I

104TH CONGRESS

2D SESSION H. R. 3349

To amend the Housing and Community Development Act of 1974 and the

Federal Home Loan Bank Act to authorize Federal Home Loan Banks

to make advances for community development activities to units of general local government and for such advances to be guaranteed by community development block grant amounts to which such units of local

government become eligible, to expand the community participation requirements relating to community development loan guarantees to include

participation of major community stakeholders, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

APRIL 30, 1996

Mr. FATTAH (for himself, Mr. ROMERO-BARCELO ́, Mr. FILNER, Mr. HASTINGS of Florida, Ms. JACKSON-LEE of Texas, Ms. EDDIE BERNICE

JOHNSON of Texas, Ms. MCKINNEY, Ms. NORTON, Mr. THOMPSON, and

Mr. TOWNS) introduced the following bill; which was referred to the Committee on Banking and Financial Services

A BILL

To amend the Housing and Community Development Act

of 1974 and the Federal Home Loan Bank Act to authorize Federal Home Loan Banks to make advances

for community development activities to units of general

local government and for such advances to be guaranteed

by community development block grant amounts to which

such units of local government become eligible, to expand

the community participation requirements relating to

community development loan guarantees to include par-
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ticipation of major community stakeholders, and for

other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘American Cities In5 vestment Act of 1996’’.

6 SEC. 2. COMMUNITY DEVELOPMENT LOAN GUARANTEES.

7 (a) ADVANCES FROM FEDERAL HOME LOAN

8 BANKS.—Section 108 of the Housing and Community De9 velopment Act of 1974 (42 U.S.C. 5308) is amended by

10 adding at the end the following new subsection:

11 ‘‘(s) AUTHORITY TO GUARANTEE ADVANCES FROM

12 FEDERAL HOME LOAN BANKS.—

13 ‘‘(1) LIMITATION ON MAXIMUM OUTSTANDING

14 LOAN GUARANTEES.—Notwithstanding any other

15 provision of this section, the maximum aggregate

16 outstanding amount of notes and obligations of a

17 single issuer guaranteed under this section shall be

18 an amount determined by the Secretary based on the

19 amount of the grant approval for the issuer under

20 section 106 or 107, the fiscal condition of the issuer,

21 and the potential return on investment of the

22 projects to be undertaken with the proceeds of such

23 notes and obligations, but may not in any case ex24 ceed the discounted present value (based on the pre-
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1 vailing Federal funds rate) of the grants that the is2 suer would receive over a period not to exceed 20

3 years if the issuer’s annual grant amount over such

4 period were equal to 80 percent of the current grant

5 approval for the issuer. The amount of an advance

6 guaranteed under paragraph (2) shall be included in

7 the aggregate outstanding amount of notes and

8 loans for purposes of the limitation under this para9 graph.

10 ‘‘(2) SECURITY.—The Secretary may use any

11 authority provided for guaranteed loans authorized

12 by this section to guarantee advances made under

13 section 10b(c) of the Federal Home Loan Bank Act,

14 but only if the unit of general local government for

15 the eligible public entity or designated public agency

16 to which the advance is made pledges any grants to

17 which it becomes eligible under this title as security

18 for repayment of the advance.’’.

19 (b) STAKEHOLDER PARTICIPATION.—Section 108 of

20 the Housing and Community Development Act of 1974

21 (42 U.S.C. 5308) is amended by adding after subsection

22 (s), as added by subsection (a) of this section, the follow23 ing new subsection:

24 ‘‘(t) STAKEHOLDER PARTICIPATION.—
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1 ‘‘(1) REQUIREMENT.—For the purposes of the

2 development of activities to be funded under this

3 section, the community participation requirements of

4 section 104(a) shall be expanded to include partici5 pation of major stakeholders. Such stakeholders may

6 include, but not be limited to the chief executives of

7 the following entities:

8 ‘‘(A) The board of education.

9 ‘‘(B) The police and fire departments.

10 ‘‘(C) Utility companies.

11 ‘‘(D) Universities.

12 ‘‘(E) Chambers of commerce.

13 ‘‘(F) Labor unions.

14 ‘‘(G) Transportation authorities.

15 ‘‘(H) Health Facilities.

16 ‘‘(I) Locally owned radio and television

17 stations.

18 ‘‘(J) Libraries.

19 ‘‘(K) Cultural institutions.

20 ‘‘(L) Religious institutions.

21 ‘‘(M) Sports franchises.

22 ‘‘(N) Professional and social service asso23 ciations.

24 ‘‘(2) DEFINITION.—For purposes of this sub25 section, the term ‘stakeholder’ means a public or pri-
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1 vate organizational entity whose future well-being

2 depends upon the applicant’s continued social and

3 economic viability.’’.

4 SEC. 3. FEDERAL HOME LOAN BANK ADVANCES.

5 Section 10b of the Federal Home Loan Bank Act (12

6 U.S.C. 1430b) is amended by adding at the end the follow7 ing new subsection:

8 ‘‘(c) ADVANCES TO UNITS OF LOCAL GOVERNMENT

9 FOR COMMUNITY DEVELOPMENT PURPOSES.—A Federal

10 Home Loan Bank may make advances to an eligible public

11 entity (as such term is defined in section 108(o) of the

12 Housing and Community Development Act of 1974) or a

13 public agency designated by an eligible public entity in the

14 same manner provided for advances to nonmember mort15 gagees under this section, except that advances under this

16 subsection shall not be subject to the requirements under

17 this section regarding security, but may be made only pur18 suant to a guarantee provided under section 108(s)(2) of

19 the Housing and Community Development Act of 1974.’’.

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