[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 3937 Introduced in Senate (IS)]

111th CONGRESS
  2d Session
                                S. 3937

      To revitalize suburban communities, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           September 29, 2010

Mrs. Gillibrand introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
      To revitalize suburban communities, 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 ``Suburban Core Opportunity, 
Restoration, and Enhancement (SCORE) Act of 2010''.

SEC. 2. GENERAL PROVISIONS.

    (a) Definitions.--As used in this Act--
            (1) the term ``metropolitan area'' means a standard 
        metropolitan statistical area as established by the Office of 
        Management and Budget;
            (2) the term ``metropolitan city'' means--
                    (A) a city within a metropolitan area which is the 
                central city of such area, as defined and used by the 
                Office of Management and Budget; or
                    (B) any other city, within a metropolitan area, 
                which has a population of 50,000 or more;
            (3) the term ``SCORE project area'' means any area that--
                    (A) is not eligible to be designated as a renewal 
                community under section 1400E of the Internal Revenue 
                Code of 1986; and
                    (B) includes some of the following:
                            (i) Close proximity to existing development 
                        and infrastructure, including access to mass 
                        transit.
                            (ii) Substandard, deteriorating, 
                        distressed, abandoned, or underutilized 
                        residential, commercial, and industrial 
                        properties.
                            (iii) An average housing and transportation 
                        cost-burden of at least 30 percent of gross 
                        income.
                            (iv) A commercial property vacancy rate 
                        that reflects 30 percent or more of vacant 
                        spaces compared to filled spaces.
                            (v) Commercial property that is 50 or more 
                        years in age.
                            (vi) An older, economically obsolescent 
                        regional mall, commonly referred to as a 
                        ``Greyfield mall''.
                            (vii) High traffic congestion on streets, 
                        roads, and highways as measured by vehicle 
                        miles traveled.;
            (4) the term ``Secretary'' means the Secretary of Housing 
        and Urban Development;
            (5) the term ``State'' means any State of the United 
        States, the Commonwealth of Puerto Rico, Guam, the Northern 
        Mariana Islands, the Virgin Islands, and America Samoa; and
            (6) the term ``unit of local government'' means any city, 
        other than a metropolitan city located in a metropolitan 
        statistical area, county, town, township, parish, village, 
        hamlet, or other general purpose political subdivision of a 
        State that contains within its boundaries an eligible SCORE 
        project area;
    (b) Basis and Modification of Definitions.--Where appropriate, the 
definitions in subsection (a) shall be based, with respect to any 
fiscal year, on the most recent data compiled by the United States 
Bureau of the Census and the latest published reports of the Office of 
Management and Budget available 90 days prior to the beginning of such 
fiscal year. The Secretary may by regulation change or otherwise modify 
the meaning of the terms defined in subsection (a) in order to reflect 
any technical change or modification thereof made subsequent to such 
date by the United States Bureau of the Census or the Office of 
Management and Budget.

SEC. 3. DESIGNATION OF SCORE PROJECT AREAS.

    (a) In General.--From among the areas nominated for designation 
under this section, the Secretary may designate 1 or more SCORE project 
areas.
    (b) Limitations on Designation.--No area may be designated under 
subsection (a) unless--
            (1) the area is nominated by 1 or more units of local 
        government, including municipal and county authorities;
            (2) the unit of local government provides written 
        assurances and other documentation satisfactory to the 
        Secretary that--
                    (A) it convened a SCORE advisory committee to enter 
                into a collaborative community planning process to 
                determine the SCORE project area to be nominated;
                    (B) the SCORE advisory committee held a series of 
                open meetings to develop a vision statement with the 
                consensus of the community that describes--
                            (i) the geographical extent of the SCORE 
                        project area;
                            (ii) the goals of the community in applying 
                        for such a designation; and
                            (iii) the plan of the community for the use 
                        of any funds received under this Act; and
                    (C) the SCORE advisory committee passed a 
                resolution, that was later adopted by the unit of local 
                government, adopting the vision statement agreed to in 
                subparagraph (B); and
            (3) the Secretary determines that any information furnished 
        is reasonably accurate.

SEC. 4. PLANNING GRANTS FOR SCORE PROJECT AREAS.

    (a) Grants Authorized.--
            (1) In general.--The Secretary may award a grant to a unit 
        of local government to plan activities in accordance with the 
        provisions of this section.
            (2) Amount.--A grant awarded under subsection (a) shall not 
        exceed $250,000.
            (3) Award basis.--The Secretary shall award grants under 
        this section on a competitive basis.
    (b) Application.--A unit of local government seeking a grant under 
this section on behalf of a designated SCORE project area shall submit 
an application to the Secretary at such time, in such manner, and 
containing such information as the Secretary may require.
    (c) Use of Funds.--A grant awarded to a unit of local government on 
behalf of a designated SCORE project area pursuant to subsection (a) 
shall be used to create a strategic plan for the SCORE project area. 
Such a strategic plan shall include plans for--
            (1) increasing the types of housing available within the 
        SCORE project area;
            (2) protecting natural resources, farmland, and critical 
        environmental lands within the SCORE project area;
            (3) preserving or increasing the amount of open space, 
        public plazas, parks, and recreation areas within the SCORE 
        project area;
            (4) increasing the construction of mixed use properties and 
        buildings within the SCORE project area;
            (5) enhancing and promoting public transportation and 
        improved circulation and access within the SCORE project area, 
        including the construction and renovation of streets for 
        pedestrian use, improving access to and condition of transit 
        stations and facilities, and the creation of commercial and 
        mixed use properties adjacent to transit stations;
            (6) preserving the character of the community within the 
        SCORE project area, including limits on the choice of 
        architectural designs and the loss of historic features; and
            (7) programs or initiatives that enhance the economic base 
        of the SCORE project area, including the creation of business 
        improvement districts, facade enhancement programs, retail 
        store recruitment, and community marketing.
    (d) SCORE Advisory Committee.--
            (1) In general.--Any unit of local government seeking to 
        receive funds under this section shall work in close 
        association with a SCORE advisory committee.
            (2) Public hearing.--The SCORE advisory committee shall 
        hold at least one hearing, open to the public, concerning the 
        strategic plan with stakeholders and other interested groups 
        within the community so that the opinions of such parties can 
        be taken into account and so that outside groups can learn of 
        the strategic plan.
            (3) Public notice.--Copies of the strategic plan as well as 
        the date and time of the hearing shall be made available to the 
        public at least two weeks prior to the hearing.
            (4) 90-Day period for comments.--After the hearing, any 
        interested party shall have 90 days in which to submit comments 
        to the strategic plan advisory committee. At the end of this 
        period, the SCORE advisory committee shall hold an additional 
        hearing, open to the public, to discuss any revisions made to 
        the strategic plan.
    (e) Authorization of Appropriations.--
            (1) In general.--There are authorized to be appropriated 
        $2,000,000 for fiscal year 2011 to carry out the provisions of 
        this section.
            (2) Amounts available until expended.--Amounts appropriated 
        under paragraph (1) shall remain available until expended.

SEC. 5. REVITALIZATION GRANTS FOR SCORE PROJECT AREAS.

    (a) Grants Authorized.--
            (1) In general.--The Secretary may award a grant to a unit 
        of local government to fund activities to revitalize SCORE 
        project areas in accordance with the provisions of this 
        section.
            (2) Limitation on amount.--No unit of local government may 
        receive grants under this section totaling more than 
        $50,000,000.
            (3) Award basis.--The Secretary shall award grants under 
        this section on a competitive basis.
    (b) Application.--A unit of local government seeking a grant under 
this section shall submit an application to the Secretary at such time, 
in such manner, and containing such information as the Secretary may 
require.
    (c) SCORE Reinvestment Fund.--
            (1) In general.--Any unit of local government receiving a 
        grant pursuant to subsection (a) shall establish a separate 
        fund, to be known as a SCORE Reinvestment Fund, to be 
        administered by the unit local government, in consultation with 
        a SCORE advisory committee. The SCORE Reinvestment Fund shall 
        be credited with all grant funds made available under this Act.
            (2) Distribution.--A unit of local government, in 
        consultation with a SCORE advisory committee, shall distribute 
        such sums as are necessary from the SCORE Reinvestment Fund to 
        fund projects to revitalize SCORE project areas.
    (d) Use of Funds.--
            (1) In general.--A grant awarded to a unit of local 
        government and distributed from a SCORE Reinvestment Fund shall 
        be used to--
                    (A) acquire real, commercial, or industrial 
                property and existing structures within a SCORE project 
                area;
                    (B) pay for the costs of hiring engineers to 
                develop or redevelop real, commercial, or industrial 
                property and existing structures within a SCORE project 
                area; and
                    (C) pay for the construction, reconstruction, 
                alteration, rehabilitation, or to make substantial 
                improvements to real, commercial, or industrial 
                property and existing structures with a SCORE project 
                area.
            (2) Limitation.--No more than 20 percent of the sums 
        distributed from a SCORE Reinvestment Fund shall be allocated 
        to any single project to revitalize SCORE project areas.
    (e) Certification of Assessed Values.--Any unit of local government 
receiving a grant pursuant to subsection (a) must determine and certify 
the assessed value of all taxable real property within the SCORE 
project area as of the date the unit of local government applied for 
the grant, and for each fiscal year thereafter.
    (f) Receipt of Revenue.--A unit of local government receiving a 
grant pursuant to subsection (a) shall ensure that--
            (1) it will receive for each fiscal year the equivalent of 
        any tax revenues generated from taxes levied on the assessed 
        value of real property within the SCORE project area as of the 
        date it applied for the grant;
            (2) until an amount equal to the amount of the grant 
        awarded pursuant to subsection (a) is collected, the SCORE 
        Reinvestment Fund will receive all taxes generated as result of 
        any increase in the assessed value of all taxable real property 
        within a SCORE project area after the date it applied for the 
        grant; and
            (3) after an amount equal to the amount of the grant 
        awarded pursuant to subsection (a) is collected, the SCORE 
        Reinvestment Fund will receive 50 percent of all taxes 
        generated as result of any increase in the assessed value of 
        all taxable real property within a SCORE project area after the 
        date it applied for the grant.
    (g) Authorization of Appropriations.--There are authorized to be 
appropriated $250,000,000 for fiscal year 2011 to carry out the 
provisions of this section.

SEC. 6. REQUIREMENT FOR AUDITS AND REPORTS BY UNITS OF LOCAL 
              GOVERNMENT.

    (a) Reports.--The Secretary may not award a grant under section 5 
for a fiscal year unless the unit of local government shall prepare and 
submit to the Secretary an annual report in such form and containing 
such information as the Secretary determines to be necessary for--
            (1) securing a record and a description of the purposes for 
        which a grant received by a unit of local government pursuant 
        to section 5 was expended and of the recipients of such 
        expenditures;
            (2) determining whether the grant awarded was expended in 
        accordance with the purposes and limitations required pursuant 
        to subsection (d) of section 5; and
            (3) determining the percentage of the grant awarded that 
        was expended by the unit of local government for administrative 
        expenses during the preceding fiscal year.
    (b) Audit.--
            (1) In general.--The Secretary may not award a grant under 
        section 5 for a fiscal year unless the unit of local government 
        shall establish such fiscal controls and fund accounting 
        procedures as may be necessary to ensure the proper disbursal 
        of, and accounting for, amounts received by the unit of local 
        government under such section.
            (2) Standards.--The Secretary may not award a grant under 
        section 5 unless the unit of local government shall--
                    (A) provide for a single financial and compliance 
                audit of each SCORE Reinvestment Fund;
                    (B) perform an audit biennially and that such an 
                audit will cover expenditures in each fiscal year; and
                    (C) conduct such an audit in accordance with 
                standards established by the Comptroller General of the 
                United States for the audit of governmental 
                organizations, programs, activities, and functions.
            (3) Definition.--For purposes of paragraph (2), the term 
        ``financial and compliance audit'' means an audit to determine 
        whether the financial statements of an audited SCORE 
        Reinvestment Fund present fairly the financial position, and 
        the results of financial operations, of the SCORE Reinvestment 
        Fund in accordance with generally accepted accounting 
        principles, and whether the SCORE Reinvestment Fund has 
        complied with laws and regulations that may have a material 
        effect upon the financial statements.
    (c) Availability to the Public.--The Secretary may not award a 
grant under section 5 for a fiscal year unless the unit of local 
government shall make copies of the reports and audits described in 
this section available for public inspection.
    (d) Evaluations by Comptroller General.--The Comptroller General of 
the United States shall, from time to time, evaluate the expenditures 
by units of local government of grants awarded under section 5 in order 
to ensure that expenditures are consistent with the provisions of this 
section.

SEC. 7. INTERACTION WITH COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAMS.

    (a) Business Located Within SCORE Project Areas.--A business 
located within an area designated as a SCORE project area under section 
3 that is receiving Federal funds provided to States and units of 
general local government under section 106 of the Housing and Community 
Development Act of 1974 (42 U.S.C. 5306), or, if applicable, receiving 
funds as a result of a guarantee or grant under section 108 of that 
same Act, shall be deemed to have met for any job creation or job 
retention effort undertaken with such funds--
            (1) the certification requirement of section 104(b)(3) of 
        such Act; and
            (2) the requirements of section 105(c) of such Act.
    (b) Housing Units in SCORE Project Areas.--All units of housing 
that are located within an area designated as a SCORE project area 
under section 3 and that are receiving Federal funds provided to States 
and units of general local government under section 106 of the Housing 
and Community Development Act of 1974 (42 U.S.C. 5306), or, if 
applicable, receiving funds as a result of a guarantee or grant under 
section 108 of that same Act, shall be considered a single structure 
with respect to the requirements of section 105(c) of such Act.
    (c) Economic Development Projects in SCORE Project Areas.--Any 
economic development project located within an area designated as a 
SCORE project area under section 3 that is receiving Federal funds 
provided to States and units of general local government under section 
106 of the Housing and Community Development Act of 1974 (42 U.S.C. 
5306), or, if applicable, receiving funds as a result of a guarantee or 
grant under section 108 of that same Act, shall be exempt from the 
public benefit standards established under section 105(e) of such Act.

SEC. 8. TAX BENEFITS FOR SCORE PROJECT AREAS.

    (a) In General.--Chapter 1 of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new subchapter:

              ``Subchapter Z--SCORE Project Areas Benefits

``Sec. 1400V. Tax benefits for SCORE project areas.

``SEC. 1400V. TAX BENEFITS FOR SCORE PROJECT AREAS.

    ``(a) Expansion of Work Opportunity Tax Credit.--
            ``(1) In general.--For purposes of section 51, a SCORE 
        project area business employee shall be treated as a member of 
        a targeted group.
            ``(2) Score project area business employee.--For purposes 
        of this subsection--
                    ``(A) In general.--The term `SCORE project area 
                business employee' means, with respect to any period, 
                any employee of a SCORE project area business if 
                substantially all the services performed during such 
                period by such employee for such business are performed 
                in the SCORE project area in which the business is 
                located.
                    ``(B) Score project area business.--The term `SCORE 
                project area business' means any trade or business 
                which is located in a SCORE project business area.
                    ``(C) Special rules for determining amount of 
                credit.--For purposes of applying subpart F of part IV 
                of subchapter B of this chapter to wages paid or 
                incurred to any SCORE project area business employee--
                            ``(i) section 51(a) shall be applied by 
                        substituting `the sum of 15 percent of the 
                        qualified first-year wages, 10 percent of the 
                        qualified second-year wages, and 5 percent of 
                        the qualified third-year wages' for `40 percent 
                        of the qualified first-year wages',
                            ``(ii) in lieu of paragraphs (2) and (3) of 
                        subsection (b), the following definitions and 
                        special rule shall apply:
                                    ``(I) Qualified first-year wages.--
                                The term `qualified first-year wages' 
                                means, with respect to any individual, 
                                qualified wages attributable to service 
                                rendered during the 1-year period 
                                beginning with the later of the day the 
                                individual begins work for the employer 
                                or the first day of the designation of 
                                the SCORE project area in which the 
                                employer is located.
                                    ``(II) Qualified second-year 
                                wages.--The term `qualified second-year 
                                wages' means, with respect to any 
                                individual, qualified wages 
                                attributable to service rendered during 
                                the 1-year period beginning on the day 
                                after the last day of the 1-year period 
                                with respect to such individual 
                                determined under subclause (I).
                                    ``(III) Qualified third-year 
                                wages.--The term `qualified third-year 
                                wages' means, with respect to any 
                                individual, qualified wages 
                                attributable to service rendered during 
                                the 1-year period beginning on the day 
                                after the last day of the 1-year period 
                                with respect to such individual 
                                determined under subclause (II).
                                    ``(IV) Only first $15,000 of wages 
                                per year taken into account.--The 
                                amount of the qualified first, second, 
                                and third year wages which may be taken 
                                into account with respect to any 
                                individual shall not exceed $15,000 per 
                                year, and
                            ``(iii) subsections (c)(4) and (i)(2) of 
                        section 51 shall not apply.
    ``(b) Special Allowance for Certain SCORE Project Area Property.--
            ``(1) Additional allowance.--In the case of any qualified 
        SCORE project area property--
                    ``(A) the depreciation deduction provided by 
                section 167(a) for the taxable year in which such 
                property is placed in service shall include an 
                allowance equal to 50 percent of the adjusted basis of 
                such property, and
                    ``(B) the adjusted basis of the qualified SCORE 
                project area property shall be reduced by the amount of 
                such deduction before computing the amount otherwise 
                allowable as a depreciation deduction under this 
                chapter for such taxable year and any subsequent 
                taxable year.
            ``(2) Qualified score project area property.--For purposes 
        of this subsection--
                    ``(A) In general.--The term `qualified SCORE 
                project area property' means property--
                            ``(i) which is nonresidential real property 
                        or residential rental property,
                            ``(ii) substantially all of the use of 
                        which is in the active conduct of a trade or 
                        business by the taxpayer in the SCORE project 
                        area in which such property is located,
                            ``(iii) the original use of which in the 
                        SCORE project area commences with the taxpayer 
                        after the date of the designation of such area, 
                        and
                            ``(iv) which is acquired by the taxpayer by 
                        purchase (as defined in section 179(d)) after 
                        the date of such designation, but only if no 
                        written binding contract for the acquisition 
                        was in effect before such date.
                    ``(B) Exceptions.--
                            ``(i) Special allowance property.--Such 
                        term shall not include property to which 
                        section 168(k) applies.
                            ``(ii) Election out.--For purposes of this 
                        subsection, rules similar to the rules of 
                        section 168(k)(2)(D)(iii) shall apply.
                    ``(C) Special rules.--For purposes of this 
                subsection, rules similar to the rules of subparagraph 
                (E) of section 168(k)(2) shall apply, except that--
                            ``(i) `the date of the designation of the 
                        SCORE project area' shall be substituted for 
                        `December 31, 2007' each place it appears, and
                            ``(ii) clause (i) thereof shall be applied 
                        without regard to `and before January 1, 2010'.
                    ``(D) Allowance against alternative minimum tax.--
                For purposes of this subsection, rules similar to the 
                rules of section 168(k)(2)(G) shall apply.
    ``(c) SCORE Project Area.--For purposes of this section, the term 
`SCORE project area' means an area designated under the Suburban Core 
Opportunity, Restoration, and Enhancement (SCORE) Act of 2010.''.
    (b) Clerical Amendment.--The table of subchapters for chapter 1 of 
the Internal Revenue Code of 1986 is amended by adding at the end the 
following new item:

             ``subchapter z--score project areas benefits''.

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