Equitable Transit Oriented Development Support Act
Sponsored By: Representative DeSaulnier, Mark [D-CA-10]
Introduced
Summary
This bill would create a _dedicated CDFI transit-oriented development program within TIFIA_ to channel TIFIA loans into Community Development Financial Institution accounts that fund housing and development near transit. It pairs new CDFI TOD accounts with Treasury underwriting and program set-asides to target investment in low-income and designated investment areas.
Show full summary
- CDFIs and project sponsors gain a new lending vehicle. The bill authorizes CDFI TOD accounts capitalized by secured TIFIA loans and lets those accounts make loans to TOD project sponsors, with a $100 million cap on eligible project costs for accounts that are capitalized.
- Program funding and Treasury support are formalized. The law would require a memorandum of understanding with the Department of the Treasury for credit underwriting and monitoring and sets aside up to 10% of annual TIFIA funding for CDFI TOD accounts while allowing up to 10% of program administration funds to reimburse Treasury for that assistance.
- Operational rules, limits, and legal language constrain the program. Projects have a 2-year demonstration period to draw loans. Administrative costs for CDFI TOD accounts are capped at 2% of Federal assistance. Deposits, loans, and securities issued under the program must carry a disclaimer that they do not constitute a U.S. government obligation.
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Bill Overview
Analyzed Economic Effects
4 provisions identified: 1 benefits, 1 costs, 2 mixed.
New CDFI TOD program setup
If enacted, the bill would create a CDFI-focused transit‑oriented development (TOD) pathway inside the TIFIA program. The Department of Transportation would have to sign an MOU with Treasury so Treasury can help underwrite, service, and monitor CDFI TOD credit. DOT must publish program guidance and start taking applications within 180 days after the section is enacted. Up to 10% of annual TIFIA funds could be set aside for CDFI TOD accounts.
Rules for CDFI TOD loans
If enacted, loans from CDFI TOD accounts would be limited so individual loans cannot exceed 80% of eligible project costs. Repayment on loans must start no later than 5 years after project completion and the loan must mature no later than 30 years after the first payment. The bill would let CDFIs count loan repayments and other CDFI revenue as collateral and allow relending of repayments if doing so does not endanger repayment of the secured TIFIA loan. CDFIs would need to provide an unconditional promissory obligation, and the CDFI must show it signed a loan agreement with a project sponsor within two years after a secured loan is obligated or risk withdrawal of the commitment. Title 23 and 49 requirements generally apply to these projects unless DOT waives a specific rule.
Project size caps and thresholds
If enacted, the bill would cap eligible project costs at $100 million for any project that capitalizes a CDFI TOD account. The bill would also raise the small‑project thresholds used elsewhere to $4 million and $100 million. These changes both expand eligibility for some smaller projects and set a hard per‑project ceiling on projects using a CDFI TOD account.
Admin caps, reporting, and disclaimers
If enacted, CDFIs could use no more than 2% of the Federal assistance they receive under the chapter in any fiscal year for administering a CDFI TOD account. Participating CDFIs would also have to send an annual report to the Secretary by September 30 each year and provide other reports DOT requires. The bill would require any CDFI security or debt instrument to say it is not a commitment or guarantee of the United States.
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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