[Congressional Record Volume 149, Number 35 (Wednesday, March 5, 2003)]
[Senate]
[Pages S3187-S3189]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mrs. HUTCHISON (for herself, Mr. Domenici, Mr. Bingaman, and 
        Mr. McCain):
  S. 532. A bill to enhance the capacity of organizations working in 
the United States-Mexico border region to develop affordable housing 
and infrastructure and to foster economic opportunity in the colonias; 
to the Committee on Banking, Housing, and Urban Affairs.
  Mrs. HUTCHISON. Mr. President, today I rise to introduce legislation 
to improve the deplorable housing situation in the valley region of the 
Texas border with Mexico. Our colonias are among the most distressed 
areas of the country.
  In 1993 when I ran for the Senate, I visited with a woman named Elida 
Bocanegra who led me through the streets of the colonia where she 
lived. Elida showed me her community and, quite frankly, I couldn't 
believe I was in America. Since my election to the Senate, I have 
worked to improve living conditions and the quality of life for people 
such as Elida, helping to secure more than $615 million for the 
colonias of my State. In fact, my first amendment as a Senator 
authorized $50 million for a colonias clean-up project.
  Despite third world living conditions, colonias, or underdeveloped 
subdivisions, have grown in population. Along the 1,248 mile stretch 
from Cameron County to El Paso County in Texas, there are more than 
1,400 colonias that suffer from such conditions as open sewage, a lack 
of indoor plumbing, and poor housing construction.
  The Colonias Gateway Initiative Act establishes annual competitive 
grants for nonprofit organizations which work to develop affordable 
housing, improve infrastructure, and foster economic opportunities. My 
bill would authorize the Secretary of Housing and Urban Development to 
award $16 million in the fiscal year 2004 and appoint a nine-member 
advisory board consisting of colonias residents and service providers 
to facilitate communication. This bill will bring quality-of-life 
improvements to those who need it most, providing

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the most basic services like indoor plumbing. It will also provide 
funds to build affordable housing. This piece of legislation I 
introduce today will fulfill the most basic needs of these communities. 
As you can see, the Colonias Gateway Initiative Act will assist our 
neediest people, foster economic opportunity, and vastly improve the 
quality of life. Mr. President, I ask unanimous consent that a copy of 
the bill be placed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 532

       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 ``Colonias Gateway Initiative 
     Act''.

     SEC. 2. COLONIAS GATEWAY INITIATIVE.

       (a) Definitions.--In this section:
       (1) Colonia.--The term ``colonia'' means any identifiable 
     community that--
       (A) is located in the State of Arizona, California, New 
     Mexico, or Texas;
       (B) is located in the United States-Mexico border region;
       (C) is determined to be a colonia on the basis of objective 
     criteria, including lack of potable water supply, lack of 
     adequate sewage systems, and lack of decent, safe, and 
     sanitary housing; and
       (D) was in existence and generally recognized as a colonia 
     before the date of enactment of this Act.
       (2) Regional organization.--The term ``regional 
     organization'' means a nonprofit organization or a consortium 
     of nonprofit organizations with the capacity to serve 
     colonias.
       (3) Secretary.--The term ``Secretary'' means the Secretary 
     of Housing and Urban Development.
       (4) United states-mexico border region.--The term ``United 
     States-Mexico border region'' means the area of the United 
     States within 150 miles of the border between the United 
     States and Mexico, except that such term does not include any 
     standard metropolitan statistical area that has a population 
     exceeding 1,000,000.
       (b) Grant Program.--To the extent amounts are made 
     available to carry out this section, the Secretary may make 
     grants under this section to 1 or more regional organizations 
     to enhance the availability of affordable housing, economic 
     opportunity, and infrastructure in the colonias.
       (c) Grants.--
       (1) In general.--Grants under this section may be made only 
     to regional organizations selected pursuant to subsection 
     (d).
       (2) Selection.--After a regional organization has been 
     selected pursuant to subsection (d) to receive a grant under 
     this section, the Secretary may provide a grant to such 
     organization in subsequent fiscal years, subject to 
     subsection (f)(2).
       (d) Selection of Regional Organizations.--
       (1) In general.--The Secretary shall select 1 or more 
     regional organizations that submit applications for grants 
     under this section to receive such grants.
       (2) Competition.--The selection under paragraph (1) shall 
     be made pursuant to a competition, which shall--
       (A) consider the proposed work plan of the applicant under 
     subsection (f); and
       (B) be based upon the criteria described in paragraph (3).
       (3) Criteria.--Criteria for the selection of a grant 
     recipient shall include a demonstration of the extent to 
     which the applicant organization has the capacity to--
       (A) enhance the availability of affordable housing, 
     economic opportunity, and infrastructure in the colonias by 
     carrying out the eligible activities set forth in subsection 
     (g);
       (B) provide assistance in each State in which colonias are 
     located;
       (C) form partnerships with the public and private sectors 
     and local and regional housing and economic development 
     intermediaries to leverage and coordinate additional 
     resources to achieve the purposes of this section;
       (D) ensure accountability to the residents of the colonias 
     through active and ongoing outreach to, and consultation 
     with, residents and local governments; and
       (E) meet such other criteria as the Secretary may specify.
       (4) Distribution of funding.--In making the selection under 
     paragraph (1), the Secretary shall ensure that--
       (A) each State in the United States-Mexico border region 
     receives a grant under this Act; and
       (B) each State receives not less than 15 percent of the 
     amounts appropriated to carry out this Act.
       (e) Advisory Board.--
       (1) Membership.--The Secretary shall appoint an Advisory 
     Board that shall consist of 9 members, who shall include--
       (A) 1 individual from each State in which colonias are 
     located;
       (B) 3 individuals who are members of non-profit or private 
     sector organizations having substantial investments in the 
     colonias, at least 1 of whom is a member of such a private 
     sector organization; and
       (C) 2 individuals who are residents of a colonia.
       (2) Chairperson.--
       (A) In general.--The Secretary shall designate a member of 
     the Advisory Board to serve as Chairperson for a 1-year term.
       (B) Alternating chairperson.--At the end of the 1-year term 
     referred to in subparagraph (A), the Secretary shall 
     designate a different member to serve as Chairperson, 
     ensuring that the Chairperson position rotates to a member 
     from every State in which colonias are located.
       (3) Term.--Advisory Board members shall be appointed for 2-
     year terms that shall be renewable at the discretion of the 
     Secretary.
       (4) Compensation.--Advisory Board members shall serve 
     without compensation, but the Secretary may provide members 
     with travel expenses, including per diem in lieu of 
     subsistence, in accordance with sections 5702 and 5703 of 
     title 5, United States Code.
       (5) Functions.--The Advisory Board shall--
       (A) assist any regional organization that receives a grant 
     under this section in the development and implementation of 
     its final work plan under subsection (f);
       (B) review and approve all final work plans;
       (C) assist the Secretary in monitoring and evaluating the 
     performance of any regional organization in implementing its 
     final work plan; and
       (D) provide such other assistance as the Secretary may 
     request.
       (f) Work Plans.--
       (1) Application.--Each regional organization applying for a 
     grant under this section shall include in its application a 
     proposed work plan.
       (2) Annual submission.--To be eligible to continue 
     receiving annual grants under this section after selection 
     pursuant to subsection (d), a regional organization shall, on 
     an annual basis after such selection and subject to the 
     determination of the Secretary to continue to provide grant 
     amounts to such regional organization, submit a proposed work 
     plan to the Advisory Board and the Secretary for review and 
     approval.
       (3) Final work plan.--In any fiscal year, including the 
     fiscal year in which any regional organization is selected 
     pursuant to subsection (d), prior to final determination and 
     allocation of specific grant amounts, each selected regional 
     organization shall, with the assistance of the Advisory 
     Board, develop a final work plan that thoroughly describes 
     how the regional organization will use specific grant amounts 
     to carry out its functions under this section, which shall 
     include--
       (A) a description of outcome measures and other baseline 
     information to be used to monitor success in promoting 
     affordable housing, economic opportunity, and infrastructure 
     in the colonias;
       (B) an account of how the regional organization will 
     strengthen the coordination of existing resources used to 
     assist residents of the colonias, and how the regional 
     organization will leverage additional public and private 
     resources to complement such existing resources;
       (C) an explanation, in part, of the effects that 
     implementation of the work plan will have on areas in and 
     around colonias; and
       (D) such assurances as the Secretary may require that grant 
     amounts will be used in a manner that results in assistance 
     and investments for colonias in each State containing 
     colonias, in accordance with requirements that the Advisory 
     Board and the Secretary may establish that provide for a 
     minimum level of such investment and assistance as a 
     condition of the approval of the work plans.
       (4) Approval.--
       (A) In general.--No grant amounts under this section for a 
     fiscal year may be provided to a regional organization until 
     the Secretary approves the final work plan of the 
     organization, including a specific grant amount for the 
     organization.
       (B) Considerations.--In determining whether to approve a 
     final work plan, the Secretary shall consider whether the 
     Advisory Board approved the plan.
       (C) Nonapproval of plan.--To the extent that the Advisory 
     Board or the Secretary does not approve a work plan, the 
     Advisory Board or the Secretary shall, to the maximum extent 
     practicable, assist the selected regional organization that 
     submitted the plan to develop an approvable plan.
       (g) Eligible Activities.--Grant amounts under this section 
     may be used only to carry out eligible activities to benefit 
     the colonias, including--
       (1) coordination of public, private, and community-based 
     resources and the use of grant amounts to leverage such 
     resources;
       (2) technical assistance and capacity building, including 
     training, business planning and investment advice, and the 
     development of marketing and strategic investment plans;
       (3) initial and early-stage investments in activities to 
     provide--
       (A) housing, infrastructure, and economic development;
       (B) housing counseling and financial education, including 
     counseling and education about avoiding predatory lending; 
     and
       (C) access to financial services for residents of colonias;
       (4) development of comprehensive, regional, socioeconomic, 
     and other data, and the establishment of a centralized 
     information resource, to facilitate strategic planning and 
     investments;
       (5) administrative and planning costs of any regional 
     organization in carrying out this section, except that the 
     Secretary may limit the amount of grant funds used for such 
     costs; and

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       (6) such other activities as the Secretary considers 
     appropriate to carry out this section.
       (h) Grant Agreements.--A grant under this section shall be 
     made only pursuant to a grant agreement between the Secretary 
     and a regional organization selected under this section.
       (i) Termination and Recapture.--If the Secretary determines 
     that a regional organization that was awarded a grant under 
     this section has not substantially fulfilled its obligations 
     under its final work plan or grant agreement, the Secretary 
     shall terminate the participation of that regional 
     organization under this section, and shall recapture any 
     unexpended grant amounts.
       (j) Details From Other Agencies.--Upon request of any 
     selected regional organization that has an approved work 
     plan, the head of any Federal agency may detail, on a 
     reimbursable basis, any of the personnel of such agency to 
     that regional organization to assist it in carrying out its 
     duties under this section.
       (k) Environmental Review.--For purposes of environmental 
     review, projects assisted by grant amounts under this section 
     shall--
       (1) be treated as special projects that are subject to 
     section 305(c) of the Multifamily Housing Property 
     Disposition Reform Act of 1994 (42 U.S.C. 3547); and
       (2) be subject to regulations issued by the Secretary to 
     implement such section 305(c).
       (l) Authorization of Appropriations.--There are authorized 
     to be appropriated to carry out this section--
       (1) $16,000,000 for fiscal year 2004; and
       (2) such sums as may be necessary for each of fiscal years 
     2005 through 2009.
       (m) Sunset.--No new grants may be provided under this 
     section after September 30, 2009.
                                 ______