[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 2053 Introduced in Senate (IS)]

112th CONGRESS
  2d Session
                                S. 2053

   To encourage transit-oriented development, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            February 1, 2012

Mr. Bennet (for himself and Mr. Warner) introduced the following bill; 
which was read twice and referred to the Committee on Banking, Housing, 
                           and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
   To encourage transit-oriented development, 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 ``Jumpstarting Transit-Oriented 
Development Act''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) Transit has the potential to transform communities into 
        vibrant economic engines that will strengthen the economic 
        outlook for the United States.
            (2) There are more than 3,700 transit stations in the 
        United States, and communities are building and proposing 
        thousands more.
            (3) Transit stations can be the focal point for significant 
        economic development, commonly known as transit-oriented 
        development.
            (4) Transit-oriented development brings numerous benefits, 
        such as increased property values, reduced cost of living, 
        increased business activity, and reduced traffic congestion.
            (5) Transit-oriented development that provides residential 
        opportunities affordable to families of all incomes, coupled 
        with expanded commercial and business development along a 
        transit corridor, will increase transit ridership, allowing 
        transit agencies to recover more of their costs from the 
        farebox and rely less on taxpayer support.
            (6) Despite these benefits, a lack of planning capacity and 
        financing tools at the local level are major barriers to 
        transit-oriented development.
            (7) Given the economic potential of transit-oriented 
        development, it is in the interest of the Federal Government to 
        work in partnership with States and local communities to 
        promote transit-oriented development.

SEC. 3. TRANSIT-ORIENTED DEVELOPMENT.

    Chapter 53 of title 49, United States Code, is amended by adding at 
the end the following:
``Sec. 5341. Transit-Oriented Development Planning Program
    ``(a) Definitions.--In this section, the following definitions 
shall apply:
            ``(1) Eligible area.--The term `eligible area' means the 
        area within one half-mile of an existing or planned major 
        transit facility.
            ``(2) Eligible recipient.--The term `eligible recipient' 
        means--
                    ``(A) a transit agency, a unit of local government, 
                a metropolitan planning organization, a tribal 
                government, and a State; and
                    ``(B) an entity described in subparagraph (A), in 
                partnership with a public or private agency or 
                organization.
            ``(3) Major transit facility.--The term `major transit 
        facility' means--
                    ``(A) a station that is part of a fixed-guideway 
                public transportation system;
                    ``(B) a high-speed rail or intercity rail station;
                    ``(C) a transit hub; or
                    ``(D) a transit center located in an other than 
                urbanized area.
            ``(4) Planned major transit facility.--The term `planned 
        major transit facility' means a major transit facility for 
        which--
                    ``(A) any environmental review required under this 
                chapter or the rules of the Department or the Federal 
                Transit Administration has been completed; and
                    ``(B) funding for construction can be reasonably 
                anticipated.
            ``(5) Program.--The term `Program' means the program 
        established under subsection (b).
            ``(6) Transit hub.--The term `transit hub' means a transit 
        station or facility connecting 3 or more local or regional 
        transit or rail lines.
    ``(b) Establishment of Program.--The Secretary may award grants to 
eligible recipients for the purpose of establishing a specific, 
implementable strategy for mixed-income, mixed-use development in an 
eligible area.
    ``(c) Characteristics of the Strategy.--A specific, implementable 
strategy for mixed-income, mixed-use development established under the 
Program shall--
            ``(1) specifically identify activities that the eligible 
        recipient determines are necessary to create the conditions 
        that will lead to successful transit-oriented development in 
        the eligible area, which may include--
                    ``(A) reducing regulatory or procedural barriers to 
                private investment in eligible areas;
                    ``(B) conducting a market assessment of 
                opportunities for commercial, residential, and business 
                development;
                    ``(C) identifying infrastructure needs in the 
                eligible area, such as sidewalks and street 
                improvements;
                    ``(D) making community engagement efforts; and
                    ``(E) any other activity that the eligible 
                recipient determines is consistent with this paragraph;
            ``(2) establish a schedule for implementation of the 
        activities identified under paragraph (1);
            ``(3) identify the person responsible for each activity 
        identified under paragraph (1);
            ``(4) include a financing plan for proposed infrastructure 
        improvements and development activities, including any project 
        costs for which funding has not been identified; and
            ``(5) establish a schedule for adoption of the strategy by 
        relevant State, regional, local, or tribal governments.
    ``(d) Evaluation Criteria.--In awarding grants under this section, 
the Secretary, in consultation with the Secretary of Housing and Urban 
Development and the Administrator of the Environmental Protection 
Agency, shall consider factors such as--
            ``(1) the extent to which the creation of a strategy under 
        subsection (c) would help achieve--
                    ``(A) increased real estate development that is 
                accessible by pedestrians from a transit station in the 
                eligible area;
                    ``(B) increased transit ridership within the 
                eligible area;
                    ``(C) an appropriate mix of uses for the eligible 
                area, determined with reference to local and regional 
                growth and development plans;
                    ``(D) preservation of affordable housing and the 
                ongoing availability of housing in the eligible area 
                that is affordable to families with a range of incomes;
                    ``(E) increased access to jobs and employment 
                centers using transit; and
                    ``(F) transit, housing, businesses, and facilities 
                in the eligible area that are accessible to elderly 
                individuals, individuals with disabilities, and people 
                of all income ranges;
            ``(2) the extent to which development of a strategy under 
        subsection (c) would be coordinated with all relevant members 
        of the community in which the eligible area is located, 
        including public-sector, real-estate, retail, housing, 
        commercial and economic development, non-profit, and community-
        based organizations or businesses;
            ``(3) how a strategy under subsection (c) would be 
        coordinated with relevant regional and local economic 
        development, land use, transportation, and housing plans;
            ``(4) the location of the eligible area, to ensure that 
        eligible recipients selected to participate in the Program are 
        geographically diverse and include areas having populations of 
        various sizes;
            ``(5) the capacity of the eligible recipient and any 
        partners of the eligible recipient to implement a strategy 
        under subsection (c) to maximize the likelihood of the 
        successful implementation of a strategy established under the 
        Program; and
            ``(6) the extent to which funds awarded under the Program 
        would be coordinated with other Federal funding available to 
        the applicant, as well as non-Federal revenues, to maximize 
        efficient use of Federal funding.
    ``(e) Limitation on Use of Funds.--A recipient of funding under the 
Program may not use the funding to implement a strategy established 
under the Program.
    ``(f) Reservation of Funds.--The Secretary may reserve not more 
than 20 percent of the amount of a grant under the Program until a 
strategy established under the Program is adopted by all relevant 
State, regional, local, and tribal governments in accordance with the 
schedule established under subsection (c)(5).
    ``(g) Cost Sharing.--
            ``(1) Federal share.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the Federal share of the cost of 
                establishing a strategy under subsection (c) to be 
                funded using a grant under the Program shall be not 
                less than 50 percent and not more than 80 percent.
                    ``(B) Tribal governments.--The Federal share of the 
                cost of establishing a strategy under subsection (c) to 
                be funded using a grant under the Program to an 
                eligible recipient that is a tribal government shall be 
                100 percent.
            ``(2) Considerations.--In determining the Federal share of 
        the cost of establishing a strategy under subsection (c) to be 
        funded using a grant under the Program, the Secretary shall 
        consider the demonstrated need of the applicant for assistance 
        and available resources for establishing the strategy.
            ``(3) In-kind contributions.--In-kind contributions may be 
        used for all or part of the non-Federal share of the cost of 
        establishing a strategy under subsection (c).
    ``(h) Reporting Requirements.--
            ``(1) Reports by recipients of grants.--Each recipient of a 
        grant under the Program shall agree to establish, in 
        coordination with the Secretary, performance measures, 
        reporting requirements, and any other requirements that the 
        Secretary determines are necessary, that must be met at the end 
        of each year in which the recipient receives funds under the 
        Program.
            ``(2) Reports to congress.--The Secretary shall submit to 
        Congress an annual report that contains--
                    ``(A) a list of--
                            ``(i) each recipient of a grant under this 
                        section;
                            ``(ii) the Federal share of the cost of 
                        each strategy established using a grant under 
                        this section;
                            ``(iii) a description of the eligible area 
                        and the activities a grant under this section 
                        would support; and
                            ``(iv) any eligible recipient that applied 
                        for but did not receive a grant under this 
                        section; and
                    ``(B) a report describing the outcome and 
                effectiveness of each grant made under this section.
    ``(i) Authorization of Appropriations.--
            ``(1) Authorization.--There are authorized to be 
        appropriated $20,000,000 for each fiscal year to carry out the 
        Program.
            ``(2) Limitation.--Of amounts authorized for the program 
        under paragraph (1), 10 percent shall be available to the 
        Secretary for administration of the program and to provide 
        technical assistance and training for employees of eligible 
        recipients regarding developing a strategy under subsection (c) 
        and implementation of transit-oriented development.
``Sec. 5342. Transit-Oriented Development Loan Program
    ``(a) Definitions.--In this section, the following definitions 
shall apply:
            ``(1) Eligible applicant.--The term `eligible applicant' 
        means an eligible recipient, as defined in section 5341.
            ``(2) Eligible area.--The term `eligible area' has the same 
        meaning as in section 5341.
            ``(3) Eligible borrower.--The term `eligible borrower' 
        means--
                    ``(A) an eligible recipient;
                    ``(B) a corporation, partnership, joint venture, or 
                trust on behalf of which an eligible applicant submits 
                an application under subsection (c); and
                    ``(C) any other legal entity undertaking a project 
                on behalf of which an eligible applicant submits an 
                application under subsection (c).
            ``(4) Project.--The term `project' means an infrastructure 
        development project that is used to support transit-oriented 
        development in an eligible area, including--
                    ``(A) property enhancement, including conducting 
                environmental remediation, park development, and open 
                space acquisition;
                    ``(B) improvement of mobility and parking, 
                including rehabilitating, or providing for additional, 
                streets, transit stations, structured parking, 
                walkways, and bikeways;
                    ``(C) utility development, including rehabilitating 
                existing, or providing for new drinking water, 
                wastewater, electric, and gas utilities; and
                    ``(D) any other activities eligible under joint 
                development guidelines, as that term is defined by the 
                Administrator of the Federal Transit Administration.
            ``(5) Transit-oriented development.--The term `transit-
        oriented development' has the same meaning as in section 5341.
    ``(b) Loans and Loan Guarantees.--The Secretary may make or 
guarantee loans under this section to eligible borrowers to carry out 
projects.
    ``(c) Application.--An eligible applicant may submit to the 
Secretary an application for a loan or loan guarantee under this 
section--
            ``(1) to fund a project carried out by the eligible 
        applicant; or
            ``(2) on behalf of an eligible borrower, to fund a project 
        carried out by the eligible borrower.
    ``(d) Selection Criteria.--
            ``(1) In general.--The Secretary may make a loan or loan 
        guarantee under this section for a project--
                    ``(A) to be carried out within an eligible area;
                    ``(B) that is part of a community-wide development 
                plan;
                    ``(C) that promotes sustainable development 
                designed to include features that reduce energy 
                consumption and that are environmentally responsible; 
                and
                    ``(D) for which not less than 15 percent of any 
                housing units constructed or substantially 
                rehabilitated as part of a transit-oriented development 
                supported by the project are affordable over the long 
                term to, and occupied at time of initial occupancy by--
                            ``(i) renters having incomes at or below 60 
                        percent of the median income for the 
                        metropolitan statistical area in which the area 
                        is located; or
                            ``(ii) homeowners having incomes at or 
                        below 100 percent of the median income for the 
                        metropolitan statistical area in which the area 
                        is located.
            ``(2) Considerations.--The Secretary, in consultation with 
        the Secretary of Housing and Urban Development and the 
        Administrator of the Environmental Protection Agency, shall 
        select the recipients of loans and loan guarantees under this 
        section based on the extent to which--
                    ``(A) the transit-oriented development supported by 
                the project would--
                            ``(i) encourage increased use of transit in 
                        the eligible area; and
                            ``(ii) create or preserve long-term 
                        affordable housing units--
                                    ``(I) in addition to the housing 
                                units required to be made available 
                                under paragraph (1)(C); or
                                    ``(II) that are affordable to 
                                individuals having incomes below the 
                                incomes described in paragraph (1)(C);
                    ``(B) the project would facilitate and encourage 
                additional development or redevelopment in the eligible 
                area;
                    ``(C) the relevant local government has adopted 
                policies that--
                            ``(i) promote long-term affordable housing; 
                        and
                            ``(ii) allow high-density, mixed-use 
                        development near transit stations;
                    ``(D) the transit-oriented development supported by 
                the project is part of a regional or local 
                comprehensive plan, including any strategy developed 
                under section 5341;
                    ``(E) the eligible borrower has established a 
                reliable, dedicated revenue source to repay the loan;
                    ``(F) the project could not be carried out without 
                a loan or loan guarantee under this section; and
                    ``(G) a loan or loan guarantee under this section 
                would be used in conjunction with non-Federal sources 
                to fund the project.
    ``(e) Eligible Sources of Repayment.--A loan made or guaranteed 
under this section shall be repayable, in whole or in part, from 
dedicated revenue sources, which may include--
            ``(1) user fees;
            ``(2) property tax revenues;
            ``(3) sales tax revenues;
            ``(4) other revenue sources dedicated to the project by 
        property owners and businesses; or
            ``(5) a bond or other indebtedness backed by a revenue 
        source described in this subsection.
    ``(f) Interest Rate.--The Secretary shall establish an interest 
rate for loans made or guaranteed under this section with reference to 
a benchmark interest rate (yield) on marketable Treasury securities 
with a maturity that is similar to the loans made or guaranteed under 
this section.
    ``(g) Maximum Maturity.--The maturity of a loan made or guaranteed 
under this section may not exceed the lesser of--
            ``(1) 35 years; or
            ``(2) 90 percent of the useful life of any project to be 
        financed by the loan, as determined by the Secretary.
    ``(h) Maximum Loan Guarantee Rate.--
            ``(1) In general.--The guarantee rate on a loan guaranteed 
        under this section may not exceed 75 percent of the amount of 
        the loan.
            ``(2) Lower guarantee rate for low-risk borrowers.--The 
        Secretary shall establish for loans to eligible borrowers that 
        the Secretary determines have less risk of default a guarantee 
        rate that is lower than the guarantee rate for loans to other 
        eligible borrowers.
    ``(i) Fees.--The Secretary shall establish fees for loans made or 
guaranteed under this section at a level that are sufficient to cover 
all or part of the costs to the Federal Government of making or 
guaranteeing a loan under this section.
    ``(j) Nonsubordination.--A loan made or guaranteed under this 
section may not be subordinated to the claims of any holder of an 
obligation relating to the project in the event of bankruptcy, 
insolvency, or liquidation.
    ``(k) Commencement of Repayment.--The scheduled repayment of 
principal or interest on a loan made or guaranteed under this section 
shall commence not later than 5 years after the date of substantial 
completion of the project, as determined by the Secretary.
    ``(l) Repayment Deferral for Loans.--
            ``(1) In general.--
                    ``(A) Loan made by secretary.--If, at any time 
                after the date of substantial completion of a project, 
                the Secretary determines that dedicated revenue sources 
                of an eligible borrower are insufficient to make the 
                scheduled loan repayments of principal and interest on 
                a loan made by the Secretary under this section, the 
                Secretary may, subject to criteria established by the 
                Secretary, allow the eligible borrower to add unpaid 
                principal and interest to the outstanding balance of 
                the loan.
                    ``(B) Loan guaranteed by secretary.--If, at any 
                time after the date of substantial completion of a 
                project, the Secretary determines that dedicated 
                revenue sources of an eligible borrower are 
                insufficient to make the scheduled loan repayments of 
                principal and interest on a loan guaranteed by the 
                Secretary under this section, the Secretary may, 
                subject to criteria established by the Secretary--
                            ``(i) add unpaid principal and interest to 
                        the outstanding balance of the loan; and
                            ``(ii) modify the terms of the loan 
                        guarantee to reflect a modification made under 
                        subsection (i).
            ``(2) Treatment of deferred payments.--Any payment deferred 
        under this section shall--
                    ``(A) continue to accrue interest until fully 
                repaid; and
                    ``(B) be scheduled to be amortized over the 
                remaining term of the loan.
    ``(m) Reporting Requirements.--
            ``(1) Reports by recipients of grants.--Each recipient of a 
        loan or loan guarantee under this section shall provide regular 
        status reports to the Secretary.
            ``(2) Reports to congress.--The Secretary shall submit to 
        Congress an annual report that contains--
                    ``(A) a list of--
                            ``(i) each eligible borrower that receives 
                        a loan made or guaranteed under this section;
                            ``(ii) a description of the eligible area 
                        and the activities a loan or loan guarantee 
                        under this section would support; and
                            ``(iii) any eligible applicant that applied 
                        for but did not receive a loan or loan 
                        guarantee under this section; and
                    ``(B) a report describing the outcome and 
                effectiveness of each loan made or guaranteed under 
                this section.
    ``(n) Authorization of Appropriations.--There are authorized to be 
appropriated for the cost of loans and loan guarantees under this 
section $40,000,000 for each fiscal year.''.

SEC. 4. EVALUATION PROCESS AND PROGRAM CRITERIA.

    The Secretary shall, after providing notice and an opportunity to 
comment, publish policy guidance regarding the evaluation process and 
criteria for the programs established under sections 5341 and 5342 of 
title 49, United States Code, as added by this Act.
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