Equitable Transit Oriented Development Support Act

I 116TH CONGRESS 2D SESSION H. R. 5783 To amend title 23, United States Code, to modify the transportation finance infrastructure and innovation program with respect to community devel- opment financial institutions, and for other purposes. IN THE HOUSE OF REPRESENTATIVES FEBRUARY 6, 2020 Mr. DESAULNIER introduced the following bill; which was referred to the Committee on Transportation and Infrastructure A BILL To amend title 23, United States Code, to modify the trans- portation finance infrastructure and innovation program with respect to community development financial institu- tions, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Equitable Transit Ori- 4 ented Development Support Act’’. 5 SEC. 2. INFRASTRUCTURE FINANCE. 6 (a) GENERALLY APPLICABLE PROVISIONS.—Section 7 601(a) of title 23, United States Code, is amended— 8 VerDate Sep 11 2014 02:12 Feb 08, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H5783.IH H5783 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 5783 IH (1) by inserting ‘‘and section 611’’ after ‘‘609’’; 1 (2) in paragraph (2)— 2 (A) in subparagraph (C) by striking ‘‘; 3 and’’ and inserting a semicolon; 4 (B) in subparagraph (D) by striking the 5 period and inserting ‘‘; and’’; and 6 (C) by adding at the end the following: 7 ‘‘(E) capitalizing a CDFI TOD account.’’; 8 (3) in paragraph (12)— 9 (A) in subparagraph (E) by striking ‘‘; 10 and’’ and inserting a semicolon; 11 (B) in subparagraph (F) by striking the 12 period and inserting ‘‘; and’’; and 13 (C) by adding at the end the following: 14 ‘‘(G) the capitalization of a CDFI TOD 15 account.’’; and 16 (4) by adding at the end the following: 17 ‘‘(23) CDFI.—The term ‘CDFI’ has the mean- 18 ing given the term ‘community development financial 19 institution’ under section 103 of the Riegle Commu- 20 nity Development and Regulatory Improvement Act 21 of 1994 (12 U.S.C. 4702). 22 ‘‘(24) CDFI TOD ACCOUNT.—The term ‘CDFI 23 TOD account’ means an account— 24 VerDate Sep 11 2014 02:12 Feb 08, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H5783.IH H5783 kjohnson on DSK79L0C42PROD with BILLS 3 •HR 5783 IH ‘‘(A) established within a CDFI under sec- 1 tion 611(c); 2 ‘‘(B) capitalized with the proceeds of a se- 3 cured loan made to a CDFI in accordance with 4 sections 602 and 603; 5 ‘‘(C) for the purpose of making loans to 6 sponsors of transit-oriented development 7 projects in accordance with section 611.’’. 8 (b) DETERMINATION OF ELIGIBILITY AND PROJECT 9 SELECTION.—Section 602 of title 23, United States Code, 10 is amended— 11 (1) in subsection (a)— 12 (A) in paragraph (2) by adding at the end 13 the following: 14 ‘‘(C) CDFI.—Notwithstanding subpara- 15 graphs (A) and (B), in a case in which the Fed- 16 eral credit instrument is provided to a CDFI, 17 the Secretary may rely upon a credit assess- 18 ment of the CDFI by the Secretary of Treasury 19 in lieu of investment grade ratings and credit 20 opinions from rating agencies.’’; 21 (B) in paragraph (4) by inserting ‘‘CDFI,’’ 22 after ‘‘partnership,’’; 23 (C) in paragraph (5)(B) by inserting at 24 the end the following: 25 VerDate Sep 11 2014 02:12 Feb 08, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H5783.IH H5783 kjohnson on DSK79L0C42PROD with BILLS 4 •HR 5783 IH ‘‘(v) CDFI TOD ACCOUNTS.—In the 1 case of a project capitalizing a CDFI TOD 2 account, eligible project costs shall not ex- 3 ceed $100,000,000.’’; 4 (D) in paragraph (6)— 5 (i) in subparagraph (C) by striking 6 ‘‘or’’; 7 (ii) in subparagraph (D) by striking 8 the period and inserting ‘‘; or’’; and 9 (iii) by adding at the end the fol- 10 lowing: 11 ‘‘(E) in the case of a CDFI TOD account, 12 the unconditional promissory obligation of a 13 CDFI.’’; 14 (E) in paragraph (7)— 15 (i) by striking ‘‘State or local govern- 16 ment or’’ and inserting ‘‘State or local gov- 17 ernment,’’; and 18 (ii) by inserting ‘‘or a CDFI,’’ before 19 ‘‘the project’’; 20 (F) in paragraph (9)— 21 (i) by striking ‘‘The Secretary’’ and 22 inserting ‘‘(A) IN GENERAL—The Sec- 23 retary’’; 24 VerDate Sep 11 2014 02:12 Feb 08, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H5783.IH H5783 kjohnson on DSK79L0C42PROD with BILLS 5 •HR 5783 IH (ii) by redesignating subparagraphs 1 (A), (B), and (C) as clauses (i), (ii), and 2 (iii); and 3 (iii) by adding at the end the fol- 4 lowing: 5 ‘‘(B) CDFI TOD ACCOUNTS.—With respect 6 to financial assistance provided to a CDFI 7 under the TIFIA program, the Secretary shall 8 deem that the project generates beneficial ef- 9 fects.’’; and 10 (G) in paragraph (10)— 11 (i) in subparagraph (A) by striking 12 ‘‘subparagraph (B)’’ and inserting ‘‘sub- 13 paragraphs (B) and (C)’’; and 14 (ii) by adding at the end the fol- 15 lowing: 16 ‘‘(C) CDFI TOD ACCOUNT.—In the case of 17 a project capitalizing a CDFI TOD account, 18 the CDFI shall demonstrate to the Secretary, 19 not later than two years after the date on which 20 a secured loan is obligated for the project under 21 the TIFIA program, that the CDFI has exe- 22 cuted a loan agreement with a project sponsor 23 in accordance with section 611. After the dem- 24 onstration is made, the CDFI may draw upon 25 VerDate Sep 11 2014 02:12 Feb 08, 2020 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H5783.IH H5783 kjohnson on DSK79L0C42PROD with BILLS 6 •HR 5783 IH the secured loan. At the end of the 2-year pe- 1 riod, to the extent the CDFI has not used the 2 loan commitment, the Secretary may extend the 3 time period for using the loan commitment or 4 withdraw the loan commitment.’’; and 5 (2) in subsection (b)(3)— 6 (A) by striking ‘‘The Secretary’’ and in- 7 serting ‘‘(A) IN GENERAL—The Secretary’’; 8 (B) by redesignating subparagraphs (A) 9 and (B) as clauses (i) and (ii), respectively; and 10 (C) by adding at the end the following: 11 ‘‘(B) CDFI TOD ACCOUNT.—Notwith- 12 standing subparagraph (A), in the case of an 13 applicant that is a CDFI, in lieu of a prelimi- 14 nary rating opinion letter, the Secretary may 15 rely upon a letter from the Secretary of the 16 Treasury that verifies the applicant is a CDFI 17 certified by the Community Development Fi- 18 nancial Institutions Fund of the Department of 19 the Treasury.’’. 20 (c) SECURED LOANS.—Section 603 of title 23, 21 United States Code, is amended— 22 (1) in subsection (a)(3) by striking ‘‘section 23 602(b)(3)(B)’’ and inserting ‘‘section 24 603(b)(3)(A)(ii) or, with respect to a CDFI, the let- 25 VerDate Sep 11 2014 02:12 Feb 08, 2020 Jkt 099200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H5783.IH H5783 kjohnson on DSK79L0C42PROD with BILLS 7 •HR 5783 IH ter of the Secretary of Treasury under section 1 602(b)(3)(B)’’; 2 (2) in subsection (b)— 3 (A) in paragraph (2)— 4 (i) in subparagraph (A) by striking 5 ‘‘subparagraph (B)’’ and inserting ‘‘sub- 6 paragraphs (B) and (C)’’; and 7 (ii) by adding at the end the fol- 8 lowing: 9 ‘‘(C) CDFI TOD ACCOUNT.—In the case of 10 a project capitalizing a CDFI TOD account, 11 the maximum amount of a secured loan made 12 to a CDFI shall be determined in accordance 13 with section 602(a)(5)(B)(v).’’; 14 (B) in paragraph (3)(A)(i)— 15 (i) in subclause (IV) by striking ‘‘; or’’ 16 and inserting ‘‘;’’; 17 (ii) in subclause (V) by striking ‘‘; 18 and’’ and inserting ‘‘; or’’; and 19 (iii) by adding at the end the fol- 20 lowing: 21 ‘‘(VI) in the case of a secured 22 loan for a project capitalizing a CDFI 23 TOD account, any other revenue 24 sources available to a CDFI, including 25 VerDate Sep 11 2014 02:12 Feb 08, 2020 Jkt 099200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H5783.IH H5783 kjohnson on DSK79L0C42PROD with BILLS 8 •HR 5783 IH repayments from loans made for 1 projects in accordance with section 2 611; and’’; 3 (C) in paragraph (4)(B)— 4 (i) in the header by inserting ‘‘and 5 CDFI TOD accounts’’ after ‘‘infrastruc- 6 ture projects’’; 7 (ii) in clause (i) by striking ‘‘or a 8 rural projects fund’’ and inserting ‘‘, a 9 rural projects fund, or a CDFI TOD ac- 10 count’’; and 11 (iii) in clause (ii) by striking ‘‘and 12 rural project funds’’ and inserting ‘‘, rural 13 projects funds, and CDFI TOD accounts’’; 14 (D) in paragraph (5)(B)— 15 (i) in the header by inserting ‘‘and 16 CDFI TOD account’’ after ‘‘Rural projects 17 fund’’; and 18 (ii) by inserting ‘‘or CDFI TOD ac- 19 count’’ after ‘‘rural projects fund’’; and 20 (E) in paragraph (9) by adding at the end 21 the following: 22 ‘‘(C) CDFI TOD ACCOUNT.—A project cap- 23 italizing a CDFI TOD account shall satisfy 24 subparagraph (A) through compliance with the 25 VerDate Sep 11 2014 02:12 Feb 08, 2020 Jkt 099200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H5783.IH H5783 kjohnson on DSK79L0C42PROD with BILLS 9 •HR 5783 IH Federal share requirement described in section 1 611(c)(3)(A).’’. 2 (d) PROGRAM ADMINISTRATION.—Section 605 of 3 title 23, United States Code, is amended— 4 (1) in subsection (d) by inserting ‘‘, community 5 development,’’ after ‘‘field of municipal’’; 6 (2) by redesignating subsections (e) and (f) as 7 subsections (g) and (h), respectively; 8 (3) by inserting after subsection (d) the fol- 9 lowing: 10 ‘‘(e) ASSISTANCE FROM THE SECRETARY OF TREAS- 11 URY.—The Secretary shall consult with the Secretary of 12 the Treasury in assessing the creditworthiness of CDFI 13 applicants and shall enter into a memorandum of under- 14 standing pursuant to section 611(b) of this chapter 15 through which the Secretary of the Treasury provides as- 16 sistance in the credit underwriting, servicing, and moni- 17 toring of Federal credit instruments provided to CDFI 18 TOD accounts. 19 ‘‘(f) IMPLEMENTATION.—Not later than 180 days 20 after enactment of Section 611, the Secretary shall imple- 21 ment this section by releasing program guidance and solic- 22 iting applications.’’; and 23 (4) in subsection (h) (as so redesignated)— 24 VerDate Sep 11 2014 02:12 Feb 08, 2020 Jkt 099200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H5783.IH H5783 kjohnson on DSK79L0C42PROD with BILLS 10 •HR 5783 IH (A) in the heading by inserting ‘‘and CDFI 1 TOD accounts’’ after ‘‘small projects’’; and 2 (B) in paragraph (1)— 3 (i) by striking ‘‘608(a)(5)’’ and insert- 4 ing ‘‘608(a)(6)’’; 5 (ii) by striking ‘‘$2,000,000’’ and in- 6 serting ‘‘$4,000,000’’; and 7 (iii) by striking ‘‘$75,000,000’’ and 8 inserting ‘‘$100,000,000’’. 9 (e) FUNDING.—Section 608(a) of title 23, United 10 States Code, is amended— 11 (1) by redesignating paragraphs (4) and (5) as 12 paragraphs (5) and (6), respectively; 13 (2) by inserting after paragraph (3) the fol- 14 lowing: 15 ‘‘(4) CDFI SET ASIDE.— 16 ‘‘(A) IN GENERAL.—Of the total amount 17 of funds made available to carry out the TIFIA 18 program for each fiscal year, not more than 10 19 percent shall be set aside for CDFI TOD ac- 20 counts. 21 ‘‘(B) REOBLIGATION.—Any amounts set 22 aside under subparagraph (A) that remain un- 23 obligated by June 1 of the fiscal year for which 24 the amounts were set aside shall be available 25 VerDate Sep 11 2014 02:12 Feb 08, 2020 Jkt 099200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H5783.IH H5783 kjohnson on DSK79L0C42PROD with BILLS 11 •HR 5783 IH for obligation by the Secretary on projects other 1 than CDFI TOD accounts.’’; and 2 (3) by adding at the end the following: 3 ‘‘(7) REIMBURSEMENTS TO THE SECRETARY OF 4 THE TREASURY.—Of the amounts authorized for the 5 administration of the TIFIA program under para- 6 graph (6), the Secretary may use not more than 10 7 percent for each fiscal year to reimburse the Sec- 8 retary of the Treasury for assistance provided pur- 9 suant to a memorandum of understanding under 10 section 611(b).’’. 11 (f) COMMUNITY DEVELOPMENT FINANCIAL INSTITU- 12 TION TRANSIT-ORIENTED DEVELOPMENT.— 13 (1) IN GENERAL.—Chapter 6 of title 23, United 14 States Code, is amended by adding at the end the 15 following: 16 ‘‘§ 611. Community development financial institution 17 transit-oriented development 18 ‘‘(a) DEFINITIONS.—In this section: 19 ‘‘(1) CDFI TOD PROJECT.—The term ‘CDFI 20 TOD project’ means a project located within one- 21 half mile in an urban area or three-fourths of a mile 22 in a rural area of a fixed guideway transit facility, 23 passenger rail station, intercity bus station or inter- 24 modal facility that supports— 25 VerDate Sep 11 2014 02:12 Feb 08, 2020 Jkt 099200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H5783.IH H5783 kjohnson on DSK79L0C42PROD with BILLS 12 •HR 5783 IH ‘‘(A) commercial facilities or businesses 1 that are located in low-income communities and 2 are— 3 ‘‘(i) owned by low-income persons; 4 ‘‘(ii) principally serve low-income per- 5 sons or low-income community residents; 6 or 7 ‘‘(iii) principally employ low-income 8 persons; 9 ‘‘(B) community facilities that are located 10 in low-income communities or principally serve 11 low-income persons; or 12 ‘‘(C) housing that is principally affordable 13 to low-income persons. 14 ‘‘(2) INVESTMENT AREA.—The term ‘Invest- 15 ment Area’ has the meaning given the term in sec- 16 tion 1805.201(b)(3)(B)(ii) of title 12, Code of Fed- 17 eral Regulations (as in effect on the date of enact- 18 ment of this section). 19 ‘‘(3) LOAN.—The term ‘loan’ means any form 20 of direct financial assistance that is required to be 21 repaid over a period of time provided by a CDFI to 22 a project sponsor for all or part of the costs of a 23 CDFI TOD project. 24 VerDate Sep 11 2014 02:12 Feb 08, 2020 Jkt 099200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\H5783.IH H5783 kjohnson on DSK79L0C42PROD with BILLS 13 •HR 5783 IH ‘‘(4) LOW-INCOME COMMUNITY.—The term 1 ‘low-income community’ means a community that is 2 located in an Investment Area. 3 ‘‘(5) LOW-INCOME PERSON.—The term ‘low-in- 4 come person’ means a person whose income does not 5 exceed the level established for low-income (as such 6 term is defined in section 1805.104 of title 12, Code 7 of Federal Regulations, as in effect on the date of 8 enactment of this section). 9 ‘‘(6) PROJECT SPONSOR.—The term ‘project 10 sponsor’ means a public or private entity approved 11 by a CDFI and developing a CDFI TOD project in 12 accordance with this section. 13 ‘‘(b) MEMORANDUM OF UNDERSTANDING.—The Sec- 14 retary shall enter into a memorandum of understanding 15 with the Secretary of Treasury to support consultation 16 with the Community Development Financial Institutions 17 Fund to provide the necessary credit underwriting, serv- 18 icing, and monitoring of CDFI applicants and participants 19 in the TIFIA program. 20 ‘‘(c) CDFI TOD ACCOUNTS.— 21 ‘‘(1) IN GE [Text truncated for display. 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