[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4857 Introduced in House (IH)]

<DOC>






118th CONGRESS
  1st Session
                                H. R. 4857

  To amend title 23, United States Code, to modify the transportation 
finance infrastructure and innovation program with respect to community 
      development financial institutions, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 25, 2023

Mr. DeSaulnier introduced the following bill; which was referred to the 
             Committee on Transportation and Infrastructure

_______________________________________________________________________

                                 A BILL


 
  To amend title 23, United States Code, to modify the transportation 
finance infrastructure and innovation program with respect to community 
      development financial institutions, 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 ``Equitable Transit Oriented 
Development Support Act''.

SEC. 2. INFRASTRUCTURE FINANCE.

    (a) Generally Applicable Provisions.--Section 601(a) of title 23, 
United States Code, is amended--
            (1) by inserting ``and section 611'' after ``609'';
            (2) in paragraph (2)--
                    (A) in subparagraph (C) by striking ``; and'' and 
                inserting a semicolon;
                    (B) in subparagraph (D) by striking the period and 
                inserting ``; and''; and
                    (C) by adding at the end the following:
                    ``(E) capitalizing a CDFI TOD account.'';
            (3) in paragraph (12)--
                    (A) in subparagraph (E) by striking ``; and'' and 
                inserting a semicolon;
                    (B) in subparagraph (H) by striking the period and 
                inserting ``; and''; and
                    (C) by adding at the end the following:
                    ``(I) the capitalization of a CDFI TOD account.''; 
                and
            (4) by adding at the end the following:
            ``(23) CDFI.--The term `CDFI' has the meaning given the 
        term `community development financial institution' under 
        section 103 of the Riegle Community Development and Regulatory 
        Improvement Act of 1994 (12 U.S.C. 4702).
            ``(24) CDFI tod account.--The term `CDFI TOD account' means 
        an account--
                    ``(A) established within a CDFI under section 
                611(c);
                    ``(B) capitalized with the proceeds of a secured 
                loan made to a CDFI in accordance with sections 602 and 
                603;
                    ``(C) for the purpose of making loans to sponsors 
                of transit-oriented development projects in accordance 
                with section 611.''.
    (b) Determination of Eligibility and Project Selection.--Section 
602 of title 23, United States Code, is amended--
            (1) in subsection (a)--
                    (A) in paragraph (2) by adding at the end the 
                following:
                    ``(C) CDFI.--Notwithstanding subparagraphs (A) and 
                (B), in a case in which the Federal credit instrument 
                is provided to a CDFI, the Secretary may rely upon a 
                credit assessment of the CDFI by the Secretary of 
                Treasury in lieu of investment grade ratings and credit 
                opinions from rating agencies.'';
                    (B) in paragraph (4) by inserting ``CDFI,'' after 
                ``partnership,'';
                    (C) in paragraph (5)(B) by inserting at the end the 
                following:
                            ``(v) CDFI tod accounts.--In the case of a 
                        project capitalizing a CDFI TOD account, 
                        eligible project costs shall not exceed 
                        $100,000,000.'';
                    (D) in paragraph (6)--
                            (i) in subparagraph (C) by striking ``or'';
                            (ii) in subparagraph (D) by striking the 
                        period and inserting ``; or''; and
                            (iii) by adding at the end the following:
                    ``(E) in the case of a CDFI TOD account, the 
                unconditional promissory obligation of a CDFI.'';
                    (E) in paragraph (7)--
                            (i) by striking ``State or local government 
                        or'' and inserting ``State or local 
                        government,''; and
                            (ii) by inserting ``or a CDFI,'' before 
                        ``the project'';
                    (F) in paragraph (9)--
                            (i) by striking ``The Secretary'' and 
                        inserting ``(A) In general--The Secretary'';
                            (ii) by redesignating subparagraphs (A), 
                        (B), and (C) as clauses (i), (ii), and (iii); 
                        and
                            (iii) by adding at the end the following:
                    ``(B) CDFI tod accounts.--With respect to financial 
                assistance provided to a CDFI under the TIFIA program, 
                the Secretary shall deem that the project generates 
                beneficial effects.''; and
                    (G) in paragraph (10)--
                            (i) in subparagraph (A) by striking 
                        ``subparagraph (B)'' and inserting 
                        ``subparagraphs (B) and (C)''; and
                            (ii) by adding at the end the following:
                    ``(C) CDFI tod account.--In the case of a project 
                capitalizing a CDFI TOD account, the CDFI shall 
                demonstrate to the Secretary, not later than two years 
                after the date on which a secured loan is obligated for 
                the project under the TIFIA program, that the CDFI has 
                executed a loan agreement with a project sponsor in 
                accordance with section 611. After the demonstration is 
                made, the CDFI may draw upon the secured loan. At the 
                end of the 2-year period, to the extent the CDFI has 
                not used the loan commitment, the Secretary may extend 
                the time period for using the loan commitment or 
                withdraw the loan commitment.''; and
            (2) in subsection (b)(3)--
                    (A) by striking ``The Secretary'' and inserting 
                ``(A) In general--The Secretary'';
                    (B) by redesignating subparagraphs (A) and (B) as 
                clauses (i) and (ii), respectively; and
                    (C) by adding at the end the following:
                    ``(B) CDFI tod account.--Notwithstanding 
                subparagraph (A), in the case of an applicant that is a 
                CDFI, in lieu of a preliminary rating opinion letter, 
                the Secretary may rely upon a letter from the Secretary 
                of the Treasury that verifies the applicant is a CDFI 
                certified by the Community Development Financial 
                Institutions Fund of the Department of the Treasury.''.
    (c) Secured Loans.--Section 603 of title 23, United States Code, is 
amended--
            (1) in subsection (a)(3) by striking ``section 
        602(b)(3)(B)'' and inserting ``section 603(b)(3)(A)(ii) or, 
        with respect to a CDFI, the letter of the Secretary of Treasury 
        under section 602(b)(3)(B)'';
            (2) in subsection (b)--
                    (A) in paragraph (2)--
                            (i) in subparagraph (A) by striking 
                        ``subparagraph (B)'' and inserting 
                        ``subparagraphs (B) and (C)''; and
                            (ii) by adding at the end the following:
                    ``(C) CDFI tod account.--In the case of a project 
                capitalizing a CDFI TOD account, the maximum amount of 
                a secured loan made to a CDFI shall be determined in 
                accordance with section 602(a)(5)(B)(v).'';
                    (B) in paragraph (3)(A)(i)--
                            (i) in subclause (IV) by striking ``; or'' 
                        and inserting ``;'';
                            (ii) in subclause (V) by striking ``; and'' 
                        and inserting ``; or''; and
                            (iii) by adding at the end the following:
                                    ``(VI) in the case of a secured 
                                loan for a project capitalizing a CDFI 
                                TOD account, any other revenue sources 
                                available to a CDFI, including 
                                repayments from loans made for projects 
                                in accordance with section 611; and'';
                    (C) in paragraph (4)(B)--
                            (i) in the header by inserting ``and CDFI 
                        TOD accounts'' after ``infrastructure 
                        projects'';
                            (ii) in clause (i) by striking ``or a rural 
                        projects fund'' and inserting ``, a rural 
                        projects fund, or a CDFI TOD account''; and
                            (iii) in clause (ii) by striking ``and 
                        rural project funds'' and inserting ``, rural 
                        projects funds, and CDFI TOD accounts'';
                    (D) in paragraph (5)(B)--
                            (i) in the header by inserting ``and CDFI 
                        TOD account'' after ``Rural projects fund''; 
                        and
                            (ii) by inserting ``or CDFI TOD account'' 
                        after ``rural projects fund''; and
                    (E) in paragraph (9) by adding at the end the 
                following:
                    ``(C) CDFI tod account.--A project capitalizing a 
                CDFI TOD account shall satisfy subparagraph (A) through 
                compliance with the Federal share requirement described 
                in section 611(c)(3)(A).''.
    (d) Program Administration.--Section 605 of title 23, United States 
Code, is amended--
            (1) in subsection (d) by inserting ``, community 
        development,'' after ``field of municipal'';
            (2) by redesignating subsections (e) and (f) as subsections 
        (g) and (h), respectively;
            (3) by inserting after subsection (d) the following:
    ``(e) Assistance From the Secretary of Treasury.--The Secretary 
shall consult with the Secretary of the Treasury in assessing the 
creditworthiness of CDFI applicants and shall enter into a memorandum 
of understanding pursuant to section 611(b) of this chapter through 
which the Secretary of the Treasury provides assistance in the credit 
underwriting, servicing, and monitoring of Federal credit instruments 
provided to CDFI TOD accounts.
    ``(f) Implementation.--Not later than 180 days after enactment of 
Section 611, the Secretary shall implement this section by releasing 
program guidance and soliciting applications.''; and
            (4) in subsection (h) (as so redesignated)--
                    (A) in the heading by inserting ``and CDFI TOD 
                accounts'' after ``small projects''; and
                    (B) in paragraph (1)--
                            (i) by striking ``608(a)(5)'' and inserting 
                        ``608(a)(6)'';
                            (ii) by striking ``$2,000,000'' and 
                        inserting ``$4,000,000''; and
                            (iii) by striking ``$75,000,000'' and 
                        inserting ``$100,000,000''.
    (e) Funding.--Section 608(a) of title 23, United States Code, is 
amended--
            (1) by redesignating paragraphs (4) and (5) as paragraphs 
        (5) and (6), respectively;
            (2) by inserting after paragraph (3) the following:
            ``(4) CDFI set aside.--
                    ``(A) In general.--Of the total amount of funds 
                made available to carry out the TIFIA program for each 
                fiscal year, not more than 10 percent shall be set 
                aside for CDFI TOD accounts.
                    ``(B) Reobligation.--Any amounts set aside under 
                subparagraph (A) that remain unobligated by June 1 of 
                the fiscal year for which the amounts were set aside 
                shall be available for obligation by the Secretary on 
                projects other than CDFI TOD accounts.''; and
            (3) by adding at the end the following:
            ``(7) Reimbursements to the secretary of the treasury.--Of 
        the amounts authorized for the administration of the TIFIA 
        program under paragraph (6), the Secretary may use not more 
        than 10 percent for each fiscal year to reimburse the Secretary 
        of the Treasury for assistance provided pursuant to a 
        memorandum of understanding under section 611(b).''.
    (f) Community Development Financial Institution Transit-Oriented 
Development.--
            (1) In general.--Chapter 6 of title 23, United States Code, 
        is amended by adding at the end the following:
``Sec. 611. Community development financial institution transit-
              oriented development
    ``(a) Definitions.--In this section:
            ``(1) CDFI tod project.--The term `CDFI TOD project' means 
        a project located within one-half mile in an urban area or 
        three-fourths of a mile in a rural area of a fixed guideway 
        transit facility, passenger rail station, intercity bus station 
        or intermodal facility that supports--
                    ``(A) commercial facilities or businesses that are 
                located in low-income communities and are--
                            ``(i) owned by low-income persons;
                            ``(ii) principally serve low-income persons 
                        or low-income community residents; or
                            ``(iii) principally employ low-income 
                        persons;
                    ``(B) community facilities that are located in low-
                income communities or principally serve low-income 
                persons; or
                    ``(C) housing that is principally affordable to 
                low-income persons.
            ``(2) Investment area.--The term `Investment Area' has the 
        meaning given the term in section 1805.201(b)(3)(B)(ii) of 
        title 12, Code of Federal Regulations (as in effect on the date 
        of enactment of this section).
            ``(3) Loan.--The term `loan' means any form of direct 
        financial assistance that is required to be repaid over a 
        period of time provided by a CDFI to a project sponsor for all 
        or part of the costs of a CDFI TOD project.
            ``(4) Low-income community.--The term `low-income 
        community' means a community that is located in an Investment 
        Area.
            ``(5) Low-income person.--The term `low-income person' 
        means a person whose income does not exceed the level 
        established for low-income (as such term is defined in section 
        1805.104 of title 12, Code of Federal Regulations, as in effect 
        on the date of enactment of this section).
            ``(6) Project sponsor.--The term `project sponsor' means a 
        public or private entity approved by a CDFI and developing a 
        CDFI TOD project in accordance with this section.
    ``(b) Memorandum of Understanding.--The Secretary shall enter into 
a memorandum of understanding with the Secretary of Treasury to support 
consultation with the Community Development Financial Institutions Fund 
to provide the necessary credit underwriting, servicing, and monitoring 
of CDFI applicants and participants in the TIFIA program.
    ``(c) CDFI TOD Accounts.--
            ``(1) In general.--The Secretary shall require any CDFI 
        participating in the program authorized in this section to 
        establish a CDFI TOD account into which the proceeds of a 
        secured loan made to the CDFI in accordance with sections 602 
        and 603 and any loan repayments from public or private entities 
        receiving loans made to fund CDFI TOD projects will be 
        deposited.
            ``(2) Amounts in account.--Any principal loan repayments 
        and any investment income derived from funds deposited to a 
        CDFI TOD account shall be--
                    ``(A) credited to the account;
                    ``(B) available for providing loans to project 
                sponsors;
                    ``(C) available for repaying the secured loan made 
                to the CDFI in accordance with sections 602 and 603; 
                and
                    ``(D) invested in such financing instruments as the 
                Secretary may approve to earn interest to augment the 
                lending capacity of the account.
            ``(3) Loans.--Any loan to a project sponsor funded from the 
        account shall--
                    ``(A) be in an amount determined by the CDFI, but 
                in any case not exceed 80 percent of eligible project 
                costs;
                    ``(B) commence repayment not later than 5 years 
                after the project has been completed;
                    ``(C) have a final maturity not later than 30 years 
                after the date of the first payment on the loan;
                    ``(D) be set at a rate not greater than the level 
                needed to fully reimburse the CDFI's administrative, 
                monitoring, servicing, and capital charges associated 
                with the loan; and
                    ``(E) be secured and have a priority of payment as 
                determined by the CDFI.
            ``(4) Revolving loan structure.--The CDFI may apply loan 
        repayments to fund additional loans provided such relending 
        does not impair the ability of the CDFI to repay its secured 
        loan in full and timely fashion.
            ``(5) Delegated lending model.--The CDFI is authorized to 
        provide loans for CDFI TOD projects under a delegated lending 
        model. No provision of this section shall restrict the ability 
        of the CDFI to establish the terms and conditions of loans to 
        project sponsors under this section.
    ``(d) Discontinuance of Funding.--If the Secretary determines that 
a CDFI is not implementing the CDFI TOD account in accordance with the 
application of such account, the Secretary may prohibit the CDFI from 
drawing down any additional proceeds from a secured loan commitment.
    ``(e) Forms of Assistance From a CDFI.--
            ``(1) In general.--A CDFI may, using funds deposited into 
        the CDFI TOD account, make loans to a public or private entity 
        to carry out a CDFI TOD project.
            ``(2) Subordination of loan.--The amount of a loan or other 
        form of credit assistance provided for a project described in 
        subsection (c)(3) may be subordinated to any other debt 
        financing for the project.
    ``(f) Annual Report to the Secretary.--Any CDFI participating in 
this program shall make an annual report to the Secretary not later 
than September 30 of each year and such other reports as the Secretary 
may require under guidelines issued to carry out this section.
    ``(g) Applicability of Federal Law.--The requirements of this title 
and title 49 that would otherwise apply to funds made available under 
this chapter or such title and projects assisted with those funds shall 
apply to CDFI TOD projects assisted by the CDFI under this chapter, 
except to the extent the Secretary determines that any requirement of 
such title is not applicable or is not consistent with the objectives 
of this section.
    ``(h) United States Not Obligated.--The deposit of Federal funds 
into a CDFI under this section shall not be construed as a commitment, 
guarantee, or obligation on the part of the United States to any third 
party, nor shall any third party have any right against the United 
States for payment solely by virtue of the contribution. Any security 
or debt financing instrument issued by the CDFI shall expressly state 
that the security or instrument does not constitute a commitment, 
guarantee, or obligation of the United States.
    ``(i) Program Administration.--For each fiscal year, a CDFI may not 
expend more than 2 percent of the Federal assistance received under 
this chapter to pay the reasonable costs of administering a CDFI TOD 
account pursuant to this section.''.
            (2) Clerical amendment.--The analysis for chapter 6 of 
        title 23, United States Code, is amended by adding at the end 
        the following:

``611. Community development financial institution transit-oriented 
                            development.''.
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