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119-hr-8607119th CongressWALLET

Equitable Transit Oriented Development Support Act

Sponsored By: Representative DeSaulnier, Mark [D-CA-10]

Introduced

Summary

Empower community development financial institutions (CDFIs) to finance transit‑oriented development (TOD) in low‑income neighborhoods. The bill would create a CDFI TOD account inside the Transportation Infrastructure Finance and Innovation Act program, set rules for secured loans and revolving lending, and require Treasury and Transportation collaboration and reporting to direct federal credit toward TOD near fixed‑guideway transit.

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  • Families and residents: Would target TOD projects in low‑income areas near fixed‑guideway transit, increasing financing for projects like affordable housing and local community development.
  • CDFIs: Would be eligible for secured TIFIA loans to capitalize CDFI TOD accounts, use delegated lending authority, and rely on a Treasury credit assessment instead of rating opinions. Loans may revolve, be subordinated, and include a 2-year demonstration window for commitments.
  • Federal program and project sponsors: Would reserve up to 10 percent of annual TIFIA funds for CDFI TOD accounts, cap account administrative costs at 2 percent annually, require a Treasury memorandum of understanding for underwriting, and add annual reporting and compliance rules while clarifying there is no federal guarantee.

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 2 benefits, 0 costs, 2 mixed.

New CDFI transit lending program

If enacted, the bill would create a new CDFI transit-oriented development program. Participating community development financial institutions (CDFIs) would have to set up a dedicated "CDFI TOD account" capitalized by a secured loan and used to make loans to sponsors of transit-oriented development projects. The bill would explicitly allow CDFIs to be eligible project sponsors. Many existing Title 23 and Title 49 rules would apply to these projects unless the Secretary says a rule is not applicable.

Treasury underwriting and payments

If enacted, the bill would require DOT to consult Treasury on the creditworthiness of CDFIs and to sign a memorandum of understanding for Treasury to help with underwriting, servicing, and monitoring. The Secretary could accept a Treasury credit assessment or a Treasury letter verifying CDFI certification instead of private rating opinions. The Secretary would also be allowed to use up to 10% of TIFIA administration funds each year to reimburse Treasury for help under the MOU.

Rules for CDFI TOD loans

If enacted, the bill would set detailed rules for CDFI TOD accounts and loans from them. Individual loans could not exceed 80% of eligible project costs and eligible project costs for accounts are capped at $100,000,000. Loan repayments must start no later than 5 years after project completion and loans must mature no later than 30 years after the first payment. The CDFI could relend repayments on a revolving basis but must not impair repayment of its secured loan. CDFIs could spend no more than 2% of federal assistance each year on administering the account. The Secretary could stop a CDFI from drawing loan proceeds if it is not running the account as approved. The Secretary must publish guidance within 180 days and CDFIs must show within two years they have executed a loan agreement before drawing funds, or the Secretary may extend or withdraw the commitment.

Set-aside funds and reporting

If enacted, the bill would set aside up to 10% of TIFIA program funds each fiscal year for CDFI TOD accounts. Any set-aside money not obligated by June 1 would be available for other projects. Any CDFI in the program would have to send an annual report to the Secretary by September 30 and follow any other reporting the Secretary requires.

Sponsors & CoSponsors

Sponsor

DeSaulnier, Mark [D-CA-10]

CA • D

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

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