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[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3525 Introduced in House (IH)]

112th CONGRESS
  1st Session
                                H. R. 3525

 To amend the Department of Agriculture Reorganization Act of 1994 to 
  establish in the Department of Agriculture a Healthy Food Financing 
                              Initiative.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                           November 30, 2011

Ms. Schwartz (for herself, Mr. Burgess, and Mr. Blumenauer) introduced 
 the following bill; which was referred to the Committee on Agriculture

_______________________________________________________________________

                                 A BILL

 
 To amend the Department of Agriculture Reorganization Act of 1994 to 
  establish in the Department of Agriculture a Healthy Food Financing 
                              Initiative.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Healthy Food Financing Initiative''.

SEC. 2. FINDINGS.

    Congress finds that--
            (1)(A) the United States faces an obesity epidemic in which 
        30.5 percent of children ages 10 through 17 are overweight or 
        obese;
            (B) the obesity epidemic contributes to increasing rates of 
        chronic illness, including diabetes, heart disease, and cancer; 
        and
            (C) the obesity epidemic cost the United States 
        $147,000,000 in medical expenses in 2008, and this cost is 
        expected to rise in the future;
            (2) the Reinvestment Fund estimates that almost 25,000,000 
        people in the United States live in low-income communities with 
        limited access to supermarkets and grocery stores;
            (3) more than 130 studies show that--
                    (A) access to healthy food is particularly a 
                problem in hundreds of low-income, rural, and urban 
                communities, as well as communities of color in the 
                United States; and
                    (B) the opportunity to access healthy food is 
                linked to lower levels of obesity, diabetes, and other 
                food-related chronic illnesses, leading to better 
                health outcomes;
            (4)(A) children from low-income families are twice as 
        likely to be overweight as children from higher income 
        families; and
            (B) African-American and Hispanic children are more likely 
        than Caucasian children to be obese;
            (5) studies show that when healthy foods are available, 
        people will increase consumption of fruits and vegetables;
            (6) leading public health experts, including the Centers 
        for Disease Control and Prevention, the American Heart 
        Association, the Institute of Medicine, and the American Public 
        Health Association, agree that providing improved access to 
        supermarkets and grocery stores is needed to improve public 
        health and prevent obesity;
            (7) developing high-quality fresh food retail outlets 
        creates jobs, expands markets for agricultural producers in the 
        United States, and supports economic vitality in underserved 
        communities;
            (8)(A) supermarkets and grocery stores often face barriers 
        to opening stores in food deserts;
            (B) the supermarket industry operates on an historically 
        thin profit margin;
            (C) according to the 2011 National Grocers Association 
        Independent Grocers Survey, the average net profit margin 
        before taxes for independent grocers in 2010 was 1.08 percent;
            (D) urban operators face barriers, including--
                    (i) increased real estate costs or limited 
                availability of suitable commercial real estate in the 
                community;
                    (ii) increased employee training needs and costs;
                    (iii) elevated security expenses; and
                    (iv) often zoning restrictions;
            (E) supermarkets and grocery stores in rural food deserts 
        also face barriers, including increased food delivery costs due 
        to distance from distributers, dispersed customer base, and low 
        volume; and
            (F) access to affordable capital is a significant problem 
        for both rural and urban projects;
            (9) by providing seed capital and technical assistance, the 
        Federal Government, through time-limited investments, can--
                    (A) attract private sector investment to create and 
                retain much-needed jobs; and
                    (B) provide long-term, sustainable solutions to the 
                decades-old problem of limited access to healthy food 
                in underserved, low-income urban and rural communities; 
                and
            (10) legislation establishing a national fund modeled on 
        the successful Pennsylvania Fresh Food Financing Initiative 
        will help address the obesity epidemic while also creating 
        much-needed jobs and economic revitalization, and solving the 
        healthy food access problem in hundreds of communities across 
        the United States.

SEC. 3. HEALTHY FOOD FINANCING INITIATIVE.

    (a) In General.--Subtitle D of the Department of Agriculture 
Reorganization Act of 1994 (7 U.S.C. 6951) is amended by adding at the 
end the following:

``SEC. 242. HEALTHY FOOD FINANCING INITIATIVE.

    ``(a) Purpose.--The purpose of this section is to establish a 
program to improve access to healthy foods in underserved areas, to 
create and preserve quality jobs, and to revitalize low-income 
communities by providing loans and grants to eligible fresh, healthy 
food retailers to overcome the higher costs and initial barriers to 
entry in underserved, urban, suburban, and rural areas.
    ``(b) Definitions.--In this section:
            ``(1) Community development financial institution.--The 
        term `community development financial institution' has the 
        meaning given the term in section 103 of the Community 
        Development Banking and Financial Institutions Act of 1994 (12 
        U.S.C. 4702).
            ``(2) Food access organization.--The term `food access 
        organization' means a nonprofit organization with expertise in 
        improving access to healthy food in underserved communities.
            ``(3) Initiative.--The term `Initiative' means the Healthy 
        Food Financing Initiative established in the Department by 
        subsection (c)(1).
            ``(4) Local funds.--The term `local funds' means the 
        allocation of national funds and any other forms of financial 
        assistance (including grants, loans, and equity investments) 
        that are raised by partnerships to carry out the purposes of 
        this section.
            ``(5) National funds.--The term `national funds' means any 
        Federal appropriation made to carry out this section and any 
        other forms of financial assistance (including grants, loans, 
        and equity investments) that are raised by the national fund 
        manager to carry out the purposes of this section.
            ``(6) National fund manager.--The term `national fund 
        manager' means a community development financial institution in 
        existence as of the date of enactment of this section and 
        certified by the Community Development Financial Institutions 
        Fund of the Department of the Treasury that is designated by 
        the Secretary to manage the Initiative for purposes of--
                    ``(A) raising private capital;
                    ``(B) providing financial and technical assistance 
                to partnerships; and
                    ``(C) funding eligible projects directly at the 
                request of partnerships to attract fresh, healthy food 
                retailers to underserved urban, suburban, and rural 
                areas, in accordance with this section.
            ``(7) Partnership.--
                    ``(A) In general.--The term `partnership' means a 
                regional, State, or local public and private 
                partnership that is organized to improve access to 
                fresh, healthy foods by providing financial and 
                technical assistance to eligible projects.
                    ``(B) Inclusions.--The term `partnership' 
                includes--
                            ``(i) a unit of State, local, or tribal 
                        government or a quasi-public State or local 
                        government agency;
                            ``(ii) a food access or community health 
                        organization committed to improving access to 
                        healthy foods;
                            ``(iii) a community development financial 
                        institution or other organization that is 
                        capable of administering a loan and grant 
                        program in accordance with this section; and
                            ``(iv) other organizations interested in 
                        improving access to healthy foods in 
                        underserved areas.
    ``(c) Establishment.--
            ``(1) In general.--There is established in the Department a 
        Healthy Food Financing Initiative.
            ``(2) Management.--Not later than 1 year after the date of 
        enactment of this section, the Secretary shall select and enter 
        into a grant agreement with a national fund manager who shall 
        be responsible for the management of the Initiative nationally.
            ``(3) Eligible projects.--
                    ``(A) In general.--Subject to the requirements of 
                this paragraph, the national fund manager shall 
                establish the eligibility criteria for projects to be 
                assisted by the Initiative.
                    ``(B) Requirements.--To be eligible to receive 
                assistance through the Initiative, a project shall--
                            ``(i) include a supermarket, grocery store, 
                        farmers market, or other fresh, healthy food 
                        retailer;
                            ``(ii) consist of a for-profit business 
                        enterprise, a member- or worker-owned 
                        cooperative, or a nonprofit organization;
                            ``(iii) meet the eligibility criteria 
                        established under this section;
                            ``(iv) continue to be a viable business 
                        enterprise with a financial viability plan;
                            ``(v) require an investment of public 
                        funding to move forward and be competitive;
                            ``(vi) operate on a self-service basis;
                            ``(vii) in accordance with subparagraph 
                        (C), expand or preserve the availability of 
                        healthy, fresh, high-quality unprepared foods, 
                        particularly fresh fruits and vegetables, in 
                        underserved areas; and
                            ``(viii) agree to accept benefits under the 
                        supplemental nutrition assistance program 
                        established under the Food and Nutrition Act of 
                        2008 (7 U.S.C. 2011 et seq.).
                    ``(C) Requirements.--
                            ``(i) Definitions.--In this subparagraph:
                                    ``(I) Perishable food.--
                                            ``(aa) In general.--The 
                                        term `perishable food' means 
                                        food that is fresh, 
                                        refrigerated, or frozen.
                                            ``(bb) Exclusion.--The term 
                                        `perishable food' does not 
                                        include canned goods.
                                    ``(II) Staple food.--
                                            ``(aa) In general.--The 
                                        term `staple food' means food 
                                        that is a basic dietary item, 
                                        including bread, flour, fruits, 
                                        vegetables, and meat.
                                            ``(bb) Exclusions.--The 
                                        term `staple food' does not 
                                        include snack or accessory food 
                                        (such as chips, soda, coffee, 
                                        condiments, and spices) or 
                                        ready-to-eat, prepared food.
                                    ``(III) Variety.--The term 
                                `variety' means an assortment of 
                                different types of food items.
                            ``(ii) In general.--For purposes of 
                        subparagraph (B)(vii), to expand or preserve 
                        the availability of fresh fruits and vegetables 
                        in underserved areas shall mean, with respect 
                        to a project, that the project maintains a 
                        store that--
                                    ``(I) carries a full line of fresh 
                                produce, as defined by the national 
                                fund manager to reflect differences in 
                                project size and overall store size;
                                    ``(II) sells food for home 
                                preparation and consumption; and
                                    ``(III) at a minimum--
                                            ``(aa) offers for sale at 
                                        least 3 different varieties of 
                                        food in each of the 4 staple 
                                        food groups (bread and grains, 
                                        dairy, fruits and vegetables, 
                                        and meat, poultry, and fish), 
                                        with perishable food in at 
                                        least 2 categories, on a daily 
                                        basis; or
                                            ``(bb) has a store at which 
                                        at least 50 percent of the 
                                        total sales of the store 
                                        (including food and nonfood 
                                        items or services) are from the 
                                        sale of eligible staple food.
                    ``(D) Income criteria.--Each eligible project shall 
                be located in--
                            ``(i) a low- or moderate-income census 
                        tract, as determined by the Bureau of the 
                        Census of the Department of Commerce;
                            ``(ii) a population census tract that is 
                        treated as a low-income community under section 
                        45D(e) of the Internal Revenue Code of 1986; or
                            ``(iii) an area that significantly serves 
                        an adjacent area that meets the criteria 
                        described in clause (i) or (ii), as approved by 
                        the national fund manager.
                    ``(E) Underserved criteria.--
                            ``(i) In general.--Each eligible project 
                        shall be located in an underserved area, as 
                        determined by the partnerships according to 
                        criteria established by the national fund 
                        manager.
                            ``(ii) Factors.--In determining whether an 
                        area is an underserved area, the following 
                        factors shall be taken into consideration:
                                    ``(I) Population density.
                                    ``(II) Below average supermarket 
                                density or sales.
                                    ``(III) Car ownership.
                                    ``(IV) Geographical or physical 
                                barriers, such as highways, mountains, 
                                major parks, or bodies of water.
                            ``(iii) Locations.--On an annual basis, the 
                        national fund manager shall collect data and 
                        publish maps that show the location of 
                        underserved areas.
            ``(4) Priority projects.--
                    ``(A) In general.--Priority shall be given to 
                projects that--
                            ``(i) are located in severely distressed 
                        low-income communities, as defined by the 
                        Community Development Financial Institutions 
                        Fund of the Department of the Treasury; and
                            ``(ii) include 1 or more of the following 
                        characteristics:
                                    ``(I) The project will create or 
                                retain quality jobs in the community, 
                                as determined in accordance with 
                                subparagraph (B).
                                    ``(II) The project has community 
                                support in terms of store quality, 
                                affordability, site location, and 
                                coordination with local community plans 
                                or other programs promoting community 
                                and economic development.
                                    ``(III) The project supports 
                                regional food systems and locally grown 
                                foods, to the extent available.
                                    ``(IV) In major metropolitan areas, 
                                the project is associated with a 
                                transit-oriented development project.
                                    ``(V) In areas with public transit, 
                                the project is accessible by public 
                                transit.
                                    ``(VI) The project involves the 
                                reuse of a building that is listed in 
                                or eligible for the National Register 
                                of Historic Places.
                                    ``(VII) The project involves a 
                                brownfield or grayfield (as those terms 
                                are used in the Comprehensive 
                                Environmental Response, Compensation, 
                                and Liability Act of 1980 (42 U.S.C. 
                                9601 et seq.)).
                                    ``(VIII) The estimated energy 
                                consumption of the project, calculated 
                                using building energy software approved 
                                by the Department of Energy, will 
                                qualify the project for designation 
                                under the Energy Star program 
                                established by section 324A of the 
                                Energy Policy and Conservation Act (42 
                                U.S.C. 6294a).
                                    ``(IX) The project involves women- 
                                and minority-owned businesses.
                    ``(B) Quality jobs.--For purposes of subparagraph 
                (A)(ii)(I), a quality job is a job that--
                            ``(i) provides wages that are comparable to 
                        or better than similar positions in existing 
                        businesses of similar size in similar local 
                        economies;
                            ``(ii) offers benefits that are comparable 
                        to or better than what is offered for similar 
                        positions in existing local businesses of 
                        similar size in similar local economies; and
                            ``(iii) is targeted for residents of 
                        neighborhoods with a high proportion of persons 
                        of low income (as that term is defined in 
                        section 102(a) of the Housing and Community 
                        Development Act of 1974 (42 U.S.C. 5302(a))) 
                        through local targeted hiring programs.
    ``(d) Duties of the Secretary.--
            ``(1) In general.--The Secretary shall--
                    ``(A) designate a national fund manager to manage 
                national funds;
                    ``(B) oversee the Initiative nationally;
                    ``(C) work closely with the designated national 
                fund manager--
                            ``(i) to ensure that funds are used 
                        appropriately and in the most effective manner 
                        practicable; and
                            ``(ii) to develop the program strategy into 
                        a detailed work plan, program, and operating 
                        budget;
                    ``(D) review and approve the operating budget for 
                the national fund manager to ensure that the 
                administrative costs are--
                            ``(i) reasonable (not more than 5 percent 
                        of the total budget);
                            ``(ii) connected to the costs of 
                        operations; and
                            ``(iii) reflect efficient operations by the 
                        national fund manager; and
                    ``(E) make available to the public an annual 
                report, using data obtained from the Department of 
                Agriculture, the Department of Health and Human 
                Services, and the Community Development Financial 
                Institutions, that describes the impacts of the 
                Initiative, including tracking health and economic 
                development indicators at the local, State, and 
                national levels to determine the impacts of individual 
                projects and the collective impact in local areas and 
                statewide of funded projects and the Initiative 
                overall.
            ``(2) National fund manager.--The Secretary shall--
                    ``(A) select the national fund manager through a 
                competitive process from among community development 
                financial institutions that have a proven and recent 
                track record of success and effectiveness in--
                            ``(i) attracting private capital;
                            ``(ii) developing and managing programs 
                        that provide grants and loans to support 
                        supermarkets and other fresh, healthy food 
                        retail business enterprises in low- and 
                        moderate-income communities, including the 
                        development of grocery stores, farmers markets, 
                        and other fresh, healthy food retail models;
                            ``(iii) making and servicing loans that are 
                        similar to loans proposed in the Initiative or 
                        having a record of otherwise successfully 
                        investing in fresh, healthy food retail 
                        development projects;
                            ``(iv) effectively managing multiple 
                        contracts and subcontractors;
                            ``(v) effectively managing large capital 
                        pools, of at least $100,000,000; and
                            ``(vi) providing or contracting for the 
                        provision of technical assistance; and
                    ``(B) administer the Initiative by approving the 
                disbursement of funds to the national fund manager in a 
                manner that facilitates the implementation of the 
                overall Initiative.
            ``(3) Coordination.--
                    ``(A) In general.--Not later than 45 days after the 
                date of receipt of an award, the national fund manager 
                shall develop, with guidance from and in consultation 
                with the Secretary, and submit to the Secretary, a 
                detailed work plan.
                    ``(B) Approval required.--The Secretary shall 
                review and approve the work plan, program budget, and 
                administrative costs under subsection (e)(4)(C) prior 
                to entering into an agreement with the national fund 
                manager to administer the Initiative.
            ``(4) Performance targets.--
                    ``(A) In general.--The Secretary shall conduct 
                financial audits of, and establish performance targets 
                for, the national fund manager, which shall include, at 
                a minimum, the requirements described in this 
                paragraph.
                    ``(B) Geographic spread.--Partnerships funded by 
                the Initiative shall be geographically diverse and 
                representative of the underserved areas across the 
                United States.
                    ``(C) Focus on low-income communities.--A 
                substantial portion of the projects funded by 
                partnerships shall serve very low- and low-income 
                communities, as defined by the Bureau of the Census of 
                the Department of Commerce.
                    ``(D) Financial effectiveness of the national fund 
                manager.--The national fund manager and any local 
                financial institution involved in a partnership shall 
                demonstrate on-going capacity and timeliness in raising 
                private capital and disbursing funds as required under 
                the Initiative.
                    ``(E) Technical assistance effectiveness of the 
                national fund manager.--The provision of technical 
                assistance by the national fund manager shall be 
                evaluated based on--
                            ``(i) the responsiveness of the national 
                        fund manager to requests for assistance; and
                            ``(ii) the ability of the national fund 
                        manager to craft programs that develop needed 
                        new capacities in partnerships.
                    ``(F) Impact.--Performance targets shall address 
                the allocation of funds by the national fund manager to 
                partnerships and the tracking and reporting of the 
                impacts of the funds in improving access to fresh, 
                healthy foods and in achieving other related impacts.
    ``(e) Duties of the National Fund Manager.--
            ``(1) Allocation of funds.--
                    ``(A) In general.--The national fund manager 
                shall--
                            ``(i) allocate at least 70 percent of any 
                        Federal appropriation made to carry out this 
                        section to partnerships that are selected based 
                        on the criteria described in paragraph (3); and
                            ``(ii) retain not more than 30 percent of 
                        any Federal appropriation made to carry out 
                        this section to undertake financing activities 
                        described in subparagraph (C), including a 
                        reasonable amount for administrative costs (not 
                        to exceed 5 percent) approved by the Secretary 
                        in accordance with paragraph (4)(C).
                    ``(B) Use of the national funds by partnership 
                programs.--
                            ``(i) In general.--As a condition on the 
                        receipt of funds, each partnership shall use--
                                    ``(I) the national funds received 
                                from the national fund manager under 
                                subparagraph (A)(i) to create 1 or more 
                                revolving loan programs or other 
                                revolving pools of capital or other 
                                products to facilitate financing of 
                                local projects as determined by the 
                                agreement between the partnership and 
                                the national fund manager; and
                                    ``(II) any remaining funds for 
                                grants, or, as approved, for innovative 
                                financing mechanisms.
                            ``(ii) Limitations.--
                                    ``(I) In general.--Use of funds for 
                                administrative costs and other purposes 
                                shall be--
                                            ``(aa) limited in 
                                        accordance with the terms of 
                                        the agreement negotiated 
                                        between the national fund 
                                        manager and partnerships;
                                            ``(bb) based on whether 
                                        administrative costs are 
                                        reasonable, connected to the 
                                        costs of operation, and reflect 
                                        efficient operations by the 
                                        partnership; and
                                            ``(cc) determined using 
                                        criteria including geographic 
                                        coverage, program duration, and 
                                        total funding amount.
                                    ``(II) Goal.--The goal of this 
                                clause to limit administrative costs to 
                                the maximum extent practicable, but in 
                                no case may the amount used for 
                                administrative costs exceed 10 percent 
                                of the Federal funds allocated.
                    ``(C) Use of the national funds by the national 
                fund manager.--The national fund manager shall use 
                national funds described in subparagraph (A)(ii) to 
                undertake financing and other activities to enhance and 
                maximize the effectiveness of the Initiative, as 
                determined by the agreement with the Secretary, 
                including--
                            ``(i) attracting other forms of financial 
                        assistance to match or leverage the national 
                        funds;
                            ``(ii) awarding national funds to 
                        partnerships in accordance with paragraph (3);
                            ``(iii) creating and managing pools of 
                        grant or loan capital that blend or leverage 
                        national funds with other forms of financial 
                        assistance, including capital in the form of 
                        tax credits under section 45D of the Internal 
                        Revenue Code of 1986, for the benefit of 
                        partnerships;
                            ``(iv) creating and managing pools of grant 
                        or loan capital that blend or leverage the 
                        national funds with other forms of financial 
                        assistance, including capital in the form of 
                        tax credits under section 45D of the Internal 
                        Revenue Code of 1986, to finance eligible local 
                        projects identified by partnerships or the 
                        national fund manager that have special or 
                        unique characteristics;
                            ``(v) providing loans or grants directly to 
                        eligible local projects as matching funds if 
                        requested by a partnership;
                            ``(vi) providing credit enhancement or 
                        other financial products and instruments for 
                        the benefit of partnerships or eligible local 
                        projects;
                            ``(vii) providing technical assistance; and
                            ``(viii) funding reasonable administrative 
                        costs approved by the Secretary in accordance 
                        with paragraph (4)(C).
            ``(2) Responsibilities of the national fund manager.--The 
        designated national fund manager shall--
                    ``(A) raise other forms of financial assistance to 
                match or leverage the national funds;
                    ``(B) use administrative funds to develop 
                appropriate training programs and offer technical 
                assistance services to--
                            ``(i) partnerships;
                            ``(ii) State, local, and tribal 
                        governments;
                            ``(iii) the food retail industry; and
                            ``(iv) food access and health advocacy 
                        organizations to augment local capacities;
                    ``(C) develop financial products such as loans, 
                grants, and credit enhancement tools that can be used 
                by partnerships to incentivize and support the 
                development and retention of supermarkets and other 
                fresh, healthy food retail in underserved areas;
                    ``(D) award Initiative funds to eligible 
                partnerships through an annual competitive process in 
                accordance with paragraph (3);
                    ``(E) contract with a national food access 
                organization to assist in the review of applications 
                from partnerships and to provide technical assistance 
                to local food access organizations in the proposed 
                partnerships;
                    ``(F) award and disburse funds to partnerships or 
                eligible local projects in a timely manner;
                    ``(G) create and meet performance benchmarks and 
                reporting guidelines, as approved by the Secretary, 
                including for--
                            ``(i) the amount of capital raised and 
                        leveraged from financial institutions, 
                        partnerships, and other resources;
                            ``(ii) the geographic diversity of 
                        partnerships; and
                            ``(iii) the proportion of projects funded 
                        by the partnership that are in severely 
                        distressed low-income communities;
                    ``(H) develop program guidelines and operating 
                procedures for the Initiative, including--
                            ``(i) maximum grant and loan amounts for 
                        projects;
                            ``(ii) eligible uses of funds;
                            ``(iii) prudent underwriting criteria;
                            ``(iv) performance targets;
                            ``(v) reporting guidelines;
                            ``(vi) limits on administrative costs; and
                            ``(vii) implementation milestones;
                    ``(I) monitor the performance of partnerships; and
                    ``(J) collect data, compile information, and 
                conduct such research studies as the national fund 
                manager determines to be relevant to the successful 
                implementation of the Initiative, including--
                            ``(i) to assess national and local market 
                        conditions;
                            ``(ii) to determine barriers to market 
                        entry; and
                            ``(iii) to identify opportunities for the 
                        development or retention of supermarkets and 
                        other fresh, healthy food retail enterprises in 
                        underserved communities.
            ``(3) Criteria for awarding national funds to 
        partnerships.--
                    ``(A) In general.--The national fund manager shall 
                award national funds to partnerships through a 
                competitive process on an annual basis.
                    ``(B) First round priority.--In the first round of 
                funding, the national fund manager shall give priority 
                to a limited number of existing partnerships that have 
                demonstrable capacity to implement fresh food financing 
                programs in underserved areas quickly, and for which 
                there is demonstrable, significant need for improved 
                access to healthy food.
                    ``(C) Additional rounds.--Additional rounds shall 
                be designed to promote geographic diversity.
                    ``(D) Criteria.--In awarding national funds to 
                partnerships, the national fund manager shall 
                consider--
                            ``(i) the amount of funds and other 
                        resources pledged by a partnership to match or 
                        leverage national funds;
                            ``(ii) the degree of State, local, or 
                        tribal government support of the partnership as 
                        evidenced by matching grant and loan funds or 
                        other types of support, such as allocation of 
                        tax-exempt bonds, loan guarantees, and 
                        coordination of resources from other State or 
                        local economic development programs;
                            ``(iii) the capacity of the partnership to 
                        successfully develop and manage loan and grant 
                        programs;
                            ``(iv) the lack of supermarkets and other 
                        fresh, healthy food retail enterprises in low- 
                        and moderate-income areas that would be served 
                        by the partnership;
                            ``(v) the experience of the food access or 
                        community health organization of the 
                        partnership in outreach about access to healthy 
                        foods and local healthy food access issues;
                            ``(vi) the degree of community engagement 
                        and support in the development and retention of 
                        supermarkets and other fresh, healthy food 
                        retail enterprises; and
                            ``(vii) the contribution of the program of 
                        the partnership to the overall geographic 
                        diversity of the Initiative.
            ``(4) Administrative costs.--
                    ``(A) In general.--Not later than 45 days after the 
                date of receipt of an award, the national fund manager 
                shall submit to the Secretary for approval a 3-year 
                program and operating budget and detailed work plan 
                that shall include--
                            ``(i) costs for research and evaluation, 
                        technical assistance, and training; and
                            ``(ii) program and operating costs.
                    ``(B) Earned revenues.--Earned revenues from loan 
                fees and interest may be expended on program and 
                operating costs in accordance with the budget approved 
                by the Secretary.
                    ``(C) Basis of review.--The Secretary shall base 
                the review under subparagraph (A) on--
                            ``(i) the likelihood of the plan and 
                        expenditures to further the purposes of this 
                        section; and
                            ``(ii) whether the administrative costs are 
                        reasonable, connected to the costs of 
                        operation, and reflect efficient operations by 
                        the national fund manager.
    ``(f) Partnerships.--
            ``(1) In general.--Each partnership that receives 
        assistance through the Initiative shall provide financial and 
        technical assistance to eligible fresh, healthy food retail 
        projects in underserved areas within the defined communities of 
        the partnership.
            ``(2) Administration.--Each partnership shall designate a 
        community development financial institution or other 
        organization that is capable of administering a loan and grant 
        program--
                    ``(A) to execute grant agreements with the national 
                fund manager; and
                    ``(B) to serve as the manager of local funds.
            ``(3) Responsibilities of partnerships.--A partnership 
        shall--
                    ``(A) raise other forms of financial assistance to 
                match the national funds received by the partnership;
                    ``(B) provide marketing and outreach to 
                communities, the supermarket industry, other fresh, 
                healthy food retailers, State and local government 
                officials, and civic and public interest 
                organizations--
                            ``(i) to solicit applications from 
                        underserved areas from across the State or 
                        locality to be served by the partnership; and
                            ``(ii) to inform the communities and other 
                        persons about the availability of grants, 
                        loans, training, and technical assistance;
                    ``(C) review and underwrite projects to determine 
                whether--
                            ``(i) a proposed project meets the criteria 
                        for eligible projects under subsection (c)(3); 
                        and
                            ``(ii) a proposed project meets the 
                        criteria for priority projects under subsection 
                        (c)(4);
                    ``(D) provide technical assistance services to 
                eligible fresh, healthy food retail operators and 
                developers;
                    ``(E) track and report outcomes, including--
                            ``(i) the number of jobs created or 
                        retained;
                            ``(ii) the quantity of fresh, healthy food 
                        retail space created or retained; and
                            ``(iii) such other health and economic 
                        indicators as are required by the national fund 
                        manager;
                    ``(F) monitor and audit funded projects to ensure 
                compliance with the Initiative, the national fund 
                manager, and partnership program requirements for a 
                period of at least 3 years;
                    ``(G) submit an annual report to the national fund 
                manager that describes--
                            ``(i) the activities of the partnership;
                            ``(ii) the expenditure of local funds; and
                            ``(iii) success in meeting performance 
                        targets and satisfying such other terms and 
                        conditions as are specified in the agreement 
                        between the partnership and the national fund 
                        manager; and
                    ``(H) coordinate with the national fund manager for 
                the smooth operation of the Initiative.
            ``(4) Administrative costs.--
                    ``(A) In general.--As a condition on the receipt of 
                assistance under this section, each partnership shall 
                submit to the national fund manager for approval a 3-
                year budget and plan for all program and operating 
                costs, including--
                            ``(i) costs for research and evaluation, 
                        technical assistance, and training; and
                            ``(ii) administrative and operating costs.
                    ``(B) Earned revenues.--Earned revenues from loan 
                fees and interest may be expended on program and 
                operating costs in accordance with the budget approved 
                by the national fund manager.
                    ``(C) Basis of review.--The national fund manager 
                shall base the review under subparagraph (A) on the 
                likelihood of the budget and plan to further the 
                purposes of this section.
    ``(g) Evaluation and Monitoring.--
            ``(1) In general.--Program evaluation and financial audits 
        shall occur at all levels of the Initiative to ensure that--
                    ``(A) national and local funds are used properly; 
                and
                    ``(B) the objectives of the Initiative are met.
            ``(2) Program evaluation and financial audits.--
                    ``(A) In general.--The Secretary shall--
                            ``(i) conduct periodic program evaluations 
                        and financial audits of the national fund 
                        manager, partnerships, and projects funded by 
                        the Initiative; and
                            ``(ii) share with the national fund manager 
                        the results of the evaluations and audits.
                    ``(B) Funded projects.--The Secretary or the 
                national fund manager shall evaluate partnerships to 
                assess the health and economic impacts of projects 
                funded by the Initiative.
                    ``(C) Other impacts.--
                            ``(i) Secretary of health and human 
                        services.--The Secretary of Health and Human 
                        Services shall conduct research studies and 
                        evaluate the health impacts of the Initiative.
                            ``(ii) Community development financial 
                        institutions.--Representatives of the Community 
                        Development Financial Institutions shall 
                        conduct research studies and evaluate the 
                        economic impacts of the Initiative.
                    ``(D) Partnerships.--
                            ``(i) In general.--Each partnership shall--
                                    ``(I) conduct periodic 
                                administrative and financial audits of 
                                projects funded by the Initiative; and
                                    ``(II) share with the national fund 
                                manager the results of the audits.
                            ``(ii) Failure of partnership.--In a case 
                        in which a partnership fails, the national fund 
                        manager shall take over the portfolio of the 
                        failed partnership.
    ``(h) Administrative Provisions.--
            ``(1) In general.--Not later than 180 days after the date 
        of enactment of this section, the Secretary shall promulgate 
        regulations--
                    ``(A) for the conduct of a rigorous performance 
                evaluation to determine the impact of the Initiative at 
                the end of the initial 5-year period, which the 
                Secretary shall submit to Congress;
                    ``(B) to establish metrics for evaluating the 
                effectiveness of the Initiative; and
                    ``(C) under which the Secretary shall assess 
                whether the Initiative should be extended at the end of 
                the initial 5-year period.
            ``(2) Termination of contracts for cause.--The Secretary 
        may promulgate regulations under which the Secretary may 
        terminate contracts for cause if the Secretary determines that 
        to be necessary.
    ``(i) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary to carry out this section $125,000,000, 
to remain available until expended.''.
    (b) Conforming Amendment.--Section 296(b) of the Department of 
Agriculture Reorganization Act of 1994 (7 U.S.C. 7014(b)) is amended--
            (1) in paragraph (6)(C), by striking ``or'' at the end;
            (2) in paragraph (7), by striking the period at the end and 
        inserting ``; or''; and
            (3) by adding at the end the following:
            ``(8) the authority of the Secretary to establish in the 
        Department the Healthy Food Financing Initiative in accordance 
        with section 242.''.
                                 <all>
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