Build HUBS Act

Full Title:
Build HUBS Act

Summary#

This bill, the Build HUBS Act, changes rules in two federal credit programs (TIFIA in title 23 and RRIF in title 49) so they can better support transit-oriented development (TOD) projects that include housing or mixed uses. It defines "transit-oriented development" and a new term "attainable housing project." The bill: extends program authorizations through fiscal year 2031; allows alternative ways to show a project is creditworthy without an investment‑grade rating (for example, joint liability with a government, an alternative rating for smaller projects, or certification by an approved originator‑servicer); creates delegated origination and underwriting programs modeled on HUD's Multifamily Accelerated Processing system so approved lenders can originate, underwrite, and service loans on behalf of the Secretary; sets certain limits and requirements for loans (for example, some TOD loans may be limited to 75 percent of eligible costs, and at least 75 percent of TIFIA assistance for an attainable housing project must be used for residential components); sets the interest rate for attainable housing projects at one-half of the Treasury Rate; requires coordination with metropolitan planning organizations and compatibility with transportation plans; and limits some National Environmental Policy Act (NEPA) requirements for pre‑award land acquisition and lists categorical exclusions for certain rehabilitation or reconstruction activities. The bill also requires DOT to publish fee structures and eligibility guidance, and it instructs DOT to enter into an interagency agreement with HUD to leverage lender approval processes. The bill includes a savings provision that does not change or preempt State or local zoning and land use laws.

What it means for you#

  • Developers and lenders: The bill creates a delegated origination and underwriting program so approved originator‑servicers can handle loan origination, underwriting, and servicing for TOD projects under DOT oversight. It also allows alternative creditworthiness demonstrations for certain projects instead of an investment‑grade rating.
  • Transit agencies and local governments: Applicants must coordinate with metropolitan planning organizations and show compatibility or a nexus with regional transportation plans or improvement programs. Some loan and funding rules and reporting will be published by DOT.
  • People looking for housing near transit: The bill defines "attainable housing projects" and sets rules requiring a majority of units to be affordable to households at or below 80 percent of area median income, with program benefits and a lower interest rate for such projects.
  • Land use officials and residents: The bill states it does not change State or local zoning and land use laws.

Expenses#

No publicly available information on the bill's net cost or specific appropriations. The bill extends existing program authorization periods for TIFIA and RRIF through fiscal year 2027–2031 and changes loan terms and program rules (for example, interest rate reductions for attainable housing, loan percentage limits, and creation of delegated origination). It authorizes DOT to provide credit assistance (loans, guarantees, lines of credit) under changed terms but does not include a separate dollar appropriation in the text provided.

Proponents' View#

The bill's findings state that the United States faces a housing availability and affordability crisis; that transit‑oriented development benefits communities by improving access to transit, jobs, and services and by boosting transit ridership; and that TIFIA and RRIF can help finance TOD projects. The findings say making the programs more efficient, improving application information and underwriting timelines, and using public‑private partnerships could accelerate housing production and economic development near transit. The bill also notes that administrative reforms have helped but that current law limits DOT's ability to facilitate TOD under these programs.

Opponents' View#

No publicly available information.