I 111th CONGRESS 1st Session H. R. 1685 IN THE HOUSE OF REPRESENTATIVES March 24, 2009 Mrs. McCarthy of New York introduced the following bill; which was referred to the Committee on Education and Labor A BILL To provide for the acquisition, construction, and improvement of child care facilities, and for other purposes.

1.

Short title

This Act may be cited as the ‘‘Child Care Facilities Financing Act of 2009’’.

2.

Technical and financial assistance grants

(a)

Grant authority

The Secretary may make grants on a competitive basis to eligible entities in accordance with this section. (b)

Application

(1)

In general

To be eligible to receive a grant under subsection (a), an eligible entity shall submit to the Secretary an application at such time, in such form, and containing such information as the Secretary may require by rule. (2)

Requirements

The Secretary shall issue rules that take into account the experience and success of eligible entities in attracting private financing and carrying out the types of activities for which grants under subsection (a) are made. (c)

Priority

In making grants under subsection (a), the Secretary shall give priority to an applicant— (1)that has demonstrated experience— (A)providing technical or financial assistance for the acquisition, construction, or renovation of child care facilities; (B)providing technical, financial, or managerial assistance to eligible child care providers; and (C)securing private sources of capital financing for child care or other low-income community development; and (2)whose application proposes to assist eligible recipients that serve— (A)low-income areas, including— (i)a community that— (I)is in a metropolitan area; and (II)has a median household income that is not more than 80 percent of the median household income of the metropolitan area; or (ii)a community that— (I)is not in a metropolitan area; and (II)has a median income that is not more than 80 percent of the median household income of the State in which the community is located; or (B)low-income individuals, including eligible children. (d)

Use of funds

(1)

Capital fund

Each eligible entity that receives a grant under subsection (a) shall deposit the grant amount into a child care capital fund established by the eligible entity. (2)

Payments from funds

Each eligible entity shall provide technical or financial assistance (in the form of loans, grants, investments, guarantees, interest subsidies, and other appropriate forms of assistance) to eligible recipients from the child care capital fund it establishes to pay for— (A)the acquisition, construction, or improvement of child care facilities; (B)equipment for child care facilities; or (C)technical assistance to eligible child care providers to help them undertake facilities improvement and expansion projects. (3)

Loan repayments and investment proceeds

An eligible entity that receives a loan repayment or investment proceeds from an eligible recipient shall deposit such repayment or proceeds into the child care capital fund of the eligible entity for use in accordance with this section. (4)

Application

To obtain assistance from an eligible entity, an eligible recipient shall prepare and submit an application to an eligible entity at such time, in such form, and containing such information as the eligible entity may require.

3.

Definitions

As used in this Act: (1)

Child care facility

The term child care facility means a structure used for the care and development of eligible children. (2)

Child care services

The term child care services means child care and early childhood education. (3)

Community development financial institution

The term community development financial institution has the meaning given such term in section 103(5) of the Community Development Banking and Financial Institutions Act of 1994 (12 U.S.C. 4702(5)). (4)

Eligible child care provider

The term eligible child care provider has the meaning given such term in section 658P of the Child Care and Development Block Grant Act of 1990 (42 U.S.C. 9858n). (5)

Eligible child

The term eligible child has the meaning given such term in section 658P of the Child Care and Development Block Grant Act of 1990 (42 U.S.C. 9858n). (6)

Eligible entity

The term “eligible entity” means— (A)a community development financial institution certified by the Department of Treasury; or (B)an organization that— (i)is described in section 501(c)(3) of the Internal Revenue Code of 1986; (ii)is exempt from taxation under section 501(a) of such Code; and (iii)has demonstrated experience in— (I)providing technical or financial assistance for the acquisition, construction, or renovation of child care facilities; (II)providing technical, financial, or managerial assistance to eligible child care providers; and (III)securing private sources of capital financing for child care or other low-income community development. (7)

Eligible recipient

The term “eligible recipient” means— (A)an eligible child care provider that provides child care services to an eligible child; (B)an organization seeking to provide child care services to an eligible child; or (C)an organization providing or seeking to provide child care services to low-income children as determined by the Secretary. (8)

Equipment

The term equipment includes— (A)machinery, utilities, and built-in equipment, and any necessary structure to house them; and (B)any other items necessary for the functioning of a child care facility, including furniture, books, and program materials. (9)

Metropolitan area

The term metropolitan area has the meaning given such term in section 102 of the Housing and Community Development Act of 1974 (42 U.S.C. 5302). (10)

Secretary

The term “Secretary” means the Secretary of Health and Human Services.

4.

Authorization of appropriations

There is authorized to be appropriated to carry out this section $50,000,000 for each of the fiscal years 2010 through 2014.