[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3349 Introduced in House (IH)]

  2d Session
                                H. R. 3349

  To amend the Housing and Community Development Act of 1974 and the 
Federal Home Loan Bank Act to authorize Federal Home Loan Banks to make 
advances for community development activities to units of general local 
    government and for such advances to be guaranteed by community 
development block grant amounts to which such units of local government 
  become eligible, to expand the community participation requirements 
     relating to community development loan guarantees to include 
 participation of major community stakeholders, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 30, 1996

 Mr. Fattah (for himself, Mr. Romero-Barcelo, Mr. Filner, Mr. Hastings 
  of Florida, Ms. Jackson-Lee of Texas, Ms. Eddie Bernice Johnson of 
     Texas, Ms. McKinney, Ms. Norton, Mr. Thompson, and Mr. Towns) 
 introduced the following bill; which was referred to the Committee on 
                     Banking and Financial Services

_______________________________________________________________________

                                 A BILL


 
  To amend the Housing and Community Development Act of 1974 and the 
Federal Home Loan Bank Act to authorize Federal Home Loan Banks to make 
advances for community development activities to units of general local 
    government and for such advances to be guaranteed by community 
development block grant amounts to which such units of local government 
  become eligible, to expand the community participation requirements 
     relating to community development loan guarantees to include 
 participation of major community stakeholders, 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 ``American Cities Investment Act of 
1996''.

SEC. 2. COMMUNITY DEVELOPMENT LOAN GUARANTEES.

    (a) Advances From Federal Home Loan Banks.--Section 108 of the 
Housing and Community Development Act of 1974 (42 U.S.C. 5308) is 
amended by adding at the end the following new subsection:
    ``(s) Authority to Guarantee Advances From Federal Home Loan 
Banks.--
            ``(1) Limitation on maximum outstanding loan guarantees.--
        Notwithstanding any other provision of this section, the 
        maximum aggregate outstanding amount of notes and obligations 
        of a single issuer guaranteed under this section shall be an 
        amount determined by the Secretary based on the amount of the 
        grant approval for the issuer under section 106 or 107, the 
        fiscal condition of the issuer, and the potential return on 
        investment of the projects to be undertaken with the proceeds 
        of such notes and obligations, but may not in any case exceed 
        the discounted present value (based on the prevailing Federal 
        funds rate) of the grants that the issuer would receive over a 
        period not to exceed 20 years if the issuer's annual grant 
        amount over such period were equal to 80 percent of the current 
        grant approval for the issuer. The amount of an advance 
        guaranteed under paragraph (2) shall be included in the 
        aggregate outstanding amount of notes and loans for purposes of 
        the limitation under this paragraph.
            ``(2) Security.--The Secretary may use any authority 
        provided for guaranteed loans authorized by this section to 
        guarantee advances made under section 10b(c) of the Federal 
        Home Loan Bank Act, but only if the unit of general local 
        government for the eligible public entity or designated public 
        agency to which the advance is made pledges any grants to which 
        it becomes eligible under this title as security for repayment 
        of the advance.''.
    (b) Stakeholder Participation.--Section 108 of the Housing and 
Community Development Act of 1974 (42 U.S.C. 5308) is amended by adding 
after subsection (s), as added by subsection (a) of this section, the 
following new subsection:
    ``(t) Stakeholder Participation.--
            ``(1) Requirement.--For the purposes of the development of 
        activities to be funded under this section, the community 
        participation requirements of section 104(a) shall be expanded 
        to include participation of major stakeholders. Such 
        stakeholders may include, but not be limited to the chief 
        executives of the following entities:
                    ``(A) The board of education.
                    ``(B) The police and fire departments.
                    ``(C) Utility companies.
                    ``(D) Universities.
                    ``(E) Chambers of commerce.
                    ``(F) Labor unions.
                    ``(G) Transportation authorities.
                    ``(H) Health Facilities.
                    ``(I) Locally owned radio and television stations.
                    ``(J) Libraries.
                    ``(K) Cultural institutions.
                    ``(L) Religious institutions.
                    ``(M) Sports franchises.
                    ``(N) Professional and social service associations.
            ``(2) Definition.--For purposes of this subsection, the 
        term `stakeholder' means a public or private organizational 
        entity whose future well-being depends upon the applicant's 
        continued social and economic viability.''.

SEC. 3. FEDERAL HOME LOAN BANK ADVANCES.

    Section 10b of the Federal Home Loan Bank Act (12 U.S.C. 1430b) is 
amended by adding at the end the following new subsection:
    ``(c) Advances to Units of Local Government for Community 
Development Purposes.--A Federal Home Loan Bank may make advances to an 
eligible public entity (as such term is defined in section 108(o) of 
the Housing and Community Development Act of 1974) or a public agency 
designated by an eligible public entity in the same manner provided for 
advances to nonmember mortgagees under this section, except that 
advances under this subsection shall not be subject to the requirements 
under this section regarding security, but may be made only pursuant to 
a guarantee provided under section 108(s)(2) of the Housing and 
Community Development Act of 1974.''.
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