Bill summaries are authored by CRS.

Shown Here:
Reported to House amended (05/23/2000)

America's Private Investment Companies Act - Authorizes the Secretary of Housing and Urban Development to license community development entities as America's Private Investment Companies (APICs) (for-profit investment companies formed to make equity and credit investments for large-scale business development in low-income communities). Authorizes the Secretary to: (1) increase the credit subsidy normally allocated to an APIC as an award for high performance (but allows such an increase only for an APIC that has been licensed for at least two years and pursuant to a competition among eligible APICs); (2) impose fees and charges for administrative costs; and (3) collect fees for loan guarantee commitments and loans made under this Act. Authorizes appropriations for FY 2000 through 2004 for loan guarantee commitments and for administrative expenses.

(Sec. 5) Outlines APIC eligibility requirements, including that each such an entity: (1) have reasonably available at least $25 million in private equity capital; and (2) prepare and submit to the Secretary an investment strategy and a statement of public purpose goals. Directs the Secretary to select APICs for licensing on the basis of competitions announced through the Federal Register. Requires geographical diversity among applicants selected and diversity of investment strategies so that both urban and rural communities are served. Prohibits the number of APICs awarded a license in the first year from exceeding 15. Limits the amount of credit subsidy allocated to any single APIC to 20 percent of the total amount initially made available under this Act. Requires at least one APIC selected during the first year to have as its primary purpose the making of qualified low-income community investments in areas within Indian country or within Hawaiian home land.

(Sec. 6) Requires substantially all investments made by selected APICs to be qualified low-income community investments when financed by the Secretary. Outlines investment limits and borrowing and repayment conditions.

(Sec. 7) Authorizes the Secretary, to the extent consistent with the Federal Credit Reform Act of 1990, to make commitments to guarantee the timely payment of principal and interest on qualified debentures issued by APICs, to issue trust certificates representing ownership of all or part of such debentures, and to guarantee the timely payment of principal and interest on such certificates.

(Sec. 8) Allows the Secretary to guarantee a qualified debenture that an APIC intends to issue only pursuant to a request by that APIC. Outlines special requirements for: (1) requests which include funding for initial expenditures for a project or activity; and (2) certification by a State or local government of responsibility for environmental reviews and response requirements in connection with authorized projects or activities.

(Sec. 9) Directs the Secretary to: (1) examine and monitor the operations and activities of APICs for compliance with sound financial management practices and satisfaction of the program and procedural goals of this and related Acts; and (2) establish appropriate APIC audit and reporting requirements. Requires: (1) an annual report from the Secretary to Congress on the APIC program; and (2) a report from the Comptroller General to Congress regarding the operation of the program for licensing and guarantees for APICs.

(Sec. 10) Authorizes the Secretary to: (1) penalize APICs for fraud, mismanagement, or noncompliance (provides for notice and an opportunity to respond prior to imposition of such penalties); (2) issue a cease-and-desist order with respect to an APIC action, practice, or failure to act; and (3) suspend or condition an APIC license.

(Sec. 12) Prohibits the Secretary from licensing any APIC or providing subsidy credit for any APIC after the five- year period beginning on the date of award of the first APIC license.