I 

111TH CONGRESS 

1ST SESSION H. R. 1685 

To provide for the acquisition, construction, and improvement of child care 

facilities, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 24, 2009 

Mrs. MCCARTHY of New York introduced the following bill; which was 

referred to the Committee on Education and Labor 

A BILL 

To provide for the acquisition, construction, and 

improvement of child care facilities, 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 ‘‘Child Care Facilities 

5 Financing Act of 2009’’. 

6 SEC. 2. TECHNICAL AND FINANCIAL ASSISTANCE GRANTS. 

7 (a) GRANT AUTHORITY.—The Secretary may make 

8 grants on a competitive basis to eligible entities in accord9 ance with this section. 

10 (b) APPLICATION.— 


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1 (1) IN GENERAL.—To be eligible to receive a 

2 grant under subsection (a), an eligible entity shall 

3 submit to the Secretary an application at such time, 

4 in such form, and containing such information as 

5 the Secretary may require by rule. 

6 (2) REQUIREMENTS.—The Secretary shall issue 

7 rules that take into account the experience and suc8 cess of eligible entities in attracting private financ9 ing and carrying out the types of activities for which 

10 grants under subsection (a) are made. 

11 (c) PRIORITY.—In making grants under subsection 

12 (a), the Secretary shall give priority to an applicant— 

13 (1) that has demonstrated experience— 

14 (A) providing technical or financial assist15 ance for the acquisition, construction, or ren16 ovation of child care facilities; 

17 (B) providing technical, financial, or mana18 gerial assistance to eligible child care providers; 

19 and 

20 (C) securing private sources of capital fi21 nancing for child care or other low-income com22 munity development; and 

23 (2) whose application proposes to assist eligible 

24 recipients that serve— 

25 (A) low-income areas, including— 


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1 (i) a community that— 

2 (I) is in a metropolitan area; and 

3 (II) has a median household in4 come that is not more than 80 percent 

5 of the median household income of the 

6 metropolitan area; or 

7 (ii) a community that— 

8 (I) is not in a metropolitan area; 

9 and 

10 (II) has a median income that is 

11 not more than 80 percent of the me12 dian household income of the State in 

13 which the community is located; or 

14 (B) low-income individuals, including eligi15 ble children. 

16 (d) USE OF FUNDS.— 

17 (1) CAPITAL FUND.—Each eligible entity that 

18 receives a grant under subsection (a) shall deposit 

19 the grant amount into a child care capital fund es20 tablished by the eligible entity. 

21 (2) PAYMENTS FROM FUNDS.—Each eligible en22 tity shall provide technical or financial assistance (in 

23 the form of loans, grants, investments, guarantees, 

24 interest subsidies, and other appropriate forms of 


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1 assistance) to eligible recipients from the child care 

2 capital fund it establishes to pay for— 

3 (A) the acquisition, construction, or im4 provement of child care facilities; 

5 (B) equipment for child care facilities; or 

6 (C) technical assistance to eligible child 

7 care providers to help them undertake facilities 

8 improvement and expansion projects. 

9 (3) LOAN REPAYMENTS AND INVESTMENT PRO10 CEEDS.—An eligible entity that receives a loan re11 payment or investment proceeds from an eligible re12 cipient shall deposit such repayment or proceeds into 

13 the child care capital fund of the eligible entity for 

14 use in accordance with this section. 

15 (4) APPLICATION.—To obtain assistance from 

16 an eligible entity, an eligible recipient shall prepare 

17 and submit an application to an eligible entity at 

18 such time, in such form, and containing such infor19 mation as the eligible entity may require. 

20 SEC. 3. DEFINITIONS. 

21 As used in this Act: 

22 (1) CHILD CARE FACILITY.—The term ‘‘child 

23 care facility’’ means a structure used for the care 

24 and development of eligible children. 


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1 (2) CHILD CARE SERVICES.—The term ‘‘child 

2 care services’’ means child care and early childhood 

3 education. 

4 (3) COMMUNITY DEVELOPMENT FINANCIAL IN5 STITUTION.—The term ‘‘community development fi6 nancial institution’’ has the meaning given such 

7 term in section 103(5) of the Community Develop8 ment Banking and Financial Institutions Act of 

9 1994 (12 U.S.C. 4702(5)). 

10 (4) ELIGIBLE CHILD CARE PROVIDER.—The 

11 term ‘‘eligible child care provider’’ has the meaning 

12 given such term in section 658P of the Child Care 

13 and Development Block Grant Act of 1990 (42 

14 U.S.C. 9858n). 

15 (5) ELIGIBLE CHILD.—The term ‘‘eligible 

16 child’’ has the meaning given such term in section 

17 658P of the Child Care and Development Block 

18 Grant Act of 1990 (42 U.S.C. 9858n). 

19 (6) ELIGIBLE ENTITY.—The term ‘‘eligible enti20 ty’’ means— 

21 (A) a community development financial in22 stitution certified by the Department of Treas23 ury; or 

24 (B) an organization that— 


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1 (i) is described in section 501(c)(3) of 

2 the Internal Revenue Code of 1986; 

3 (ii) is exempt from taxation under 

4 section 501(a) of such Code; and 

5 (iii) has demonstrated experience in— 

6 (I) providing technical or finan7 cial assistance for the acquisition, con8 struction, or renovation of child care 

9 facilities; 

10 (II) providing technical, financial, 

11 or managerial assistance to eligible 

12 child care providers; and 

13 (III) securing private sources of 

14 capital financing for child care or 

15 other low-income community develop16 ment. 

17 (7) ELIGIBLE RECIPIENT.—The term ‘‘eligible 

18 recipient’’ means— 

19 (A) an eligible child care provider that pro20 vides child care services to an eligible child; 

21 (B) an organization seeking to provide 

22 child care services to an eligible child; or 

23 (C) an organization providing or seeking to 

24 provide child care services to low-income chil25 dren as determined by the Secretary. 


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1 (8) EQUIPMENT.—The term ‘‘equipment’’ in2 cludes— 

3 (A) machinery, utilities, and built-in equip4 ment, and any necessary structure to house 

5 them; and 

6 (B) any other items necessary for the func7 tioning of a child care facility, including fur8 niture, books, and program materials. 

9 (9) METROPOLITAN AREA.—The term ‘‘metro10 politan area’’ has the meaning given such term in 

11 section 102 of the Housing and Community Devel12 opment Act of 1974 (42 U.S.C. 5302). 

13 (10) SECRETARY.—The term ‘‘Secretary’’ 

14 means the Secretary of Health and Human Services. 

15 SEC. 4. AUTHORIZATION OF APPROPRIATIONS. 

16 There is authorized to be appropriated to carry out 

17 this section $50,000,000 for each of the fiscal years 2010 

18 through 2014. 

Æ 


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