[Congressional Record Volume 157, Number 142 (Thursday, September 22, 2011)]
[Senate]
[Pages S5913-S5919]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. MENENDEZ (for himself, Mr. Reed, Mr. Bennet. Mr. Harkin, 
        Mr. Lautenberg, Mr. Franken, Mr. Merkley, Mr. Sanders, Mr. 
        Blumenthal, Mr. Wyden, Mr. Durbin, Mr. Cardin, Mr. Akaka, Mr. 
        Whitehouse, Mr. Coons, Mrs. Shaheen, Ms. Landrieu, and Mr. 
        Leahy):
  S. 1621. A bill to create livable communities through coordinated 
public investment and streamlined requirements, and for other purposes; 
to the Committee on Banking, Housing, and Urban Affairs.
  Mr. MENENDEZ. Mr. President, I rise to announce the introduction of 
the Livable Communities Act of 2011.
  The Livable Communities Act presents an opportunity to save taxpayer 
dollars, reduce household expenditures, improve partnerships, and help 
local communities create places of lasting value, where businesses want 
to invest and families want to live.
  It will strengthen rural, suburban, and urban communities by 
supporting local planning efforts to establish a vision for a desired 
future and chart a realistic course for getting there. The bill 
promotes local leadership by encouraging communities to partner 
strategically to develop solutions that are innovative and reflect 
their unique character, assets, and needs. It also directs public 
agencies to use taxpayer dollars more efficiently by coordinating 
investments in infrastructure, facilities, and services to meet 
multiple economic, environmental, and community objectives.
  This bill is the next important step in transforming the Federal 
Government into a better partner in community efforts to achieve 
locally-defined goals, support families when they need it most, and 
keep the U.S. competitive in the global economy.
  Dealing with change can be a real challenge--in our professional and 
personal lives, with our families, and in our communities. But change 
is an opportunity to move forward, if only we are open to recognizing 
it. We can accept and manage change or we can be steam-rolled by it.
  I have heard horror stories from across the country about veterans 
hospitals being built in places that are not accessible by public 
transportation. I have heard of homebuyers who ``drive to qualify'' for 
mortgage financing only to rack up transportation costs that break 
their budgets when gas prices go up. Many of these families are paying 
50 percent of their household income on housing and transportation 
costs alone. It may seem cheaper and easier in the short term to build 
on a corn field outside of town than it is to re-use land located close 
to existing transportation, power, and water infrastructure, but it 
often does not make sense in the long run.
  This is why I welcomed the opportunity to work with Chairman Dodd on 
the Livable Communities Act in 2009 and why I am honored to be the 
leading sponsor of the updated legislation today. It is the most 
comprehensive piece of planning legislation that has been proposed in 
decades. If passed, it will have a transformative impact on the way the 
federal government supports locally-driven planning processes.
  Unfortunately, when many on the other side of the aisle hear the word 
``livable,'' they cringe. They think of top-down mandates from the 
Federal Government. What they fail to understand is that the beauty of 
what is ``livable'' is defined by the communities themselves to reflect 
the unique character, assets, and needs of that community.
  The fact is the private sector wants to be located in communities 
that have dependable transportation systems to get their goods to 
market and their workers to their jobs. Businesses want to attract and 
retain workers and ensure that their enterprise will be viable in the 
long run. Private enterprise has spearheaded some of the most notable 
past and current planning efforts and the Federal Government should be 
a supportive, versatile partner in this work.
  I invited bipartisan cooperation on the bill numerous times and 
although some offices quietly praise the good work going on in their 
communities, political pressure prevents them from doing so publicly. 
We remain optimistic that supporting community efforts to proactively 
plan for the future and save money by coordinating capital investment 
strategies are values we all support, regardless of the terminology we 
use to describe them.
  The Livable Communities Act of 2011 is a streamlined approach that 
would keep the good work at the U.S. Department of Housing and Urban 
Development going. Its intent is to find better ways to coordinate 
interconnected but often silo-ed programs and policies that impact 
housing, transportation, and the environment and affect the way we live 
our daily lives.
  The bill would formally authorize the existing HUD Office of 
Sustainable Housing and Communities, to work with the Department of 
Transportation and Environmental Protection Agency, to provide 
technical assistance and capacity support to communities working on 
integrated planning for housing, transportation, water and sewer 
infrastructure needs. These tools help communities develop projects 
that support job creation, leverage significant private sector 
investment, and bolster long-term economic resilience by creating 
places where businesses want to invest. Increased coordination at the 
regional and Federal level will cut red tape and save communities money 
as they plan for their future needs. The bill also directs the Office 
of Sustainable Housing and Communities to provide best practices and 
technical assistance to ensure that communities of all sizes learn from 
each other's success.
  The Livable Communities Act of 2011 also directs HUD to coordinate 
with DOT and EPA to identify and eliminate Federal barriers to 
sustainable development. The Office of Sustainable Housing and 
Communities will coordinate Federal sustainable development policies 
and research agendas to facilitate Federal collaboration by 
streamlining and reconciling program requirements and policies. It will 
also administer grant programs to support local planning for long-term 
housing and infrastructure needs. This will enable communities to 
foster economic development in an efficient and inclusive way. 
Selection criteria and eligible activities would be flexible to allow 
all sizes and types of communities to plan for a more sustainable 
future, including job creation; revitalizing existing small town Main 
Streets; reducing traffic congestion and pollution; protecting 
farmland, working landscapes, and green space; addressing vacant, 
abandoned, and foreclosed properties; and building more affordable and 
healthy housing.
  The bill would also spur private investment in transit-oriented 
development, TOD, by helping communities overcome initial financing 
hurdles that so often lock up private investment and prevent desired 
transit-oriented, mixed-use development. Locally directed TOD provides 
numerous economic benefits, including increased property values and 
business activity as well as congestion reduction. TOD also promotes 
economic competitiveness by efficiently connecting our work force to 
educational and employment opportunities. This creates avenues for 
business growth in communities across the country and keeps America 
competitive in the global economy.
  I know how important planning is to our communities. My home State of 
New Jersey is the most densely populated in the country, so we know the 
value of good community planning. Over the years we have learned some 
important lessons about how vital it is to make sure that our 
development projects are functional, serviceable, and livable at the 
human scale, places where people feel safe, where they want to spend 
time, relax as well as work--places where they can live, shop, and be 
connected to their surroundings. If this economic crisis is teaching us 
anything, it is to live within our means,

[[Page S5914]]

think creatively about opportunities to leverage resources, and to 
invest now for future prosperity.
  Good planning means saving $122 billion on water, sewer, and roads 
over the next 25 years. It means protecting housing values by putting 
housing near transit. As President Obama remarked over two years ago, 
our days of building mindless sprawl are over. We simply cannot afford 
it. Now is the time to reinvest in our communities and infrastructure. 
The HUD-DOT-EPA Partnership for Sustainable Communities is doing this 
in a very active way. There are many members of Congress who support 
this important work, but we need to convince more of them that we are 
right, and that--for the good of their communities--they should be on 
our side.
  The fact is, we all have a role to play. The environment is 
substantially different today than it was ten years ago--twenty years 
ago when I was trying to get people on board with the idea reactivating 
an existing right of way to serve as the Hudson Bergen Light Rail when 
I was Mayor of Union City.
  Today, communities are catching on. Innovation is happening. The 
Federal Government can be an important partner in helping communities 
achieve their goals. I can tell you that in Jersey City, ``livable'' 
means the transforming 111 acres of under-utilized industrial land into 
a mixed use, walkable community along the Hudson Bergen Light Rail. A 
quiet revolution is underway and communities like Jersey City are 
leading by example. It's time for the Federal Government to catch up.
  It is our job--together--all of us--to provide the information, 
tools, and encouragement these communities need, that Federal, State, 
and local agencies and elected officials need--to achieve the 
aspirations that they set for themselves.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 1621

       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 ``Livable Communities Act of 
     2011''.

     SEC. 2. FINDINGS.

       Congress finds the following:
       (1) When rural, suburban, and urban communities plan 
     transportation, housing, and water infrastructure 
     strategically it is estimated that these communities could 
     save nearly $122,000,000,000 in infrastructure costs over the 
     next 25 years.
       (2) Key Federal programs are missing a vital opportunity to 
     boost economic growth at the local and regional level through 
     better coordination of housing, transportation, and related 
     infrastructure investments.
       (3) Federal regulations and policies should support 
     community efforts to implement and sustain progress toward 
     the achievement of locally-defined development goals, in 
     terms of--
       (A) geographic location and proximity to existing 
     resources; and
       (B) maintaining structural and indoor environmental quality 
     and minimizing health hazards.
       (4) Greater coordination of public investment will provide 
     direct support for immediate job creation and lay the 
     groundwork for long-term resilience and prosperity by 
     leveraging significant private sector and philanthropic 
     investment to make the most of Federal funding.

     SEC. 3. PURPOSES.

       The purposes of this Act are--
       (1) to strengthen rural, suburban, and urban economies by 
     enabling communities to establish goals for the future and to 
     chart a course for achieving such goals;
       (2) to promote local leadership by encouraging communities 
     to develop innovative solutions that reflect the unique 
     economic assets and needs of the communities;
       (3) to maximize returns on Federal funding of housing, 
     transportation, and other infrastructure projects through the 
     coordination of Federal grant programs, regulations, and 
     requirements, by reducing the number of duplicative Federal 
     programs and improving the efficiency and effectiveness of 
     programs and policies of the Department of Housing and Urban 
     Development, the Department of Transportation, the 
     Environmental Protection Agency, and other Federal agencies, 
     as appropriate; and
       (4) to ensure that Federal funding supports locally defined 
     long range development goals.

     SEC. 4. DEFINITIONS.

       In this Act, the following definitions shall apply:
       (1) Affordable housing.--The term ``affordable housing'' 
     means housing, the cost of which does not exceed 30 percent 
     of the income of a family.
       (2) Comprehensive regional plan.--The term ``comprehensive 
     regional plan'' means a plan that--
       (A) uses a cooperative, locally controlled and inclusive 
     public engagement process to identify needs and goals across 
     a region and to integrate related planning processes;
       (B) prioritizes projects for implementation, including 
     healthy housing projects; and
       (C) is tied to short-term capital improvement programs and 
     annual budgets.
       (3) Department.--The term ``Department'' means the 
     Department of Housing and Urban Development.
       (4) Director.--The term ``Director'' means the Director of 
     the Office of Sustainable Housing and Communities established 
     under section 5.
       (5) Extremely low-income family.--The term ``extremely low-
     income family'' means a family that has an income that does 
     not exceed--
       (A) 30 percent of the median income in the area where the 
     family lives, as determined by the Secretary, with 
     appropriate adjustments for the size of the family; or
       (B) a percentage of the median income in the area where the 
     family lives, as determined by the Secretary upon a finding 
     by the Secretary that such percentage is necessary due to 
     unusually high or low family incomes in the area where the 
     family lives.
       (6) Healthy housing.--The term ``healthy housing'' means 
     housing that is designed, constructed, rehabilitated, and 
     maintained in a manner that supports the health of the 
     occupants of the housing.
       (7) Housing-related health hazard.--The term ``housing-
     related health hazard'' means any biological, physical, or 
     chemical source of exposure or condition in, or immediately 
     adjacent to, housing that could adversely affect human 
     health.
       (8) Indian tribe.--The term ``Indian tribe'' has the same 
     meaning as in section 4 of the Native American Housing 
     Assistance and Self-Determination Act of 1996 (25 U.S.C. 
     4103).
       (9) Livable community.--The term ``livable community'' 
     means a metropolitan, urban, suburban, or rural community 
     that--
       (A) provides safe, reliable, and accessible transportation 
     choices;
       (B) provides long-term affordable, accessible, energy-
     efficient, and location-efficient housing choices for people 
     of all ages, incomes, races, and ethnicities;
       (C) supports, revitalizes, and encourages the growth of 
     existing communities and maximizes the cost-effectiveness of 
     existing infrastructure;
       (D) promotes economic development and economic 
     competitiveness;
       (E) preserves the environment and natural resources;
       (F) protects agricultural land, rural land, and green 
     spaces; and
       (G) supports public health and improves the quality of life 
     for residents of, and workers in, the community.
       (10) Location-efficient.--The term ``location-efficient'' 
     characterizes mixed-use development or neighborhoods that 
     integrate housing, commercial development, and facilities and 
     amenities--
       (A) to lower living expenses for working families;
       (B) to enhance mobility;
       (C) to encourage private investment in transit-oriented 
     development; and
       (D) to encourage private sector infill development and 
     maximize the use of existing infrastructure.
       (11) Low-income family.--The term ``low-income family'' has 
     the meaning given that term in section 3(b) of the United 
     States Housing Act of 1937 (42 U.S.C. 1437a(b)).
       (12) Metropolitan planning organization.--The term 
     ``metropolitan planning organization'' means a metropolitan 
     planning organization described in section 134(b) of title 
     23, United States Code or section 5303(b) of title 49, United 
     States Code.
       (13) Office.--The term ``Office'' means the Office of 
     Sustainable Housing and Communities established under section 
     5.
       (14) Regional council.--The term ``regional council'' means 
     a multiservice regional organization with State and locally 
     defined boundaries that is--
       (A) accountable to units of general local government;
       (B) delivers a variety of Federal, State, and local 
     programs; and
       (C) performs planning functions and provides professional 
     and technical assistance.
       (15) Rural planning organization.--The term ``rural 
     planning organization'' means a voluntary regional 
     organization of local elected officials and representatives 
     of local transportation systems that--
       (A) works in cooperation with the department of 
     transportation (or equivalent entity) of a State to plan 
     transportation networks and advise officials of the State on 
     transportation planning; and
       (B) is located in a rural area--
       (i) with a population of not less than 5,000; and
       (ii) that is not located in an area represented by a 
     metropolitan planning organization.
       (16) Secretary.--The term ``Secretary'' means the Secretary 
     of Housing and Urban Development.
       (17) State.--The term ``State'' has the meaning given that 
     term by the Secretary, by rule.

[[Page S5915]]

       (18) Transit-oriented development.--The term ``transit-
     oriented development'' means high-density, walkable, 
     location-efficient, mixed-use development, including 
     commercial development, affordable housing, and market-rate 
     housing, that is within walking distance of and accessible to 
     1 or more public transportation facilities.
       (19) Unit of general local government.--The term ``unit of 
     general local government'' means--
       (A) a city, county, town, township, parish, village, or 
     other general purpose political subdivision of a State; or
       (B) a combination of general purpose political 
     subdivisions, as determined by the Secretary.
       (20) Unit of special purpose local government.--The term 
     ``unit of special purpose local government''--
       (A) means a division of a unit of general purpose 
     government that serves a special purpose and does not provide 
     a broad array of services; and
       (B) includes an entity such as a school district, a housing 
     agency, a transit agency, and a parks and recreation 
     district.
       (21) Very low-income family.--The term ``very low-income 
     family'' has the same meaning as in section 3(b) of the 
     United States Housing Act of 1937 (42 U.S.C. 1437a(b)).

     SEC. 5. OFFICE OF SUSTAINABLE HOUSING AND COMMUNITIES.

       (a) Office Established.--There is established in the 
     Department an Office of Sustainable Housing and Communities, 
     which shall--
       (1) coordinate Federal policies that--
       (A) encourage locally directed comprehensive and integrated 
     planning and development at the State, regional, and local 
     levels;
       (B) encourage coordinated public investments through the 
     development of comprehensive regional plans;
       (C) provide long-term affordable, accessible, energy-
     efficient, healthy, location-efficient housing choices for 
     people of all ages, incomes, races, and ethnicities, 
     particularly for low-, very low-, and extremely low-income 
     families; and
       (D) achieve other goals consistent with the purposes of 
     this Act;
       (2) review Federal programs and policies to determine 
     barriers to interagency collaboration and make 
     recommendations to promote the ability of local communities 
     to access resources in the Department and throughout the 
     Federal Government and coordinate with and conduct outreach 
     to Federal agencies, including the Department of 
     Transportation and the Environmental Protection Agency, on 
     methods to reduce duplicative programs and improve the 
     efficiency and effectiveness of programs within the 
     Department of Transportation, the Environmental Protection 
     Agency, and the Department of Housing and Urban Development;
       (3) conduct research and advise the Secretary on the 
     research agenda of the Department relating to coordinated 
     development, in collaboration with the Office of Policy 
     Development and Research of the Department;
       (4) implement and oversee the grant programs established 
     under this Act by--
       (A) developing the process and format for grant 
     applications for each grant program;
       (B) promulgating regulations or guidance relating to each 
     grant program;
       (C) selecting recipients of grants under each grant 
     program;
       (D) creating performance measures for recipients of grants 
     under each grant program;
       (E) developing technical assistance and other guidance to 
     assist recipients of grants and potential applicants for 
     grants under each grant program;
       (F) monitoring and evaluating the performance of recipients 
     of grants under each grant program; and
       (G) carrying out such other activities relating to the 
     administration of the grant programs under this Act as the 
     Secretary determines are necessary;
       (5) provide guidance, information on best practices, and 
     technical assistance to communities seeking to adopt 
     sustainable development policies and practices;
       (6) administer initiatives of the Department relating to 
     the policies described in paragraph (1), as determined by the 
     Secretary; and
       (7) work with the Federal Transit Administration of the 
     Department of Transportation and other offices and 
     administrations of the Department of Transportation, as 
     appropriate--
       (A) to encourage transit-oriented development; and
       (B) to coordinate Federal housing, community development, 
     and transportation policies, including the policies described 
     in paragraph (1).
       (b) Director.--The head of the Office shall be the Director 
     of the Office of Sustainable Housing and Communities.
       (c) Duties Relating to Grant Programs.--
       (1) In general.--The Director shall carry out the grant 
     programs established under this Act.
       (2) Small and rural communities grants program.--The 
     Director shall coordinate with the Secretary of Agriculture 
     to make grants to small and rural communities under sections 
     7 and 8.
       (3) Technical assistance for grant recipients and 
     applicants.--The Director may--
       (A) coordinate with other Federal agencies to establish 
     interagency and multidisciplinary teams to provide technical 
     assistance to recipients of, and prospective applicants for, 
     grants under this Act;
       (B) by Federal interagency agreement, transfer funds to 
     another Federal agency to facilitate and support technical 
     assistance; and
       (C) make contracts with third parties to provide technical 
     assistance to grant recipients and prospective applicants for 
     grants.

     SEC. 6. COMPREHENSIVE PLANNING GRANT PROGRAM.

       (a) Definitions.--In this section--
       (1) the term ``consortium of units of general local 
     governments'' means a consortium of geographically contiguous 
     units of general local government that the Secretary 
     determines--
       (A) represents all or part of a metropolitan statistical 
     area, a micropolitan statistical area, or a noncore area;
       (B) has the authority under State, tribal, or local law to 
     carry out planning activities, including surveys, land use 
     studies, environmental or public health analyses, and 
     development of urban revitalization plans; and
       (C) has provided documentation to the Secretary sufficient 
     to demonstrate that the purpose of the consortium is to carry 
     out a project using a grant awarded under this Act;
       (2) the term ``eligible entity'' means--
       (A) a partnership between a consortium of units of general 
     local government and an eligible partner; or
       (B) an Indian tribe, if--
       (i) the Indian tribe has--

       (I) a tribal entity that performs housing and land use 
     planning functions; and
       (II) a tribal entity that performs transportation and 
     transportation planning functions; and

       (ii) the Secretary determines that the isolated location 
     and land expanse of the Indian tribe require the Secretary to 
     treat the tribe as an eligible entity for purposes of 
     carrying out activities using a grant under this section;
       (3) the term ``eligible partner'' means--
       (A) a metropolitan planning organization, a rural planning 
     organization, or a regional council; or
       (B) a metropolitan planning organization, a rural planning 
     organization, or a regional council, and--
       (i) a State;
       (ii) an Indian tribe;
       (iii) a State and an Indian tribe; or
       (iv) an institution of higher education;
       (4) the term ``grant program'' means the comprehensive 
     planning grant program established under subsection (b); and
       (5) the term ``noncore area'' means a county or group of 
     counties that are not designated by the Office of Management 
     and Budget as a micropolitan statistical area or metropolitan 
     statistical area.
       (b) Comprehensive Planning Grant Program Established.--The 
     Director shall establish a comprehensive planning grant 
     program to make grants to eligible entities to carry out a 
     project--
       (1) to coordinate locally defined planning processes, 
     across jurisdictions and agencies;
       (2) to identify regional partnerships for developing and 
     implementing a comprehensive regional plan;
       (3) to conduct or update assessments to determine regional 
     needs and promote economic and community development;
       (4) to develop or update--
       (A) a comprehensive regional plan; or
       (B) goals and strategies to implement an existing 
     comprehensive regional plan and other related activities; and
       (5) to identify local zoning and other code changes 
     necessary to implement a comprehensive regional plan and 
     promote sustainable development.
       (c) Grants.--
       (1) Diversity of grantees.--The Director shall ensure 
     geographic diversity among and adequate representation from 
     each of the following categories:
       (A) Small and rural communities.--Eligible entities that 
     represent all or part of a noncore area, a micropolitan area, 
     or a small metropolitan statistical area with a population of 
     not more than 200,000.
       (B) Mid-sized metropolitan communities.--Eligible entities 
     that represent all or part of a metropolitan statistical area 
     with a population of more than 200,000 and not more than 
     500,000.
       (C) Large metropolitan communities.--Eligible entities that 
     represent all or part of a metropolitan statistical area with 
     a population of more than 500,000.
       (2) Award of funds to small and rural communities.--
       (A) In general.--The Director shall--
       (i) award not less than 15 percent of the funds under the 
     grant program to eligible entities described in paragraph 
     (1)(A); and
       (ii) ensure diversity among the geographic regions and the 
     size of the population of the communities served by 
     recipients of grants that are eligible entities described in 
     paragraph (1)(A).
       (B) Insufficient applications.--If the Director determines 
     that insufficient approvable applications have been submitted 
     by eligible entities described in paragraph (1)(A), the 
     Director may award less than 15 percent of the funds under 
     the grant program to eligible entities described in paragraph 
     (1)(A).
       (3) Federal share.--
       (A) In general.--Except as provided in subparagraph (B), 
     the Federal share of the cost of a project carried out using 
     a grant under the grant program may not exceed 80 percent.

[[Page S5916]]

       (B) Exceptions.--
       (i) Small and rural communities.--In the case of an 
     eligible entity described in paragraph (1)(A), the Federal 
     share of the cost of a project carried out using a grant 
     under the grant program may be 90 percent.
       (ii) Indian tribes.--In the case of an eligible entity that 
     is an Indian tribe, the Federal share of the cost of a 
     project carried out using a grant under the grant program may 
     be 100 percent.
       (C) Non-federal share.--
       (i) In-kind contributions.--For the purposes of this 
     section, in-kind contributions may be used for all or part of 
     the non-Federal share of the cost of a project carried out 
     using a grant under the grant program.
       (ii) Other federal funding.--Federal funding from sources 
     other than the grant program may not be used for the non-
     Federal share of the cost of a project carried out using a 
     grant under the grant program.
       (4) Availability of funds.--
       (A) In general.--An eligible entity that receives a grant 
     under the grant program shall--
       (i) obligate any funds received under the grant program not 
     later than 2 years after the date on which the grant 
     agreement under subsection (g) is made; and
       (ii) expend any funds received under the grant program not 
     later than 4 years after the date on which the grant 
     agreement under subsection (g) is made.
       (B) Unobligated amounts.--After the date described in 
     subparagraph (A)(i), the Secretary may award to another 
     eligible entity, to carry out activities under this section, 
     any amounts that an eligible entity has not obligated under 
     subparagraph (A)(i).
       (d) Application.--
       (1) In general.--An eligible entity that desires a grant 
     under this section shall submit to the Director an 
     application, at such time and in such manner as the Director 
     shall prescribe, that contains--
       (A) a description of the project proposed to be carried out 
     by the eligible entity;
       (B) a budget for the project that includes the anticipated 
     Federal share of the cost of the project and a description of 
     the source of the non-Federal share;
       (C) the designation of a lead agency or organization, which 
     may be the eligible entity, to receive and manage any funds 
     received by the eligible entity under the grant program;
       (D) a signed copy of a memorandum of understanding among 
     local jurisdictions, including, as appropriate, a State, a 
     tribe, units of general purpose local government, units of 
     special purpose local government, metropolitan planning 
     organizations, rural planning organizations, and regional 
     councils that demonstrates--
       (i) the creation of an eligible entity;
       (ii) a description of the nature and extent of planned 
     collaboration between the eligible entity and any partners of 
     the eligible entity;
       (iii) a commitment to develop a comprehensive regional 
     plan; and
       (iv) a commitment to implement the plan after the plan is 
     developed;
       (E) a certification that the eligible entity has--
       (i) secured the participation, or made a good-faith effort 
     to secure the participation, of transportation providers and 
     public housing agencies within the area affected by the 
     comprehensive regional plan and the entities described in 
     clause (ii); and
       (ii) created, or will create not later than 1 year after 
     the date of the grant award, a regional advisory board to 
     provide input and feedback on the development of the 
     comprehensive regional plan that includes representatives of 
     a State, the metropolitan planning organization, the rural 
     planning organization, the regional council, local 
     jurisdictions, non-profit organizations, and others, as 
     deemed appropriate by the eligible entity, given the local 
     context of the comprehensive planning effort; and
       (F) a certification that the eligible entity has solicited 
     public comment on the contents of the project description 
     under subparagraph (A) that includes--
       (i) a description of the process for receiving public 
     comment relating to the proposal; and
       (ii) such other information as the Director may require;
       (G) a description of how the eligible entity will carry out 
     the activities under subsection (f); and
       (H) such additional information as the Director may 
     require.
       (2) Indian tribes.--An eligible entity that is an Indian 
     tribe is not required to submit the certification under 
     paragraph (1)(E).
       (e) Selection.--In evaluating an application for a grant 
     under the grant program, the Director shall consider the 
     extent to which the application--
       (1) demonstrates the technical capacity of the eligible 
     entity to carry out the project;
       (2) demonstrates the extent to which the consortium has 
     developed partnerships throughout an entire region, 
     including, as appropriate, partnerships with the entities 
     described in subsection (d)(1)(D);
       (3) demonstrates integration with local efforts in economic 
     development and job creation;
       (4) demonstrates a strategy for implementing a 
     comprehensive regional plan through regional infrastructure 
     investment plans and local land use plans;
       (5) promotes diversity among the geographic regions and the 
     size of the population of the communities served by 
     recipients of grants under this section;
       (6) demonstrates a commitment to seeking substantial public 
     input during the planning process and public participation in 
     the development of the comprehensive regional plan;
       (7) demonstrates that a Federal grant is necessary to 
     accomplish the project proposed to be carried out;
       (8) minimizes the Federal share necessary to carry out the 
     project and leverages State, local, or private resources;
       (9) has a high quality overall; and
       (10) demonstrates such other qualities as the Director may 
     determine.
       (f) Eligible Activities.--An eligible entity that receives 
     a grant under this section shall carry out a project that 
     includes 1 or more of the following activities:
       (1) Coordinating locally defined planning processes across 
     jurisdictions and agencies.
       (2) Identifying potential regional partnerships for 
     developing and implementing a comprehensive regional plan.
       (3) Conducting or updating assessments to determine 
     regional needs, including healthy housing, and promote 
     economic and community development.
       (4) Developing or updating--
       (A) a comprehensive regional plan; or
       (B) goals and strategies to implement an existing 
     comprehensive regional plan.
       (5) Implementing local zoning and other code changes 
     necessary to implement a comprehensive regional plan and 
     promote sustainable development.
       (g) Grant Agreement.--Each eligible entity that receives a 
     grant under this section shall agree to establish, in 
     coordination with the Director, performance measures, 
     reporting requirements, and any other requirements that the 
     Director determines are necessary, that must be met at the 
     end of each year in which the eligible entity receives funds 
     under the grant program.
       (h) Public Outreach.--
       (1) Outreach required.--Each eligible entity that receives 
     a grant under the grant program shall perform substantial 
     outreach activities--
       (A) to engage a broad cross-section of community 
     stakeholders in the process of developing a comprehensive 
     regional plan, including low-income families, minorities, 
     older adults, and economically disadvantaged community 
     members; and
       (B) to create an effective means for stakeholders to 
     participate in the development and implementation of a 
     comprehensive regional plan.
       (2) Finalization of comprehensive regional plan.--
       (A) In general.--An eligible entity that receives a grant 
     under the grant program may not finalize a comprehensive 
     regional plan before the eligible entity holds a public 
     hearing to obtain the views of citizens, public agencies, and 
     other interested parties.
       (B) Availability of information.--Not later than 30 days 
     before a hearing described in subparagraph (A), an eligible 
     entity shall make the proposed comprehensive regional plan 
     and all information relevant to the hearing available to the 
     public for inspection during normal business hours.
       (C) Notice.--Not later than 30 days before a hearing 
     described in subparagraph (A), an eligible entity shall 
     publish notice--
       (i) of the hearing; and
       (ii) that the information described in subparagraph (B) is 
     available.
       (i) Violation of Grant Agreement or Failure To Comply With 
     Public Outreach Requirements.--If the Director determines 
     that an eligible entity has not met the performance measures 
     established under subsection (g), is not making reasonable 
     progress toward meeting such measures, is otherwise in 
     violation of the grant agreement, or has not complied with 
     the public outreach requirements under subsection (h), the 
     Director may--
       (1) withhold financial assistance until the requirements 
     under the grant agreement or under subsection (h), as 
     applicable, are met; or
       (2) terminate the grant agreement.
       (j) Report on the Comprehensive Planning Grant.--
       (1) In general.--Not later than 90 days after the date on 
     which the grant agreement under subsection (g) expires, an 
     eligible entity that receives a grant under the grant program 
     shall submit a final report on the project to the Secretary.
       (2) Contents of report.--The report shall include--
       (A) a detailed explanation of the activities undertaken 
     using the grant, including an explanation of the completed 
     project and how it achieves specific transit-oriented, 
     transportation, housing, or sustainable community goals 
     within the region;
       (B) a discussion of any obstacles encountered in the 
     planning process and how the eligible entity overcame the 
     obstacles;
       (C) an evaluation of the success of the project using the 
     performance standards and measures established under 
     subsection (g), including an evaluation of the planning 
     process and how the project contributes to carrying out the 
     comprehensive regional plan; and
       (D) any other information the Director may require.
       (3) Interim report.--The Director may require an eligible 
     entity to submit an interim report, before the date on which 
     the project for which the grant is awarded is completed.
       (k) Authorization of Appropriations.--
       (1) Authorization.--There are authorized to be appropriated 
     to the Secretary for the award of grants under this section, 
     to remain available until expended--

[[Page S5917]]

       (A) $100,000,000 for fiscal year 2012; and
       (B) $125,000,000 for each of fiscal years 2013 through 
     2016.
       (2) Technical assistance.--The Director may use not more 
     than 2 percent of the amounts made available under this 
     subsection for a fiscal year for technical assistance under 
     section 5(c)(3).

     SEC. 7. COMMUNITY CHALLENGE GRANT PROGRAM.

       (a) Definitions.--In this section--
       (1) the terms ``consortium of units of general local 
     governments'', ``eligible entity'', and ``eligible partner'' 
     have the same meaning as in section 6; and
       (2) the term ``grant program'' means the community 
     challenge grant program established under subsection (b).
       (b) Community Challenge Grant Program Established.--The 
     Director shall establish a community challenge grant program 
     to make grants to eligible entities to--
       (1) promote integrated planning and investments across 
     policy and governmental jurisdictions; and
       (2) implement projects identified in a comprehensive 
     regional plan.
       (c) Grants.--
       (1) Diversity of grantees.--The Director shall ensure 
     geographic diversity among and adequate representation from 
     eligible entities in each of the categories described in 
     section 6(c)(1).
       (2) Terms and conditions.--Except as otherwise provided in 
     this section, a grant under the grant program shall be made 
     on the same terms and conditions as a grant under section 6.
       (3) Expending funds.--An eligible entity that receives a 
     grant under the grant program shall expend any funds received 
     under the grant program not later than 5 years after the date 
     on which the grant agreement under subsection (g) is made.
       (d) Application.--
       (1) Contents.--An eligible entity that desires a grant 
     under the grant program shall submit to the Director an 
     application, at such time and in such manner as the Director 
     shall prescribe, that contains--
       (A) a copy of the comprehensive regional plan, whether 
     developed as part of the comprehensive planning grant program 
     under section 6 or developed independently;
       (B) a description of the project or projects proposed to be 
     carried out using a grant under the grant program;
       (C) a description of any preliminary actions that have been 
     or must be taken at the local or regional level to implement 
     the project or projects under subparagraph (B), including the 
     revision of land use or zoning policies;
       (D) a signed copy of a memorandum of understanding among 
     local jurisdictions, including, as appropriate, a State, 
     units of general purpose local government, units of special 
     purpose local government, metropolitan planning 
     organizations, rural planning organizations, and regional 
     councils that demonstrates--
       (i) the creation of a consortium of units of general local 
     government; and
       (ii) a commitment to implement the activities described in 
     the comprehensive regional plan; and
       (E) a certification that the eligible entity has solicited 
     public comment on the contents of the project or projects 
     described in subparagraph (B) that includes--
       (i) a certification that the eligible entity made 
     information about the project or projects available and 
     afforded citizens, public agencies, and other interested 
     parties a reasonable opportunity to examine the content of 
     the project or projects and to submit comments;
       (ii) a description of the process for receiving public 
     comment, and a description of the outreach efforts to 
     affected populations and stakeholders;
       (iii) a certification that the eligible entity--

       (I) held a public hearing to obtain the views of citizens, 
     public agencies, and other interested parties;
       (II) made the proposed project and all information relevant 
     to the hearing available for inspection by the public during 
     normal business hours not less than 30 days before the 
     hearing under subclause (I); and
       (III) published a notice informing the public of the 
     hearing under subclause (I) and the availability of the 
     information described in subclause (II); and

       (F) a budget for the project that includes the Federal 
     share of the cost of the project or projects requested and a 
     description of the source of the non-Federal share; and
       (G) such additional information as the Director may 
     require.
       (2) Indian tribes.--An eligible entity that is an Indian 
     tribe is not required to submit a memorandum of understanding 
     under paragraph (1)(D).
       (e) Selection.--In evaluating an application for a grant 
     under the grant program, the Director shall consider the 
     extent to which the application--
       (1) demonstrates the technical capacity of the eligible 
     entity to carry out the project;
       (2) demonstrates the extent to which the eligible entity 
     has developed partnerships throughout an entire region, 
     including partnerships with units of special purpose local 
     government and transportation providers;
       (3) demonstrates clear and meaningful interjurisdictional 
     cooperation and coordination of housing (including healthy 
     housing), transportation, and environmental policies and 
     plans;
       (4) demonstrates a commitment to implementing a 
     comprehensive regional plan and documents action taken or 
     planned to implement the plan;
       (5) minimizes the Federal share necessary to carry out the 
     project and leverages a significant amount of State, local, 
     or private resources;
       (6) identifies original and innovative ideas to overcoming 
     regional problems, including local land use and zoning (or 
     other code) obstacles to carrying out the comprehensive 
     regional plan;
       (7) promotes diversity among the geographic regions and the 
     size of the population of the communities served by 
     recipients of grants under the grant program;
       (8) demonstrates a commitment to substantial public input 
     throughout the implementation process;
       (9) demonstrates that a Federal grant is necessary to 
     accomplish the project or projects proposed to be carried 
     out;
       (10) has a high quality overall; and
       (11) demonstrates such other qualities as the Director may 
     determine.
       (f) Grant Activities.--
       (1) Planning activities.--An eligible entity that receives 
     a grant under the grant program may use not more than 10 
     percent of the grant for planning activities. Activities 
     related to the updating, reform, or development of a local 
     code, plan, or ordinance to implement projects contained in a 
     comprehensive regional plan shall not be considered planning 
     activities for the purposes of a grant under the grant 
     program.
       (2) Projects and investments.--An eligible entity that 
     receives a grant under the grant program shall carry out 1 or 
     more projects that are designed to achieve the goals 
     identified in a comprehensive regional plan.
       (g) Grant Agreement.--Each eligible entity that receives a 
     grant under the grant program shall agree to establish, in 
     coordination with the Director, performance measures, 
     reporting requirements, and any other requirements that the 
     Director determines are necessary, that must be met at the 
     end of each year in which the eligible entity receives funds 
     under the grant program.
       (h) Violation of Grant Agreement.--If the Director 
     determines that an eligible entity has not met the 
     performance measures established under subsection (g), is not 
     making reasonable progress toward meeting such measures, or 
     is otherwise in violation of the grant agreement, the 
     Director may--
       (1) withhold financial assistance until the requirements 
     under the grant agreement are met; or
       (2) terminate the grant agreement.
       (i) Report on the Community Challenge Grant.--
       (1) In general.--Not later than 90 days after the date on 
     which the grant agreement under subsection (g) expires, an 
     eligible entity that receives a grant under the grant program 
     shall submit a final report on the project to the Secretary.
       (2) Contents of report.--The report shall include--
       (A) a detailed explanation of the activities undertaken 
     using the grant, including an explanation of the completed 
     project and how it achieves specific transit-oriented, 
     transportation, housing, or sustainable community goals 
     within the region;
       (B) a discussion of any obstacles encountered in the 
     planning and implementation process and how the eligible 
     entity overcame the obstacles;
       (C) an evaluation of the success of the project using the 
     performance standards and measures established under 
     subsection (g), including an evaluation of the planning and 
     implementation process and how the project contributes to 
     carrying out the comprehensive regional plan; and
       (D) any other information the Director may require.
       (3) Interim report.--The Director may require an eligible 
     entity to submit an interim report, before the date on which 
     the project for which the grant is awarded is completed.
       (j) Authorization of Appropriations.--
       (1) Authorization.--There are authorized to be appropriated 
     to the Secretary for the award of grants under this section, 
     to remain available until expended--
       (A) $30,000,000 for each of fiscal years 2012 and 2013;
       (B) $35,000,000 for fiscal year 2014;
       (C) $40,000,000 for fiscal year 2015; and
       (D) $45,000,000 for fiscal year 2016.

     SEC. 8. CREDIT FACILITY TO SUPPORT TRANSIT-ORIENTED 
                   DEVELOPMENT.

       (a) Definitions.--In this section--
       (1) Eligible applicant.--The term ``eligible applicant'' 
     means a State or local government.
       (2) Eligible area.--The term ``eligible area'' means the 
     area within \1/2\ mile of an existing or planned major 
     transit facility.
       (3) Eligible borrower.--The term ``eligible borrower'' 
     means--
       (A) a governmental entity, authority, agency, or 
     instrumentality;
       (B) a corporation, partnership, joint venture, or trust on 
     behalf of which an eligible applicant has submitted an 
     application under subsection (c); or
       (C) any other legal entity undertaking an infrastructure 
     development project on behalf of which an eligible applicant 
     has submitted an application under subsection (c).
       (4) Major transit facility.--The term ``major transit 
     facility'' means--
       (A) a fixed-guideway transit station;

[[Page S5918]]

       (B) a high speed rail or intercity rail station;
       (C) a transit hub connecting more than 3 local transit 
     lines; or
       (D) a transit center located in an area other than an 
     urbanized area.
       (5) Planned major transit facility.--The term ``planned 
     major transit facility'' means a major transit facility for 
     which appropriate environmental reviews have been completed 
     and for which funding for construction can be reasonably 
     anticipated.
       (6) Project.--The term ``project'' means an infrastructure 
     project that is used to support a 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; or
       (D) community facilities, including child care centers.
       (b) Loan Program Established.--The Secretary may make or 
     guarantee loans under this section to eligible borrowers for 
     projects.
       (c) Application.--
       (1) In general.--An eligible applicant may submit to the 
     Secretary an application for a loan or loan guarantee under 
     this section--
       (A) to fund a project carried out by the eligible 
     applicant; or
       (B) 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 that--
       (A) is part of a community-wide development plan, as 
     defined by the Secretary;
       (B) promotes sustainable development; and
       (C) ensures that not less than 15 percent of any housing 
     units constructed or substantially rehabilitated as part of 
     transit-oriented development supported by the project are 
     affordable over the long-term to, and occupied at time of 
     initial occupancy by--
       (i) renters with incomes at or below 60 percent of the area 
     median; or
       (ii) homeowners with incomes at or below 100 percent of the 
     area median.
       (2) Considerations.--The Secretary 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 will encourage increased use of transit;
       (B) the transit-oriented development supported by the 
     project will create or preserve long-term affordable housing 
     units in addition to the housing units required to be made 
     available under paragraph (1)(C) or will provide deeper 
     affordability than required under paragraph (1)(C);
       (C) the project will facilitate and encourage additional 
     development or redevelopment in the overall transit station 
     area;
       (D) the local government has adopted policies that--
       (i) promote long-term affordable housing; and
       (ii) allow high-density, mixed-use development near transit 
     stations;
       (E) the transit-oriented development supported by the 
     project is part of a comprehensive regional plan;
       (F) the eligible borrower has established a reliable, 
     dedicated revenue source to repay the loan;
       (G) the project is not financially viable for the eligible 
     borrower without a loan or loan guarantee under this section; 
     and
       (H) a loan or loan guarantee under this section would be 
     used in conjunction with non-Federal loans 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; and
       (5) a bond or other indebtedness backed by one of the 
     revenue sources listed in this paragraph.
       (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 a guarantee rate for loans to 
     eligible borrowers that the Secretary determines pose a lower 
     risk of default 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 is 
     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.
       (l) Repayment Deferral for Loans.--
       (1) In general.--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 or guaranteed 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.
       (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) Authorization of Appropriations.--There are authorized 
     to be appropriated for the cost of loans and loan guarantees 
     under this section $20,000,000 for each of fiscal years 2012 
     through 2016.

     SEC. 9. HEALTHY HOMES.

       (a) Federal Initiative To Support Healthy Housing and 
     Eradicate Housing-related Health Hazards.--The Secretary, 
     acting through the Director of the Office of Healthy Homes 
     and Lead Hazard Control and in consultation with the 
     Secretary of Energy, the Administrator of the Environmental 
     Protection Agency, the Secretary of Agriculture, the Director 
     of the National Institute of Standards and Technology, the 
     Director of the National Institute of Environmental Health 
     Sciences, and the Director of the Centers for Disease 
     Control, shall lead the Federal initiative to support healthy 
     housing and eradicate housing-related health hazards by--
       (1) reviewing, monitoring, and evaluating Federal housing, 
     health, energy, and environmental programs and identifying 
     areas of overlap and duplication that could be improved;
       (2) identifying best practices and model programs, 
     including practices and programs that link services for low-
     income families and services for health hazards;
       (3) identifying best practices for finance products, 
     building codes, and regulatory practices;
       (4) researching training programs and work practices that 
     can accurately assess housing-related health hazards;
       (5) promoting collaboration among Federal, State, local, 
     and tribal agencies and non-governmental organizations; and
       (6) coordinating with all relevant Federal agencies.
       (b) Assessment.--The Secretary shall conduct a 
     collaborative, interagency assessment of best practices for--
       (1) coordinating activities relating to healthy housing;
       (2) removing unnecessary barriers to interagency 
     coordination in Federal statutes and regulations; and
       (3) creating incentives in programs of the Federal 
     Government to advance the complementary goals of improving 
     environmental health, energy conservation, and the 
     availability of housing.
       (c) Study and Report on Sustainable Building Features and 
     Indoor Environmental Quality in Housing.--
       (1) Study.--The Secretary, in consultation with the 
     Secretary of Energy, the Director of the National Institute 
     of Standards and Technology, the Director of the National 
     Institute of Environmental Health Sciences, the Director of 
     the Centers for Disease Control, and any other Federal agency 
     that the Secretary determines is appropriate, shall conduct a 
     detailed study of how sustainable building features in 
     housing, such as energy efficiency, affect--
       (A) the quality of the indoor environment;
       (B) the prevalence of housing-related health hazards; and
       (C) the health of occupants of the housing.
       (2) Report.--Not later than 3 years after the date of 
     enactment of this Act, the Secretary shall submit to the 
     Committee on Banking, Housing, and Urban Affairs and the 
     Committee on Appropriations of the Senate and the Committee 
     on Financial Services and the Committee on Appropriations of 
     the House of Representatives a report containing the results 
     of the study under paragraph (1).
       (d) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as may be necessary to carry out 
     this section.

     SEC. 10. INELIGIBILITY OF INDIVIDUALS WHO ARE NOT LAWFULLY 
                   PRESENT.

       No housing assisted using a grant under this Act may be 
     made available to an individual who is not lawfully present 
     in the United States. Nothing in this Act may be construed to 
     alter the restrictions or definitions under section 214 of 
     the Housing and

[[Page S5919]]

     Community Development Act of 1980 (42 U.S.C. 1436a).

                          ____________________