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[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3677 Introduced in House (IH)]

112th CONGRESS
  1st Session
                                H. R. 3677

    To authorize the Secretary of Housing and Urban Development to 
   establish a national program to create jobs and increase economic 
 development in underserved areas by promoting cooperative development.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                           December 15, 2011

    Mr. Fattah (for himself, Mr. Brady of Pennsylvania, Ms. Lee of 
 California, and Mr. Tierney) introduced the following bill; which was 
            referred to the Committee on Financial Services

_______________________________________________________________________

                                 A BILL

 
    To authorize the Secretary of Housing and Urban Development to 
   establish a national program to create jobs and increase economic 
 development in underserved areas by promoting cooperative development.

    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 ``National Cooperative Development 
Act''.

SEC. 2. FINDINGS AND PURPOSE.

    (a) Findings.--The Congress finds that Federal policy can promote 
cooperative development in underserved areas, which demonstrably has 
the following benefits for communities located in such areas:
            (1) Advancement of local economic stability.
            (2) An increase of local circulation of capital, thereby 
        increasing economic multipliers and the impact of community 
        investment to spur locally oriented economic growth.
            (3) Developing, attracting, and anchoring new productive 
        capital in low-income communities.
            (4) Expansion of investment opportunities and asset 
        creation for low- and moderate-income Americans.
    (b) Purpose.--The purpose of this Act is to establish a Federal 
program that will create jobs and increase economic development in 
underserved areas by promoting cooperative development in such areas.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Secretary.--The term ``Secretary'' means the Secretary 
        of Housing and Urban Development, or his or her designee.
            (2) National cooperative development program.--The term 
        ``National Cooperative Development Program'' means the program 
        established under section 4(a).
            (3) National cooperative development center.--The term 
        ``national cooperative development center'' means a nonprofit 
        organization, college, or university, or a group of such 
        organizations colleges, or universities, selected by the 
        Secretary pursuant to section 4(b)(1) to award national center 
        funds to local cooperative development centers and cooperative 
        organizations, and carry out other duties and responsibilities 
        in accordance with this Act.
            (4) Local cooperative development center.--The term ``local 
        cooperative development center'' means a nonprofit 
        organization, college, or university, or a group of such 
        organizations, colleges, or universities, with expertise in 
        establishing and developing cooperative organizations.
            (5) Cooperative organization.--The term ``cooperative 
        organization'' means an autonomous association of persons 
        united voluntarily to meet their common economic, social, and 
        cultural needs and aspirations through a jointly owned and 
        democratically controlled enterprise.
            (6) Cooperative development.--The term ``cooperative 
        development'' means technical assistance provided for the 
        purpose of--
                    (A) providing financial forecasting, feasibility 
                analysis, business planning, and other preparatory 
                activity to ensure that a cooperative organization, or 
                organizations that are in the process of establishing 
                such an organization, are grounded in sound business 
                practices;
                    (B) assisting with establishing incorporation 
                documents, bylaws, and policies that ensure that 
                cooperative organizations--
                            (i) adhere to legal obligations of a local 
                        or State government or the Federal Government; 
                        and
                            (ii) are governed by transparent and 
                        agreed-upon rules;
                    (C) educating, with respect to how cooperative 
                organizations function--
                            (i) board members, management, and 
                        employees of cooperative organizations;
                            (ii) local communities affected by such 
                        organizations and the general public; and
                            (iii) professionals involved in cooperative 
                        development;
                    (D) providing organizational planning for 
                cooperative organizations, including board meetings and 
                board development, and strategic planning;
                    (E) hosting networking activities and conferences 
                involving cooperative organizations, entities that work 
                with such organizations, and professional organizations 
                that engage in cooperative development;
                    (F) providing professional development of 
                professionals involved in cooperative development by 
                offering training focused on cooperative development; 
                and
                    (G) providing administrative and operational set-up 
                of cooperative organizations.
            (7) Eligible project.--The term ``eligible project'' means 
        a project that--
                    (A) meets the eligibility criteria established by 
                the national cooperative development center pursuant to 
                section 5(a)(1)(E); and
                    (B) serves an underserved area.
            (8) National center funds.--The term ``national center 
        funds'' means grant funds awarded to the national cooperative 
        development center by the Secretary under the National 
        Cooperative Development Program.
            (9) Underserved area.--
                    (A) In general.--The term ``underserved area'' 
                means an area located within--
                            (i) a census tract that is defined as low- 
                        or moderate-income 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) subject to subparagraph (B), an area 
                        that--
                                    (I) is adjacent to an area that 
                                meets the requirements of either clause 
                                (i) or (ii); and
                                    (II) is given special approval by 
                                the national cooperative development 
                                center to be classified as an 
                                underserved area.
                    (B) Limitation.--The national cooperative 
                development center shall limit the number of projects 
                funded under the National Cooperative Development 
                Program that are located in an area described in 
                subparagraph (A)(iii).
            (10) Women- and minority-owned business.--The term ``women- 
        and minority-owned business'' shall have the meaning given such 
        term in regulations prescribed by the Secretary.

SEC. 4. ESTABLISHMENT OF NATIONAL COOPERATIVE DEVELOPMENT PROGRAM AND 
              SELECTION OF THE NATIONAL CENTER.

    (a) Establishment of Program.--The Secretary shall establish a 
program to be known as the ``National Cooperative Development Program'' 
to carry out the purpose described in section 2(b).
    (b) Selection of National Cooperative Development Center.--
            (1) In general.--Not later than 1 year after the date of 
        the enactment of this Act, the Secretary shall select, through 
        a competitive process, and enter into a grant agreement with a 
        national cooperative development center that shall carry out 
        its duties and responsibilities in accordance with this Act.
            (2) Considerations.--In selecting the national cooperative 
        development center under paragraph (1), the Secretary shall 
        take into consideration the following:
                    (A) The extent that the national cooperative 
                development center has demonstrated expertise in 
                cooperative development.
                    (B) The experience that such national center has in 
                providing--
                            (i) technical and financial assistance to 
                        cooperative organizations in underserved areas; 
                        and
                            (ii) educational resources to such 
                        organizations.
    (c) Submittal of Strategic Plan to Secretary by the National 
Center.--
            (1) In general.--Not later than 90 days after the Secretary 
        has selected the national cooperative development center under 
        subsection (b)(1), such national center shall submit to the 
        Secretary a strategic plan that outlines how the national 
        center intends on utilizing national center funds, and such 
        plan shall specifically include--
                    (A) a proposed budget, including the proposed 
                administrative costs;
                    (B) a detailed description of how the national 
                center will use national center funds to promote, or 
                engage in, cooperative development; and
                    (C) other pertinent information that the Secretary 
                may require.
            (2) Review of plan.--The Secretary shall review the 
        strategic plan submitted under paragraph (1) and ensure that 
        the administrative costs will not exceed the limitation 
        provided under section 5(a)(2)(B)(i).
            (3) Approval required.--Not later than 60 days after the 
        submittal of the strategic plan under paragraph (1), the 
        Secretary shall approve or reject such plan. In the case that 
        the Secretary--
                    (A) approves such plan, the Secretary shall 
                disperse national center funds within 1 year after such 
                approval; or
                    (B) rejects such plan, not later than 60 days after 
                such rejection, such national center shall resubmit a 
                revised plan.
    (d) Establishing Performance Targets.--
            (1) HUD.--The Secretary shall establish performance targets 
        for the national cooperative development center, which shall 
        include, at a minimum, the following requirements:
                    (A) Focus on women- and minority-owned cooperative 
                organizations.--A significant percentage of projects 
                funded with national center funds shall involve 
                cooperative organizations that are women- or minority-
                owned.
                    (B) Focus on underserved areas.--A substantial 
                portion of the projects funded by local cooperative 
                development centers with national center funds shall 
                serve communities located in an underserved area.
                    (C) Effectiveness of assistance.--Assistance 
                provided by the national cooperative development center 
                to local cooperative development centers shall be 
                evaluated based on--
                            (i) the level of responsiveness of the 
                        national cooperative development center to 
                        requests for assistance;
                            (ii) the ability of the national 
                        cooperative development center to craft 
                        programs that help local cooperative 
                        development centers establish new cooperative 
                        organizations; and
                            (iii) measurable economic results in local 
                        communities that local cooperative development 
                        centers serve.
            (2) Local cooperative development centers.--Each local 
        cooperative development center awarded national center funds 
        shall establish, in coordination with the national cooperative 
        development center, performance targets that must be met at the 
        end of each year in which the entity receives grant funds. Such 
        targets shall be approved by the national cooperative 
        development center.

SEC. 5. NATIONAL COOPERATIVE DEVELOPMENT CENTER.

    (a) Duties of the National Cooperative Development Center.--
            (1) In general.--The national cooperative development 
        center shall--
                    (A) submit to the Secretary a strategic plan in 
                accordance with section (4)(c)(1);
                    (B) develop technical assistance, educational, and 
                other materials to assist local cooperative development 
                centers that are receiving national center funds 
                develop cooperative organizations;
                    (C) monitor and evaluate the performance of such 
                local centers;
                    (D) provide guidance, information on best 
                practices, and technical assistance to communities 
                seeking to establish cooperative organizations;
                    (E) establish the eligibility criteria for projects 
                to be carried out using national center funds; and
                    (F) develop program and reporting guidelines, as 
                approved by the Secretary.
            (2) Use of national center funds.--
                    (A) In general.--The national cooperative 
                development center may use national center funds to 
                undertake activities that promote cooperative 
                development, including--
                            (i) distributing national center funds to 
                        local cooperative development centers, either 
                        selected under clause (i) of subparagraph (C) 
                        or established under subsection (b), in 
                        accordance with such subparagraph;
                            (ii) partnering with a financial 
                        institution to--
                                    (I) establish a revolving loan 
                                program, subject to the limitation 
                                under subparagraph (B)(ii)(II), that 
                                will provide loans to cooperative 
                                organizations; and
                                    (II) develop other loan programs 
                                and financial products that can be 
                                accessed by local cooperative 
                                development centers to support the 
                                development and retention of 
                                cooperative organizations;
                            (iii) providing technical assistance in 
                        areas where local cooperative development 
                        centers do not provide such assistance, 
                        especially assistance for cooperative 
                        organizations at the national level;
                            (iv) funding reasonable administrative 
                        costs approved by the Secretary in accordance 
                        with section 4(c)(3);
                            (v) providing funding for ongoing 
                        professional training of providers of technical 
                        assistance and supporting existing professional 
                        development training for organizations engaged 
                        in cooperative development;
                            (vi) establishing and developing local 
                        cooperative development centers pursuant to 
                        subsection (b); and
                            (vii) carrying out any other activities 
                        that promote cooperative development, as 
                        determined by the Secretary.
                    (B) Allocation of national center funds.--The 
                national cooperative development center shall allocate 
                national center funds in the following manner:
                            (i) Shall reserve not more than 10 percent 
                        for administrative purposes.
                            (ii) Of the national center funds not 
                        allocated for administrative costs under clause 
                        (i)--
                                    (I) 55 percent shall be awarded to 
                                local cooperative development centers; 
                                and
                                    (II) 45 percent shall be allocated 
                                to establish the revolving loan program 
                                referred to clause (ii)(I) of 
                                subparagraph (A) and undertake any 
                                other activity described under such 
                                subparagraph.
                    (C) Distribution of national center funds to local 
                cooperative development centers.--
                            (i) In general.--The national cooperative 
                        development center shall select, through a 
                        competitive process, and enter into a grant 
                        agreement, for a period of no more than 3 
                        years, with local cooperative development 
                        centers to promote, or engage in, cooperative 
                        development in accordance with this Act.
                            (ii) Criteria for selection.--The national 
                        cooperative development center shall, in 
                        consultation with the Secretary, establish the 
                        criteria for selecting the local cooperative 
                        development centers under clause (i), taking 
                        into account the considerations under clause 
                        (iii).
                            (iii) Considerations.--In selecting local 
                        cooperative development centers under clause 
                        (ii), the national cooperative development 
                        center shall take into consideration the 
                        following:
                                    (I) The technical capacity to carry 
                                out eligible projects.
                                    (II) The ability to deliver 
                                technical assistance in underserved 
                                areas.
                                    (III) The capacity and commitment 
                                to offering cooperative development in 
                                underserved areas.
                                    (IV) The ability to come up with 
                                the expected matching funding of not 
                                less than 15 percent of national funds 
                                received by the local cooperative 
                                development center.
                                    (V) The presence of eligible 
                                projects.
                                    (VI) The track record in developing 
                                successful cooperative organizations.
                                    (VII) The degree of community 
                                engagement and support.
                                    (VIII) The ability to have a 
                                positive economic impact on an area 
                                through job creation or retention, 
                                affordable housing creation, or wealth 
                                creation.
                                    (IX) Such other qualities as the 
                                national cooperative development center 
                                may determine.
                    (D) Multi-year funding permitted.--The national 
                cooperative development center may award national 
                center funds to a local cooperative development center 
                for more than 1 fiscal year.
                    (E) Violation of grant agreement.--If the national 
                cooperative development center determines that an 
                entity awarded grant funds under National Cooperative 
                Development Program has not met the performance targets 
                established pursuant to section 4(d), is not making 
                reasonable progress toward meeting such measures, or is 
                otherwise in violation of the grant agreement, the 
                national center may--
                            (i) withhold financial assistance until the 
                        performance measures are met; or
                            (ii) terminate the grant agreement 
                        established under section 5(a)(2)(C)(i).
    (b) Establishment of New Local Cooperative Development Centers.--
            (1) In general.--The national cooperative development 
        center may establish up to 3 local cooperative development 
        centers in each fiscal year.
            (2) Selection criteria.--The national cooperative 
        development center shall establish the criteria for the 
        selection of organizations that form the local cooperative 
        development centers established under subparagraph (1).
            (3) Location.--In addition to the criteria established 
        pursuant to subparagraph (2), a local cooperative development 
        center established under subparagraph (1) shall be located in a 
        region of the United States or economic sector where no other 
        local cooperative development centers are located.
            (4) Limitations on funding.--A local cooperative 
        development center established under subparagraph (1) may be 
        awarded national center funds for no more than 3 years. After 
        the expiration of such 3-year period, in order to be eligible 
        for a grant under the National Cooperative Development Program, 
        such local center would be required to compete for such funds 
        in accordance with subsection (a)(2)(C).

SEC. 6. LOCAL COOPERATIVE DEVELOPMENT CENTERS.

    (a) Use of Funds by Local Cooperative Development Centers.--A local 
cooperative development center selected under section 5(a)(2)(C)(i) may 
use national center funds to undertake activities that promote 
cooperative development.
    (b) Availability of Funds.--
            (1) In general.--A local cooperative development center 
        awarded national center funds shall--
                    (A) obligate any such funds not later than 3 years 
                after the date on which the such funds were awarded to 
                such local center; and
                    (B) expend any such funds not later than 4 years 
                after such date.
            (2) Unobligated amounts.--If national center funds awarded 
        to a local cooperative development center are not obligated by 
        the period described in paragraph (1)(A), the national 
        cooperative development center may rescind and award such funds 
        to another local cooperative development center in accordance 
        with this Act.
            (3) Report.--Not later than 1 year after receiving national 
        center funds, and annually thereafter, a local cooperative 
        development center selected under section 5(a)(2)(C)(i) or 
        established under section 5(b) shall submit to the national 
        cooperative development center a report that includes--
                    (A) the total amount of grant funds that have been 
                expended;
                    (B) a description of the activities undertaken by 
                such local center;
                    (C) an evaluation of each project funded with 
                national center funds;
                    (D) an assessment of the economic impact of the 
                projects funded with national center funds; and
                    (E) other information as the Secretary or the 
                national cooperative development center may require.

SEC. 7. REPORT TO CONGRESS.

    Not later than 3 years after the date of the enactment of this Act, 
and annually thereafter, the Secretary, in collaboration with the 
national cooperative development center, shall submit to Congress a 
report includes--
            (1) information on the number of cooperatives created;
            (2) best practices from the local cooperative development 
        centers that are awarded national center funds and the economic 
        benefits to the local community in which such center serves 
        resulting from such use of funds;
            (3) an evaluation of performance targets established 
        pursuant to section 4(d);
            (4) case studies featuring select cooperative organizations 
        that benefitted from the National Cooperative Development 
        Program; and
            (5) any additional information, including statistics, that 
        would help promote future cooperative development.

SEC. 8. REGULATIONS.

    Not later than 180 days after the date of the enactment of this 
Act, the Secretary shall issue regulations necessary to carry out its 
provisions.

SEC. 9. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to the Secretary for the 
award of grants under the National Cooperative Development Program, to 
remain available until expended--
            (1) $25,000,000 for fiscal year 2012;
            (2) $25,000,000 for fiscal year 2013;
            (3) $25,000,000 for fiscal year 2014;
            (4) $25,000,000 for fiscal year 2015; and
            (5) $25,000,000 for fiscal year 2016.
                                 <all>
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