,,ii #aaith ,,congress #b;d ,session ,s4 #cfcf ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,january #ad1 #bjbf,ms4 ,blunt ,rochester 7for herself and ,mr4 ,curtis7 introduced the following bill2 which was read twice and referred to the ,committee on ,environment and ,public ,works ,a ,,bill ,to amend titles #bc and #di1 ,united ,states ,code1 to modify the rules relating to eligible projects under the ,,tifia program and the railroad rehabilitation and financing program1 to establish a transit-oriented development financing program for projects of a certain size1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,build ,housing1 ,unlock ,benefits and ,services ,act or the ,build ,,hubs ,act4 #b4 ,findings ,congress finds that-- 7#a7 the ,united ,states is facing a housing availability and affordability crisis1 marked by an inability of many citizens to find homes in their desired communities at a price affordable to them2 7#b7 transit-oriented development benefits communities1 transit agencies1 and the people of the ,united ,states by improving access to transit1 jobs1 and services1 spurring revitalization of neighborhoods and economic development1 and boosting transit ridership2 7#c7 the transportation infrastructure finance and innovation program under chapter #f of title #bc1 ,united ,states ,code 7referred to in this section as the ,,tifia program71 and the railroad rehabilitation and improvement financing program under chapter #bbd of title #di1 ,united ,states ,code 7referred to in this section as the ,,rrif program71 can help respond to the urgent need for additional housing by financing transit-oriented development projects with mixed use or housing components and have already been authorized to do so under the ,,fast ,act 7,public ,law #aad-id2 #abi ,stat4 #acab72 7#d7 if made more efficient1 the transit-oriented development provisions of the ,,tifia program and the ,,rrif program would offer attractive financing strategies that could be used to forge public-private partnerships to deliver accelerated housing production and improved economic development and community vitality near transit nodes nationwide2 7#e7 improving the information available about the application process1 shortening the underwriting timeline1 improving internal deliberation processes and government efficiency1 and executing the adjustments required to make transit-oriented development projects easier to finance through the program would benefit communities across the country1 especially in smaller communities with less robust development environments2 and 7#f7 while significant administrative reforms have improved the programs1 the ,department of ,transportation has been limited in its ability to facilitate such development under the constraints of the current law governing the ,,tifia program and the ,,rrif program4 #c4 ,extension of and improvements to the ,,tifia program 7a7 ,extension ,section #aaaja7;a77#b7 of the ,infrastructure ,investment and ,jobs ,act 7,public ,law #aag-eh2 #ace ,stat4 #ddc7 is amended by striking fiscal years #bjbb through #bjbf and inserting fiscal years #bjbg through #bjca4 7b7 ,definitions ,section #fja7;a7 of title #bc1 ,united ,states ,code1 is amended-- 7#a7 in the matter preceding paragraph 7#a71 by inserting and section #fab after #fji2 7#b7 by redesignating paragraphs 7#a7 through 7#bb7 as paragraphs 7#b71 7#c71 7#d71 7#f71 7#g71 7#h71 7#i71 7#aj71 7#aa71 7#ab71 7#ac71 7#ad71 7#ae71 7#af71 7#ag71 7#ah71 7#ai71 7#bj71 7#ba71 7#bb71 7#bc71 and 7#bd71 respectively2 7#c7 by inserting before paragraph 7#b7 7as so redesignated7 the following3 7#a7 ,attainable housing project ,the term attainable housing project means a transit-oriented development project-- 7,a7 that serves households with an income that is not more than #abj percent of the area median income2 and 7,b7 in which the majority of the housing units in the project are affordable to households with an income that is not more than #hj percent of the area median income4 2 7#d7 by inserting after paragraph 7#d7 7as so redesignated7 the following3 7#e7 ,investment-creditworthiness assessment alternative ,the term investment-creditworthiness assessment alternative means1 with respect to project obligations for a transit-oriented development project1 a sufficient demonstration of fiscal soundness and low risk of credit default that is not an investment-grade rating1 such as-- 7,a7 a joint liability agreement or equivalent between the project lead and a ,state or unit of local government with a sufficient credit rating2 7,b7 an alternative rating sufficient to account for the risk assumed by the ,department of ,transportation for a project in which the ,federal credit instrument is #aej1jjj1jjj or less1 as determined by the ,secretary2 or 7,c7 a certification that a project is deemed creditworthy by an approved originator-servicer under section #fab4 2 7#e7 in paragraph 7#ab7 7as so redesignated71 in subparagraph 7,d77ii7-- 7,a7 by striking investment grade rating and inserting investment-grade rating2 and 7,b7 by inserting or an investment-creditworthiness assessment alternative after rating agency2 7#f7 in paragraph 7#ad7 7as so redesignated71 by striking subparagraph 7,e7 and inserting the following3 7,e7 a transit-oriented development project2 2 and 7#g7 by adding at the end the following3 7#be7 ,transit-oriented development project ,the term transit-oriented development project means a project located within #a_/b mile walking distance of a fixed guideway transit facility1 bus rapid transit facility1 passenger rail station1 or multimodal facility1 including a transportation1 public utility1 or capital project described in section #ecjb7d77;,g77vi7 of title #di1 and related infrastructure-- 7,a7 that consists entirely of1 or includes1 residential1 commercial1 public infrastructure1 or mixed-used development or other related infrastructure1 including public or community space2 7,b7 that incorporates private investment2 and 7,c7 for which the project sponsor demonstrates the ability to generate new revenue for the relevant station1 facility1 or service by increasing ridership1 increasing tenant lease payments1 or carrying out other activities that generate revenue exceeding costs4 4 7c7 ,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-- 7i7 in subparagraph 7,a7-- 7,i7 in clause 7iii7-- 7aa7 by striking investment grade rating and inserting investment-grade rating2 and 7bb7 by inserting or an investment-creditworthiness assessment alternative after credit instrument2 and 7,,ii7 in clause 7iv71 by inserting 1 or an investment-creditworthiness assessment alternative after sufficient2 and 7ii7 in subparagraph 7,b7-- 7,i7 by striking investment grade rating and inserting investment-grade rating2 and 7,,ii7 by inserting 1 or an investment-creditworthiness assessment alternative after sufficient2 7,b7 in paragraph 7#c7-- 7i7 by striking ,a project and inserting the following3 7,a7 ,in general ,except as provided in subparagraph 7,b71 a project 2 and 7ii7 by adding at the end the following3 7,b7 ,transit-oriented development projects 7i7 ,compatibility with planning ,in the case of a transit-oriented development project1 the project sponsor shall be required-- 7,i7 to provide evidence of a significant nexus with a project included in the transportation improvement program developed by the applicable metropolitan planning organization under section #acd7;j7 and the statewide transportation improvement program developed by the applicable ,state under section #ace7;g72 or 7,,ii7 to demonstrate compatibility with the long-range transportation plan developed by the applicable metropolitan planning organization under section #acd7;i74 7ii7 ,coordination ,in the case of a transit-oriented development project that is located within a metropolitan planning area1 the project sponsor shall coordinate with the applicable metropolitan planning organization1 including by providing timely notification to the metropolitan planning organization during the planning and entitlement process1 and by sharing information on project details1 transportation impacts1 and mitigation measures4 2 7,c7 in paragraph 7#e77;,b77ii71 by striking project described in section #fja7;a77#ab77;,e7 and inserting transit-oriented development project2 and 7,d7 by adding at the end the following3 7#ab7 ,requirement for attainable housing projects ,in the case of an attainable housing project1 not less than #ge percent of the total financial assistance provided for the project under the ,,tifia program shall be used for residential components of the project4 2 7#b7 in subsection 7b77#c71 in the matter preceding subparagraph 7,a71 by striking ,the ,secretary and inserting ,except in a case in which a project intends to use an investment-creditworthiness assessment alternative1 the ,secretary2 7#c7 in subsection 7c77#b7-- 7,a7 by striking ,no funding and inserting the following3 7,a7 ,in general ,no funding 2 and 7,b7 by adding at the end the following3 7,b7 ,transit-oriented development 7i7 ,pre-award acquisition exemption ,the ,national ,environmental ,policy ,act of #aifi 7#db ,u4,s4,c4 #dcba et seq47 shall not apply to land acquisition activities prior to an application for assistance under the ,,tifia program with respect to a transit-oriented development project1 except for components of the project located within the geographic boundaries of the parcel of land acquired that will be owned1 in full or in part1 by a public entity for the majority of the loan term4 7ii7 ,categorical exclusions 7,i7 ,in general ,a transit-oriented development project that involves an activity described in subclause 7,,ii7 shall be categorically excluded from the requirements of the ,national ,environmental ,policy ,act of #aifi 7#db ,u4,s4,c4 #dcba et seq474 7,,ii7 ,activities described ,an activity referred to in subclause 7,i7 is any of the following3 7aa7 ,rehabilitation or conversion of an existing office building to residential or mixed use within substantially the same footprint4 7bb7 ,reconstruction or construction of a new commercial building primarily using land disturbed for transportation use as described in section #gga4aah7;c77#i7 of title #bc1 ,code of ,federal ,regulations 7or successor regulations71 or disturbed land adjacent to land disturbed for transportation use4 2 7#d7 in subsection 7d77#a7-- 7,a7 by striking and to the maximum extent practicable2 and 7,b7 by striking 1 to the maximum extent practicable12 7#e7 in subsection 7e71 by striking section #fja7;a77#b77;,a7 and inserting section #fja7;a77#c77;,a72 and 7#f7 by adding at the end the following3 7f7 ,other requirements ,transit-oriented development projects and attainable housing projects assisted under the ,,tifia program1 shall be subject to the standards of section #eccc7;a7 of title #di1 ,u4,s4 ,code4 4 7d7 ,secured loans ,section #fjc of title #bc1 ,united ,states ,code1 is amended-- 7#a7 in subsection 7a77#c71 by inserting or an investment-creditworthiness assessment alternative1 as applicable after #fjb7;b77#c77;,b72 and 7#b7 in subsection 7b7-- 7,a7 in paragraph 7#b7-- 7i7 in subparagraph 7,a7-- 7,i7 by striking subparagraph 7,b7 and inserting subparagraphs 7,b7 and 7,c72 and 7,,ii7 by striking investment grade rating and inserting investment-grade rating or an investment-creditworthiness assessment alternative2 and 7ii7 by adding at the end the following3 7,c7 ,transit-oriented development projects ,the amount of a secured loan under this section for a transit-oriented development project that contains a significant general housing or attainable housing component 7as determined by the ,secretary7 or involves a partnership with a transit agency1 ,state1 local government partner1 or nonprofit financing entity shall not exceed #ge percent of the reasonably anticipated eligible project costs4 2 7,b7 in paragraph 7#d7-- 7i7 in subparagraph 7,a71 by striking subparagraphs 7,b7 and 7,c7 and inserting 8subparagraphs 7,b71 7,c71 and 7,d72 and 7ii7 by adding at the end the following3 7,d7 ,attainable housing projects ,the interest rate of a loan offered to an attainable housing project under the ,,tifia program shall be at #a_/b of the ,treasury ,rate in effect on the date of execution of the loan agreement4 2 and 7,c7 in paragraph 7#g7-- 7i7 by striking ,the ,secretary and inserting the following3 7,a7 ,in general ,the ,secretary 2 and 7ii7 by adding at the end the following3 7,b7 ,disclosure of fees ,the ,secretary shall develop and make publicly available a straightforward1 scalable1 and reasonable fee structure with respect to fees that may apply under this section4 7,c7 ,guidance on project requirements ,the ,secretary shall develop and make publicly available guidance on eligibility requirements for transit-oriented development projects1 including guidance relating to-- 7i7 minimum debt service coverage ratios by project type2 7ii7 maximum loan-to-cost and loan-to-value thresholds2 and 7iii7 distribution covenants4 4 7e7 ,lines of credit ,section #fjd7;a77#d7 of title #bc1 ,united ,states ,code1 is amended by inserting or securing an investment-creditworthiness assessment alternative after rating agencies4 7f7 ,funding ,section #fjh7;a7 of title #bc1 ,united ,states ,code1 is amended-- 7#a7 in paragraph 7#d7-- 7,a7 by striking the paragraph designation and heading and all that follows through described in section #fja7;a77#ab77;,g7 in subparagraph 7,b71 in the matter preceding clause 7i71 and inserting the following3 7#d7 ,limitation for airport-related projects ,the ,secretary may use to carry out projects described in section #fja7;a77#ad77;,g7 2 and 7,b7 by redesignating clauses 7i7 and 7ii7 as subparagraphs 7,a7 and 7,b71 respectively1 and indenting appropriately2 and 7#b7 in paragraph 7#f71 by striking fiscal years #bjbb through #bjbf and inserting fiscal years #bjbg through #bjca4 7g7 ,delegated origination and underwriting program for ,,tod projects 7#a7 ,in general ,chapter #f of title #bc1 ,united ,states ,code1 is amended by adding at the end the following3 #fab4 ,delegated origination and underwriting program for ,,tod projects 7a7 ,in general ,in carrying out the ,,tifia program1 the ,secretary shall establish a delegated origination and underwriting program for the purpose of providing credit assistance under the ,,tifia program for transit-oriented development projects under which a qualified originator-servicer1 acting on behalf of and under the oversight of the ,secretary1 carries out the origination1 underwriting1 and servicing of loans and loan guarantees and lines of credit provided under the ,,tifia program1 including assessments of creditworthiness for applicants and projects4 7b7 ,structure ,the program under subsection 7a7 shall be based on the lender approval1 quality control1 and baseline creditworthiness standards established under the ,multifamily ,accelerated ,processing system established by the ,department of ,housing and ,urban ,development4 7c7 ,creditworthiness ,notwithstanding any other provision of law1 a project that receives assistance under the program under subsection 7a7 shall not be required to have an investment-grade rating4 7d7 ,regulations ,not later than #ahj days after the date of enactment of this section1 the ,secretary shall promulgate regulations to carry out this section1 including-- 7#a7 requirements for qualified originators-servicers to assume responsibilities of the ,secretary under the ,,tifia program with respect to origination1 underwriting1 and servicing1 including requirements that a qualified originator-servicer shall-- 7,a7 originate1 underwrite1 and service a loan under the ,,tifia program for the life of the loan2 7,b7 be in good standing with1 and not have been assessed any fine related to lending activity by the ,department of ,housing and ,urban ,development during the previous #e years2 and 7,c7 demonstrate expertise in providing financing for a variety of project types that align with projects described in subsection 7a71 such as commercial and mixed use projects2 7#b7 procedures for qualified originators-servicers to assess creditworthiness2 7#c7 oversight procedures2 and 7#d7 other provisions necessary for the implementation of this section4 7e7 ,interagency agreement ,in carrying out this section1 the ,secretary shall enter into an interagency agreement with the ,secretary of ,housing and ,urban ,development-- 7#a7 to assist the ,secretary in leveraging lenders and lender approval processes used in the ,multifamily ,accelerated ,processing system established by the ,department of ,housing and ,urban ,development1 including by helping to develop an expedited path to approval as a qualified originator-servicer under this section for lenders operating under that section2 and 7#b7 to provide guidance and assistance to the ,secretary on ways1 through the use of this section-- 7,a7 to reduce the overall processing time and administrative burden required to deliver credit assistance under the ,,tifia program2 and 7,b7 to preserve the ability of the ,secretary to maintain thorough oversight of originating1 underwriting1 and servicing loans provided under the ,,tifia program4 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 #fab4 ,delegated origination and underwriting program for ,,tod projects4 4 #d4 ,extension of and adjustments to ,railroad ,rehabilitation and ,improvement ,financing ,program 7a7 ,transportation-,oriented development project ,section #bbdja of title #di1 ,united ,states ,code1 is amended by adding after paragraph 7#ae7 the following3 7#af7 ,transportation-oriented development project ,the term transportation-oriented development project means a project located within mile walking distance of a fixed guideway transit facility1 bus rapid transit facility1 passenger rail station1 or multimodal facility1 including a transportation1 public utility1 or capital project described in section #ecjb7d77;,g77v7 of title #di1 and related infrastructure-- 7,a7 that is serviced by a railroad2 7,b7 that consists entirely of or includes residential1 commercial1 public infrastructure1 or mixed-use development or other related infrastructure1 including public or community space2 7,c7 that incorporates private investment2 7,d7 for which the project sponsor demonstrates the ability to generate new revenue for the relevant passenger rail station1 facility1 or service by increasing ridership1 increasing tenant lease payments1 or carrying out other activities that generate revenue exceeding costs2 and 7,e7 based on the application for which1 the ,secretary determines that an appropriate value of the project will be reinvested in the relevant passenger rail station or service4 4 7b7 ,direct loans1 guarantees1 and creditworthiness 7#a7 ,in general ,section #bbdjb of title #di1 ,united ,states ,code1 is amended-- 7,a7 in subsection 7b77#a77;,e71 by striking subparagraph 7,a71 7,b71 or 7,c7 and inserting subparagraph 7,a71 7,b71 7,c71 or 7,f72 7,b7 in subsection 7e77#a7-- 7i7 by striking ,the interest rate and inserting the following3 7,a7 ,the interest rate 2 and 7ii7 by inserting after subparagraph 7,a71 as added by subparagraph 7,a71 the following3 7,b7 ,subparagraph 7,a7 shall not apply to eligible projects under this section that meet the definition of an ,attainable ,housing ,project1 for which the rate shall be at of the ,treasury ,rate in effect on the date of execution of the loan agreement4 2 7,c7 in subsection 7f77#c71 by adding at the end the following3 7,e7 ,for a transportation-oriented development project1 an alternative demonstration of equivalent fiscal soundness and low risk of credit default1 such as-- 7i7 a joint liability agreement or equivalent between the project lead and a division of a ,state or local organization with a sufficient credit rating2 7ii7 an alternative rating sufficient to account for the risk assumed by the ,department for a project in which the ,federal credit instrument is #aej1jjj1jjj or less1 subject to the ,secretary's discretion2 or 7iii7 a certification that the project is deemed credit worthy by an approved originator-servicer acting on behalf of the ,secretary under the delegated lending program developed under subsection 7o74 2 and 7,d7 by adding at the end the following3 7o7 ,delegated origination and underwriting program for transportation-,oriented development projects 7#a7 ,in general ,for the purposes of granting assistance under this section1 the ,secretary shall establish a delegated origination and underwriting program for transportation-oriented development projects that is modeled from the ,multifamily ,accelerated ,processing system established by the ,department of ,housing and ,urban ,development1 under which an approved originator-servicer1 acting on behalf of and under the oversight of the ,secretary1 carries out the origination1 underwriting1 and servicing of loans and loan guarantees and lines of credit provided under this section1 including assessments of creditworthiness for applicants and projects4 7#b7 ,requirements for originator-servicers ,to be approved as a originator-servicer under the program established under paragraph 7#a71 the person must-- 7,a7 agree to originate1 underwrite1 and service the loan for the life of the loan2 7,b7 demonstrate good standing with the ,department of ,housing and ,urban ,development and have not been fined for any lending related activity for the past five years2 and 7,c7 demonstrate evidence of expertise in providing financing for a variety of project types that align with transportation-oriented development projects1 such as commercial and mixed use projects4 7#c7 ,regulations ,the ,secretary shall promulgate regulations to carry out this subsection1 including-- 7,a7 requirements for qualified originator-servicers2 7,b7 procedures for qualified originator-servicers to assess creditworthiness1 which shall not include any requirement that a transportation-oriented development project demonstrate an investment-grade rating2 7,c7 oversight procedures2 and 7,d7 other provisions necessary for the implementation of this section4 7#d7 ,interagency ,agreement ,in carrying out this subsection1 the ,secretary shall enter into an interagency agreement with the ,secretary of ,housing and ,urban ,development-- 7,a7 to assist the ,secretary in leveraging lenders and lender approval processes used in carrying out the ,multifamily ,accelerated ,processing system established by the ,department of ,housing and ,urban ,development1 including by helping to develop an expedited path to approval as an originator-servicer under this section for lenders operating under that section2 and 7,b7 to provide guidance and assistance to the ,secretary on ways1 through the use of this subsection-- 7i7 to reduce the overall processing time and administrative burden required to deliver assistance under this section2 and 7ii7 to preserve the ability of the ,secretary to maintain thorough oversight of originating1 underwriting1 and servicing activities provided under this section4 4 7#b7 ,modification to definitions ,section #bbdja of title #di1 ,united ,states ,code1 is amended-- 7,a7 by redesignating paragraphs 7#e7 through 7#ae7 as paragraphs 7#f7 through 7#af71 respectively2 and 7,b7 by inserting after paragraph 7#d7 the following3 7#e7 ,attainable ,housing ,project ,the term attainable housing project means a transportation-oriented development project-- 7,a7 that serves households with an income of not more than #abj percent of the area median income2 and 7,b7 in which the majority of the housing units in the project are affordable to households with an income that is not more than #hj percent of the area median income4 4 7c7 ,administration of direct loans and guarantees ,section #bbdjc of title #di1 ,united ,states ,code1 is amended by striking subsection 7m7 and adding at the end the following3 7m7 ,fees and charges 7#a7 ,in general ,except as provided in this chapter1 the ,secretary may not assess any fees1 including user fees1 or charges in connection with a direct loan or loan guarantee provided under section #bbdjb4 7#b7 ,disclosure ,the ,secretary shall develop and make publicly available a straightforward1 scalable1 and reasonable fee structure with respect to any fees that may apply under this section4 7n7 ,guidance on eligibility requirements ,the ,secretary1 and any approved originator-servicer under section #bbdjb7o71 shall develop and make publicly available guidance on requirements for a transportation-oriented development project to be eligible for assistance under section #bbdjb1 including guidance relating to the following3 7#a7 ,the minimum debt service coverage ratio by project type4 7#b7 ,the minimum loan-to-cost and loan-to-value thresholds for a project4 7#c7 ,distribution covenants4 7o7 ,compatibility with ,local ,plans and coordination with metropolitan planning organizations ,to be eligible for assistance under section #bbdjb1 an applicant for a transportation-oriented development project shall-- 7#a7 coordinate with the relevant metropolitan planning organization1 including by-- 7,a7 providing timely notification to the metropolitan planning organization during the planning or entitlement process2 and 7,b7 sharing information on project details1 transportation impacts1 and mitigation measures2 and 7#b7 7,a7 provide evidence of a significant nexus with a project on the applicable transportation improvement program developed by a metropolitan planning organization under section #acd7;j7 of title #bc or section #ecjc7;j7 of this title1 and the applicable statewide transportation improvement program developed by a ,state under section #ace7;g7 of title #bc or section #ecjd7;g7 of this title2 or 7,b7 demonstrate compatibility with the long-range transportation plan developed by the applicable metropolitan planning organization under section #acd7;i7 of title #bc or section #ecjc7;i7 of this title4 7p7 ,application of the ,national ,environmental ,policy ,act of #aifi 7#a7 ,in general ,the ,national ,environmental ,policy ,act of #aifi 7#db ,u4,s4,c4 #dcba et seq47 shall not apply to land acquisition activities with respect to a transportation-oriented development project1 except for components of the project located within the geographic boundaries of the parcel of land acquired that will be owned1 in full or in part1 by a public entity for the majority of the loan term4 7#b7 ,categorical exclusions 7,a7 ,in general ,a transportation-oriented development project that involves an activity described in subparagraph 7,b7 shall be categorically excluded from the requirements of the ,national ,environmental ,policy ,act of #aifi 7#db ,u4,s4,c4 #dcba et seq474 7,b7 ,activities described ,an activity described in this subparagraph is any of the following3 7i7 ,rehabilitation or conversion of an existing office building to residential or mixed use within substantially the same footprint4 7ii7 ,reconstruction or construction of a new commercial building primarily using land disturbed for transportation use as described in section #gga4aah7;c77#i7 of title #bc1 ,code of ,federal ,regulations 7or successor regulations7 or disturbed land adjacent to land disturbed for transportation use4 4 7d7 ,authorization of appropriations ,section #bbdjf7;a77#a7 of title #di1 ,united ,states ,code1 is amended by striking #bjbb through #bjbf and inserting #bjbg through #bjca4 #e4 ,savings provision ,nothing in this ,act1 or an amendment made by this ,act1 alters1 supersedes1 or preempts any ,state or local zoning or land use law4