organizations, and regional councils that
demonstrates--
(i) the creation of an eligible entity;
(ii) a description of the nature and extent
of planned collaboration between the eligible
entity and any partners of the eligible entity;
(iii) a commitment to develop a
comprehensive regional plan; and
(iv) a commitment to implement the plan
after the plan is developed;
(E) a certification by the lead applicant that the
eligible entity has--
(i) secured the participation, or made a
good-faith effort to secure the participation,
of transportation providers and public housing
agencies within the area affected by the
comprehensive regional plan and the entities
described in clause (ii); and
(ii) created, or will create not later than
1 year after the date of the grant award, a
regional advisory board to provide input and
feedback on the development of the
comprehensive regional plan that includes
representatives of a State, the metropolitan
planning organization, the rural planning
organization, the regional council, local
jurisdictions, non-profit organizations, and
others, as deemed appropriate by the eligible
entity, given the local context of the
comprehensive planning effort; and
(F) a certification that the eligible entity has
solicited public comment on the contents of the project
description under subparagraph (A) that includes--
(i) a description of the process for
receiving public comment relating to the
proposal; and
(ii) such other information as the Director
may require;
(G) a description of how the eligible entity will
carry out the activities under subsection (f); and
(H) such additional information as the Director may
require.
(2) Indian tribes.--An eligible entity that is an Indian
tribe is not required to submit the designation under paragraph
(1)(C) or the certification under paragraph (1)(E).
(e) Selection.--In evaluating an application for a grant under the
grant program, the Director shall consider the extent to which the
application--
(1) demonstrates that the eligible entity has or will have
the legal, financial, managerial, and technical capacity to
carry out the project;
(2) demonstrates the extent to which the eligible entity
has developed partnerships throughout an entire region,
including, as appropriate, partnerships with the entities
described in subsection (d)(1)(D);
(3) demonstrates integration with local efforts in economic
development and job creation;
(4) demonstrates a strategy for implementing a
comprehensive regional plan through regional infrastructure
investment plans and local land use plans;
(5) promotes diversity among the geographic regions and the
size of the population of the communities served by recipients
of grants under this section;
(6) demonstrates a commitment to seeking substantial public
input during the planning process and public participation in
the development of the comprehensive regional plan;
(7) demonstrates a strategy for connecting underserved,
low-income, disabled, and minority community members with
housing, transportation, and infrastructure resources;
(8) demonstrates a commitment to implementing the plan upon
completion, including securing funding to implement 1 or more
elements of the plan; and
(9) demonstrates such other qualities as the Director may
determine.
(f) Eligible Activities.--An eligible entity that receives a grant
under this section shall carry out a project that includes 1 or more of
the following activities:
(1) Coordinating locally defined planning processes across
jurisdictions and agencies.
(2) Identifying potential regional partnerships for
developing and implementing a comprehensive regional plan.
(3) Conducting or updating assessments to determine
regional needs, including healthy housing, and promote economic
and community development.
(4) Developing or updating--
(A) a comprehensive regional plan; or
(B) goals and strategies to implement an existing
comprehensive regional plan.
(5) Identifying and implementing local zoning and other
policy or code changes necessary to implement a comprehensive
regional plan and promote sustainable development and fair
housing.
(g) Grant Agreement.--Each eligible entity that receives a grant
under the grant program shall agree to establish, in coordination with
the Director, performance measures, reporting requirements, and any
other requirements that the Director determines are necessary, that the
eligible entity, through the lead applicant, shall meet at the end of
each year in which the eligible entity receives funds under the grant
program.
(h) Public Outreach.--
(1) Outreach required.--Each eligible entity that receives
a grant under the grant program shall perform substantial
outreach activities--
(A) to engage a broad cross-section of community
stakeholders in the process of developing a
comprehensive regional plan, including low-income
families, minorities, disabled individuals, older
adults, and economically disadvantaged community
members; and
(B) to create an effective means for stakeholders
to participate in the development and implementation of
a comprehensive regional plan.
(2) Finalization of comprehensive regional plan.--
(A) In general.--An eligible entity that receives a
grant under the grant program may not finalize a
comprehensive regional plan before the eligible entity
holds a public hearing to obtain the views of citizens,
public agencies, and other interested parties.
(B) Availability of information.--Not later than 30
days before a hearing described in subparagraph (A), an
eligible entity shall make the proposed comprehensive
regional plan and all information relevant to the
hearing--
(i) available to the public for inspection
during normal business hours; and
(ii) available on a publicly accessible
website.
(C) Notice.--Not later than 30 days before a
hearing described in subparagraph (A), an eligible
entity shall publish notice--
(i) of the hearing; and
(ii) that the information described in
subparagraph (B) is available.
(i) Violation of Grant Agreement or Failure To Comply With Public
Outreach Requirements.--If the Director determines that an eligible
entity has not met the performance measures established in the grant
agreement under subsection (g), is not making reasonable progress
toward meeting such measures, is otherwise in violation of the grant
agreement, or has not complied with the public outreach requirements
under subsection (h), the Director may--
(1) impose increased reporting and more stringent
expenditure authorization requirements;
(2) withhold financial assistance until the requirements
under the grant agreement or under subsection (h), as
applicable, are met;
(3) wholly or partly suspend or terminate the grant
agreement;
(4) refer the grantee to the appropriate office within the
Department for further enforcement action; and
(5) take other remedies that may be legally available.
(j) Report on the Comprehensive Planning Grant.--
(1) In general.--Not later than 120 days after the date on
which the grant agreement under subsection (g) expires, an
eligible entity that receives a grant under the grant program
shall submit a final report on the project to the Secretary.
(2) Contents of report.--The report shall include--
(A) a detailed explanation of the activities
undertaken using the grant, including an explanation of
the completed project and how it achieves specific
transit-oriented, transportation, housing, or
sustainable community goals within the region;
(B) a discussion of any obstacles encountered in
the planning process and how the eligible entity
overcame the obstacles;
(C) an evaluation of the success of the project
using the performance measures established in the grant
agreement under subsection (g), including an evaluation
of the planning process and how the project contributes
to carrying out the comprehensive regional plan;
(D) an outline of any proposed follow-up activities
to implement 1 or more elements of the plan, including
commitments of additional planned public or private
investments for such activities; and
(E) any other information the Director may require.
(3) Interim reports.--The Director may require an eligible
entity to submit an interim report or reports before the date
on which the project for which the grant is awarded is
completed.
(k) Authorization of Appropriations.--
(1) Authorization.--There are authorized to be appropriated
to the Secretary for the award of grants under this section, to
remain available until expended--
(A) $570,800,000 for fiscal year 2022; and
(B) $707,300,000 for each of fiscal years 2023
through 2026.
(2) Technical assistance.--The Director may use not more
than 2 percent of the amounts made available under this
subsection for a fiscal year for technical assistance under
section 5(c)(3).
SEC. 7. COMMUNITY CHALLENGE GRANT PROGRAM.
(a) Definitions.--In this section--
(1) the terms ``consortium of units of general local
governments'', ``eligible entity'', and ``eligible partner''
have the meanings given those terms in section 6; and
(2) the term ``grant program'' means the community
challenge grant program established under subsection (b).
(b) Community Challenge Grant Program Established.--The Director
shall establish a community challenge grant program to make grants to
eligible entities to--
(1) promote integrated planning and investments across
policy and governmental jurisdictions; and
(2) implement projects identified in a comprehensive
regional plan.
(c) Grants.--
(1) Diversity of grantees.--The Director shall ensure--
(A) geographic diversity among and adequate
representation from eligible entities in each of the
categories described in section 6(c)(1); and
(B) diversity among and adequate representation
from eligible entities described in section 6(c)(3).
(2) Terms and conditions.--Except as otherwise provided in
this section, a grant under the grant program shall be made on
the same terms and conditions as a grant under section 6.
(3) Expending funds.--An eligible entity that receives a
grant under the grant program shall expend any funds received
under the grant program not later than 5 years after the date
on which the grant agreement under subsection (g) is made.
(d) Application.--
(1) Contents.--An eligible entity that desires a grant
under the grant program shall submit to the Director an
application, at such time and in such manner as the Director
shall prescribe, that contains--
(A) a copy of the comprehensive regional plan,
whether developed as part of the comprehensive planning
grant program under section 6 or developed
independently;
(B) a description of the project or projects
proposed to be carried out using a grant under the
grant program;
(C) a description of any preliminary actions that
have been or must be taken at the local or regional
level to implement the project or projects described
under subparagraph (B), including the revision of land
use or zoning policies;
(D) the designation of a lead applicant to be the
entity to establish the direct grant relationship with
the Secretary;
(E) a signed copy of a memorandum of understanding
among local jurisdictions, including, as appropriate, a
State, units of general local government, units of
special purpose local government, metropolitan planning
organizations, rural planning organizations, and
regional councils that demonstrates--
(i) the creation of a consortium of units
of general local government; and
(ii) a commitment to implement the
activities described in the comprehensive
regional plan; and
(F) a certification that the eligible entity has
solicited public comment on the contents of the project
or projects described in subparagraph (B) that
includes--
(i) a certification that the eligible
entity made information about the project or
projects available and afforded citizens,
public agencies, and other interested parties a
reasonable opportunity to examine the content
of the project or projects and to submit
comments;
(ii) a description of the process for
receiving public comment, and a description of
the outreach efforts to affected populations
and stakeholders;
(iii) a certification that the eligible
entity--
(I) held a public hearing to obtain
the views of citizens, public agencies,
and other interested parties;
(II) made the proposed project or
projects and all information relevant
to the hearing available for inspection
by the public during normal business
hours not less than 30 days before the
hearing under subclause (I); and
(III) published a notice informing
the public of the hearing under
subclause (I) and the availability of
the information described in subclause
(II); and
(G) a budget for the project or projects that
includes the Federal share of the cost of the project
or projects requested and a description of the source
of the non-Federal share; and
(H) such additional information as the Director may
require.
(2) Indian tribes.--An eligible entity that is an Indian
tribe is not required to designate a lead applicant under
paragraph (1)(D) or submit a memorandum of understanding under
paragraph (1)(E).
(e) Selection.--In evaluating an application for a grant under the
grant program, the Director shall consider the extent to which the
application--
(1) demonstrates that the eligible entity has or will have
the legal, financial, managerial, and technical capacity to
carry out the project;
(2) demonstrates the extent to which the eligible entity
has developed partnerships throughout an entire region,
including partnerships with units of special purpose local
government and transportation providers;
(3) demonstrates clear and meaningful interjurisdictional
cooperation and coordination of housing, including healthy
housing, transportation, and environmental policies and plans;
(4) demonstrates a commitment to implementing a
comprehensive regional plan and documents action taken or
planned to implement the plan;
(5) identifies original and innovative ideas to overcoming
regional problems, including local land use, zoning, or other
obstacles to carrying out the comprehensive regional plan;
(6) promotes diversity among the geographic regions and the
size of the population of the communities served by recipients
of grants under the grant program;
(7) demonstrates a commitment to substantial public input
throughout the implementation process;
(8) demonstrates a strategy for connecting underserved,
low-income, disabled, and minority community members with
housing, transportation, and infrastructure resources; and
(9) demonstrates such other qualities as the Director may
determine.
(f) Grant Activities.--
(1) Planning activities.--
(A) In general.--An eligible entity that receives a
grant under the grant program may use not more than 10
percent of the grant for planning activities.
(B) Limitation.--Activities related to the
updating, reform, or development of a local code, plan,
or ordinance to implement projects contained in a
comprehensive regional plan shall not be considered
planning activities for the purposes of a grant under
the grant program.
(2) Projects.--An eligible entity that receives a grant
under the grant program shall carry out 1 or more projects that
are designed to achieve the goals identified in a comprehensive
regional plan.
(g) Grant Agreement.--Each eligible entity that receives a grant
under the grant program shall agree to establish, through the lead
applicant and in coordination with the Director, performance measures,
reporting requirements, and any other requirements that the Director
determines are necessary, that the eligible entity, through the lead
applicant, shall meet at the end of each year in which the eligible
entity receives funds under the grant program.
(h) Violation of Grant Agreement.--If the Director determines that
an eligible entity has not met the performance measures established
under subsection (g), is not making reasonable progress toward meeting
such measures, or is otherwise in violation of the grant agreement, the
Director may--
(1) impose increased reporting and more stringent
expenditure authorization requirements;
(2) withhold financial assistance until the requirements
under the grant agreement are met;
(3) wholly or partly suspend or terminate the grant
agreement;
(4) refer the grantee to the appropriate office within the
Department for further enforcement action; and
(5) take other remedies that may be legally available.
(i) Report on the Community Challenge Grant.--
(1) In general.--Not later than 120 days after the date on
which the grant agreement under subsection (g) expires, an
eligible entity that receives a grant under the grant program
shall submit a final report on the project to the Secretary.
(2) Contents of report.--The report shall include--
(A) a detailed explanation of the activities
undertaken using the grant, including an explanation of
the completed project and how it achieves specific
transit-oriented, transportation, housing, or
sustainable community goals within the region;
(B) a discussion of any obstacles encountered in
the planning and implementation process and how the
eligible entity overcame the obstacles;
(C) an evaluation of the success of the project
using the performance measures established under
subsection (g), including an evaluation of the planning
and implementation process and how the project
contributes to carrying out the comprehensive regional
plan;
(D) outline of any proposed follow-up activities
including commitments of additional planned public or
private investments; and
(E) any other information the Director may require.
(3) Interim reports.--The Director may require an eligible
entity to submit an interim report or reports before the date
on which the project for which the grant is awarded is
completed.
(j) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary for the award of grants under this
section, to remain available until expended--
(1) $175,350,000 for each of fiscal years 2022 through
2023;
(2) $203,700,000 for fiscal year 2024;
(3) $233,100,000 for fiscal year 2025; and
(4) $262,500,000 for fiscal year 2026.
SEC. 8. CREDIT FACILITY TO SUPPORT TRANSIT-ORIENTED DEVELOPMENT.
(a) Definitions.--In this section, the following definitions shall
apply:
(1) Eligible applicant.--The term ``eligible applicant''
means a State or local governmental authority.
(2) Eligible area.--The term ``eligible area'' means the
area within \1/2\ mile of an existing or planned major public
transportation facility.
(3) Eligible borrower.--The term ``eligible borrower''
means--
(A) a governmental entity, authority, agency, or
instrumentality;
(B) a corporation, partnership, joint venture, or
trust on behalf of which an eligible applicant has
submitted an application under subsection (c); or
(C) any other legal entity undertaking an
infrastructure development project on behalf of which
an eligible applicant has submitted an application
under subsection (c).
(4) Major public transportation facility.--The term ``major
public transportation facility'' means--
(A) a fixed-guideway public transportation station;
(B) a high speed rail or intercity rail station
connecting to public transportation;
(C) an intermodal facility connecting multiple
public transportation lines; or
(D) a public transportation center located in an
area other than an urbanized area.
(5) Planned major public transportation facility.--The term
``planned major public transportation facility'' means a major
public transportation facility for which--
(A) appropriate environmental reviews have been
initiated or have been completed; and
(B) funding for construction can be reasonably
anticipated.
(6) Project.--The term ``project'' means an infrastructure
project that is used to support a transit-oriented development
in an eligible area, including--
(A) property enhancement, including conducting
environmental remediation, park development, and open
space acquisition;
(B) improvement of physical mobility, including
rehabilitating, or providing for additional, streets,
public transportation stations, structured parking,
walkways, and bikeways;
(C) improve accommodations for individuals with
disabilities;
(D) utility development, including rehabilitating
or relocating existing, or providing for new drinking
water, wastewater, electric, and gas utilities; or
(E) community service facilities, such as child
care centers.
(7) Public transportation.--The term ``public
transportation'' has the meaning given that term in section
5302 of title 49, United States Code.
(b) Loan Program Established.--The Secretary, in consultation with
the Secretary of Transportation, may make or guarantee loans under this
section to eligible borrowers for projects.
(c) Application.--
(1) In general.--An eligible applicant may submit to the
Secretary an application for a loan or loan guarantee under
this section--
(A) to fund a project carried out by the eligible
applicant; or
(B) on behalf of an eligible borrower, to fund a
project carried out by the eligible borrower.
(d) Selection Criteria.--
(1) In general.--The Secretary may make a loan or loan
guarantee under this section for a project that--
(A) is part of a community-wide development plan,
as defined by the Secretary;
(B) promotes sustainable development; and
(C) ensures that not less than 20 percent of any
housing units constructed or substantially
rehabilitated as part of transit-oriented development
supported by the project are affordable over the long-
term to, and occupied at time of initial occupancy by--
(i) renters with incomes at or below 60
percent of the area median income; or
(ii) homeowners with incomes at or below
100 percent of the area median income.
(2) Considerations.--The Secretary, in consultation with
the Secretary of Transportation, shall select the recipients of
loans and loan guarantees under this section based on the
extent to which--
(A) the transit-oriented development supported by
the project will encourage increased use of transit;
(B) the transit-oriented development supported by
the project will create or preserve long-term
affordable housing units in addition to the housing
units required to be made available under paragraph
(1)(C) or will provide deeper affordability than
required under paragraph (1)(C);
(C) the project will facilitate and encourage
additional development or redevelopment in the overall
public transportation station area;
(D) the local government has adopted policies
that--
(i) promote long-term affordable housing;
and
(ii) allow high-density, mixed-use
development near public transportation
stations;
(E) the transit-oriented development supported by
the project is part of a comprehensive regional plan;
(F) the eligible borrower has established a
reliable, dedicated revenue source to repay the loan;
and
(G) a loan or loan guarantee under this section
would be used in conjunction with non-Federal resources
to fund the project.
(e) Eligible Sources of Repayment.--A loan made or guaranteed under
this section shall be repayable, in whole or in part, from dedicated
revenue sources, which may include--
(1) user fees;
(2) property tax revenues;
(3) sales tax revenues;
(4) other revenue sources dedicated to the project by
property owners and businesses; and
(5) a bond or other indebtedness backed by one of the
revenue sources listed in this paragraph.
(f) Interest Rate.--The Secretary shall establish an interest rate
for loans made or guaranteed under this section with reference to a
benchmark interest rate (commonly known as a ``yield'') on marketable
Treasury securities with a maturity that is similar to the loans made
or guaranteed under this section.
(g) Maximum Maturity.--The maturity of a loan made or guaranteed
under this section may not exceed the lesser of--
(1) 35 years; or
(2) 100 percent of the useful life of any project to be
financed by the loan, as determined by the Secretary.
(h) Maximum Loan Guarantee Rate.--
(1) In general.--The guarantee rate on a loan guaranteed
under this section may not exceed 75 percent of the amount of
the loan.
(2) Lower guarantee rate for low-risk borrowers.--The
Secretary shall establish a guarantee rate for loans to
eligible borrowers that the Secretary determines pose a lower
risk of default that is lower than the guarantee rate for loans
to other eligible borrowers.
(i) Fees.--The Secretary shall establish fees for loans made or
guaranteed under this section at a level that is sufficient to cover
all or part of the costs to the Federal Government of making or
guaranteeing a loan under this section.
(j) Nonsubordination.--A loan made or guaranteed under this section
may not be subordinated to the claims of any holder of an obligation
relating to the project in the event of bankruptcy, insolvency, or
liquidation.
(k) Commencement of Repayment.--The scheduled repayment of
principal or interest on a loan made or guaranteed under this section
shall commence not later than 5 years after the date of substantial
completion of a project.
(l) Repayment Deferral for Loans.--
(1) In general.--If, at any time after the date of
substantial completion of a project, the Secretary determines
that dedicated revenue sources of an eligible borrower are
insufficient to make the scheduled loan repayments of principal
and interest on a loan made or guaranteed under this section,
the Secretary may, subject to criteria established by the
Secretary, allow the eligible borrower to add unpaid principal
and interest to the outstanding balance of the loan.
(2) Treatment of deferred payments.--Any payment deferred
under this section shall--
(A) continue to accrue interest until fully repaid;
and
(B) be scheduled to be amortized over the remaining
term of the loan.
(m) Sanctions for Performance Deficiencies.--If the Director
determines that a recipient of a loan made or guaranteed under this
section has performance deficiencies in the use of the loan funds under
this section or is otherwise in violation of the loan or loan guarantee
agreement, the Director may impose sanctions and undertake other
remedies for noncompliance in accordance with section 111 of the
Housing and Community Development Act of 1974 (42 U.S.C. 5311) and the
implementing regulations of the Department.
(n) Authorization of Appropriations.--There are authorized to be
appropriated for the cost of loans and loan guarantees under this
section $110,000,000 for each of fiscal years 2022 through 2026.
SEC. 9. HEALTHY HOMES.
(a) Federal Initiative To Support Healthy Housing and Substantially
Reduce Housing-Related Health Hazards.--The Secretary, acting through
the Director of the Office of Lead Hazard Control and Healthy Homes and
in consultation with the Secretary of Energy, the Administrator of the
Environmental Protection Agency, the Secretary of Agriculture, the
Secretary of the Treasury, the Director of the National Institute of
Standards and Technology, the Director of the National Institute of
Environmental Health Sciences, and the Director of the Centers for
Disease Control, shall lead the Federal initiative to support healthy
housing and substantially reduce the prevalence and severity of
housing-related health hazards by--
(1) identifying best practices and model programs,
including practices and programs that link services for low-
income families and services for health hazards;
(2) identifying best practices for finance products,
building codes, and regulatory practices;
(3) researching training programs and work practices that
can accurately assess housing-related health hazards;
(4) promoting collaboration among Federal, State, local,
and tribal agencies and non-governmental organizations; and
(5) coordinating with all relevant Federal agencies.
(b) Assessment.--The Secretary shall conduct a collaborative,
interagency assessment of best practices for--
(1) coordinating activities relating to healthy housing;
and
(2) creating incentives in programs of the Federal
Government to advance the complementary goals of improving
environmental health, energy conservation, decarbonization, and
the availability of housing.
(c) Study and Report on Sustainable Building Features and Indoor
Environmental Quality in Housing.--
(1) Study.--The Secretary, in consultation with the
Secretary of Energy, the Director of the National Institute of
Standards and Technology, the Director of the National
Institute of Environmental Health Sciences, the Director of the
Centers for Disease Control and Prevention, the Secretary of
the Treasury, the Secretary of Agriculture, and any other
Federal agency that the Secretary determines is appropriate,
shall conduct a detailed study of how sustainable building
features in housing, such as energy efficiency, affect--
(A) the quality of the indoor environment;
(B) the prevalence of housing-related health
hazards; and
(C) the health of occupants of the housing.
(2) Report.--Not later than 3 years after the date of
enactment of this Act, the Secretary shall submit to the
Committee on Banking, Housing, and Urban Affairs and the
Committee on Appropriations of the Senate and the Committee on
Financial Services and the Committee on Appropriations of the
House of Representatives a report containing the results of the
study under paragraph (1).
(d) Authorization of Appropriations.--There are authorized to be
appropriated such sums as may be necessary to carry out this section.
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