[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 10344 Introduced in House (IH)]
<DOC>
118th CONGRESS
2d Session
H. R. 10344
To authorize the Secretary of Housing and Urban Development to
establish a program enabling communities to better leverage resources
to address health, economic development, and conservation concerns
through needed investments in parks, recreational areas, facilities,
and programs, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
December 10, 2024
Mr. Menendez (for himself, Mr. Carter of Louisiana, and Mr. Thanedar)
introduced the following bill; which was referred to the Committee on
Financial Services, and in addition to the Committee on Natural
Resources, for a period to be subsequently determined by the Speaker,
in each case for consideration of such provisions as fall within the
jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To authorize the Secretary of Housing and Urban Development to
establish a program enabling communities to better leverage resources
to address health, economic development, and conservation concerns
through needed investments in parks, recreational areas, facilities,
and programs, 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 AND TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Community Parks
Revitalization Act''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title and table of contents.
TITLE I--COMMUNITY PARKS REVITALIZATION PROGRAM
Sec. 101. Purposes.
Sec. 102. Community parks revitalization program.
Sec. 103. Requirements for rehabilitation and construction grants.
Sec. 104. Requirements for innovation and recreation program grants.
Sec. 105. Local commitments to system recovery and maintenance.
Sec. 106. Matching of State amounts, State action incentive.
Sec. 107. Conversion of recreation property.
Sec. 108. Coordination of program.
Sec. 109. Reports; recordkeeping; audit and examination.
Sec. 110. Reports to Congress.
Sec. 111. Definitions.
Sec. 112. Regulations.
Sec. 113. Authorization of appropriations.
TITLE II--SECURED LOANS AND LOAN GUARANTEES FOR PARKS AND RECREATION
INFRASTRUCTURE DEVELOPMENT
Sec. 201. Purposes.
Sec. 202. Authority to provide assistance.
Sec. 203. Eligible entities.
Sec. 204. Projects eligible for assistance.
Sec. 205. Activities eligible for assistance.
Sec. 206. Applications.
Sec. 207. Determination of eligibility and project selection.
Sec. 208. Secured loans and loan guarantees.
Sec. 209. Program administration.
Sec. 210. State and local permits.
Sec. 211. Definitions.
Sec. 212. Regulations.
Sec. 213. Funding.
Sec. 214. Report to Congress.
TITLE I--COMMUNITY PARKS REVITALIZATION PROGRAM
SEC. 101. PURPOSES.
The purposes of this title are--
(1) to authorize the Secretary of Housing and Urban
Development to establish a program enabling communities to
better leverage resources to address health, economic
development, and conservation concerns through needed
investments in parks, recreational areas, facilities, and
programs;
(2) to improve and revitalize urban areas through economic
development;
(3) to prevent and improve chronic disease outcomes,
including cardiovascular disease, diabetes, depression, and
obesity;
(4) to improve recreational areas and facilities and expand
recreation services in urban areas with a high incidence of
crime and help expand recreation opportunities for at-risk
youth;
(5) to promote collaboration between local agencies
involved in parks and recreation, law enforcement, youth social
services, and juvenile justice system;
(6) to ensure accessibility to therapeutic recreation
services and to provide recreation opportunities for injured or
disabled members of the Armed Forces; and
(7) to encourage the use of environmentally responsible
components and sustainable landscape features, and promote cost
effective solutions to issues such as storm water management,
water conservation, and air quality.
SEC. 102. COMMUNITY PARKS REVITALIZATION PROGRAM.
(a) In General.--The Secretary of Housing and Urban Development
shall carry out a community parks revitalization program under this
title under which the Secretary shall, from amounts appropriated
pursuant to section 114, award the following grants on a competitive
basis:
(1) Rehabilitation and construction grants.--The Secretary
shall make rehabilitation and construction capital grants in
accordance with the criteria established pursuant to section
104(a) to eligible local governments for the purpose of--
(A) rebuilding, remodeling, expanding, integrating,
or developing existing or building new recreational
areas and facilities, including improvements in park
landscapes, infrastructure, buildings, and support
facilities; and
(B) the provision of lighting, emergency phones, or
other capital improvements to improve the security of
urban parks, but not including routine maintenance and
upkeep activities.
(2) Innovation and recreation program grants.--The
Secretary shall make innovation and recreation program grants
in accordance with the criteria established pursuant to section
105(a) to eligible local governments to cover costs of
personnel, facilities, equipment, supplies, or services
designed to demonstrate innovative and cost effective ways to
augment park and recreation opportunities, or support new or
existing programs, that increase access to recreation
opportunities for returning veterans and active duty military
and their families or provide constructive alternatives for
youth at risk for engaging in criminal behavior.
(3) Recovery action program grants.--The Secretary shall
make recovery action program grants to eligible local
governments for planning and development of local park and
recreation recovery action programs required under section 106,
including for resource and needs assessment, coordination,
citizen involvement and planning, and program development
activities to encourage public definition of goals and develop
priorities and strategies for overall recreation system
recovery.
(b) Eligibility.--
(1) In general.--For the purposes of this title, any local
government located within a standard metropolitan statistical
area, as determined in accordance with the most recent
decennial Census, shall be eligible to apply for and receive
grant awards pursuant to subsection (a).
(2) Partial eligibility waiver.--
(A) Designation.--The Secretary may designate local
governments not located within standard metropolitan
statistical areas, as determined in accordance with the
most recent decennial Census, as eligible to receive
grant awards pursuant to subsection (a).
(B) Limitation on amounts.--The aggregate amount of
grants made to eligible local governments that receive
such status pursuant to subparagraph (A) of this
paragraph shall not exceed 15 percent of the total
amounts appropriated pursuant to this title for all
grants under subsection (a).
(c) Matching Requirement.--
(1) In general.--The Secretary shall ensure that each
eligible local government that receives a grant pursuant to
subsection (a) shall supplement, in accordance with this
subsection, the amount received under such grant with an amount
that is not less than \3/7\ of such grant amount; except that,
in the case of grants under subsection (a)(3), the Secretary
shall ensure that each eligible local government shall
supplement the amount received under such grant with amount
that is not less than such grant amount.
(2) Use.--Supplemental amounts made available in accordance
with paragraph (1) shall be used only for projects and
activities for which grant amounts are eligible to be used.
(3) Sources for supplemental funds.--
(A) Limitation on federal funds.--Supplemental
funds required by paragraph (1) may not include any
amounts made available from a Federal grant program,
other than--
(i) the community development block grant
program under title I of the Housing and
Community Development Act of 1974 (42 U.S.C.
5301 et seq.);
(ii) any Federal program for general
revenue sharing with local governments; or
(iii) any Federal program that provides
block grants to States and localities to
develop, promote, implement, and manage energy
efficiency and conservation projects and
programs designed to reduce fossil fuel
emissions, reduce energy use, improve energy
efficiency, and create and retain jobs.
(B) State and private amounts.--The Secretary may
require that a portion of the supplemental funds
required by paragraph (1) come from the State or
private sources.
(C) Non-federal funds.--Supplemental funds required
by paragraph (1) may include--
(i) general or specific purpose State or
local revenues;
(ii) State categorical grants;
(iii) special appropriations under State
law;
(iv) donations of land, building, or
building materials;
(v) in-kind construction, technical, and
planning services; and
(vi) any combination of funds described in
this subparagraph.
(d) Transfer.--At the discretion of an eligible local government
receiving a rehabilitation and construction grant under subsection
(a)(1) or an innovation and recreation program grant under subsection
(a)(2), and if consistent with the approved application for such grant,
the grant may be transferred in whole or in part to private nonprofit
agencies, provided that assisted recreational areas and facilities
owned or managed by such private nonprofit agencies offer recreation
opportunities to the general population within the jurisdictional
boundaries of the local government.
(e) Payments.--Grant payments may be made only for rehabilitation
and construction or innovation and recreation projects and programs
approved by the Secretary. In the case of rehabilitation and
construction and innovation projects, such payments may be made
periodically consistent with the rate of progress toward the
satisfactory completion of a project, except that the Secretary may,
when appropriate, make advance payments on approved rehabilitation and
construction and innovation projects in an amount not to exceed 20
percent of the total project cost.
(f) Modification of Project.--The Secretary may authorize
modification of an approved rehabilitation and construction or
innovation project only when a grantee has adequately demonstrated that
such modification is necessary because of circumstances not foreseeable
at the time such project was proposed.
SEC. 103. REQUIREMENTS FOR REHABILITATION AND CONSTRUCTION GRANTS.
(a) Priority Criteria.--The Secretary shall establish priority
criteria for the selection and approval of projects to be funded by a
rehabilitation and construction grant made pursuant to section
103(a)(1), which shall include whether and the extent to which the
project would--
(1) serve a community with a high population density;
(2) address demonstrated deficiencies in the condition of
existing recreational areas and facilities in the project
neighborhood;
(3) address demonstrated deficiencies in access to
neighborhood recreation opportunities, particularly for
minority and low- and moderate-income residents, veterans or
active duty military families, and residents with physical or
mental disabilities;
(4) serve a community with a higher than average number of
unemployed people as a percentage of the civilian labor force
of the project neighborhood;
(5) include public participation in determining
rehabilitation or development needs and the extent to which a
project supports or complements target activities undertaken as
part of a local government's overall community development and
urban revitalization program;
(6) provide employment opportunities for minorities, youth,
and low- and moderate-income residents in the project
neighborhood;
(7) provide for participation of neighborhood, nonprofit,
or tenant organizations in the proposed rehabilitation and
construction activity or in subsequent maintenance, staffing,
or supervision of recreational areas and facilities;
(8) demonstrate State, local, and private support for the
project, as evidenced by commitments of non-Federal resources
to project construction or operation;
(9) build recreational areas and facilities in areas that
are located within one-half of a mile of public housing or a
school and do not currently have indoor or outdoor facilities;
(10) create, maintain, or revitalize playgrounds or active
play areas for children;
(11) connect children to the outdoors for physical activity
and access to nature;
(12) promote physical activity for individuals and the
community at large;
(13) work collaboratively with local governments, colleges,
and universities, and other institutions to track the
longitudinal rates of chronic diseases in the community such as
cardiovascular disease, diabetes, depression, and obesity;
(14) use environmentally beneficial components such as
sustainable landscape features and upcycled and recycled
materials;
(15) provide environmental benefits to urban areas, by
including--
(A) updating lighting;
(B) planting trees;
(C) increasing the urban forestry canopy;
(D) improving stormwater management;
(E) increasing green infrastructure;
(F) employing water conservation measures; or
(G) adding green spaces;
(16) connect to public transportation;
(17) apply the LEED Green Building Guidelines of the U.S.
Green Building Council or other sustainability benchmarks that
incorporate energy efficiency components, such as energy
efficient lighting and heating ventilation and air conditioning
(HVAC) systems and apply the SITES sustainable landscape
guidelines of the Sustainable Sites Initiative;
(18) contain safe trails or routes, such as trails,
bikeways, and sidewalks that connect to neighborhoods and
enhance access to parks and recreational areas and facilities;
and
(19) update existing equipment or facilities or construct
new facilities or sites, to comply with the most recent
accessibility guidelines published by the United States Access
Board, specifically by removing architectural barriers so that
sites comply or exceed the requirements of the final guidelines
for the accessibility of recreational areas and facilities.
(b) Limitation on Use of Funds.--Not more than 10 percent of any
amounts made available pursuant to section 114 for rehabilitation and
construction grants under section 103(a)(1) in any fiscal year may be
used for the acquisition of lands or interests in land.
SEC. 104. REQUIREMENTS FOR INNOVATION AND RECREATION PROGRAM GRANTS.
(a) Priority Criteria.--The Secretary shall establish priority
criteria for the selection and approval of projects and programs to be
funded by an innovation and recreation program grant made pursuant to
section 103(a)(2), including whether and the extent to which the
project or program--
(1) promotes the unique integration of recreation with
other community services, such as transportation, public
housing and public safety, either to expand or update current
services or to link programs within the social service
structure of a neighborhood or between neighborhoods;
(2) utilizes new management and cost-saving or service-
efficient approaches for improving the delivery of recreation
services;
(3) serves communities with a high population of active
military families or veterans;
(4) ensures accessibility to therapeutic recreation
services and provides recreation opportunities for injured or
disabled members of the Armed Forces;
(5) employs veterans or youth, or uses youth volunteers;
(6) enhances or expands youth development in neighborhoods
and communities by engaging youth in environmental stewardship,
conservation, and service projects;
(7) targets youth that are at the greatest risk of becoming
involved in violence and crime;
(8) demonstrates past success in providing constructive
alternatives to youth at risk for engaging in criminal
behavior;
(9) demonstrates collaboration between local park and
recreation, juvenile justice, law enforcement, and youth social
service agencies and nongovernmental entities, including
private, nonprofit agencies; and
(10) shows the greatest potential of being continued with
non-Federal funds or may serve as models for other communities.
(b) Special Considerations.--Each innovation and recreation program
grant shall be used in accordance with the goals, priorities, and
implementation strategies expressed in the local park and recreation
recovery action program established pursuant to section 106 for the
eligible local government receiving the grant, with particular regard
to the special considerations set forth in the program pursuant to
section 106(b).
SEC. 105. LOCAL COMMITMENTS TO SYSTEM RECOVERY AND MAINTENANCE.
(a) Local Park and Recreation Recovery Action Programs.--
(1) In general.--As a requirement for approval of a project
or program for a grant under paragraph (1) or (2) of section
103(a), the eligible local government applying for the grant
shall submit to the Secretary a local park and recreation
recovery action program that--
(A) provides evidence of its commitment to ongoing
planning, rehabilitation, service, operation, and
maintenance programs for its park and recreation
systems; and
(B) maximizes coordination of all community
resources, including other federally supported urban
development and recreation programs.
(2) Interim preliminary programs.--The Secretary shall
provide, by regulation, that during an initial interim period
the requirement under paragraph (1) for an eligible local
government to submit a local park and recreation recover action
program may be satisfied by submission of a preliminary action
program to be carried out by the eligible local government that
defines objectives, priorities, and implementation strategies
for overall system recovery and maintenance and commit such
local government to a scheduled program development process.
(3) 5-year action program.--After the expiration of the
interim period under paragraph (2), each eligible local
government that applies for a grant under paragraph (1) or (2)
of section 103(a) shall, as a condition of eligibility for such
grant, submit to the Secretary a 5-year park and recreation
recovery action program that demonstrates--
(A) identification of recovery objectives,
priorities, and implementation strategies;
(B) adequate planning for rehabilitation of
specific recreational areas and facilities, including
projections of the cost of proposed projects;
(C) capacity and commitment to ensure that
facilities provided or improved under this title shall
thereafter continue to be adequately maintained,
protected, staffed, and supervised;
(D) intention to maintain total local public
outlays for park and recreation purposes at levels at
least equal to those in the year preceding that in
which grant assistance is sought, except in any case
where a reduction in park and recreation outlays is
proportionate to a reduction in overall spending by the
applicant; and
(E) the relationship of the park and recreation
recovery action program to overall community
development and urban revitalization efforts.
(4) Continuing planning process.--The Secretary may, in
such cases as the Secretary considers appropriate, encourage
local governments to meet recovery action program requirements
under this section through a continuing planning process that
includes periodic improvements and updates in recovery action
program submissions to eliminate identified gaps in program
information and policy development.
(b) Special Considerations.--Each local park and recreation
recovery action program required by this section shall address, at a
minimum, the following special considerations:
(1) Rehabilitation of existing recreational areas and
facilities, including--
(A) general systemwide renovation;
(B) special rehabilitation requirements for
recreational areas and facilities in areas of high
population concentration and economic distress; and
(C) restoration of outstanding or unique
structures, landscaping, or similar features in parks
of historical or architectural significance.
(2) Local commitments to innovative and cost-effective
programs and projects at the neighborhood level to augment
recovery of park and recreation systems, including--
(A) recycling of abandoned schools and other public
buildings for recreation purposes;
(B) multiple use of operating educational and other
public buildings;
(C) purchase of recreation services on a
contractual basis;
(D) use of mobile facilities and recreational,
cultural, and educational programs or other innovative
approaches to improving access for neighborhood
residents;
(E) integration of the recovery action program with
federally assisted projects to maximize recreation
opportunities through conversion of abandoned railroad
and highway rights-of-way, waterfront, and other
redevelopment efforts and such other federally assisted
projects, as appropriate;
(F) conversion to recreational use of street space,
derelict land, and other public lands not now
designated for neighborhood recreational use; and
(G) use of various forms of compensated and
uncompensated land regulation, tax inducements, or
other means to encourage the private sector to provide
neighborhood park and recreation facilities and
programs.
(c) Publication of Requirements.--The Secretary shall establish and
publish in the Federal Register requirements for preparation,
submission, and updating of local park and recreation recovery action
programs required under this section.
(d) Innovation and Recreation Program Grants for At-Risk Youth.--To
be eligible to receive an innovation and recreation program grant under
section 103(a)(2) to be used to provide recreation opportunities or
programs for at-risk youth, an eligible local government shall--
(1) include in its 5-year park and recreation recovery
action program required under subsection (a)(3) the goal of--
(A) utilizing new ideas, concepts, and approaches
aimed at improving facility design, operations, or
programming in the delivery of recreation services;
(B) increased access of therapeutic or other
recreation services to veterans and military families;
or
(C) reducing crime and juvenile delinquency; and
(2) provide a description of--
(A) implementation strategies to achieve such
goals; and
(B) how the local government is coordinating its
recreation programs with other community development or
service agencies.
SEC. 106. MATCHING OF STATE AMOUNTS, STATE ACTION INCENTIVE.
(a) Increase in Grant Amounts.--The Secretary may increase Federal
rehabilitation and construction, innovation, and at-risk youth
recreation grants authorized in section 103(a) by providing an
additional match equal to the total match provided by a State of up to
15 percent of total project or program costs, except that in no event
may--
(1) such additional grant amount exceed 15 percent of the
total project or program cost; or
(2) the aggregate amount of the grant and the additional
grant amounts under this subsection exceed 85 percent of total
project or program cost.
(b) State Action Incentive.--The Secretary shall further encourage
the States to assist in assuring that local recovery plans and programs
are adequately implemented by cooperating with the Department of
Housing and Urban Development in monitoring local park and recreation
recovery action programs and in assuring consistency of such plans and
programs, where appropriate, with State recreation policies as set
forth in statewide comprehensive outdoor recreation plans.
SEC. 107. CONVERSION OF RECREATION PROPERTY.
(a) No Conversion Without Approval.--No property improved or
developed with assistance under a grant under this title may be
converted for uses other than for public recreation, without the
approval of the Secretary.
(b) Standard for Approval.--The Secretary may approve such
conversion only--
(1) if the Secretary determines the conversion to be
consistent with the current local park and recreation recovery
action program for the local government that improved or
developed the property; and
(2) subject to such conditions as the Secretary determines
necessary to ensure the provision of adequate recreation
properties and opportunities of reasonably equivalent location
and usefulness.
SEC. 108. COORDINATION OF PROGRAM.
The Secretary shall--
(1) coordinate the community parks revitalization program
for grants under this title with other Federal departments and
agencies and with State agencies that administer programs and
policies affecting urban areas such as the White House Office
of Urban Policy and departments that administer programs and
policies affecting climate change, green jobs, housing, urban
development, natural resources management, employment,
transportation, community services, and voluntary action;
(2) encourage maximum coordination of the program between
appropriate State agencies and local government applicants; and
(3) require that local government applicants include
provisions for participation of community and neighborhood
residents, including youth, and for public-private coordination
in recovery action program planning and project selection.
SEC. 109. REPORTS; RECORDKEEPING; AUDIT AND EXAMINATION.
(a) Reports.--Each recipient of assistance under this title shall
submit to the Secretary, for each fiscal year such assistance is
received, an annual report detailing the projects and programs
undertaken with such assistance, the number of jobs created by such
assistance, and any other information the Secretary determines
appropriate based on the priority criteria established by the Secretary
under sections 105 and 106.
(b) Recordkeeping.--Each recipient of assistance under this title
shall keep such records as the Secretary shall prescribe, including
records that fully disclose the amount and disposition of project or
program undertakings in connection with which assistance under this
title is given or used, and the amount and nature of that portion of
the cost of the project or program undertaking supplied by other
sources, and such other records as will facilitate an effective audit.
(c) Audit and Examination.--The Secretary and the Comptroller
General of the United States, or their duly authorized representatives,
shall have access, for the purpose of audit and examination, to any
books, documents, papers, and records of a recipient of assistance
under this title that are pertinent to such assistance.
SEC. 110. REPORTS TO CONGRESS.
(a) Interim Report.--Not later than 5 years after the date of
enactment of this Act, the Secretary shall submit to the Congress an
interim report containing such findings and recommendations as the
Secretary determines appropriate with respect to the community parks
revitalization program established pursuant to this title.
(b) Final Report.--Not later than 10 years after the date of
enactment of this Act, the Secretary shall submit to Congress a report
describing the overall impact of the community parks revitalization
program established pursuant to this title.
SEC. 111. DEFINITIONS.
In this title, the following definitions shall apply:
(1) The term ``eligible local government'' means a local
government that, pursuant to section 103(b), is eligible for a
grant under section 103(a).
(2) The term ``insular areas'' means Guam, the Virgin
Islands, American Samoa, and the Northern Mariana Islands.
(3) The term ``local government'' means any city, county,
town, township, parish, village, or any local or regional
special district, such as a park district, conservation
district, or park authority.
(4) The term ``maintenance'' means all commonly accepted
practices necessary to keep recreational areas and facilities
operating in a state of good repair and to protect such areas
and facilities from deterioration resulting from normal wear
and tear.
(5) The term ``private nonprofit agency'' means a
community-based, nonprofit organization, corporation, or
association organized for purposes of providing recreation,
conservation, and educational services directly to urban
residents on either a neighborhood or community-wide basis
through voluntary donations, voluntary labor, or public or
private grants.
(6) The term ``recreational areas and facilities'' means
indoor or outdoor parks, buildings, sites, or other facilities
that are dedicated to recreation purposes and administered by
public or private nonprofit agencies to serve the recreation
needs of community residents, with emphasis on public
facilities readily accessible to residential neighborhoods,
including multiple-use community centers that have recreation
as a primary purpose, but not including major sports arenas,
exhibition areas, and conference halls used primarily for
commercial sports, spectator, or display activities.
(7) The term ``Secretary'' means the Secretary of Housing
and Urban Development.
(8) The term ``State'' means any State of the United States
(or any instrumentality of a State approved by the Governor),
the District of Columbia, and the Commonwealth of Puerto Rico.
SEC. 112. REGULATIONS.
(a) Regulations.--Not later than 180 days after the date of the
enactment of this Act, the Secretary shall promulgate regulations
establishing the community parks revitalization program under this
title to provide the grants authorized in section 103(a), in accordance
with this title.
(b) Requirements.--The regulations required under this section
shall include--
(1) the criteria necessary to carry out sections 104, 105,
and 106;
(2) requirements regarding the form of, and elements to be
included in, applications by eligible local governments for
grants under this title, requirements for and detailed
instructions on the process for submitting such applications,
and deadlines for such applications;
(3) criteria pursuant to sections 104(a) and 105(a) for
priority in selection and approval by the Secretary of projects
or programs to receive grant funds;
(4) guidelines regarding whether an applicant may modify a
pending application and the process for modifying pending
applications, and guidelines for submitting a request for
modification of a project awarded grant funding under this
title after such an award has been made; and
(5) penalties that will be assessed on local governments
awarded a grant under this title for failure to comply with the
reporting and recordkeeping requirements under section 110,
which shall provide penalties up to and including rescission of
grant amounts for repetitive violations.
SEC. 113. AUTHORIZATION OF APPROPRIATIONS.
(a) In General.--There are authorized to be appropriated such sums
as may be necessary to carry out this title for each of fiscal years
2025 through 2034.
(b) Limitation on Innovation and Recreation Program Grants.--Not
more than 10 percent of any amounts appropriated pursuant to subsection
(a) of this section in any fiscal year may be used for grants under
section 103(a)(2).
(c) Limitation on Recovery Action Program Grants.--Not more than 3
percent of any amounts appropriated pursuant to subsection (a) of this
section in any fiscal year may be used for grants under section
103(a)(3).
(d) Grants for Insular Areas.--Notwithstanding any other provision
of this title, the Secretary may use not more than 2 percent of any
amounts appropriated pursuant to subsection (a) in any fiscal year may
to provide rehabilitation and construction grants under section
103(a)(1), innovation and recreation program grants under section
103(a)(2), and recovery action program grants under section 103(a)(3)
to be used in the insular areas. Any such grants shall not be subject
to sections 103(c) and 107(a) (relating to matching amounts), and may
only be subject to such conditions, reports, plans, and agreements, if
any, as determined by the Secretary.
TITLE II--SECURED LOANS AND LOAN GUARANTEES FOR PARKS AND RECREATION
INFRASTRUCTURE DEVELOPMENT
SEC. 201. PURPOSES.
The purposes of this title are--
(1) to promote increased development of parks and
recreation infrastructure by establishing additional
opportunities for financing parks and recreation projects;
(2) to attract new investment capital to infrastructure
projects that are capable of generating revenue streams through
user fees or other dedicated funding sources;
(3) to complement existing Federal funding sources and
address budgetary constraints on the National Park Service; and
(4) to leverage private investment in parks and recreation
infrastructure.
SEC. 202. AUTHORITY TO PROVIDE ASSISTANCE.
The Secretary of Housing and Urban Development may provide
financial assistance under section 208 to eligible entities to carry
out parks and infrastructure projects selected for such assistance
pursuant to section 207.
SEC. 203. ELIGIBLE ENTITIES.
Financial assistance under section 208 may be provided only to the
following entities:
(1) A corporation.
(2) A partnership.
(3) A joint venture.
(4) A trust.
(5) A Federal, State, or local governmental entity, agency,
or special purpose park and recreation district.
(6) A State infrastructure financing authority.
SEC. 204. PROJECTS ELIGIBLE FOR ASSISTANCE.
Financial assistance may be provided under section 208, subject to
section 207, only for the following types of projects:
(1) A project for the development of indoor or outdoor
parks, buildings, sites, or other facilities that are dedicated
to recreation purposes and administered by public or private
nonprofit agencies to serve the recreation needs of community
residents, including multiple-use community centers that have
recreation as a primary purpose, but not including major sports
arenas, exhibition areas, and conference halls used primarily
for commercial sports, spectator, or display activities.
(2) A project for the construction, planning, and design of
on-road and off-road trail facilities for pedestrians,
bicyclists, and other nonmotorized forms of transportation,
including sidewalks, bicycle infrastructure, pedestrian and
bicycle signals, traffic calming techniques, lighting and other
safety-related infrastructure, and transportation projects to
achieve compliance with the Americans with Disabilities Act of
1990 (42 U.S.C. 12101 et seq.).
(3) A project for the construction, planning, and design of
infrastructure-related projects and systems that will provide
safe routes for non-drivers, including children, older adults,
and individuals with disabilities to access daily needs.
(4) A project for the conversion and use of abandoned
railroad corridors for trails for pedestrians, bicyclists, or
other nonmotorized transportation users.
(5) A project for the construction of turnouts, overlooks,
and viewing areas.
SEC. 205. ACTIVITIES ELIGIBLE FOR ASSISTANCE.
Amounts from a loan made or guaranteed under section 208 provided
for an eligible project may be used for costs of carrying out such
project, including costs of--
(1) development-phase activities, including planning,
feasibility analysis, revenue forecasting, environmental
review, permitting, preliminary engineering and design work,
and other preconstruction activities;
(2) construction, reconstruction, rehabilitation,
preservation, and replacement activities;
(3) the acquisition of real property (including water
rights, land relating to the project, and improvements to
land), environmental mitigation, construction contingencies,
and acquisition of equipment;
(4) capitalized interest necessary to meet market
requirements, reasonably required reserve funds, capital
issuance expenses, and other carrying costs during
construction; and
(5) refinancing interim construction funding, long-term
project obligations, or a secured loan or loan guarantee made
under this title.
SEC. 206. APPLICATIONS.
(a) In General.--The Secretary shall provide for eligible entities
to submit applications for selection of eligible projects to receive
financial assistance under section 208, at such time, in such manner,
and containing such information as the Secretary may require.
(b) Combined Projects.--The Secretary shall provide that in the
case only of an eligible entity described in section 203(6), such an
entity may submit a single application for a combination of projects,
each of which is an eligible project under paragraphs (1) through (5)
of section 205.
SEC. 207. DETERMINATION OF ELIGIBILITY AND PROJECT SELECTION.
(a) Selection of Projects.--Using the selection criteria under
subsection (c) of this section, the Secretary shall select, from
applications submitted pursuant to section 206, eligible projects that
meet the criteria under subsection (b) of this section for financial
assistance under section 208.
(b) Project Requirements.--An eligible project may not be selected
to receive financial assistance under section 208 unless the Secretary
determines that the project meets all of the following criteria:
(1) Creditworthiness.--
(A) In general.--Subject to subparagraph (B), the
project shall be creditworthy, as determined by the
Secretary as applicable, to shall ensure that any
financing for the project has appropriate security
features, such as a rate covenant, to ensure repayment.
(B) Preliminary rating opinion letter.--The
Secretary shall require the applicant for each project
to provide, as part of the application for the project
under section 206, a preliminary rating opinion letter
from at least one rating agency indicating that the
senior project obligations of the project (which may be
the Federal credit instrument) have the potential to
achieve an investment-grade rating.
(C) Special rule for certain combined projects.--
The Secretary shall develop a credit evaluation process
for a Federal credit instrument provided to a State
infrastructure financing authority for a project
described in section 206(b), which may include
requiring the provision of a preliminary rating opinion
letter from at least one rating agency.
(2) Eligible project costs.--The costs of the eligible
project shall be reasonably anticipated to be not less than
$20,000,000.
(3) Dedicated revenue sources.--The Federal credit
instrument for the project shall be repayable, in whole or in
part, from dedicated revenue sources that also secure the
project obligations.
(4) Public sponsorship of private entities.--In the case of
a project carried out by an entity that is not a State or local
government or an agency or instrumentality of a State or local
government, the project shall be publicly sponsored.
(c) Selection Criteria.--
(1) Establishment.--The Secretary shall establish criteria
for the selection of projects that meet the eligibility
requirements of subsection (b). Such criteria shall be designed
to ensure a diversity of project types and geographical
locations, and shall include the following:
(A) The extent to which the project is statewide or
regionally significant, with respect to the generation
of increased recreational opportunities.
(B) The extent to which assistance under this title
would foster innovative public-private partnerships and
attract private debt or equity investment.
(C) The likelihood that assistance under this title
would enable the project to proceed at an earlier date
than the project would otherwise be able to proceed.
(D) The extent to which the project uses new or
innovative approaches.
(E) The amount of budget authority required to fund
the Federal credit instrument for the project made
available under this title.
(F) The extent to which the project helps maintain
or protect the environment.
(G) The extent to which assistance under this
section reduces the contribution of Federal grant
assistance to the project.
(2) Special rule for certain combined projects.--For a
project described in section 206(b), the Secretary shall only
consider the criteria described in subparagraphs (B) through
(G) of paragraph (1).
(d) Federal Requirements.--Nothing in this section may be construed
to alter, affect, or annul the applicability of any other Federal laws
or regulations.
SEC. 208. SECURED LOANS AND LOAN GUARANTEES.
(a) Authority.--The Secretary may enter into agreements with
eligible entities to make, and may make, secured loans to such entities
as provided under this section for eligible projects selected under
section 207 for financial assistance under this section.
(b) Use.--
(1) In general.--The proceeds of a secured loan under this
section shall be used only--
(A) to finance eligible project costs of an
eligible project selected under section 207;
(B) subject to paragraph (2) of this subsection, to
refinance interim construction financing of eligible
project costs of an eligible project selected under
section 207; or
(C) to refinance long-term project obligations or
Federal credit instruments, if such refinancing
provides additional funding capacity for the
completion, enhancement, or expansion of a project
that--
(i) is selected under section 207; or
(ii) was originally financed, in whole or
in part, with amounts provided other than under
this title, if the project otherwise meets the
requirements of section 207.
(2) Limitation on refinancing of interim construction
financing.--The proceeds of a secured loan under this section
made for an eligible project may not be used for the purpose
under paragraph (1)(B) after the expiration of the 12-month
period beginning upon the date of substantial completion of the
project.
(c) Risk Assessment.--Before entering into an agreement under this
subsection for a secured loan, the Secretary, in consultation with the
Director of the Office of Management and Budget and each rating agency
providing a preliminary rating opinion letter under section
207(b)(1)(B), shall determine an appropriate capital reserve subsidy
amount for the secured loan, taking into account each such preliminary
rating opinion letter.
(d) Investment-Grade Rating Requirement for Senior Obligations.--
The execution of a secured loan under this section shall be contingent
on receipt by the senior obligations of the project of an investment-
grade rating.
(e) Terms and Limitations.--
(1) Maximum amount.--The amount of a secured loan under
this section shall not exceed the lesser of--
(A) an amount equal to 49 percent of the reasonably
anticipated eligible project costs; or
(B) if the secured loan does not receive an
investment-grade rating, the amount of the senior
project obligations of the project.
(2) Payment.--A secured loan under this section--
(A) shall be payable, in whole or in part, from
State or local taxes, user fees, or other dedicated
revenue sources that also secure the senior project
obligations of the relevant project;
(B) shall include a rate covenant, coverage
requirement, or similar security feature supporting the
project obligations; and
(C) may have a lien on revenues described in
subparagraph (A), subject to any lien securing project
obligations.
(3) Interest rate.--The interest rate on a secured loan
under this section shall be--
(A) not less than the yield on United States
Treasury securities of a similar maturity to the
maturity of the secured loan on the date of execution
of the loan agreement; and
(B) fixed for the term of the loan.
(4) Maturity date.--
(A) In general.--Except as provided in subparagraph
(B), the final maturity date of a secured loan under
this section for an eligible project shall be not later
than 35 years after the date of substantial completion
of the project.
(B) Special rule for state infrastructure financing
authorities.--The final maturity date of a secured loan
under this section made to a State infrastructure
financing authority shall be not later than 35 years
after the date on which loan amounts are first
disbursed.
(5) Nonsubordination.--A secured loan under this section
shall not be subordinated to the claims of any holder of
project obligations in the event of bankruptcy, insolvency, or
liquidation of the obligor.
(6) Fees.--The Secretary may establish fees in connection
with a secured loan under this section, in amounts sufficient
to cover all or a portion of the costs to the Federal
Government of secured loans under this section.
(7) Use of proceeds for payment of non-federal share.--The
proceeds of a secured loan under this section may be used to
pay any non-Federal share required with respect to other
funding obtained for project costs, but only if such secured
loan is repaid using non-Federal funds.
(8) Maximum federal involvement.--For any project for which
assistance is provided under this title, the total amount of
Federal assistance from all sources, including this title,
shall not exceed 80 percent of the total project cost.
(9) Others.--A secured loan provided for a project under
this section shall be subject to such other terms and
conditions, and contain such covenants, representations,
warranties, and requirements (including requirements for
audits), as the Secretary determines to be appropriate.
(f) Repayment.--
(1) Schedule.--The Secretary shall establish a repayment
schedule for each secured loan provided under this section,
based on the projected cash flow from project revenues and
other repayment sources.
(2) Commencement.--
(A) In general.--Except as provided in subparagraph
(B), scheduled loan repayments of principal or interest
on a secured loan under this section for an eligible
project shall commence not later than 5 years after the
date of substantial completion of the project.
(B) Special rule for state infrastructure financing
authorities.--Scheduled loan repayments of principal or
interest on a secured loan made under this section to a
State infrastructure financing authority shall commence
not later than 5 years after the date on which amounts
are first disbursed.
(3) Deferred payments.--
(A) Authorization.--If, at any time after the date
of substantial completion of a project for which a
secured loan is provided under this section, the
project is unable to generate sufficient revenues to
pay the scheduled loan repayments of principal and
interest on the loan, the Secretary may, subject to
subparagraph (C), allow the obligor to add unpaid
principal and interest to the outstanding balance of
the secured loan.
(B) Interest.--Any payment deferred pursuant to
subparagraph (A) shall--
(i) continue to accrue interest in
accordance with subsection (e)(3) until fully
repaid; and
(ii) be amortized over the remaining term
of the secured loan.
(C) Criteria.--Any payment deferral pursuant to
subparagraph (A) shall be contingent on the project
meeting--
(i) standards for reasonable assurance of
repayment, as the Secretary shall establish;
and
(ii) such other criteria as the Secretary
may establish.
(4) Prepayment.--
(A) Use of excess revenues.--Any excess revenues
from an eligible project that remain after satisfying
scheduled debt service requirements on the project
obligations and secured loan and all deposit
requirements under the terms of any trust agreement,
bond resolution, or similar agreement securing project
obligations may be applied annually to prepay a secured
loan under this section without penalty.
(B) Use of proceeds of refinancing.--A secured loan
under this section may be prepaid at any time, without
penalty, from the proceeds of refinancing from non-
Federal funding sources.
(g) Sale of Secured Loans.--
(1) In general.--Subject to paragraph (2), if the Secretary
determines that the sale or reoffering of a secured loan under
this section for an eligible project can be made on favorable
terms, the Secretary may sell the loan to another entity or
reoffer the loan into the capital markets as soon as
practicable after the date of substantial completion of a
project and after providing notice to the obligor.
(2) Consent of obligor.--In making a sale or reoffering
under paragraph (1), the Secretary may not change the original
terms and conditions of the secured loan without the written
consent of the obligor.
(h) Loan Guarantees.--
(1) In general.--In lieu of making a secured loan under
this section for an eligible project, the Secretary may provide
a loan guarantee for a project obligation for the project
funded by a qualified lender (as such term is defined in
section 211), but only if the Secretary determines that the
cost as such term is defined in section 502 of the Federal
Credit Reform Act of 1990 (2 U.S.C. 661a) of the loan guarantee
is substantially the same as or less than that of making a
secured loan.
(2) Terms.--The terms of a loan guarantee provided under
this subsection shall be consistent with the terms established
in this section for a secured loan, except that the interest
rate on the guaranteed loan and any prepayment features shall
be negotiated between the obligor and the qualified lender,
subject to the consent of the Secretary.
SEC. 209. PROGRAM ADMINISTRATION.
(a) Requirement.--The Secretary shall establish a uniform system to
service the Federal credit instruments made available under this title.
(b) Fees.--
(1) In general.--The Secretary may collect and spend fees,
to the extent provided in advance in appropriations Acts, in
amounts sufficient to cover--
(A) the costs of services obtained pursuant to
subsection (d); and
(B) all or a portion of the costs to the Federal
Government of servicing the Federal credit instruments
provided under this title.
(c) Servicer.--
(1) In general.--The Secretary may appoint a financial
entity to assist the Secretary in servicing Federal credit
instruments provided under this title.
(2) Duties.--A servicer appointed under paragraph (1) shall
act as the agent for the Secretary.
(3) Fee.--A servicer appointed under paragraph (1) shall
receive a servicing fee, subject to approval by the Secretary.
(d) Assistance From Experts.--The Secretary may retain the
services, including counsel, of organizations and entities with
expertise in the field of municipal and project finance to assist in
the underwriting and servicing of Federal credit instruments provided
under this title.
SEC. 210. STATE AND LOCAL PERMITS.
The provision of financial assistance under section 208 for an
eligible project shall not--
(1) relieve any recipient of such assistance of any
obligation to obtain any required State or local permit or
approval with respect to the project;
(2) limit the right of any unit of State or local
government to approve or regulate any rate of return on private
equity invested in the project; or
(3) otherwise supersede any State or local law or
regulation applicable to the construction or operation of the
project.
SEC. 211. DEFINITIONS.
In this title, the following definitions shall apply:
(1) Commercial sports.--The term ``commercial sport'' means
a sports enterprise of which profit-making forms a major part.
(2) Eligible entity.--The term ``eligible entity'' means an
entity eligible pursuant to section 203 to receive financial
assistance under section 208.
(3) Eligible project.--The term ``eligible project'' means
a project for which financial assistance under section 208 may
be provided, pursuant to section 204.
(4) Eligible project costs.--The term ``eligible project
costs'' means, with respect to an eligible project, any costs
of the project eligible under section 205 to be paid with
amounts from a loan made or guaranteed pursuant to section 208.
(5) Federal credit instrument.--The term ``Federal credit
instrument'' means a secured loan made, or loan guarantee
provided, under section 208.
(6) Investment-grade rating.--The term ``investment-grade
rating'' means, with respect to project obligations, a rating
of BBB minus, Baa3, bbb minus, BBB (low), or higher as assigned
by a rating agency.
(7) Loan guarantee.--The term ``loan guarantee'' means any
guarantee or other pledge by the Secretary to pay all or part
of the principal of, and interest on, a loan or other debt
obligation.
(8) Obligor.--The term ``obligor'' means--
(A) with respect to a Federal credit instrument
that is a secured loan under section 208, the eligible
entity that is primarily liable for payment of the
principal of, or interest on, the loan; and
(B) with respect to a Federal credit instrument
that is a loan guarantee under section 208(h), the
eligible entity that is primarily liable for payment of
the loan or other debt obligation repayment of which is
guaranteed pursuant to such section.
(9) Project obligation.--The term ``project obligation''
means, with respect to an eligible project, any note, bond,
debenture, or other debt obligation issued by an obligor in
connection with the financing of the project. Such term does
not include a Federal credit instrument.
(10) Qualified lender.--
(A) In general.--The term ``qualified lender''
means any non-Federal qualified institutional buyer, as
such term is defined in section 230.144A(a) of title
17, Code of Federal Regulations (or any successor
regulation), known as Rule 144A(a) of the Securities
and Exchange Commission and issued under the Securities
Act of 1933 (15 U.S.C. 77a et seq.).
(B) Inclusions.--Such term includes--
(i) a qualified retirement plan (as defined
in section 4974(c) of the Internal Revenue Code
of 1986) that is a qualified institutional
buyer; and
(ii) a governmental plan (as defined in
section 414(d) of the Internal Revenue Code of
1986) that is a qualified institutional buyer.
(11) Rating agency.--The term ``rating agency'' means a
credit rating agency registered with the Securities and
Exchange Commission as a nationally recognized statistical
rating organization (as defined in section 3(a) of the
Securities Exchange Act of 1934 (15 U.S.C. 78c(a))).
(12) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
(13) Secured loan.--The term ``secured loan'' means a
direct loan or other debt obligation issued by an obligor and
funded by the Secretary pursuant to section 208.
(14) State.--The term ``State'' means a State, the District
of Columbia, the Commonwealth of Puerto Rico, and any other
territory or possession of the United States.
(15) State infrastructure financing authority.--The term
``State infrastructure financing authority'' means the State
entity established or designated by the Governor of a State to
receive assistance under this title.
(16) Subsidy amount.--The term ``subsidy amount'' means,
with respect to a Federal credit instrument, the amount of
budget authority sufficient to cover the estimated long-term
cost to the Federal Government of the Federal credit
instrument, as calculated on a net present value basis,
excluding administrative costs and any incidental effects on
governmental receipts or outlays in accordance with the Federal
Credit Reform Act of 1990 (2 U.S.C. 661 et seq.).
(17) Substantial completion.--The term ``substantial
completion'' means, with respect to a project, the earliest
date on which a project is considered capable of performing the
functions for which the project is designed.
SEC. 212. REGULATIONS.
The Secretary may issue such regulations as the Secretary considers
appropriate to carry out this title.
SEC. 213. FUNDING.
From amounts made available for Federal purposes under section 5 of
the Land and Water Conservation Fund Act of 1965 (16 U.S.C.460l-7),
there is authorized to be appropriated to the Secretary to carry out
this title $50,000,000 for each of fiscal years 2025 through 2029, to
remain available until expended, of which in each such fiscal year--
(1) the Secretary may use for the administration of this
title, including program administration under section 209, not
more than $2,200,000; and
(2) the remainder shall be available for costs (as such
term is defined in section 502 of the Federal Credit Reform Act
of 1990 (2 U.S.C. 661a)) of loans and loan guarantees under
section 208.
SEC. 214. REPORT TO CONGRESS.
Not later than 2 years after the date of enactment of this Act, and
every 2 years thereafter, the Secretary shall submit to the Congress a
report summarizing the financial performance of the projects that are
receiving, or have received, assistance under this title, including a
recommendation as to whether the objectives of this title are being
met.
<all>