II 

116TH CONGRESS 

2D SESSION S. 4405 

To establish a pilot program to provide grants to nongovernmental entities, 

including nonprofit organizations and faith-based organizations, to provide economic support in urban areas of the United States, and for 

other purposes. 

IN THE SENATE OF THE UNITED STATES 

AUGUST 3, 2020 

Mr. VAN HOLLEN introduced the following bill; which was read twice and 

referred to the Committee on Environment and Public Works 

A BILL 

To establish a pilot program to provide grants to nongovernmental entities, including nonprofit organizations and 

faith-based organizations, to provide economic support 

in urban areas of the United States, 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 ‘‘Neighborhood Eco5 nomic Development and Opportunity Act of 2020’’. 


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1 SEC. 2. NEIGHBORHOOD ECONOMIC DEVELOPMENT AND 

2 OPPORTUNITY PILOT PROGRAM. 

3 (a) FINDINGS.—Congress finds that— 

4 (1) residents of certain urban communities in 

5 the United States have experienced decades-long, 

6 complex, and systemic racial, economic, social, and 

7 other impediments that prevent the best solutions 

8 and equal opportunities for certain urban residents 

9 compared to those in outlying communities; 

10 (2) the efforts and work of nonprofit and faith11 based community organizations are essential to revi12 talizing the urban communities referred to in para13 graph (1) and delivering meaningful, positive change 

14 in people and improvement of physical infrastructure 

15 of neighborhoods, resulting in better communities; 

16 and 

17 (3) cities are in need of immediate and emer18 gency action and streamlined delivery of Federal as19 sistance through local nonprofit and faith-based or20 ganizations within or directly contributing to se21 verely distressed urban neighborhoods, especially in 

22 areas designated as opportunity zones. 

23 (b) DEFINITIONS.—In this section: 

24 (1) ELIGIBLE ENTITY.—The term ‘‘eligible enti25 ty’’ means a nongovernmental, nonprofit, faith26 based, or charitable organization, including a ComVerDate Sep 11 2014 03:58 Aug 19, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S4405.IS S4405

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1 munity Development Corporation, or a combination 

2 of such organizations, that— 

3 (A) is described in section 501(c)(3) of the 

4 Internal Revenue Code of 1986 and is exempt 

5 from taxation under section 501(a) of that 

6 Code; and 

7 (B) delivers— 

8 (i) services that improve employment 

9 skills, promote self-sufficiency and self-em10 powerment, and help individuals achieve 

11 their full potential through the develop12 ment and provision of skills and capacities 

13 that promote productive individuals; or 

14 (ii) development projects that revi15 talize physical infrastructure needed in se16 verely distressed urban neighborhoods, es17 pecially opportunity zones. 

18 (2) FAITH-BASED ORGANIZATION.—The term 

19 ‘‘faith-based organization’’ means a nonprofit orga20 nization or group of organizations that is affiliated 

21 with or composed of congregations or networks of 

22 worship organizations that deliver social, human, or 

23 community redevelopment services or activities for 

24 the purpose of improving the human condition or 

25 lives of people. 


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1 (3) OPPORTUNITY ZONE.—The term ‘‘oppor2 tunity zone’’ has the meaning given the term ‘‘quali3 fied opportunity zone’’ in section 1400Z–1(a) of the 

4 Internal Revenue Code of 1986. 

5 (4) REVIEW BOARD.—The term ‘‘review board’’ 

6 means the review board established under subsection 

7 (d)(1). 

8 (5) SECRETARY.—The term ‘‘Secretary’’ means 

9 the Secretary of Commerce. 

10 (6) SEVERELY DISTRESSED URBAN NEIGHBOR11 HOOD.—The term ‘‘severely distressed urban neigh12 borhood’’ means— 

13 (A) an opportunity zone; or 

14 (B) an area that has experienced severe 

15 long-term poverty, as determined by the Sec16 retary. 

17 (c) NEIGHBORHOOD ECONOMIC DEVELOPMENT AND

18 OPPORTUNITY PILOT PROGRAM FOR NONPROFIT AND

19 FAITH-BASED PARTNERSHIPS TO SUPPORT SEVERELY

20 DISTRESSED URBAN NEIGHBORHOODS.— 

21 (1) ESTABLISHMENT.—The Secretary shall es22 tablish a grant program to provide grants to eligible 

23 entities to carry out activities to achieve urban com24 munity revitalization in severely distressed urban 

25 neighborhoods. 


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1 (2) ELIGIBLE ACTIVITIES.—An eligible entity 

2 may use a grant under this section to carry out— 

3 (A) a social or economic program that im4 proves employment skills, promotes self-suffi5 ciency and self-empowerment, or helps individ6 uals achieve their full potential through develop7 ment and provision of skills and capacities that 

8 promote productive individuals; or 

9 (B) a development project that revitalizes 

10 physical infrastructure in a severely distressed 

11 urban neighborhood, in combination with activi12 ties described in subparagraph (A). 

13 (3) APPLICATIONS.— 

14 (A) IN GENERAL.—Not later than 60 days 

15 after the date of enactment of this Act, to be 

16 eligible to receive a grant under this section, an 

17 eligible entity shall submit to the Secretary an 

18 application that describes funding needs of the 

19 eligible entity, including a description of any 

20 funding needed to complete ongoing projects, 

21 development plans, and sustainable services for 

22 residents in severely distressed urban neighbor23 hoods and how that funding will achieve urban 

24 community revitalization results with such peo25 ple and in neighborhoods. 


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1 (B) REQUIREMENT.—An application under 

2 subparagraph (A) shall— 

3 (i) describe the total cost of the activi4 ties (including non-Federal contributions) 

5 to be carried out with a grant under this 

6 section; 

7 (ii) describe the amount of non-Fed8 eral funds that will be contributed to carry 

9 out the activities described in clause (i); 

10 (iii) describe the measurable results 

11 expected as a result of the activities de12 scribed in clause (i); and 

13 (iv) include a clear, itemized state14 ment that demonstrates how the activities 

15 described in clause (i) will achieve the 

16 goals of— 

17 (I) restoring communities— 

18 (aa) by bettering people 

19 through building core personal 

20 attributes needed for successful, 

21 functioning communities and in22 dividuals, including by improving 

23 skills, character, and economic 

24 productive capacity of individ25 uals; and 


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1 (bb) by building economi2 cally translatable skills; and 

3 (II) improving severely distressed 

4 urban neighborhoods through com5 prehensive development projects that 

6 revitalize physical infrastructure in 

7 such neighborhoods. 

8 (4) GRANT REQUIREMENTS.— 

9 (A) TOTAL COST OF ACTIVITIES.—The 

10 total cost of activities carried out with a grant 

11 under this section (including non-Federal con12 tributions) shall be— 

13 (i) not less than $2,500,000; and 

14 (ii) not more than $50,000,000. 

15 (B) NON-FEDERAL SHARE.—The non-Fed16 eral share of the cost of activities carried out 

17 with a grant under this section shall be not less 

18 than 5 percent. 

19 (d) REVIEW BOARD.— 

20 (1) IN GENERAL.—The Secretary shall establish 

21 a review board to review and evaluate applications 

22 for grants under this section. 

23 (2) COMPOSITION.— 

24 (A) IN GENERAL.—The review board shall 

25 be composed of 9 members, of which— 


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1 (i) one shall be the Secretary (or a 

2 designee); 

3 (ii) two shall be appointed by the 

4 President; 

5 (iii) two shall be appointed by the 

6 Speaker of the House of Representatives; 

7 (iv) one shall be appointed by the mi8 nority leader of the House of Representa9 tives; 

10 (v) two shall be appointed by the ma11 jority leader of the Senate; and 

12 (vi) one shall be appointed by the mi13 nority leader of the Senate. 

14 (B) DEADLINE FOR APPOINTMENT.—Mem15 bers of the review board shall be appointed not 

16 later than the date that is 30 days after the 

17 date of enactment of this Act. 

18 (3) DUTIES.— 

19 (A) IN GENERAL.—The review board 

20 shall— 

21 (i) review, evaluate, and rank applica22 tions for grants under this section; and 

23 (ii) not later than 120 days after the 

24 date of enactment of this Act, submit to 

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1 paragraph (C)(ii) for consideration in the 

2 final selection of grant recipients by the 

3 Secretary. 

4 (B) EVALUATION.— 

5 (i) IN GENERAL.—The review board 

6 shall evaluate each application received 

7 under this section based on the following 

8 criteria: 

9 (I) The extent of existing poverty 

10 and crime issues in the severely dis11 tressed urban neighborhood. 

12 (II) The likelihood that activities 

13 proposed to be carried out with a 

14 grant under this section will achieve 

15 the goals described in subsection 

16 (c)(3)(B)(iv). 

17 (III) The support for the applica18 tion, as demonstrated through mean19 ingful, substantive roles of one or 

20 more Federal, State, or local govern21 ment and one or more private, non22 governmental entity in carrying out 

23 the proposed activities. 

24 (IV) The proportion of non-Fed25 eral funds contributed to carry out 


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1 the activities described in the applica2 tion, including private, State, local, 

3 and other sources of funds, with a 

4 preference given to those applications 

5 that commit a larger non-Federal 

6 share. 

7 (V) The demonstrated success of 

8 the eligible entity in providing services 

9 or projects in the severely distressed 

10 urban neighborhood. 

11 (VI) The management and ad12 ministrative capacity of the eligible 

13 entity to carry out the activities. 

14 (VII) The accountability meas15 ures proposed in the application, such 

16 as metered release of Federal funds, 

17 audits, transparency measures, public 

18 disclosure, and third-party reviews to 

19 ensure funding is spent as budgeted 

20 and results are measured, reported, 

21 and shared. 

22 (ii) PRIORITY.—In evaluating applica23 tions under this section, the review board 

24 shall give priority— 


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1 (I) to applications that reflect di2 rect community neighborhood input; 

3 and 

4 (II) to applications from eligible 

5 entities that are based in the commu6 nity served by the eligible entity. 

7 (C) RANKINGS.— 

8 (i) IN GENERAL.—Based on the eval9 uations under subparagraph (B)— 

10 (I) the review board shall deter11 mine which applications meet the re12 quirements of this section; 

13 (II) each member of the review 

14 board shall provide a score for each 

15 application described in subclause (I) 

16 on a scale of 0 to 100; 

17 (III) for each application that is 

18 scored, the scores of each member 

19 shall be averaged to create an average 

20 score for the application; and 

21 (IV) the applications shall be list22 ed by average score in the applicable 

23 category on the priority list under 

24 clause (ii). 


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1 (ii) PRIORITY LIST.—The review 

2 board shall develop a priority list that in3 cludes each application that receives a 

4 score under clause (i), in the following cat5 egories: 

6 (I) Applications with a total cost 

7 (including non-Federal contributions) 

8 of $10,000,000 or less, from the high9 est average score to the lowest aver10 age score of those applications. 

11 (II) Applications with a total cost 

12 (including non-Federal contributions) 

13 of more than $10,000,000, from the 

14 highest average score to the lowest av15 erage score of those applications. 

16 (4) STAFF.— 

17 (A) IN GENERAL.—The review board may 

18 hire temporary staff to support the review 

19 board in carrying out the duties of the review 

20 board under paragraph (3). 

21 (B) FUNDING.—The review board may use 

22 not more than $1,000,000 of the amounts made 

23 available to carry out this section for staff sala24 ries and expenses under subparagraph (A). 

25 (5) TERMINATION.— 


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1 (A) IN GENERAL.—Subject to subpara2 graph (B), the review board shall terminate on 

3 the date on which the Secretary has selected all 

4 grant recipients under this section and section 

5 3. 

6 (B) EXTENSION.—The Secretary may 

7 grant the review board not more than 1 exten8 sion of not more than 180 days, if the Sec9 retary determines an extension to be necessary. 

10 (e) SELECTION AND DISTRIBUTION.— 

11 (1) INITIAL GRANTS.— 

12 (A) IN GENERAL.—Not later than 60 days 

13 after the date on which the review board sub14 mits the priority list to the Secretary under 

15 subsection (d)(3)(A)(ii), the Secretary shall se16 lect 12 applications to receive grants under this 

17 section, after taking into consideration the pri18 ority list. 

19 (B) REGIONAL SELECTION.—The applica20 tions selected under subparagraph (A) shall in21 clude 2 applications from each region served by 

22 an Economic Development Administration re23 gional office. 

24 (C) DISTRIBUTION.—Of the amounts made 

25 available to carry out this section— 


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1 (i) not less than $200,000,000 shall 

2 be used to provide grants for applications 

3 on the priority list under the category de4 scribed in subsection (d)(3)(C)(ii)(I), with 

5 priority given to providing full funding to 

6 the applications that received the highest 

7 rankings; and 

8 (ii) not less than $300,000,000 shall 

9 be used to provide grants for applications 

10 on the priority list under the category de11 scribed in subsection (d)(3)(C)(ii)(II), with 

12 priority given to providing full funding to 

13 the applications that received the highest 

14 rankings. 

15 (2) ADDITIONAL SELECTIONS.— 

16 (A) IN GENERAL.—Not later than 60 days 

17 after the date on which the review board sub18 mits the priority list to the Secretary under 

19 subsection (d)(3)(A)(ii), after providing 12 

20 grants in accordance with paragraph (1), the 

21 Secretary shall use any remaining amounts to 

22 provide grants as described in subparagraph 

23 (B). 

24 (B) SELECTIONS.—In making selections 

25 under subparagraph (A), the Secretary shall— 


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1 (i) select to receive grant applications 

2 that were not selected to receive grants 

3 under paragraph (3); 

4 (ii) give priority consideration to the 

5 highest ranked applications remaining in 

6 the category described in subsection 

7 (d)(3)(C)(ii)(I) or the category described in 

8 subsection (d)(3)(C)(ii)(II), as applicable; 

9 and 

10 (iii) consider equitable regional dis11 tribution. 

12 (3) MULTIPLE DISBURSEMENTS.—The Sec13 retary may provide a grant under this section in 

14 multiple disbursements, with subsequent disburse15 ments contingent on a report to the Secretary by the 

16 eligible entity that demonstrates that the previous 

17 disbursement was— 

18 (A) expended consistent with this section 

19 and all applicable Federal laws; and 

20 (B) free of fraud, waste, and excessive 

21 spending, as verified to the satisfaction of the 

22 Secretary. 

23 (f) COORDINATION.—In providing grants under this 

24 section, the Secretary may coordinate with the heads of 


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1 other Federal agencies to ensure the best implementation 

2 of this section. 

3 (g) REPORTS.— 

4 (1) REPORTS BY GRANT RECIPIENTS.— 

5 (A) ACCOUNTING.—Not later than 20 days 

6 after the end of each quarter, beginning with 

7 the first full quarter after grant funds are dis8 bursed, until the grant funds are expended, 

9 each eligible entity that receives a grant under 

10 this section shall submit to the Secretary a re11 port that— 

12 (i) details the expenditures made for 

13 each activity carried out with the grant 

14 funds; and 

15 (ii) certifies that the expenditures 

16 were used to carry out the activities de17 scribed in the application of the eligible en18 tity. 

19 (B) FINAL REPORT.—Not later than 1 

20 year after the date on which the activities car21 ried out with a grant under this section have 

22 been completed, the eligible entity shall submit 

23 to the Secretary a report that describes— 

24 (i) the results and effectiveness of the 

25 grant in carrying out those activities; and 


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1 (ii) improvements to communities, 

2 jobs created, and other factors that have 

3 contributed to community improvement in 

4 the severely distressed urban neighborhood 

5 as a result of those activities. 

6 (2) REPORTS BY SECRETARY.—Not later than 

7 1 year after the date on which the amounts made 

8 available under subsection (h) have been disbursed 

9 for grants under this section, the Secretary shall 

10 submit to the Committee on Commerce, Science, and 

11 Transportation of the Senate and the Committee on 

12 Energy and Commerce of the House of Representa13 tives a report that evaluates the program under this 

14 section, including an evaluation of— 

15 (A) the quality of the grant applications; 

16 and 

17 (B) the outcomes and impacts of the 

18 projects and activities carried out with a grant, 

19 including health outcomes and the impact on 

20 determining characteristics of severely dis21 tressed urban neighborhoods. 

22 (h) FUNDING.— 

23 (1) IN GENERAL.—There is appropriated, out 

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1 priated, to the Secretary to carry out this section 

2 $600,000,000, to remain available until expended. 

3 (2) EMERGENCY DESIGNATION.— 

4 (A) IN GENERAL.—The amounts provided 

5 by paragraph (1) are designated as an emer6 gency requirement pursuant to section 4(g) of 

7 the Statutory Pay-As-You-Go Act of 2010 (2 

8 U.S.C. 933(g)). 

9 (B) DESIGNATION IN SENATE.—In the 

10 Senate, this section is designated as an emer11 gency requirement pursuant to section 4112(a) 

12 of H. Con. Res. 71 (115th Congress), the con13 current resolution on the budget for fiscal year 

14 2018. 

15 SEC. 3. BALTIMORE NEIGHBORHOOD ECONOMIC DEVELOP16 MENT AND OPPORTUNITY INITIATIVE. 

17 (a) DEFINITIONS.—In this section: 

18 (1) CITY.—The term ‘‘City’’ means the City of 

19 Baltimore, Maryland. 

20 (2) ELIGIBLE ENTITY.—The term ‘‘eligible enti21 ty’’ means— 

22 (A) an eligible entity (as defined in section 

23 2(b)) that is located in or serves the City; 

24 (B) the City; or 

25 (C) the State of Maryland. 


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1 (3) REVIEW BOARD.—The term ‘‘review board’’ 

2 means the review board established under section 

3 2(d)(1). 

4 (4) SECRETARY.—The term ‘‘Secretary’’ means 

5 the Secretary of Commerce. 

6 (5) SEVERELY DISTRESSED URBAN NEIGHBOR7 HOOD.—The term ‘‘severely distressed urban neigh8 borhood’’ has the meaning given the term in section 

9 2(b). 

10 (b) ESTABLISHMENT.—The Secretary may provide 

11 grants to eligible entities to carry out activities to achieve 

12 urban community revitalization in severely distressed 

13 urban neighborhoods in the City. 

14 (c) ELIGIBLE ACTIVITIES.—An eligible entity may 

15 use a grant under this section to carry out— 

16 (1) a social or economic program that improves 

17 skills, character, or productive capacity of individ18 uals that reside in a severely distressed urban neigh19 borhood in the City; or 

20 (2) a development project that revitalizes phys21 ical infrastructure in a severely distressed urban 

22 neighborhood in the City, in combination with activi23 ties described in paragraph (1). 

24 (d) APPLICATIONS.—Not later than 60 days after the 

25 date of enactment of this Act, to be eligible to receive a 


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1 grant under this section, an eligible entity shall submit 

2 to the Secretary an application that describes funding 

3 needs of the eligible entity, including a description of any 

4 funding needed to complete ongoing projects, development 

5 plans, and sustainable services for residents in severely 

6 distressed urban neighborhoods in the City and how that 

7 funding will achieve urban community revitalization re8 sults with such people and in such neighborhoods. 

9 (e) GRANT REQUIREMENTS.— 

10 (1) TOTAL COST OF ACTIVITIES.—The total 

11 cost of activities carried out with a grant under this 

12 section (including non-Federal contributions) shall 

13 be— 

14 (A) not less than $2,500,000; and 

15 (B) not more than $50,000,000. 

16 (2) NON-FEDERAL SHARE.—The non-Federal 

17 share of the cost of activities carried out with a 

18 grant under this section shall be not less than 5 per19 cent. 

20 (f) RANKING BY REVIEW BOARD.—The review board 

21 shall— 

22 (1) review, evaluate, and rank the applications 

23 received under this section in accordance with the 

24 procedures and requirements described in section 

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1 velop 1 priority list for applications under this sec2 tion; and 

3 (2) not later than 120 days after the date of 

4 enactment of this Act, submit to the Secretary the 

5 priority list for the applications received under this 

6 section for consideration by the Secretary in select7 ing grant recipients under this section. 

8 (g) SELECTION.— 

9 (1) IN GENERAL.—Not later than 60 days after 

10 the date on which the review board submits the pri11 ority list to the Secretary under subsection (f)(2), 

12 the Secretary shall select eligible entities to receive 

13 grants under this section. 

14 (2) PRIORITY; CONSIDERATION.—In providing 

15 grants under this section, the Secretary shall— 

16 (A) give priority to providing full funding 

17 to the applications that received the highest 

18 rankings from the review board; 

19 (B) consider equitable regional distribution 

20 of grants in all areas of the City; and 

21 (C) give priority— 

22 (i) to applications that reflect direct 

23 community neighborhood input; and 


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1 (ii) to applications from eligible enti2 ties that are based in the community 

3 served by the eligible entity. 

4 (h) COORDINATION.—In providing grants under this 

5 section, the Secretary may coordinate with the heads of 

6 other Federal agencies and the Mayor of the City (or a 

7 designee) to ensure the best implementation of this sec8 tion. 

9 (i) REPORTS.— 

10 (1) ACCOUNTING.—Not later than 20 days 

11 after the end of each quarter, beginning with the 

12 first full quarter after the grant funds are disbursed, 

13 until the grant funds are expended, each eligible en14 tity that receives a grant under this section shall 

15 submit to the Secretary a report that— 

16 (A) details the expenditures made for each 

17 activity carried out with the grant funds; and 

18 (B) certifies that the expenditures were 

19 used to carry out the activities described in the 

20 application of the eligible entity. 

21 (2) FINAL REPORT.—Not later than 1 year 

22 after the date on which the activities carried out 

23 with a grant under this section have been completed, 

24 the eligible entity shall submit to the Secretary a 

25 short report that describes— 


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1 (A) the results and effectiveness of the 

2 grant in carrying out those activities; and 

3 (B) improvements to communities, jobs 

4 created, and other factors that have contributed 

5 to community improvement in the severely dis6 tressed urban neighborhood in the City as a re7 sult of those activities. 

8 (j) FUNDING.— 

9 (1) IN GENERAL.—There is appropriated, out 

10 of amounts in the Treasury not otherwise appro11 priated, to the Secretary to carry out this section 

12 $200,000,000, to remain available until expended. 

13 (2) EMERGENCY DESIGNATION.— 

14 (A) IN GENERAL.—The amounts provided 

15 by paragraph (1) are designated as an emer16 gency requirement pursuant to section 4(g) of 

17 the Statutory Pay-As-You-Go Act of 2010 (2 

18 U.S.C. 933(g)). 

19 (B) DESIGNATION IN SENATE.—In the 

20 Senate, this section is designated as an emer21 gency requirement pursuant to section 4112(a) 

22 of H. Con. Res. 71 (115th Congress), the con23 current resolution on the budget for fiscal year 

24 2018. 

Æ 


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