[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1699 Introduced in House (IH)]

103d CONGRESS
  1st Session
                                H. R. 1699

To provide assistance to community development lending institutions to 
  increase the availability of credit to low-income families and for 
 economic and community development and other activities in low-income 
                 neighborhoods, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 5, 1993

 Ms. Waters (for herself, Mr. Rangel, Mr. Mfume, Mr. Clay, Ms. Norton, 
and Mrs. Meek) introduced the following bill; which was referred to the 
            Committee on Banking, Finance and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
To provide assistance to community development lending institutions to 
  increase the availability of credit to low-income families and for 
 economic and community development and other activities in low-income 
                 neighborhoods, 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.

    This Act may be cited as the ``Community Banking and Economic 
Empowerment Act''.

SEC. 2. AUTHORITY OF SECRETARY.

    (a) In General.--To make credit and credit-related services 
available to low-income families and others not adequately served by 
traditional lending institutions and promote community development, 
economic development, and revitalization of low-income neighborhoods, 
the Secretary of Housing and Urban Development shall provide, to the 
extent amounts are provided in appropriation Acts--
            (1) assistance under section 4 to community development 
        lenders (including community development banks and other 
        community development financial institutions meeting the 
        requirements under section 3) and other eligible entities that 
        have submitted applications under section 6 that have been 
        approved by the Secretary and have entered into agreements with 
        the Secretary under section 7; and
            (2) technical assistance under section 9 to assist in 
        organizing and operating community development lenders.
    (b) Consultation.--The Secretary of Housing and Urban Development 
shall consult with the Secretary of the Treasury in developing, 
implementing, and carrying out this Act, and in providing assistance to 
community development lenders under section 4.

SEC. 3. ELIGIBLE COMMUNITY DEVELOPMENT LENDERS.

    (a) In General.--Applications for assistance under section 4 may be 
submitted only by the following entities:
            (1) Community development lenders.--
                    (A) Community development banks.--Depository 
                institutions (as such term is defined in section 3(c) 
                of the Federal Deposit Insurance Act) and credit unions 
                that are organized for the purposes described in 
                subsection (b), or affiliates or subsidiaries of 
                depository institutions or credit unions that are 
                organized for such purposes, including community 
                development credit unions, savings and loan 
                associations, and other depository institutions; except 
                that the Secretary may not provide assistance under 
                section 4 to a community development bank established 
                or organized by, or as an affiliate or subsidiary of, 
                any depository institution that has total assets (not 
                including the assets of the community development 
                bank), as of the most recent full fiscal year for the 
                institution, of more than $10,000,000.
                    (B) Community development financial institutions.--
                Any other corporation, partnership, organization, 
                agency, person, or other entity organized for the 
                purposes described in subsection (b), including for-
                profit and nonprofit entities, community development 
                corporations, microenterprise organizations, community 
                organizations, and other entities and persons.
            (2) Eligible entities establishing community development 
        lenders.--Any corporation, partnership, organization, agency, 
        person, or other entity that is engaged in organizing or 
        establishing a community development bank or community 
        development financial institution.
    (b) Purpose.--To be eligible to receive assistance under section 4, 
a community development lender applying for such assistance (or to be 
established by the eligible entity applying for such assistance) shall 
have among its principal purposes making credit and credit-related 
services available to low-income families and in low-income 
neighborhoods and promoting the development and revitalization of low-
income neighborhoods. The community development lender shall carry out 
such purpose by making loans to individuals, families, businesses, 
organizations, and other entities and conducting such other activities 
and services relating to making loans (such as loan counseling and 
servicing) as the lender considers appropriate. Such loans may include 
mortgage loans, loans for housing development, rehabilitation, and 
weatherization, business development and assistance loans, personal 
loans, operating loans, construction loans, loans for community and 
economic development activities, and other repayable assistance.
    (c) Governance.--To be eligible to receive assistance under section 
4, a community development lender applying for such assistance (or to 
be established by the eligible entity applying for such assistance) 
shall be governed by a board of directors that--
            (1) is solely responsible for determining policy for the 
        community development lender with respect to management and 
        operations, lending activities, loan standards and 
        implementation, employment, asset management, and other any 
        other issues; and
            (2) includes among its members a significant number of 
        members who are individuals meeting the requirements of any of 
        subparagraphs (A) through (D), who shall include--
                    (A) individuals who are members of low-income 
                families;
                    (B) individuals who are residents of the low-income 
                neighborhood served by the lender;
                    (C) individuals who are experienced in providing 
                financial assistance or financial advice to low-income 
                individuals or residents, businesses, or organizations 
                in low-income neighborhoods; and
                    (D) individuals who have significant experience in 
                serving the low-income neighborhood served by the 
                lender, the community in which such neighborhood is 
                located, or any other low-income neighborhood.

SEC. 4. CAPITAL AND OPERATING ASSISTANCE FOR COMMUNITY DEVELOPMENT 
              LENDERS.

    (a) Authority.--The Secretary may provide assistance under this 
section to community development lenders and eligible entities 
establishing community development lenders, for the purposes under 
subsection (b).
    (b) Purposes.--Assistance under this section may be used only as 
provided in the assistance agreement under section 7 for the community 
development lender or eligible entity and only for the following 
purposes:
            (1) Feasibility studies.--To carry out studies to determine 
        the feasibility of establishing a program to make loans for the 
        purposes under section 3(b) within a particular low-income 
        neighborhood.
            (2) Capital assistance.--To provide capital for the 
        community development lender--
                    (A) to establish or supplement amounts available 
                for loans for the purposes under section 3(b);
                    (B) to provide credit enhancement for loans for the 
                purposes under section 3(b);
                    (C) to establish or supplement capital reserves of 
                the lender; and
                    (D) to carry out other activities, as the Secretary 
                may provide.
            (3) Operating costs.--To provide amounts to cover operating 
        costs of the community development lender, including marketing 
        and management activities, business planning and counseling 
        services, staff training, planning costs, costs relating to 
        establishing the community development lender or changing the 
        activities or management of a depository institution, other 
        financial institution, or other organization or entity to 
        include community development lending activities.
    (c) Other Terms.--The Secretary may establish any terms and 
conditions of assistance under this section that the Secretary 
considers appropriate to carry out the purposes of this Act, including 
limitations on the amount of assistance provided to any community 
development lender or eligible entity, limitations on the number of 
applications that may be approved for any single community development 
lender or eligible entity, and requirements and limitations for the 
amounts and timing of the disbursement of assistance. Separate terms 
and conditions of assistance may be established for community 
development banks and community development financial institutions.
    (d) Non-Federal Funds Requirement.--The Secretary may not provide 
assistance under this section to any eligible entity for the 
establishment of a community development lender in an amount in excess 
of 9 times the amount that the entity certifies, as the Secretary shall 
require, that the entity will contribute from non-Federal sources to 
the community development lender established with amounts provided 
under this section.

SEC. 5. REQUIREMENTS OF ASSISTED COMMUNITY DEVELOPMENT LENDERS.

    (a) Prohibition of Direct Assistance.--A community development 
lender that receives assistance under section 4 (or established by an 
eligible entity that receives such assistance) may not provide amounts 
to any person from assistance received under such section in the form 
of a grant or nonrepayable advance or on any other nonrepayable basis, 
during the assistance agreement term established by the assistance 
agreement for the lender under section 7.
    (b) Low-Income Family Requirements.--
            (1) Requirement.--In each calendar year during the 
        applicable assistance agreement term, a community development 
        lender that receives assistance under section 4 (or established 
        by an eligible entity that receives such assistance) shall make 
        loans under section 3(b) benefiting low-income families--
                    (A) in a number that is not less than 50 percent of 
                the total number of loans made by the lender during 
                such year; and
                    (B) in an amount such that the sum of the principal 
                amounts of such loans is not less than 50 percent of 
                the sum of the principal amounts of all loans made by 
                the lender during such year.
            (2) Determination of benefit.--
                    (A) Direct benefit.--A loan shall be considered to 
                benefit a low-income family for purposes of paragraph 
                (1) if the loan--
                            (i) is made to such a family;
                            (ii) is made for an activity that is 
                        carried out in a low-income neighborhood and 
                        for providing services for such families;
                            (iii) is made for providing facilities 
                        designed for the use predominantly by such 
                        families; or
                            (iv) is made for an activity that involves 
                        employment of persons, a majority of whom are 
                        members of such families.
                    (B) Activities of general benefit.--In any case in 
                which an activity assisted with a loan is designed to 
                serve an area generally and is clearly designed to meet 
                identified needs of low-income families in such area, 
                such loan or activity shall be considered to benefit 
                low-income families for purposes of paragraph (1) to 
                the extent that the area is a low-income neighborhood.
                    (C) Housing.--A loan for the acquisition, 
                construction, or rehabilitation of property to provide 
                housing shall be considered to benefit low-income 
                families for purposes of paragraph (1) only to the 
                extent that such housing, upon completion, is occupied 
                by low-income families.
    (c) Low-Income Neighborhood Requirements.--In each calendar year 
during the applicable assistance agreement term, a community 
development lender that receives assistance under section 4 (or 
established by an eligible entity that receives such assistance) shall 
make loans under section 3(b) for facilities or activities that serve 
the low-income neighborhood served by the lender--
            (1) in a number that is not less than 50 percent of the 
        total number of loans made by the lender during such year; and
            (2) in an amount such that the sum of the principal amounts 
        of such loans is not less than 50 percent of the sum of the 
        principal amounts of all loans made by the lender during such 
        year.
    (d) Employment Plan.--During the applicable assistance agreement 
term, a community development lender that receives assistance under 
section 4 (or established by an eligible entity that receives such 
assistance) shall establish and comply with a written employment plan 
under this subsection. The Secretary shall, by regulation, require that 
each employment plan under this subsection set forth a policy for 
hiring employees of the community development lender that--
            (1) furthers the purposes of this Act by providing 
        employment opportunities in the neighborhood served by the 
        community development lender for residents of the neighborhood; 
        and
            (2) gives preference in hiring to--
                    (A) individuals who are members of low-income 
                families residing in the neighborhood served by the 
                community development lender; and
                    (B) individuals who were formerly employed in 
                positions at any office or branch of a depository 
                institution, credit union, or other financial 
                institution that is or was located in the neighborhood 
                served by the community development lender and who are 
                not employed in such positions because of the closing 
                or reorganization of the office, branch, or 
                institution, or because of the elimination of such 
                positions or any decrease in compensation paid for such 
                positions.
    (e) Reserve Requirements.--
            (1) Maintenance of reserve.--During the applicable 
        assistance agreement term, a community development lender that 
        receives assistance under section 4 (or established by an 
        eligible entity that receives such assistance) shall maintain, 
        at all times, a reserve against losses on loans and any other 
        losses in the amount determined under paragraph (2).
            (2) Establishment of requirements.--The Secretary shall, by 
        regulation, establish reserve amounts to be maintained by 
        community development lenders taking into consideration the 
        purposes of such lenders, the nature of lending engaged in by 
        such lenders, the size and amount of business of such lenders, 
        the need for such lending in the communities and low-income 
        neighborhoods served by such lenders, and any other factors the 
        Secretary considers appropriate. The regulations may establish 
        separate reserve requirements for community development banks 
        and community development financial institutions.
            (3) Replenishment.--If at any time during the applicable 
        assistance agreement term, the amount reserved by a community 
        development lender under this subsection is less than the 
        amount required to be reserved under the regulations issued 
        pursuant to paragraph (2), the Secretary may take such actions 
        as the Secretary may, by regulation, provide that are 
        consistent with the purposes of this Act, including withholding 
        any assistance amounts to be provided to the lender under the 
        agreement under section 7 but not yet disbursed and requiring 
        the lender to replenish the reserve by regular contributions in 
        the amounts determined by the Secretary.
    (f) Staff.--During the applicable assistance agreement term, a 
community development lender that receives assistance under section 4 
(or established by an eligible entity that receives assistance under 
such section) shall maintain personnel qualified and capable of 
conducting the activities described under section 3(b) and the other 
activities of the lender relating to community development, as the 
Secretary may require.

SEC. 6. APPLICATION AND APPROVAL FOR ASSISTANCE.

    (a) Requirement.--The Secretary may provide assistance under 
section 4 only to community development lenders and eligible entities 
establishing community development lenders that have submitted 
applications under this section to the Secretary that have been 
approved under subsection (d).
    (b) Time and Manner.--The Secretary shall establish requirements 
regarding the submission of applications under this section, which 
shall include requirements for the time and manner of submission.
    (c) Contents.--An application under this section shall contain the 
following information:
            (1) Community development lender.--A description of--
                    (A) the existing community development bank or 
                community development financial institution to be 
                assisted; or
                    (B) in the case of an eligible entity submitting 
                the application for assistance, the community 
                development lender to be established by the eligible 
                entity, the existing relationship between the eligible 
                entity and the community development lender to be 
                established, and any continuing relationship that will 
                exist between the eligible entity and the community 
                development lender.
            (2) Low-income neighborhood served.--Identification and a 
        description of the low-income neighborhood in which the 
        community development lender is, or is to be, located and 
        conduct its principal operations and a description of the 
        existing availability of credit and credit-related services in 
        such neighborhood.
            (3) Types of business.--A description of the types of 
        business engaged in, or to be engaged in, by the community 
        development lender and of the need for such business in the 
        neighborhood served by the community development lender.
            (4) Board of directors and operation.--In the case of an 
        application by an existing community development lender, a 
        description of the board of directors of the community 
        development lender and the structure of the management and 
        operations of the community development lender.
            (5) Financial expertise.--In the case of an application by 
        an existing community development lender, a description of any 
        lending or financial expertise or experience of the members of 
        the board of directors of the community development lender and 
        the managers or employees of the lender.
            (6) Financial history.--In the case of an application by an 
        existing community development lender, any financial 
        information regarding the community development lender that the 
        Secretary considers necessary in determining whether to provide 
        assistance to the community development lender, including 
        information regarding any history of compliance with the 
        requirements of section 5.
            (7) Regulation.--Identification of any Federal, State, and 
        local laws, ordinances, and regulations under which the 
        financial operations of the community development lender are, 
        or are to be, subject to the supervision, approval, regulation, 
        or insuring of any agency or other instrumentality of the 
        Federal Government or the State or local government and 
        identification of the agency or instrumentality.
            (8) New community development lenders.--In the case of an 
        application by an eligible entity for assistance for the 
        establishment of a community development lender, any financial, 
        organizational, or other information that the Secretary 
        considers necessary in determining whether to provide such 
        assistance.
            (9) Assistance.--A description of the amount of assistance 
        for which the community development lender or eligible entity 
        is applying and a description of the purposes for which such 
        assistance will be used.
            (10) Employment plan.--An employment plan in accordance 
        with the regulations issued under section 5(d).
            (11) Compliance with requirements.--A description of the 
        actions to be taken by the community development lender (or the 
        eligible entity establishing the community development lender) 
        to ensure compliance with the requirements under section 5.
            (12) Other.--Any other information the Secretary considers 
        appropriate to carry out, and ensure compliance with, the 
        provisions of this Act.
    (d) Review and Approval.--
            (1) Review.--The Secretary shall promptly review each 
        application submitted under this section.
            (2) Minimum standards for approval.--The Secretary may 
        approve an application under this section for assistance only 
        if the Secretary determines, based on the information contained 
        in an application, that--
                    (A) the lender will operate in accordance with the 
                requirements of this Act and in a financially safe and 
                sound manner; and
                    (B) the assistance is necessary and appropriate to 
                facilitate the provision of credit and credit-related 
                services in the neighborhood served by the lender to 
                low-income families and others not adequately served by 
                traditional lending institutions.
            (3) Selection criteria.--The Secretary shall approve 
        applications under this subsection based on competitive 
        selection criteria, which the Secretary shall establish by 
        regulation.
            (4) Notification.--The Secretary shall promptly notify each 
        applicant of the approval or disapproval of the applicant's 
        application. In the case of any disapproval, such notification 
        shall include a statement of the reasons for the disapproval 
        and of the availability of technical assistance under section 
        9.

SEC. 7. ASSISTANCE AGREEMENTS.

    (a) Requirement.--The Secretary may not provide assistance under 
section 4 for an application for such assistance approved under section 
6 unless the community development lender or eligible entity submitting 
the application enters into a written agreement with the Secretary 
under this section.
    (b) Contents.--An agreement under this section shall provide the 
following:
            (1) Neighborhood served.--A delineation of the boundaries 
        of the low-income neighborhood within which the community 
        development lender shall be located and in which the lender 
        shall conduct its principal operations.
            (2) Compliance with requirements.--That the community 
        development lender shall comply with the requirements under 
        section 5.
            (3) Safe and sound operation.--That the community 
        development lender shall operate in a financially safe and 
        sound manner.
            (4) Books and records.--That the community development 
        lender shall operate and maintain books and records in 
        accordance with the regulations issued by the Secretary under 
        section 8 and will provide the Secretary with access to such 
        books and records for purposes of determining the compliance of 
        the lender with the requirements of this Act and the provisions 
        of the agreement under this section.
            (5) Performance standards and sanctions.--Standards for the 
        performance and financial operation of the community 
        development lender appropriate for the particular lender, 
        including standards relating to the lending volume, portfolio 
        performance, personnel development, service to the neighborhood 
        served by the lender, and sanctions for failure to comply with 
        such standards.
            (6) Reports.--That the community development lender (or the 
        eligible entity establishing the community development lender) 
        shall submit reports to the Secretary including such 
        information, at such times, and in such manner, as required by 
        the Secretary and provided in the agreement.
            (7) Assistance.--The amount of assistance to be provided to 
        the community development lender (or eligible entity 
        establishing the community development lender), the purposes 
        under section 4(b) for which such assistance will be used, and 
        the timing and terms of the disbursement of such assistance.
            (8) Other conditions.--That the community development 
        lender shall comply with any other written conditions (which 
        shall be contained in the agreement) that the Secretary 
        considers appropriate to carry out the purposes of this Act.
            (9) Period of compliance.--The period during which the 
        community development lender shall comply with the provisions 
        of the agreement under this section, which shall not be shorter 
        than 12 months in duration.
    (c) Federal or Other Regulation of Lender.--An agreement under this 
section may not be construed to annul, alter, affect, or exempt the 
community development lender receiving assistance pursuant to the 
agreement (or established by the eligible entity receiving such 
assistance) from complying with any Federal, State, or local laws, 
ordinances, and regulations applicable to the financial and other 
operations of community development lender or with any orders or 
rulings of any agency or instrumentality of the Federal Government or 
the State or local government responsible for the supervision, 
approval, regulation, or insuring of the community development lender.

SEC. 8. BOOKS, RECORDS, AND AUDITS.

    (a) Books and Records.--During the applicable assistance agreement 
term, a community development lender that receives assistance under 
section 4 (or established by an eligible entity that receives such 
assistance) shall maintain the books and records of the bank in the 
manner that the Secretary shall, by regulation, require.
    (b) Examinations and Audits.--
            (1) Recertification.--The Secretary shall, not less than 
        once each year during the applicable assistance agreement term, 
        conduct an examination of the books, records, and financial 
        accounts and transactions of each community development lender 
        receiving assistance under section 4 (or established by an 
        eligible entity receiving assistance under such section) for 
        the purpose of determining compliance of the lender with this 
        Act and the provisions of the agreement.
            (2) Other.--During the applicable assistance agreement 
        term, the Secretary may conduct any other examinations and 
        audits of such a community development lender and its accounts 
        and transactions that the Secretary considers appropriate to 
        determine the condition of the lender and compliance with the 
        provisions of the assistance agreement.

SEC. 9. TECHNICAL ASSISTANCE FOR ORGANIZING AND OPERATING COMMUNITY 
              DEVELOPMENT LENDERS.

    (a) Assistance to Establish Community Development Lenders.--The 
Secretary shall carry out a program under this subsection to provide 
technical assistance in establishing community development banks and 
community development financial institutions, which shall include--
            (1) educating organizations, financial institutions, 
        governmental agencies, and other entities and persons in low-
        income neighborhoods and elsewhere regarding the need for, 
        capabilities, functions, and organization of community 
        development lenders;
            (2) educating and training organizations, depository and 
        other financial institutions, and other entities and persons in 
        organizing community development lenders and applying for 
        assistance under this Act for establishment of community 
        development lenders;
            (3) recruiting, and assisting organizations, governmental 
        agencies, and other entities and persons to recruit existing 
        organizations, depository and other financial institutions, and 
        other entities and persons to establish community development 
        banks;
            (4) assisting entities and persons interested in 
        establishing community development lenders in identifying 
        community lending needs and meeting the application 
        requirements and preparing applications under this Act; and
            (5) assisting community development lenders and eligible 
        entities whose applications have been disapproved under section 
        6(d) to submit approvable applications for assistance under 
        section 4.
    (b) Assistance for Operating Community Development Lenders.--The 
Secretary shall carry out a program under this subsection to provide 
technical assistance to community development lenders, which shall 
include--
            (1) education and training regarding management and 
        operation of the lenders, including designing and utilizing 
        lending practices to target credit to low-income families and 
        neighborhoods, complying with financial and accounting 
        standards under the agreement for the lender under section 7, 
        and implementing effective asset management and fund 
        development techniques;
            (2) collecting and disseminating information from various 
        community development lenders regarding successful management 
        and operation techniques, lending practices, and lending 
        activities; and
            (3) training personnel of lenders to meet requirements 
        under section 5(f).
    (c) Provision of Assistance.--The Secretary may provide technical 
assistance under this section directly or through public or private 
organizations pursuant to contracts with such organizations or grants 
to such organizations.
    (d) Administration.--The Secretary may provide for making technical 
assistance under this section available to community development 
lenders and eligible entities that receive assistance under section 4 
pursuant to a request for such assistance in an application under 
section 6, approval of the application, and the inclusion of terms in 
the assistance agreement under section 7 providing for such assistance.

SEC. 10. AVAILABILITY OF FEDERAL RESERVE SYSTEM RESOURCES FOR COMMUNITY 
              DEVELOPMENT BANKS.

    (a) In General.--The Board of Governors of the Federal Reserve 
System shall take such action as may be necessary to ensure the 
availability of funds for community development banks under the Federal 
Reserve Act to the maximum extent practicable.
    (b) Report.--Before the end of the 6-month period beginning on the 
date of the enactment of this Act, the Board of Governors of the 
Federal Reserve System shall submit a report to the Congress containing 
recommendations for legislative actions which the Board determines to 
be appropriate to increase liquidity lending to community development 
banks by the Federal reserve banks to carry out the purposes of this 
Act.

SEC. 11. RELATIONSHIP TO COMMUNITY REINVESTMENT ACT OF 1977.

    Section 807(b) of the Community Reinvestment Act of 1977 (12 U.S.C. 
2906(b)) is amended by adding at the end the following new paragraph:
            ``(3) Coordination with community banking and economic 
        empowerment act.--No regulated financial institution may 
        receive a rating of `outstanding record of meeting community 
        credit needs' or `satisfactory record of meeting community 
        credit needs' solely on the basis of loans to or investments in 
        community development lenders.''.

SEC. 12. REPORTS TO CONGRESS.

    The Secretary shall submit a report to the Congress not later than 
July 1 of each year in which the Secretary provides assistance under 
section 4 to community development lenders or eligible entities, which 
shall describe--
            (1) the assistance provided under such section, the 
        purposes for which such assistance will be used, the 
        neighborhoods to be served by the community development lenders 
        assisted, and the activities of community development lenders 
        assisted; and
            (2) any technical assistance provided under section 9 by 
        the Secretary.

SEC. 13. REGULATIONS.

    The Secretary of Housing and Urban Development, jointly with the 
Secretary of the Treasury, shall issue any regulations necessary to 
carry out this Act.

SEC. 14. DEFINITIONS.

    For purposes of this Act:
            (1) The term ``assistance agreement'' means an agreement 
        under section 7 between the Secretary and a community 
        development lender or eligible entity receiving assistance 
        under section 4.
            (2) The term ``assistance agreement term'' means the period 
        established by an assistance agreement during which the 
        community development lender that receives assistance under 
        section 4 pursuant to the agreement (or established by the 
        eligible entity that receives such assistance) shall comply 
        with the provision of the agreement.
            (3) The term ``community development bank'' means a 
        depository institution described in section 3(a)(1)(A) that 
        meets the requirements under subsections (b) and (c) of section 
        3.
            (4) The term ``community development financial 
        institution'' means a financial institution described in 
        section 3(a)(1)(B) that meets the requirements under 
        subsections (b) and (c) of section 3.
            (5) The term ``community development lender'' means a 
        community development bank or a community development financial 
        institution that meets the requirements under subsections (b) 
        and (c) of section 3.
            (6) The term ``eligible entity'' means any entity described 
        in section 3(a)(2).
            (7) The term ``low-income family'' means any individual or 
        family whose income does not exceed 80 percent of the median 
        income for the area, as determined by the Secretary with 
        adjustments for smaller and larger families; except that the 
        Secretary may establish income ceilings higher or lower than 80 
        percent of the median for the area on the basis of any findings 
        by the Secretary that such variations are necessary because of 
        unusually high or low prevailing incomes.
            (8) The term ``low-income neighborhood'' means any area 
        within a city, county, town, township, parish, village, or 
        other general purpose subdivision of a State--
                    (A) that has a continuous boundary; and
                    (B) in which not less than 20 percent of the 
                residents are members of low-income families.
            (9) The term ``low-income neighborhood served by a 
        community development lender'' means the low-income 
        neighborhood identified in an application under section 6 and 
        an assistance agreement under section 7 as the area in which 
        the community development lender that receives assistance 
        pursuant to such application and agreement (or established by 
        the eligible entity that receives such assistance) will be 
        located and conduct its principal operations.
            (10) The term ``Secretary'' means the Secretary of Housing 
        and Urban Development.

SEC. 15. AUTHORIZATION OF APPROPRIATIONS.

    There is authorized to be appropriated for each of fiscal years 
1994 and 1995--
            (1) $800,000,000 for assistance under section 4; and
            (2) $200,000,000 for providing technical assistance under 
        section 9.

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