,i #aaith ,,congress #b;d ,session ,h4 ,r4 #hfjg ,,in ,,the ,,house ,,of ,,representatives ,april #cj1 #bjbf,mr4 ,de,saulnier introduced the following bill2 which was referred to the ,committee on ,transportation and ,infrastructure ,a ,,bill ,to amend title #bc1 ,united ,states ,code1 to modify the transportation finance infrastructure and innovation program with respect to community development financial institutions1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,equitable ,transit ,oriented ,development ,support ,act4 #b4 ,infrastructure finance 7a7 ,generally applicable provisions ,section #fja7;a7 of title #bc1 ,united ,states ,code1 is amended-- 7#a7 by inserting and section #faa after #fji2 7#b7 in paragraph 7#b7-- 7,a7 in subparagraph 7,c7 by striking 2 and and inserting a semicolon2 7,b7 in subparagraph 7,d7 by striking the period and inserting 2 and2 and 7,c7 by adding at the end the following3 7,e7 capitalizing a ,,cdfi ,,tod account4 2 7#c7 in paragraph 7#ab7-- 7,a7 in subparagraph 7,e7 by striking 2 and and inserting a semicolon2 7,b7 in subparagraph 7,h7 by striking the period and inserting 2 and2 and 7,c7 by adding at the end the following3 7,i7 the capitalization of a ,,cdfi ,,tod account4 2 and 7#d7 by adding at the end the following3 7#bc7 ,,cdfi ,the term ,,cdfi has the meaning given the term community development financial institution under section #ajc of the ,riegle ,community ,development and ,regulatory ,improvement ,act of #aiid 7#ab ,u4,s4,c4 #dgjb74 7#bd7 ,,cdfi ,,tod account ,the term ,,cdfi ,,tod account means an account-- 7,a7 established within a ,,cdfi under section #faa7;c72 7,b7 capitalized with the proceeds of a secured loan made to a ,,cdfi in accordance with sections #fjb and #fjc2 7,c7 for the purpose of making loans to sponsors of transit-oriented development projects in accordance with section #faa4 4 7b7 ,determination of eligibility and project selection ,section #fjb of title #bc1 ,united ,states ,code1 is amended-- 7#a7 in subsection 7a7-- 7,a7 in paragraph 7#b7 by adding at the end the following3 7,c7 ,,cdfi ,notwithstanding subparagraphs 7,a7 and 7,b71 in a case in which the ,federal credit instrument is provided to a ,,cdfi1 the ,secretary may rely upon a credit assessment of the ,,cdfi by the ,secretary of ,treasury in lieu of investment grade ratings and credit opinions from rating agencies4 2 7,b7 in paragraph 7#d7 by inserting ,,cdfi1 after partnership12 7,c7 in paragraph 7#e77;,b7 by inserting at the end the following3 7v7 ,,cdfi ,,tod accounts ,in the case of a project capitalizing a ,,cdfi ,,tod account1 eligible project costs shall not exceed #ajj1jjj1jjj4 2 7,d7 in paragraph 7#f7-- 7i7 in subparagraph 7,c7 by striking or2 7ii7 in subparagraph 7,d7 by striking the period and inserting 2 or2 and 7iii7 by adding at the end the following3 7,e7 in the case of a ,,cdfi ,,tod account1 the unconditional promissory obligation of a ,,cdfi4 2 7,e7 in paragraph 7#g7-- 7i7 by striking ,state or local government or and inserting ,state or local government12 and 7ii7 by inserting or a ,,cdfi1 before the project2 7,f7 in paragraph 7#i7-- 7i7 by striking ,the ,secretary and inserting 7,a7 ,in general--,the ,secretary2 7ii7 by redesignating subparagraphs 7,a71 7,b71 and 7,c7 as clauses 7i71 7ii71 and 7iii72 and 7iii7 by adding at the end the following3 7,b7 ,,cdfi ,,tod accounts ,with respect to financial assistance provided to a ,,cdfi under the ,,tifia program1 the ,secretary shall deem that the project generates beneficial effects4 2 and 7,g7 in paragraph 7#aj7-- 7i7 in subparagraph 7,a7 by striking subparagraph 7,b7 and inserting subparagraphs 7,b7 and 7,c72 and 7ii7 by adding at the end the following3 7,c7 ,,cdfi ,,tod account ,in the case of a project capitalizing a ,,cdfi ,,tod account1 the ,,cdfi shall demonstrate to the ,secretary1 not later than two years after the date on which a secured loan is obligated for the project under the ,,tifia program1 that the ,,cdfi has executed a loan agreement with a project sponsor in accordance with section #faa4 ,after the demonstration is made1 the ,,cdfi may draw upon the secured loan4 ,at the end of the #b-year period1 to the extent the ,,cdfi has not used the loan commitment1 the ,secretary may extend the time period for using the loan commitment or withdraw the loan commitment4 2 and 7#b7 in subsection 7b77#c7-- 7,a7 by striking ,the ,secretary and inserting 7,a7 ,in general--,the ,secretary2 7,b7 by redesignating subparagraphs 7,a7 and 7,b7 as clauses 7i7 and 7ii71 respectively2 and 7,c7 by adding at the end the following3 7,b7 ,,cdfi ,,tod account ,notwithstanding subparagraph 7,a71 in the case of an applicant that is a ,,cdfi1 in lieu of a preliminary rating opinion letter1 the ,secretary may rely upon a letter from the ,secretary of the ,treasury that verifies the applicant is a ,,cdfi certified by the ,community ,development ,financial ,institutions ,fund of the ,department of the ,treasury4 4 7c7 ,secured ,loans ,section #fjc of title #bc1 ,united ,states ,code1 is amended-- 7#a7 in subsection 7a77#c7 by striking section #fjb7;b77#c77;,b7 and inserting section #fjc7;b77#c77;,a77ii7 or1 with respect to a ,,cdfi1 the letter of the ,secretary of ,treasury under section #fjb7;b77#c77;,b72 7#b7 in subsection 7b7-- 7,a7 in paragraph 7#b7-- 7i7 in subparagraph 7,a7 by striking subparagraph 7,b7 and inserting subparagraphs 7,b7 and 7,c72 and 7ii7 by adding at the end the following3 7,c7 ,,cdfi ,,tod account ,in the case of a project capitalizing a ,,cdfi ,,tod account1 the maximum amount of a secured loan made to a ,,cdfi shall be determined in accordance with section #fjb7;a77#e77;,b77v74 2 7,b7 in paragraph 7#c77;,a77i7-- 7i7 in subclause 7,,iv7 by striking 2 or and inserting 22 7ii7 in subclause 7,v7 by striking 2 and and inserting 2 or2 and 7iii7 by adding at the end the following3 7,,vi7 in the case of a secured loan for a project capitalizing a ,,cdfi ,,tod account1 any other revenue sources available to a ,,cdfi1 including repayments from loans made for projects in accordance with section #faa2 and 2 7,c7 in paragraph 7#d77;,b7-- 7i7 in the header by inserting and ,,cdfi ,,tod accounts after infrastructure projects2 7ii7 in clause 7i7 by striking or a rural projects fund and inserting 1 a rural projects fund1 or a ,,cdfi ,,tod account2 and 7iii7 in clause 7ii7 by striking and rural project funds and inserting 1 rural projects funds1 and ,,cdfi ,,tod accounts2 7,d7 in paragraph 7#e77;,b7-- 7i7 in the header by inserting and ,,cdfi ,,tod account after ,rural projects fund2 and 7ii7 by inserting or ,,cdfi ,,tod account after rural projects fund2 and 7,e7 in paragraph 7#i7 by adding at the end the following3 7,c7 ,,cdfi ,,tod account ,a project capitalizing a ,,cdfi ,,tod account shall satisfy subparagraph 7,a7 through compliance with the ,federal share requirement described in section #faa7;c77#c77;,a74 4 7d7 ,program administration ,section #fje of title #bc1 ,united ,states ,code1 is amended-- 7#a7 in subsection 7d7 by inserting 1 community development1 after field of municipal2 7#b7 by redesignating subsections 7e7 and 7f7 as subsections 7g7 and 7h71 respectively2 7#c7 by inserting after subsection 7d7 the following3 7e7 ,assistance from the ,secretary of ,treasury ,the ,secretary shall consult with the ,secretary of the ,treasury in assessing the creditworthiness of ,,cdfi applicants and shall enter into a memorandum of understanding pursuant to section #faa7;b7 of this chapter through which the ,secretary of the ,treasury provides assistance in the credit underwriting1 servicing1 and monitoring of ,federal credit instruments provided to ,,cdfi ,,tod accounts4 7f7 ,implementation ,not later than #ahj days after enactment of ,section #faa1 the ,secretary shall implement this section by releasing program guidance and soliciting applications4 2 and 7#d7 in subsection 7h7 7as so redesignated7-- 7,a7 in the heading by inserting and ,,cdfi ,,tod accounts after small projects2 and 7,b7 in paragraph 7#a7-- 7i7 by striking #fjh7;a77#e7 and inserting #fjh7;a77#f72 7ii7 by striking #b1jjj1jjj and inserting #d1jjj1jjj2 and 7iii7 by striking #ge1jjj1jjj and inserting #ajj1jjj1jjj4 7e7 ,funding ,section #fjh7;a7 of title #bc1 ,united ,states ,code1 is amended-- 7#a7 by redesignating paragraphs 7#d7 and 7#e7 as paragraphs 7#e7 and 7#f71 respectively2 7#b7 by inserting after paragraph 7#c7 the following3 7#d7 ,,cdfi ,set aside 7,a7 ,in general ,of the total amount of funds made available to carry out the ,,tifia program for each fiscal year1 not more than #aj percent shall be set aside for ,,cdfi ,,tod accounts4 7,b7 ,reobligation ,any amounts set aside under subparagraph 7,a7 that remain unobligated by ,june #a of the fiscal year for which the amounts were set aside shall be available for obligation by the ,secretary on projects other than ,,cdfi ,,tod accounts4 2 and 7#c7 by adding at the end the following3 7#g7 ,reimbursements to the ,secretary of the ,treasury ,of the amounts authorized for the administration of the ,,tifia program under paragraph 7#f71 the ,secretary may use not more than #aj percent for each fiscal year to reimburse the ,secretary of the ,treasury for assistance provided pursuant to a memorandum of understanding under section #faa7;b74 4 7f7 ,community development financial institution transit-,oriented development 7#a7 ,in general ,chapter #f of title #bc1 ,united ,states ,code1 is amended by adding at the end the following3 #faa4 ,community development financial institution transit-oriented development 7a7 ,definitions ,in this section3 7#a7 ,,cdfi ,,tod project ,the term ,,cdfi ,,tod project means a project located within one-half mile in an urban area or three-fourths of a mile in a rural area of a fixed guideway transit facility1 passenger rail station1 intercity bus station or intermodal facility that supports-- 7,a7 commercial facilities or businesses that are located in low-income communities and are-- 7i7 owned by low-income persons2 7ii7 principally serve low-income persons or low-income community residents2 or 7iii7 principally employ low-income persons2 7,b7 community facilities that are located in low-income communities or principally serve low-income persons2 or 7,c7 housing that is principally affordable to low-income persons4 7#b7 ,investment ,area ,the term ,investment ,area has the meaning given the term in section #ahje4bja7;b77#c77;,b77ii7 of title #ab1 ,code of ,federal ,regulations 7as in effect on the date of enactment of this section74 7#c7 ,loan ,the term loan means any form of direct financial assistance that is required to be repaid over a period of time provided by a ,,cdfi to a project sponsor for all or part of the costs of a ,,cdfi ,,tod project4 7#d7 ,low-income community ,the term low-income community means a community that is located in an ,investment ,area4 7#e7 ,low-income person ,the term low-income person means a person whose income does not exceed the level established for low-income 7as such term is defined in section #ahje4ajd of title #ab1 ,code of ,federal ,regulations1 as in effect on the date of enactment of this section74 7#f7 ,project sponsor ,the term project sponsor means a public or private entity approved by a ,,cdfi and developing a ,,cdfi ,,tod project in accordance with this section4 7b7 ,memorandum of ,understanding ,the ,secretary shall enter into a memorandum of understanding with the ,secretary of ,treasury to support consultation with the ,community ,development ,financial ,institutions ,fund to provide the necessary credit underwriting1 servicing1 and monitoring of ,,cdfi applicants and participants in the ,,tifia program4 7c7 ,,cdfi ,,tod accounts 7#a7 ,in general ,the ,secretary shall require any ,,cdfi participating in the program authorized in this section to establish a ,,cdfi ,,tod account into which the proceeds of a secured loan made to the ,,cdfi in accordance with sections #fjb and #fjc and any loan repayments from public or private entities receiving loans made to fund ,,cdfi ,,tod projects will be deposited4 7#b7 ,amounts in account ,any principal loan repayments and any investment income derived from funds deposited to a ,,cdfi ,,tod account shall be-- 7,a7 credited to the account2 7,b7 available for providing loans to project sponsors2 7,c7 available for repaying the secured loan made to the ,,cdfi in accordance with sections #fjb and #fjc2 and 7,d7 invested in such financing instruments as the ,secretary may approve to earn interest to augment the lending capacity of the account4 7#c7 ,loans ,any loan to a project sponsor funded from the account shall-- 7,a7 be in an amount determined by the ,,cdfi1 but in any case not exceed #hj percent of eligible project costs2 7,b7 commence repayment not later than #e years after the project has been completed2 7,c7 have a final maturity not later than #cj years after the date of the first payment on the loan2 7,d7 be set at a rate not greater than the level needed to fully reimburse the ,,cdfi's administrative1 monitoring1 servicing1 and capital charges associated with the loan2 and 7,e7 be secured and have a priority of payment as determined by the ,,cdfi4 7#d7 ,revolving loan structure ,the ,,cdfi may apply loan repayments to fund additional loans provided such relending does not impair the ability of the ,,cdfi to repay its secured loan in full and timely fashion4 7#e7 ,delegated lending model ,the ,,cdfi is authorized to provide loans for ,,cdfi ,,tod projects under a delegated lending model4 ,no provision of this section shall restrict the ability of the ,,cdfi to establish the terms and conditions of loans to project sponsors under this section4 7d7 ,discontinuance of funding ,if the ,secretary determines that a ,,cdfi is not implementing the ,,cdfi ,,tod account in accordance with the application of such account1 the ,secretary may prohibit the ,,cdfi from drawing down any additional proceeds from a secured loan commitment4 7e7 ,forms of assistance from a ,,cdfi 7#a7 ,in general ,a ,,cdfi may1 using funds deposited into the ,,cdfi ,,tod account1 make loans to a public or private entity to carry out a ,,cdfi ,,tod project4 7#b7 ,subordination of loan ,the amount of a loan or other form of credit assistance provided for a project described in subsection 7c77#c7 may be subordinated to any other debt financing for the project4 7f7 ,annual report to the ,secretary ,any ,,cdfi participating in this program shall make an annual report to the ,secretary not later than ,september #cj of each year and such other reports as the ,secretary may require under guidelines issued to carry out this section4 7g7 ,applicability of ,federal law ,the requirements of this title and title #di that would otherwise apply to funds made available under this chapter or such title and projects assisted with those funds shall apply to ,,cdfi ,,tod projects assisted by the ,,cdfi under this chapter1 except to the extent the ,secretary determines that any requirement of such title is not applicable or is not consistent with the objectives of this section4 7h7 ,united ,states not obligated ,the deposit of ,federal funds into a ,,cdfi under this section shall not be construed as a commitment1 guarantee1 or obligation on the part of the ,united ,states to any third party1 nor shall any third party have any right against the ,united ,states for payment solely by virtue of the contribution4 ,any security or debt financing instrument issued by the ,,cdfi shall expressly state that the security or instrument does not constitute a commitment1 guarantee1 or obligation of the ,united ,states4 7i7 ,program administration ,for each fiscal year1 a ,,cdfi may not expend more than #b percent of the ,federal assistance received under this chapter to pay the reasonable costs of administering a ,,cdfi ,,tod account pursuant to this section4 4 7#b7 ,clerical amendment ,the analysis for chapter #f of title #bc1 ,united ,states ,code1 is amended by adding at the end the following3 #faa4 ,community development financial institution transit-oriented development4 4