[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 4165 Introduced in Senate (IS)]
<DOC>
117th CONGRESS
2d Session
S. 4165
To amend the Community Development Banking and Financial Institutions
Act of 1994 to establish a CDFI National Crisis Fund, and for other
purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
May 9, 2022
Mr. Schatz (for himself, Ms. Baldwin, Mr. Van Hollen, Mrs. Gillibrand,
Mr. Wyden, Ms. Warren, Mrs. Feinstein, Mr. Blumenthal, Mr. Sanders, Mr.
Heinrich, Mr. Merkley, and Mr. Warner) introduced the following bill;
which was read twice and referred to the Committee on Banking, Housing,
and Urban Affairs
_______________________________________________________________________
A BILL
To amend the Community Development Banking and Financial Institutions
Act of 1994 to establish a CDFI National Crisis Fund, 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 ``CDFI Crisis Fund Act''.
SEC. 2. CDFI NATIONAL CRISIS FUND.
(a) In General.--The Community Development Banking and Financial
Institutions Act of 1994 (12 U.S.C. 4701 et seq.) is amended by
inserting after section 122 (12 U.S.C. 4719) the following:
``SEC. 123. CDFI CRISIS FUND.
``(a) Definitions.--In this section:
``(1) Affected area.--The term `affected area' means--
``(A) a State that is subject to a covered crisis;
``(B) a county that is subject to a covered crisis
described in paragraph (3)(B); or
``(C) a Tribal government that is--
``(i) located in a State that is subject to
a covered crisis; or
``(ii) subject to a covered crisis.
``(2) Community development financial institution.--The
term `community development financial institution' shall
include small and emerging community development financial
institutions, as defined in the most recent relevant
regulations from the Department of the Treasury.
``(3) Covered crisis.--The term `covered crisis' means--
``(A) the emergency involving Federal primary
responsibility determined to exist by the President
under section 501(b) of the Robert T. Stafford Disaster
Relief and Emergency Assistance Act (42 U.S.C. 5191(b))
with respect to the Coronavirus disease 2019 (COVID-
19);
``(B) a major disaster exists in the State for
which assistance is authorized under section 408 of the
Robert T. Stafford Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5174) for a county;
``(C) a major disaster exists in the State for
which assistance is authorized under section 408 of the
Robert T. Stafford Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5174) for individuals who
live in an area of the State in which a majority of the
residents of the State reside;
``(D) an increase in statewide 6-month average
unemployment rate, seasonally adjusted, by not less
than 0.5 percentage points more than the lowest
recorded unemployment rate over the preceding 12-month
period; or
``(E) an increase in the national 3-month average
unemployment rate, seasonally adjusted, by not less
than 0.5 percentage points more than the lowest
recorded unemployment rate over the preceding 12-month
period.
``(4) Crisis fund.--The term `Crisis Fund' means the CDFI
National Crisis Fund established under this section.
``(5) Low-income.--The term `low-income' means having an
income, as adjusted for family size, that is--
``(A) for metropolitan areas, less than 80 percent
of the area median income; and
``(B) for nonmetropolitan areas, the greater of--
``(i) less than 80 percent of the area
median income; or
``(ii) less than 80 percent of the
statewide nonmetropolitan area median income.
``(6) Minority community development financial
institution.--The term `minority community financial
institution' means a community development financial
institution that--
``(A) if a privately-owned institution, 51 percent
is owned by one or more socially and economically
disadvantaged individuals;
``(B) if publicly-owned, 51 percent of the stock is
owned by one or more socially and economically
disadvantaged individuals; and
``(C) in the case of a mutual institution, where
the majority of the Board of Directors, account
holders, and the community which the institution
services is predominantly Black American, Native
American, Hispanic American, or Asian American.
``(7) Native community development financial institution.--
``(A) In general.--The term `Native community
development financial institution' means a community
development financial institution--
``(i) the activities of which not less than
51 percent serve Native Americans; or
``(ii) that is not less than 51 percent
owned or controlled Native Americans.
``(B) Native americans.--In this paragraph, the
term `Native Americans' has the meaning given the term
in section 3765 of title 38, United States Code.
``(8) State.--The term `State' means any State of the
United States, the District of Columbia, the Commonwealth of
Puerto Rico, the Virgin Islands, Guam, American Samoa, and the
Commonwealth of the Northern Mariana Islands.
``(9) Tribal government.--The term `Tribal government' has
the meaning given the term `Indian tribal government' in
section 102 of the Robert T. Stafford Disaster Relief and
Emergency Assistance Act (42 U.S.C. 5122).
``(10) Very low-income.--The term `very low-income' means
having an income, as adjusted for family size, that is--
``(A) for metropolitan areas, less than 50 percent
of the area median income; and
``(B) for nonmetropolitan areas, the greater of--
``(i) less than 50 percent of the area
median income; or
``(ii) less than 50 percent of the
statewide nonmetropolitan area median income.
``(b) Purpose.--The purpose of this section is to create a fund to
support community development financial institutions during acute
periods of crisis in their mission to provide uniquely supportive
financial products and services to otherwise underserved clients.
``(c) Establishment.--There is established in the Treasury the CDFI
National Crisis Fund, which shall be within the Fund.
``(d) Availability of Crisis Fund.--Amounts in the Crisis Fund
shall be available, until expended, to provide grants to community
development financial institutions as provided under this section.
``(e) Grants.--
``(1) In general.--The Crisis Fund shall be authorized to
make grants to community development financial institutions to
enable those institutions to provide emergency assistance in
the form of financial products and services to help small
businesses and low-income and very low-income populations
respond to and recover from covered crises in the affected
area.
``(2) Application.--
``(A) In general.--The Secretary shall--
``(i) accept applications during the period
beginning upon notification of a covered crisis
under subsection (f) and ending on the date
that is 6 months after the date of the
notification;
``(ii) approve or deny any application
submitted for a grant under paragraph (1) not
later than 30 days after receipt; and
``(iii) upon request by an applicant for a
grant under paragraph (1), provide technical
assistance for the applicant.
``(B) Selection formula.--
``(i) In general.--Not later than 180 days
after the date of enactment of this section,
the Fund shall--
``(I) develop a selection formula
as may be necessary for the selection
of community development financial
institutions to receive assistance
under this section and guidance to aid
those institutions in meeting the
formula; and
``(II) post the information
described in subclause (I) on a
publicly available website.
``(ii) Considerations.--In establishing the
selection formula under clause (i), the Fund
shall take into account--
``(I) the program capacity of a
community development financial
institution to provide emergency
assistance in the form of financial
products and services to help targeted
populations or populations in
investment areas recover from covered
crises in the affected area; and
``(II) the need for simplicity in
the selection formula given the varying
capacities of community development
financial institutions and the time
frames required under this section.
``(3) Amount of grants.--
``(A) Determination of amount.--The amount of a
grant made to a community development financial
institution under this section shall be determined
based on the previously demonstrated capacity of the
community development financial institution to make
impactful financial services and products available, as
determined by the Secretary of the Treasury.
``(B) Grant amount.--
``(i) Maximum.--With respect to grants made
under this section, the grant shall be in an
amount that is not more than 10 percent of the
total amount in the Crisis Fund for each fiscal
year in which the community development
financial institution receives a grant.
``(ii) Minimum.--The Fund shall establish
minimum grant amounts under this section for
each fiscal year in which a community
development financial institution receives a
grant under this section based on the
demonstrated capacity of and the cost of grant
requirements for the applicant.
``(C) Limitation of assistance.--The total
aggregate amount outstanding and committed to any
community development financial institution in grants
under this section in any fiscal year shall not exceed
15 percent of the total amount of the Crisis Fund.
``(D) Distribution of assistance.--The Secretary
shall disburse the full amount of a grant under this
section to an approved applicant not later than 30 days
after the date on which the application is approved.
``(E) Set asides.--
``(i) Native cdfis.--Of the amounts in the
Crisis Fund, 10 percent shall be set aside for
grants made to Native community development
financial institutions, which set aside may
also qualify under clause (ii).
``(ii) Minority community development
financial institutions.--Of the amounts in the
Crisis Fund, 30 percent shall be set aside for
grants made to minority community development
financial institutions.
``(F) Use of grant funds for more than 1 covered
crisis.--The Secretary may retroactively approve use of
grant funds for covered crises in affected areas that
took place after the grant was made.
``(4) Use of funds.--A recipient of a grant under this
section--
``(A) shall use--
``(i) not less than 90 percent of the grant
funds for activities described in paragraph (1)
in the affected area of the covered crisis;
``(ii) not less than 25 percent of the
grant funds for activities described in
paragraph (1) that benefit very low-income
individuals; and
``(iii) not less than 15 percent of the
grant funds for activities described in
paragraph (1) that benefit individuals with
incomes of not more than 30 percent of the area
median income, which set aside may also qualify
under clause (ii);
``(B) may use not more than 10 percent of the grant
funds for administrative costs, costs related to
outreach and partnership building, and financial
products and services to areas surrounding the affected
area; and
``(C) may use any remaining grant funds approved
for a covered crisis in an affected area for another
covered crisis in an affected area occurring after the
grant was made, if the Secretary approves the use of
those funds under paragraph (3)(F).
``(5) Unemployment measures for tribal governments.--The
Commissioner of the Bureau of Labor Statistics shall coordinate
with the Assistant Secretary of Indian Affairs to develop
reliable unemployment measures for American Indian, Native
Alaskan, and Native Hawaiian communities in order to understand
when the requirements for a covered crisis under subsection
(a)(1)(C) are met with respect to a Tribal government.
``(f) Notification of Covered Crisis.--
``(1) Emergency or major disaster.--The Administrator of
the Federal Emergency Management Agency, through the Secretary
of the Treasury, shall notify the Fund when the requirements
for a covered crisis under subparagraph (A) or (B) of
subsection (a)(1) are met, which shall include the date on
which the requirements are met and the relevant affected areas.
``(2) Unemployment.--The Secretary of Labor, through the
Secretary of the Treasury, shall notify the Crisis Fund when
the requirements for a covered crisis under subsection
(a)(1)(C) are met, which shall include the date on which the
requirements are met and the relevant affected areas, including
for Tribal governments.
``(g) Data.--The Fund shall post updates on--
``(1) the disbursements of funds from the Crisis Fund,
including the distribution of funds going to low-income and
very low-income populations and demographic data regarding the
areas and populations receiving funds from the Crisis Fund; and
``(2) all other applications made, denied, and disbursed on
a monthly basis during a covered crisis.
``(h) Repository of Best Practices.--Based on the recommendations
of the Comptroller General of the United States and data that the
Secretary of the Treasury may collect from recipients of grants under
this section, the Secretary of the Treasury shall--
``(1) develop a publicly accessible database of best
practices for effective use of those grants, including past
case studies of success and other useful information; and
``(2) issue guidance, restrictions, and regulations with
respect to those grants.
``(i) Authorization of Appropriations.--
``(1) Crisis fund authorization.--To carry out this
section, there are authorized to be appropriated to the Crisis
Fund $2,000,000,000 for fiscal year 2023, to remain available
until expended.
``(2) Future fiscal years.--For every fiscal year following
fiscal year 2023, there is authorized to be appropriated to the
Crisis Fund an amount equal to the amount by which--
``(A) $2,000,000,000 (or, if greater, the amount
determined for such fiscal year under paragraph (3));
exceeds
``(B) the balance of the Crisis Fund as of the last
day of the fiscal year preceding the fiscal year
involved.
``(3) Inflation adjustment.--
``(A) In general.--Subject to subparagraph (B), the
amount determined under this paragraph for a fiscal
year is the product of--
``(i) $2,000,000,000; and
``(ii) the quotient obtained by dividing--
``(I) the Consumer Price Index for
all-urban consumers published by the
Department of Labor for the 12-month
period ending with September of the
preceding fiscal year; and
``(II) the Consumer Price Index for
All-Urban Consumers published by the
Department of Labor for the 12-month
period ending with September 2019.
``(B) Rule of application.--In no case shall the
application of this paragraph result in the application
under paragraph (2)(A) of an amount for a fiscal year
that is less than the amount that applied under such
paragraph (2)(A) for the preceding fiscal year.
``(4) Administrative expenses.--Of the amounts made
available under paragraph (1), the Crisis Fund may use not more
than 0.5 percent for administrative costs and expenses.
``(j) Regulations.--The Secretary of the Treasury may prescribe
such regulations as necessary to carry out this section.
``(k) Report.--Not later than 1 year after the date of enactment of
this section and periodically thereafter, the Comptroller General of
the United States shall submit to Congress a report--
``(1) evaluating the impact of this section in meeting
intended outcomes, focusing on the use of the Crisis Fund in
aiding community development financial institutions to support
their communities and helping them respond to and recover from
natural disasters and economic crises; and
``(2) making recommendations to the Fund and to
Congress.''.
(b) Technical and Conforming Amendment.--The table of contents in
section 1(b) of the Riegle Community Development and Regulatory
Improvement Act of 1994 (Public Law 103-325; 108 Stat. 2160) is amended
by inserting after the item relating to section 121 the following:
``Sec. 122. Grants to establish loan-loss reserve funds.
``Sec. 123. CDFI Crisis Fund.''.
SEC. 3. RESILIENCE GRANTS.
Section 108 of the Community Development Banking and Financial
Institutions Act of 1994 (12 U.S.C. 4707) is amended--
(1) in subsection (a)(1)--
(A) in subparagraph (A), by striking ``and'' at the
end;
(B) in subparagraph (B), by striking the period at
the end and inserting ``; and''; and
(C) by adding at the end the following:
``(C) grants to community development financial
institutions (as defined in section 123) to improve
resilience to the impacts of covered crises (as defined
in section 123) in any State (as defined in section
123).'';
(2) in subsection (d)--
(A) in paragraph (1), by striking ``paragraph (2)''
and inserting ``paragraphs (2) and (3)'';
(B) by redesignating paragraph (3) as paragraph
(4);
(C) by inserting after paragraph (2) the following:
``(3) Resilience grants.--With respect to resilience grants
described in subsection (a)(1)(C), each grant made in a fiscal
year shall be in an amount that is not more than 10 percent of
the total amount appropriated for resilience grants for that
fiscal year.''; and
(D) in paragraph (4), as so redesignated, by
striking ``paragraphs (1) and (2)'' and inserting
``paragraphs (1), (2), and (3)'';
(3) by redesignating subsections (e) through (h) as
subsections (f) through (i), respectively; and
(4) by inserting after subsection (d) the following:
``(e) Resilience Grants.--
``(1) In general.--With respect to resilience grants
described in subsection (a)(1)(C), the Secretary of the
Treasury shall award the grants based on criteria established
by the Fund, including--
``(A) making awards for projects that the Fund
determines will have the greatest impact in improving
resilience for low-income populations; and
``(B) coordinating with the Federal Emergency
Management Agency, the Department of Housing and Urban
Development, and with the Small Business
Administration, as relevant, to ensure that the awards
meet unmet resilience needs.
``(2) Use of funds.--A recipient of a resilience grant
described in subsection (a)(1)(C) shall use--
``(A) not less than 25 percent of the grant funds
for activities described in paragraph (1) that benefit
very low-income individuals; and
``(B) not less than 15 percent of the grant funds
for activities described in paragraph (1) that benefit
individuals with incomes of not more than 30 percent of
the area median income.
``(3) Set asides.--
``(A) Native cdfis.--Of the amounts made available
under this subsection, 10 percent shall be set aside
for resilience grants made to Native community
development financial institutions, which set aside may
also qualify under subparagraph (ii).
``(B) Minority community development financial
institutions.--Of the amounts made available under this
subsection, 30 percent shall be set aside for grants
made to minority community development financial
institutions.
``(4) Repository of best practices.--Based on the
recommendations of the Comptroller General of the United States
and data that the Secretary of the Treasury may collect from
recipients of resilience grants described in subsection
(a)(1)(C), the Secretary of the Treasury shall--
``(A) develop a publicly accessible database of
best practices for effective use of those grants,
including past case studies of success and other useful
information; and
``(B) issue guidance, restrictions, and regulations
with respect to those grants.
``(5) Authorization of appropriations.--To provide
resilience grants described in subsection (a)(1)(C), there is
authorized to be appropriated to the Fund $30,000,000 for
fiscal year 2023, to remain available until expended.
``(6) Definitions.--In this subsection, the terms `low-
income', `minority community development financial
institution', `Native community development financial
institution', and `very low-income' have the meanings given
those terms in section 123.''.
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