Race to the Job Initiative Act

Summary: Race to the Job Initiative Act This bill requires the Department of the Treasury to establish and administer a grant program to provide anchor institution (i.e., a hospital, college, research center, or nonprofit institution) grants and infrastructure grants to eligible low-income communities for community development. Treasury shall select: (1) within the first year after enactment of this bill, 30 of such low-income communities to receive these grants; and (2) within the second year, an additional 20 of these communities. Treasury must award a capital assistance grant to each community development financial institution specified in the grantee's application to make loans to, and invest in, businesses, organizations, or public-private partnerships located in the eligible low-income community. The bill amends the Internal Revenue Code to allow a new markets tax credit for investment in a partner community development financial institution without regard to allocation limitations on such credit. The bill amends the Community Development Banking and Financial Institutions Act of 1994 to limit to $20 million (in the aggregate, during a three-year period) an award from the Community Development Financial Institutions (CDFI) Fund to a community development financial institution and its subsidiaries and affiliates receiving a capital assistance grant under this bill. CDFI funds are limited annually for these entities to: (1) $10 million for financial assistance, and (2) $500,000 for technical assistance.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Race to the Job Initiative Act''.

SEC. 2. ESTABLISHMENT.

    (a) In General.--The Secretary of the Treasury shall establish and 
administer a grant program to provide grants to eligible low-income 
communities for community development.
    (b) Limitations.--
            (1) Number of grant recipients in first year.--Not later 
        than one year after the date of the enactment of this Act, the 
        Secretary shall select 30 eligible low-income communities to 
        receive grants under section 3.
            (2) Number of grant recipients in second year.--Not later 
        than one year after the date on which the Secretary selects 30 
        eligible low-income communities under paragraph (1), the 
        Secretary shall select an additional 20 eligible low-income 
        communities to receive grants under section 3.
            (3) Geographic limitation.--The Secretary may not select 
        more than 3 eligible low-income communities located in the same 
        State to receive grants under section 3.
    (c) Application.--
            (1) In general.--To be selected to receive grants under 
        section 3, an eligible low-income community shall submit an 
        application to the Secretary at such time, in such manner, and 
        containing such information as the Secretary may require.
            (2) Other requirements.--
                    (A) Partner community development financial 
                institution.--In an application submitted under this 
                subsection, an eligible low-income community shall 
                specify at least one community development financial 
                institution to receive a capital assistance grant under 
                section 4.
                    (B) Concentrated poverty.--Each application under 
                this subsection shall include a description of how the 
                eligible low-income community has experienced 
                concentrated poverty.
                    (C) Development proposal.--Each application under 
                this subsection shall include a description of how the 
                eligible low-income community plans to use the grant 
                funds awarded under section 3 to--
                            (i) improve the economy of the community 
                        without displacing residents that reside in the 
                        community on the date the application for such 
                        grant funds is submitted;
                            (ii) create programs that would benefit 
                        disadvantaged populations that reside in the 
                        community;
                            (iii) establish or expand an anchor 
                        institution, as such term is defined under 
                        section 3(1)(B);
                            (iv) identify and target a high-growth 
                        sector of the economy;
                            (v) offer affordable financial services to 
                        the local community; and
                            (vi) identify potential investors to target 
                        for matching funds.
    (d) Priority.--In awarding grants under section 3, the Secretary 
shall give priority to an eligible low-income community that is 
experiencing a high poverty rate at the time the application for such 
grant is submitted.

SEC. 3. GRANTS TO ELIGIBLE LOW-INCOME COMMUNITIES.

    The Secretary shall award to each eligible low-income community 
selected under section 2(b) each of the following grants:
            (1) Anchor institution grants.--
                    (A) Use of funds.--
                            (i) In general.--Grant funds awarded under 
                        this paragraph shall be used to establish or 
                        expand anchor institutions in the eligible low-
                        income community.
                            (ii) Limitation.--Grant funds awarded under 
                        this paragraph may not be used to fund more 
                        than 25 percent of the total cost associated 
                        with the establishment or expansion of an 
                        anchor institution.
                            (iii) Job training programs.--If grant 
                        funds awarded under this paragraph are used to 
                        establish or expand an anchor institution in 
                        the eligible low-income community that provides 
                        job training programs, such funds may only be 
                        used to fund job training programs that serve 
                        residents of such eligible low-income 
                        community.
                    (B) Anchor institution defined.--In this paragraph, 
                the term ``anchor institution'' means hospitals, 
                colleges, research centers, nonprofit institutions, and 
                such other institutions the Secretary may specify.
                    (C) Authorization of appropriations.--For grants 
                under this paragraph, there is authorized to be 
                appropriated $100,000,000 for fiscal year 2017, to 
                remain available until expended.
            (2) Infrastructure grants.--
                    (A) Use of funds.--
                            (i) In general.--Grant funds awarded under 
                        this paragraph shall be used for public 
                        infrastructure improvement projects in the 
                        eligible low-income community.
                            (ii) Limitation.--Grant funds awarded under 
                        this paragraph may not be used to fund more 
                        than 10 percent of the total cost associated 
                        with a public infrastructure improvement 
                        project.
                    (B) Authorization of appropriations.--For grants 
                under this paragraph, there is authorized to be 
                appropriated $200,000,000 for fiscal year 2017, to 
                remain available until expended.
            (3) Technical assistance grants.--
                    (A) In general.--Grant funds awarded under this 
                paragraph shall be used to make technical assistance 
                grants.
                    (B) Authorization of appropriations.--For grants 
                under this paragraph, there is authorized to be 
                appropriated $20,000,000 for fiscal year 2017, to 
                remain available until expended.

SEC. 4. CAPITAL ASSISTANCE GRANTS TO PARTNER COMMUNITY DEVELOPMENT 
              FINANCIAL INSTITUTIONS.

    (a) In General.--The Secretary shall award a capital assistance 
grant to each community development financial institution that is 
specified in the application of an eligible low-income community 
selected under section 2(b) to receive grants under section 3.
    (b) Use of Funds.--Grant funds awarded under this section may be 
used to make loans to, and invest in, businesses, organizations, or 
public-private partnerships located in the eligible low-income 
community.
    (c) Authorization of Appropriations.--For grants under this 
section, there is authorized to be appropriated $200,000,000 for fiscal 
year 2017, to remain available until expended.

SEC. 5. TAX CREDIT FOR COMMUNITY INVESTMENT.

    (a) In General.--Section 45D of subpart D of part IV of subchapter 
A of chapter 1 of the Internal Revenue Code of 1986 is amended--
            (1) by redesignating subsection (i) as subsection (j); and
            (2) by inserting after subsection (h) the following new 
        subsection:
    ``(i) Special Rules for Certain Partner Community Development 
Financial Institutions.--For purposes of this section, in the case of a 
partner community development financial institution that is specified 
in the application of an eligible low-income community selected under 
section 2(b) of the Race to the Job Initiative Act to receive grants 
under section 3 of such Act--
            ``(1) such institution shall be treated as a qualified 
        community development entity without regard to the allocation 
        limitations under subsection (f); and
            ``(2) the term `low-income community' shall mean such 
        eligible low-income community.''.
    (b) Applicability.--The amendments made by this section shall apply 
with respect to a partner community development financial institution 
that is specified in the application of an eligible low-income 
community selected by the Secretary under section 2(b) after the date 
of the enactment of this Act.

SEC. 6. INCREASE IN CDFI AWARD AMOUNTS.

    Section 108(d) of the Community Development Banking and Financial 
Institutions Act of 1994 (12 U.S.C. 4704) is amended--
            (1) in paragraph (1), by inserting after ``assistance'' the 
        following: ``(or, in the case of a community development 
        financial institution receiving a capital assistance grant 
        under section 4 of the Race to the Job Initiative Act, 
        $20,000,000)''; and
            (2) by adding at the end the following:
            ``(4) Annual assistance limitation for certain 
        institutions.--In the case of a community development financial 
        institution receiving a capital assistance grant under section 
        4 of the Race to the Job Initiative Act, the Fund may not 
        provide such community development financial institution and 
        its subsidiaries and affiliates with more than--
                    ``(A) $10,000,000 in annual financial assistance; 
                and
                    ``(B) $500,000 in annual technical assistance.''.

SEC. 7. DEFINITIONS.

    In this Act:
            (1) Community development financial institution.--The term 
        ``community development financial institution'' has the meaning 
        given such term in section 103 of the Riegle Community 
        Development and Regulatory Improvement Act of 1994 (12 U.S.C. 
        4702).
            (2) Eligible low-income community.--The term ``eligible 
        low-income community'' means a city or county with--
                    (A) a census tract with a poverty rate of at least 
                30 percent (as determined by the Office of Management 
                and Budget using the most recent decennial census for 
                which data are available); and
                    (B) with an unemployment rate that is at least 150 
                percent of the national average (as determined by the 
                Bureau of Labor Statistics).
            (3) State.--The term ``State'' means each of the several 
        States, the District of Columbia, and any commonwealth, 
        territory, or possession of the United States.