Introduced in House Passed House Introduced in Senate Passed Senate To President Became Law
02/06/2020          

Equitable Transit Oriented Development Support Act

Date Version PDF TXT
02/06/2020 Introduced in House Open

            I 

116TH CONGRESS 
2D SESSION H. R. 5783 

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

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 6, 2020 
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 trans-

portation finance infrastructure and innovation program 
with respect to community development financial institu-
tions, and for other purposes. 

Be it enacted by the Senate and House of Representa-1

tives of the United States of America in Congress assembled, 2

SECTION 1. SHORT TITLE. 3

This Act may be cited as the ‘‘Equitable Transit Ori-4

ented Development Support Act’’. 5

SEC. 2. INFRASTRUCTURE FINANCE. 6

(a) GENERALLY APPLICABLE PROVISIONS.—Section 7

601(a) of title 23, United States Code, is amended— 8

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(1) by inserting ‘‘and section 611’’ after ‘‘609’’; 1

(2) in paragraph (2)— 2

(A) in subparagraph (C) by striking ‘‘; 3

and’’ and inserting a semicolon; 4

(B) in subparagraph (D) by striking the 5

period and inserting ‘‘; and’’; and 6

(C) by adding at the end the following: 7

‘‘(E) capitalizing a CDFI TOD account.’’; 8

(3) in paragraph (12)— 9

(A) in subparagraph (E) by striking ‘‘; 10

and’’ and inserting a semicolon; 11

(B) in subparagraph (F) by striking the 12

period and inserting ‘‘; and’’; and 13

(C) by adding at the end the following: 14

‘‘(G) the capitalization of a CDFI TOD 15

account.’’; and 16

(4) by adding at the end the following: 17

‘‘(23) CDFI.—The term ‘CDFI’ has the mean-18

ing given the term ‘community development financial 19

institution’ under section 103 of the Riegle Commu-20

nity Development and Regulatory Improvement Act 21

of 1994 (12 U.S.C. 4702). 22

‘‘(24) CDFI TOD ACCOUNT.—The term ‘CDFI 23

TOD account’ means an account— 24

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‘‘(A) established within a CDFI under sec-1

tion 611(c); 2

‘‘(B) capitalized with the proceeds of a se-3

cured loan made to a CDFI in accordance with 4

sections 602 and 603; 5

‘‘(C) for the purpose of making loans to 6

sponsors of transit-oriented development 7

projects in accordance with section 611.’’. 8

(b) DETERMINATION OF ELIGIBILITY AND PROJECT 9

SELECTION.—Section 602 of title 23, United States Code, 10

is amended— 11

(1) in subsection (a)— 12

(A) in paragraph (2) by adding at the end 13

the following: 14

‘‘(C) CDFI.—Notwithstanding subpara-15

graphs (A) and (B), in a case in which the Fed-16

eral credit instrument is provided to a CDFI, 17

the Secretary may rely upon a credit assess-18

ment of the CDFI by the Secretary of Treasury 19

in lieu of investment grade ratings and credit 20

opinions from rating agencies.’’; 21

(B) in paragraph (4) by inserting ‘‘CDFI,’’ 22

after ‘‘partnership,’’; 23

(C) in paragraph (5)(B) by inserting at 24

the end the following: 25

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‘‘(v) CDFI TOD ACCOUNTS.—In the 1

case of a project capitalizing a CDFI TOD 2

account, eligible project costs shall not ex-3

ceed $100,000,000.’’; 4

(D) in paragraph (6)— 5

(i) in subparagraph (C) by striking 6

‘‘or’’; 7

(ii) in subparagraph (D) by striking 8

the period and inserting ‘‘; or’’; and 9

(iii) by adding at the end the fol-10

lowing: 11

‘‘(E) in the case of a CDFI TOD account, 12

the unconditional promissory obligation of a 13

CDFI.’’; 14

(E) in paragraph (7)— 15

(i) by striking ‘‘State or local govern-16

ment or’’ and inserting ‘‘State or local gov-17

ernment,’’; and 18

(ii) by inserting ‘‘or a CDFI,’’ before 19

‘‘the project’’; 20

(F) in paragraph (9)— 21

(i) by striking ‘‘The Secretary’’ and 22

inserting ‘‘(A) IN GENERAL—The Sec-23

retary’’; 24

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(ii) by redesignating subparagraphs 1

(A), (B), and (C) as clauses (i), (ii), and 2

(iii); and 3

(iii) by adding at the end the fol-4

lowing: 5

‘‘(B) CDFI TOD ACCOUNTS.—With respect 6

to financial assistance provided to a CDFI 7

under the TIFIA program, the Secretary shall 8

deem that the project generates beneficial ef-9

fects.’’; and 10

(G) in paragraph (10)— 11

(i) in subparagraph (A) by striking 12

‘‘subparagraph (B)’’ and inserting ‘‘sub-13

paragraphs (B) and (C)’’; and 14

(ii) by adding at the end the fol-15

lowing: 16

‘‘(C) CDFI TOD ACCOUNT.—In the case of 17

a project capitalizing a CDFI TOD account, 18

the CDFI shall demonstrate to the Secretary, 19

not later than two years after the date on which 20

a secured loan is obligated for the project under 21

the TIFIA program, that the CDFI has exe-22

cuted a loan agreement with a project sponsor 23

in accordance with section 611. After the dem-24

onstration is made, the CDFI may draw upon 25

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the secured loan. At the end of the 2-year pe-1

riod, to the extent the CDFI has not used the 2

loan commitment, the Secretary may extend the 3

time period for using the loan commitment or 4

withdraw the loan commitment.’’; and 5

(2) in subsection (b)(3)— 6

(A) by striking ‘‘The Secretary’’ and in-7

serting ‘‘(A) IN GENERAL—The Secretary’’; 8

(B) by redesignating subparagraphs (A) 9

and (B) as clauses (i) and (ii), respectively; and 10

(C) by adding at the end the following: 11

‘‘(B) CDFI TOD ACCOUNT.—Notwith-12

standing subparagraph (A), in the case of an 13

applicant that is a CDFI, in lieu of a prelimi-14

nary rating opinion letter, the Secretary may 15

rely upon a letter from the Secretary of the 16

Treasury that verifies the applicant is a CDFI 17

certified by the Community Development Fi-18

nancial Institutions Fund of the Department of 19

the Treasury.’’. 20

(c) SECURED LOANS.—Section 603 of title 23, 21

United States Code, is amended— 22

(1) in subsection (a)(3) by striking ‘‘section 23

602(b)(3)(B)’’ and inserting ‘‘section 24

603(b)(3)(A)(ii) or, with respect to a CDFI, the let-25

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ter of the Secretary of Treasury under section 1

602(b)(3)(B)’’; 2

(2) in subsection (b)— 3

(A) in paragraph (2)— 4

(i) in subparagraph (A) by striking 5

‘‘subparagraph (B)’’ and inserting ‘‘sub-6

paragraphs (B) and (C)’’; and 7

(ii) by adding at the end the fol-8

lowing: 9

‘‘(C) CDFI TOD ACCOUNT.—In the case of 10

a project capitalizing a CDFI TOD account, 11

the maximum amount of a secured loan made 12

to a CDFI shall be determined in accordance 13

with section 602(a)(5)(B)(v).’’; 14

(B) in paragraph (3)(A)(i)— 15

(i) in subclause (IV) by striking ‘‘; or’’ 16

and inserting ‘‘;’’; 17

(ii) in subclause (V) by striking ‘‘; 18

and’’ and inserting ‘‘; or’’; and 19

(iii) by adding at the end the fol-20

lowing: 21

‘‘(VI) in the case of a secured 22

loan for a project capitalizing a CDFI 23

TOD account, any other revenue 24

sources available to a CDFI, including 25

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repayments from loans made for 1

projects in accordance with section 2

611; and’’; 3

(C) in paragraph (4)(B)— 4

(i) in the header by inserting ‘‘and 5

CDFI TOD accounts’’ after ‘‘infrastruc-6

ture projects’’; 7

(ii) in clause (i) by striking ‘‘or a 8

rural projects fund’’ and inserting ‘‘, a 9

rural projects fund, or a CDFI TOD ac-10

count’’; and 11

(iii) in clause (ii) by striking ‘‘and 12

rural project funds’’ and inserting ‘‘, rural 13

projects funds, and CDFI TOD accounts’’; 14

(D) in paragraph (5)(B)— 15

(i) in the header by inserting ‘‘and 16

CDFI TOD account’’ after ‘‘Rural projects 17

fund’’; and 18

(ii) by inserting ‘‘or CDFI TOD ac-19

count’’ after ‘‘rural projects fund’’; and 20

(E) in paragraph (9) by adding at the end 21

the following: 22

‘‘(C) CDFI TOD ACCOUNT.—A project cap-23

italizing a CDFI TOD account shall satisfy 24

subparagraph (A) through compliance with the 25

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Federal share requirement described in section 1

611(c)(3)(A).’’. 2

(d) PROGRAM ADMINISTRATION.—Section 605 of 3

title 23, United States Code, is amended— 4

(1) in subsection (d) by inserting ‘‘, community 5

development,’’ after ‘‘field of municipal’’; 6

(2) by redesignating subsections (e) and (f) as 7

subsections (g) and (h), respectively; 8

(3) by inserting after subsection (d) the fol-9

lowing: 10

‘‘(e) ASSISTANCE FROM THE SECRETARY OF TREAS-11

URY.—The Secretary shall consult with the Secretary of 12

the Treasury in assessing the creditworthiness of CDFI 13

applicants and shall enter into a memorandum of under-14

standing pursuant to section 611(b) of this chapter 15

through which the Secretary of the Treasury provides as-16

sistance in the credit underwriting, servicing, and moni-17

toring of Federal credit instruments provided to CDFI 18

TOD accounts. 19

‘‘(f) IMPLEMENTATION.—Not later than 180 days 20

after enactment of Section 611, the Secretary shall imple-21

ment this section by releasing program guidance and solic-22

iting applications.’’; and 23

(4) in subsection (h) (as so redesignated)— 24

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(A) in the heading by inserting ‘‘and CDFI 1

TOD accounts’’ after ‘‘small projects’’; and 2

(B) in paragraph (1)— 3

(i) by striking ‘‘608(a)(5)’’ and insert-4

ing ‘‘608(a)(6)’’; 5

(ii) by striking ‘‘$2,000,000’’ and in-6

serting ‘‘$4,000,000’’; and 7

(iii) by striking ‘‘$75,000,000’’ and 8

inserting ‘‘$100,000,000’’. 9

(e) FUNDING.—Section 608(a) of title 23, United 10

States Code, is amended— 11

(1) by redesignating paragraphs (4) and (5) as 12

paragraphs (5) and (6), respectively; 13

(2) by inserting after paragraph (3) the fol-14

lowing: 15

‘‘(4) CDFI SET ASIDE.— 16

‘‘(A) IN GENERAL.—Of the total amount 17

of funds made available to carry out the TIFIA 18

program for each fiscal year, not more than 10 19

percent shall be set aside for CDFI TOD ac-20

counts. 21

‘‘(B) REOBLIGATION.—Any amounts set 22

aside under subparagraph (A) that remain un-23

obligated by June 1 of the fiscal year for which 24

the amounts were set aside shall be available 25

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for obligation by the Secretary on projects other 1

than CDFI TOD accounts.’’; and 2

(3) by adding at the end the following: 3

‘‘(7) REIMBURSEMENTS TO THE SECRETARY OF 4

THE TREASURY.—Of the amounts authorized for the 5

administration of the TIFIA program under para-6

graph (6), the Secretary may use not more than 10 7

percent for each fiscal year to reimburse the Sec-8

retary of the Treasury for assistance provided pur-9

suant to a memorandum of understanding under 10

section 611(b).’’. 11

(f) COMMUNITY DEVELOPMENT FINANCIAL INSTITU-12

TION TRANSIT-ORIENTED DEVELOPMENT.— 13

(1) IN GENERAL.—Chapter 6 of title 23, United 14

States Code, is amended by adding at the end the 15

following: 16

‘‘§ 611. Community development financial institution 17

transit-oriented development 18

‘‘(a) DEFINITIONS.—In this section: 19

‘‘(1) CDFI TOD PROJECT.—The term ‘CDFI 20

TOD project’ means a project located within one- 21

half mile in an urban area or three-fourths of a mile 22

in a rural area of a fixed guideway transit facility, 23

passenger rail station, intercity bus station or inter-24

modal facility that supports— 25

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‘‘(A) commercial facilities or businesses 1

that are located in low-income communities and 2

are— 3

‘‘(i) owned by low-income persons; 4

‘‘(ii) principally serve low-income per-5

sons or low-income community residents; 6

or 7

‘‘(iii) principally employ low-income 8

persons; 9

‘‘(B) community facilities that are located 10

in low-income communities or principally serve 11

low-income persons; or 12

‘‘(C) housing that is principally affordable 13

to low-income persons. 14

‘‘(2) INVESTMENT AREA.—The term ‘Invest-15

ment Area’ has the meaning given the term in sec-16

tion 1805.201(b)(3)(B)(ii) of title 12, Code of Fed-17

eral Regulations (as in effect on the date of enact-18

ment of this section). 19

‘‘(3) LOAN.—The term ‘loan’ means any form 20

of direct financial assistance that is required to be 21

repaid over a period of time provided by a CDFI to 22

a project sponsor for all or part of the costs of a 23

CDFI TOD project. 24

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‘‘(4) LOW-INCOME COMMUNITY.—The term 1

‘low-income community’ means a community that is 2

located in an Investment Area. 3

‘‘(5) LOW-INCOME PERSON.—The term ‘low-in-4

come person’ means a person whose income does not 5

exceed the level established for low-income (as such 6

term is defined in section 1805.104 of title 12, Code 7

of Federal Regulations, as in effect on the date of 8

enactment of this section). 9

‘‘(6) PROJECT SPONSOR.—The term ‘project 10

sponsor’ means a public or private entity approved 11

by a CDFI and developing a CDFI TOD project in 12

accordance with this section. 13

‘‘(b) MEMORANDUM OF UNDERSTANDING.—The Sec-14

retary shall enter into a memorandum of understanding 15

with the Secretary of Treasury to support consultation 16

with the Community Development Financial Institutions 17

Fund to provide the necessary credit underwriting, serv-18

icing, and monitoring of CDFI applicants and participants 19

in the TIFIA program. 20

‘‘(c) CDFI TOD ACCOUNTS.— 21

‘‘(1) IN GENERAL.—The Secretary shall require 22

any CDFI participating in the program authorized 23

in this section to establish a CDFI TOD account 24

into which the proceeds of a secured loan made to 25

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the CDFI in accordance with sections 602 and 603 1

and any loan repayments from public or private enti-2

ties receiving loans made to fund CDFI TOD 3

projects will be deposited. 4

‘‘(2) AMOUNTS IN ACCOUNT.—Any principal 5

loan repayments and any investment income derived 6

from funds deposited to a CDFI TOD account shall 7

be— 8

‘‘(A) credited to the account; 9

‘‘(B) available for providing loans to 10

project sponsors; 11

‘‘(C) available for repaying the secured 12

loan made to the CDFI in accordance with sec-13

tions 602 and 603; and 14

‘‘(D) invested in such financing instru-15

ments as the Secretary may approve to earn in-16

terest to augment the lending capacity of the 17

account. 18

‘‘(3) LOANS.—Any loan to a project sponsor 19

funded from the account shall— 20

‘‘(A) be in an amount determined by the 21

CDFI, but in any case not exceed 80 percent of 22

eligible project costs; 23

‘‘(B) commence repayment not later than 24

5 years after the project has been completed; 25

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‘‘(C) have a final maturity not later than 1

30 years after the date of the first payment on 2

the loan; 3

‘‘(D) be set at a rate not greater than the 4

level needed to fully reimburse the CDFI’s ad-5

ministrative, monitoring, servicing, and capital 6

charges associated with the loan; and 7

‘‘(E) be secured and have a priority of pay-8

ment as determined by the CDFI. 9

‘‘(4) REVOLVING LOAN STRUCTURE.—The 10

CDFI may apply loan repayments to fund additional 11

loans provided such relending does not impair the 12

ability of the CDFI to repay its secured loan in full 13

and timely fashion. 14

‘‘(5) DELEGATED LENDING MODEL.—The 15

CDFI is authorized to provide loans for CDFI TOD 16

projects under a delegated lending model. No provi-17

sion of this section shall restrict the ability of the 18

CDFI to establish the terms and conditions of loans 19

to project sponsors under this section. 20

‘‘(d) DISCONTINUANCE OF FUNDING.—If the Sec-21

retary determines that a CDFI is not implementing the 22

CDFI TOD account in accordance with the application of 23

such account, the Secretary may prohibit the CDFI from 24

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drawing down any additional proceeds from a secured loan 1

commitment. 2

‘‘(e) FORMS OF ASSISTANCE FROM A CDFI.— 3

‘‘(1) IN GENERAL.—A CDFI may, using funds 4

deposited into the CDFI TOD account, make loans 5

to a public or private entity to carry out a CDFI 6

TOD project. 7

‘‘(2) SUBORDINATION OF LOAN.—The amount 8

of a loan or other form of credit assistance provided 9

for a project described in subsection (c)(3) may be 10

subordinated to any other debt financing for the 11

project. 12

‘‘(f) ANNUAL REPORT TO THE SECRETARY.—Any 13

CDFI participating in this program shall make an annual 14

report to the Secretary not later than September 30 of 15

each year and such other reports as the Secretary may 16

require under guidelines issued to carry out this section. 17

‘‘(g) APPLICABILITY OF FEDERAL LAW.—The re-18

quirements of this title and title 49 that would otherwise 19

apply to funds made available under this chapter or such 20

title and projects assisted with those funds shall apply to 21

CDFI TOD projects assisted by the CDFI under this 22

chapter, except to the extent the Secretary determines that 23

any requirement of such title is not applicable or is not 24

consistent with the objectives of this section. 25

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‘‘(h) UNITED STATES NOT OBLIGATED.—The de-1

posit of Federal funds into a CDFI under this section 2

shall not be construed as a commitment, guarantee, or ob-3

ligation on the part of the United States to any third 4

party, nor shall any third party have any right against 5

the United States for payment solely by virtue of the con-6

tribution. Any security or debt financing instrument 7

issued by the CDFI shall expressly state that the security 8

or instrument does not constitute a commitment, guar-9

antee, or obligation of the United States. 10

‘‘(i) PROGRAM ADMINISTRATION.—For each fiscal 11

year, a CDFI may not expend more than 2 percent of the 12

Federal assistance received under this chapter to pay the 13

reasonable costs of administering a CDFI TOD account 14

pursuant to this section.’’. 15

(2) CLERICAL AMENDMENT.—The analysis for 16

chapter 6 of title 23, United States Code, is amend-17

ed by adding at the end the following: 18

‘‘611. Community development financial institution transit-oriented develop-
ment.’’. 

Æ 

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    /JPN 
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    /ENU (Use these settings to create Adobe PDF documents that are to be checked or must conform to PDF/X-1a:2001, an ISO standard for graphic content exchange.  For more information on creating PDF/X-1a compliant PDF documents, please refer to the Acrobat User Guide.  Created PDF documents can be opened with Acrobat and Adobe Reader 4.0 and later.)
  >>
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>> setdistillerparams
<<
  /HWResolution [2400 2400]
  /PageSize [612.000 792.000]
>> setpagedevice



		Superintendent of Documents
	2020-02-11T00:43:00-0500
	US GPO, Washington, DC 20401
	Superintendent of Documents
	GPO attests that this document has not been altered since it was disseminated by GPO
        

Picture Name From Date Type
Mark DeSaulnier D-CA 02/06/2020 Sponsor
Date Branch Action
02/07/2020 President Referred to the Subcommittee on Highways and Transit.Action By: Committee on Transportation and Infrastructure
02/06/2020 President Referred to the House Committee on Transportation and Infrastructure.Action By: House of Representatives
02/06/2020 President Introduced in HouseAction By: House of Representatives
Summary
Congress - Bill Number Major Title
Branch Vote Date Yes No Not Voting
Wiki






Bill TEXT Points.
This Bill has been listed with the following Subjects from Texts:
Community development
(f)Community development financial institution transit-Oriented development (1)In generalChapter 6 of title 23, United States Code, is amended by adding at the end the following: 611

Community Development Financial Institutions Fund
; 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 accountNotwithstanding 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 cer

Congress


Department of the Treasury
; 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 accountNotwithstanding 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 cer


End Bill TEXT Points.
Date Bill Major Title
Committee Name
Subject Type