Summary#
This bill changes chapter 6 of title 23 to let certified community development financial institutions (CDFIs) participate in the TIFIA credit program to support transit-oriented development (TOD) near transit stations. It creates a CDFI TOD account: a special account inside a CDFI that is capitalized with a secured TIFIA loan and used to make loans to project sponsors for TOD projects that benefit low-income communities, community facilities, small businesses, or affordable housing near transit.
The bill adds definitions and rules for how CDFIs qualify, allows the Secretary to rely on the Treasury's CDFI certification instead of credit ratings, requires a memorandum of understanding with the Treasury for underwriting help, and sets program limits (for example, eligible project costs for capitalizing a CDFI TOD account generally must not exceed $100,000,000). It also updates TIFIA program thresholds for small projects.
What it means for you#
- If you run a CDFI: you may apply for a secured TIFIA loan to create a CDFI TOD account, must report annually, and may use a delegated lending model to make loans to project sponsors. You must follow account rules, loan terms, and security requirements in the bill.
- If you are a project sponsor near transit in a low-income area: you could get a loan from a CDFI TOD account. Loans may cover up to 80% of eligible project costs, must begin repayment within 5 years after project completion, and mature no later than 30 years after first payment. Interest rates are limited to what is needed to cover the CDFI's costs.
- If you are a local government or community group: the bill creates a new federal-supported channel for lending to TOD projects that serve low-income people, small businesses, community facilities, or affordable housing near transit stations.
Expenses#
- The bill sets aside up to 10 percent of the annual TIFIA program funds for CDFI TOD accounts; any amounts not obligated by June 1 of the fiscal year may be used for other TIFIA projects.
- The Secretary may use up to 10 percent of TIFIA administration funds to reimburse the Secretary of the Treasury for assistance under the required memorandum of understanding.
- A CDFI may not spend more than 2 percent of the Federal assistance it receives under this chapter for administration of a CDFI TOD account.
- No publicly available information on the bill's total federal cost or budgetary effects is provided in the text.
Proponents' View#
No publicly available information.
Opponents' View#
No publicly available information.