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[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 1621 Introduced in Senate (IS)]

112th CONGRESS
  1st Session
                                S. 1621

To create livable communities through coordinated public investment and 
           streamlined requirements, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                           September 22, 2011

   Mr. Menendez (for himself, Mr. Reed, Mr. Bennet, Mr. Harkin, Mr. 
Lautenberg, Mr. Franken, Mr. Merkley, Mr. Sanders, Mr. Blumenthal, Mr. 
 Wyden, Mr. Durbin, Mr. Cardin, Mr. Akaka, Mr. Whitehouse, Mr. Coons, 
  Mrs. Shaheen, Ms. Landrieu, and Mr. Leahy) introduced the following 
 bill; which was read twice and referred to the Committee on Banking, 
                       Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL

 
To create livable communities through coordinated public investment and 
           streamlined requirements, and for other purposes.

    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 ``Livable Communities Act of 2011''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) When rural, suburban, and urban communities plan 
        transportation, housing, and water infrastructure strategically 
        it is estimated that these communities could save nearly 
        $122,000,000,000 in infrastructure costs over the next 25 
        years.
            (2) Key Federal programs are missing a vital opportunity to 
        boost economic growth at the local and regional level through 
        better coordination of housing, transportation, and related 
        infrastructure investments.
            (3) Federal regulations and policies should support 
        community efforts to implement and sustain progress toward the 
        achievement of locally-defined development goals, in terms of--
                    (A) geographic location and proximity to existing 
                resources; and
                    (B) maintaining structural and indoor environmental 
                quality and minimizing health hazards.
            (4) Greater coordination of public investment will provide 
        direct support for immediate job creation and lay the 
        groundwork for long-term resilience and prosperity by 
        leveraging significant private sector and philanthropic 
        investment to make the most of Federal funding.

SEC. 3. PURPOSES.

    The purposes of this Act are--
            (1) to strengthen rural, suburban, and urban economies by 
        enabling communities to establish goals for the future and to 
        chart a course for achieving such goals;
            (2) to promote local leadership by encouraging communities 
        to develop innovative solutions that reflect the unique 
        economic assets and needs of the communities;
            (3) to maximize returns on Federal funding of housing, 
        transportation, and other infrastructure projects through the 
        coordination of Federal grant programs, regulations, and 
        requirements, by reducing the number of duplicative Federal 
        programs and improving the efficiency and effectiveness of 
        programs and policies of the Department of Housing and Urban 
        Development, the Department of Transportation, the 
        Environmental Protection Agency, and other Federal agencies, as 
        appropriate; and
            (4) to ensure that Federal funding supports locally defined 
        long range development goals.

SEC. 4. DEFINITIONS.

    In this Act, the following definitions shall apply:
            (1) Affordable housing.--The term ``affordable housing'' 
        means housing, the cost of which does not exceed 30 percent of 
        the income of a family.
            (2) Comprehensive regional plan.--The term ``comprehensive 
        regional plan'' means a plan that--
                    (A) uses a cooperative, locally controlled and 
                inclusive public engagement process to identify needs 
                and goals across a region and to integrate related 
                planning processes;
                    (B) prioritizes projects for implementation, 
                including healthy housing projects; and
                    (C) is tied to short-term capital improvement 
                programs and annual budgets.
            (3) Department.--The term ``Department'' means the 
        Department of Housing and Urban Development.
            (4) Director.--The term ``Director'' means the Director of 
        the Office of Sustainable Housing and Communities established 
        under section 5.
            (5) Extremely low-income family.--The term ``extremely low-
        income family'' means a family that has an income that does not 
        exceed--
                    (A) 30 percent of the median income in the area 
                where the family lives, as determined by the Secretary, 
                with appropriate adjustments for the size of the 
                family; or
                    (B) a percentage of the median income in the area 
                where the family lives, as determined by the Secretary 
                upon a finding by the Secretary that such percentage is 
                necessary due to unusually high or low family incomes 
                in the area where the family lives.
            (6) Healthy housing.--The term ``healthy housing'' means 
        housing that is designed, constructed, rehabilitated, and 
        maintained in a manner that supports the health of the 
        occupants of the housing.
            (7) Housing-related health hazard.--The term ``housing-
        related health hazard'' means any biological, physical, or 
        chemical source of exposure or condition in, or immediately 
        adjacent to, housing that could adversely affect human health.
            (8) Indian tribe.--The term ``Indian tribe'' has the same 
        meaning as in section 4 of the Native American Housing 
        Assistance and Self-Determination Act of 1996 (25 U.S.C. 4103).
            (9) Livable community.--The term ``livable community'' 
        means a metropolitan, urban, suburban, or rural community 
        that--
                    (A) provides safe, reliable, and accessible 
                transportation choices;
                    (B) provides long-term affordable, accessible, 
                energy-efficient, and location-efficient housing 
                choices for people of all ages, incomes, races, and 
                ethnicities;
                    (C) supports, revitalizes, and encourages the 
                growth of existing communities and maximizes the cost-
                effectiveness of existing infrastructure;
                    (D) promotes economic development and economic 
                competitiveness;
                    (E) preserves the environment and natural 
                resources;
                    (F) protects agricultural land, rural land, and 
                green spaces; and
                    (G) supports public health and improves the quality 
                of life for residents of, and workers in, the 
                community.
            (10) Location-efficient.--The term ``location-efficient'' 
        characterizes mixed-use development or neighborhoods that 
        integrate housing, commercial development, and facilities and 
        amenities--
                    (A) to lower living expenses for working families;
                    (B) to enhance mobility;
                    (C) to encourage private investment in transit-
                oriented development; and
                    (D) to encourage private sector infill development 
                and maximize the use of existing infrastructure.
            (11) Low-income family.--The term ``low-income family'' has 
        the meaning given that term in section 3(b) of the United 
        States Housing Act of 1937 (42 U.S.C. 1437a(b)).
            (12) Metropolitan planning organization.--The term 
        ``metropolitan planning organization'' means a metropolitan 
        planning organization described in section 134(b) of title 23, 
        United States Code or section 5303(b) of title 49, United 
        States Code.
            (13) Office.--The term ``Office'' means the Office of 
        Sustainable Housing and Communities established under section 
        5.
            (14) Regional council.--The term ``regional council'' means 
        a multiservice regional organization with State and locally 
        defined boundaries that is--
                    (A) accountable to units of general local 
                government;
                    (B) delivers a variety of Federal, State, and local 
                programs; and
                    (C) performs planning functions and provides 
                professional and technical assistance.
            (15) Rural planning organization.--The term ``rural 
        planning organization'' means a voluntary regional organization 
        of local elected officials and representatives of local 
        transportation systems that--
                    (A) works in cooperation with the department of 
                transportation (or equivalent entity) of a State to 
                plan transportation networks and advise officials of 
                the State on transportation planning; and
                    (B) is located in a rural area--
                            (i) with a population of not less than 
                        5,000; and
                            (ii) that is not located in an area 
                        represented by a metropolitan planning 
                        organization.
            (16) Secretary.--The term ``Secretary'' means the Secretary 
        of Housing and Urban Development.
            (17) State.--The term ``State'' has the meaning given that 
        term by the Secretary, by rule.
            (18) Transit-oriented development.--The term ``transit-
        oriented development'' means high-density, walkable, location-
        efficient, mixed-use development, including commercial 
        development, affordable housing, and market-rate housing, that 
        is within walking distance of and accessible to 1 or more 
        public transportation facilities.
            (19) Unit of general local government.--The term ``unit of 
        general local government'' means--
                    (A) a city, county, town, township, parish, 
                village, or other general purpose political subdivision 
                of a State; or
                    (B) a combination of general purpose political 
                subdivisions, as determined by the Secretary.
            (20) Unit of special purpose local government.--The term 
        ``unit of special purpose local government''--
                    (A) means a division of a unit of general purpose 
                government that serves a special purpose and does not 
                provide a broad array of services; and
                    (B) includes an entity such as a school district, a 
                housing agency, a transit agency, and a parks and 
                recreation district.
            (21) Very low-income family.--The term ``very low-income 
        family'' has the same meaning as in section 3(b) of the United 
        States Housing Act of 1937 (42 U.S.C. 1437a(b)).

SEC. 5. OFFICE OF SUSTAINABLE HOUSING AND COMMUNITIES.

    (a) Office Established.--There is established in the Department an 
Office of Sustainable Housing and Communities, which shall--
            (1) coordinate Federal policies that--
                    (A) encourage locally directed comprehensive and 
                integrated planning and development at the State, 
                regional, and local levels;
                    (B) encourage coordinated public investments 
                through the development of comprehensive regional 
                plans;
                    (C) provide long-term affordable, accessible, 
                energy-efficient, healthy, location-efficient housing 
                choices for people of all ages, incomes, races, and 
                ethnicities, particularly for low-, very low-, and 
                extremely low-income families; and
                    (D) achieve other goals consistent with the 
                purposes of this Act;
            (2) review Federal programs and policies to determine 
        barriers to interagency collaboration and make recommendations 
        to promote the ability of local communities to access resources 
        in the Department and throughout the Federal Government and 
        coordinate with and conduct outreach to Federal agencies, 
        including the Department of Transportation and the 
        Environmental Protection Agency, on methods to reduce 
        duplicative programs and improve the efficiency and 
        effectiveness of programs within the Department of 
        Transportation, the Environmental Protection Agency, and the 
        Department of Housing and Urban Development;
            (3) conduct research and advise the Secretary on the 
        research agenda of the Department relating to coordinated 
        development, in collaboration with the Office of Policy 
        Development and Research of the Department;
            (4) implement and oversee the grant programs established 
        under this Act by--
                    (A) developing the process and format for grant 
                applications for each grant program;
                    (B) promulgating regulations or guidance relating 
                to each grant program;
                    (C) selecting recipients of grants under each grant 
                program;
                    (D) creating performance measures for recipients of 
                grants under each grant program;
                    (E) developing technical assistance and other 
                guidance to assist recipients of grants and potential 
                applicants for grants under each grant program;
                    (F) monitoring and evaluating the performance of 
                recipients of grants under each grant program; and
                    (G) carrying out such other activities relating to 
                the administration of the grant programs under this Act 
                as the Secretary determines are necessary;
            (5) provide guidance, information on best practices, and 
        technical assistance to communities seeking to adopt 
        sustainable development policies and practices;
            (6) administer initiatives of the Department relating to 
        the policies described in paragraph (1), as determined by the 
        Secretary; and
            (7) work with the Federal Transit Administration of the 
        Department of Transportation and other offices and 
        administrations of the Department of Transportation, as 
        appropriate--
                    (A) to encourage transit-oriented development; and
                    (B) to coordinate Federal housing, community 
                development, and transportation policies, including the 
                policies described in paragraph (1).
    (b) Director.--The head of the Office shall be the Director of the 
Office of Sustainable Housing and Communities.
    (c) Duties Relating to Grant Programs.--
            (1) In general.--The Director shall carry out the grant 
        programs established under this Act.
            (2) Small and rural communities grants program.--The 
        Director shall coordinate with the Secretary of Agriculture to 
        make grants to small and rural communities under sections 7 and 
        8.
            (3) Technical assistance for grant recipients and 
        applicants.--The Director may--
                    (A) coordinate with other Federal agencies to 
                establish interagency and multidisciplinary teams to 
                provide technical assistance to recipients of, and 
                prospective applicants for, grants under this Act;
                    (B) by Federal interagency agreement, transfer 
                funds to another Federal agency to facilitate and 
                support technical assistance; and
                    (C) make contracts with third parties to provide 
                technical assistance to grant recipients and 
                prospective applicants for grants.

SEC. 6. COMPREHENSIVE PLANNING GRANT PROGRAM.

    (a) Definitions.--In this section--
            (1) the term ``consortium of units of general local 
        governments'' means a consortium of geographically contiguous 
        units of general local government that the Secretary 
        determines--
                    (A) represents all or part of a metropolitan 
                statistical area, a micropolitan statistical area, or a 
                noncore area;
                    (B) has the authority under State, tribal, or local 
                law to carry out planning activities, including 
                surveys, land use studies, environmental or public 
                health analyses, and development of urban 
                revitalization plans; and
                    (C) has provided documentation to the Secretary 
                sufficient to demonstrate that the purpose of the 
                consortium is to carry out a project using a grant 
                awarded under this Act;
            (2) the term ``eligible entity'' means--
                    (A) a partnership between a consortium of units of 
                general local government and an eligible partner; or
                    (B) an Indian tribe, if--
                            (i) the Indian tribe has--
                                    (I) a tribal entity that performs 
                                housing and land use planning 
                                functions; and
                                    (II) a tribal entity that performs 
                                transportation and transportation 
                                planning functions; and
                            (ii) the Secretary determines that the 
                        isolated location and land expanse of the 
                        Indian tribe require the Secretary to treat the 
                        tribe as an eligible entity for purposes of 
                        carrying out activities using a grant under 
                        this section;
            (3) the term ``eligible partner'' means--
                    (A) a metropolitan planning organization, a rural 
                planning organization, or a regional council; or
                    (B) a metropolitan planning organization, a rural 
                planning organization, or a regional council, and--
                            (i) a State;
                            (ii) an Indian tribe;
                            (iii) a State and an Indian tribe; or
                            (iv) an institution of higher education;
            (4) the term ``grant program'' means the comprehensive 
        planning grant program established under subsection (b); and
            (5) the term ``noncore area'' means a county or group of 
        counties that are not designated by the Office of Management 
        and Budget as a micropolitan statistical area or metropolitan 
        statistical area.
    (b) Comprehensive Planning Grant Program Established.--The Director 
shall establish a comprehensive planning grant program to make grants 
to eligible entities to carry out a project--
            (1) to coordinate locally defined planning processes, 
        across jurisdictions and agencies;
            (2) to identify regional partnerships for developing and 
        implementing a comprehensive regional plan;
            (3) to conduct or update assessments to determine regional 
        needs and promote economic and community development;
            (4) to develop or update--
                    (A) a comprehensive regional plan; or
                    (B) goals and strategies to implement an existing 
                comprehensive regional plan and other related 
                activities; and
            (5) to identify local zoning and other code changes 
        necessary to implement a comprehensive regional plan and 
        promote sustainable development.
    (c) Grants.--
            (1) Diversity of grantees.--The Director shall ensure 
        geographic diversity among and adequate representation from 
        each of the following categories:
                    (A) Small and rural communities.--Eligible entities 
                that represent all or part of a noncore area, a 
                micropolitan area, or a small metropolitan statistical 
                area with a population of not more than 200,000.
                    (B) Mid-sized metropolitan communities.--Eligible 
                entities that represent all or part of a metropolitan 
                statistical area with a population of more than 200,000 
                and not more than 500,000.
                    (C) Large metropolitan communities.--Eligible 
                entities that represent all or part of a metropolitan 
                statistical area with a population of more than 
                500,000.
            (2) Award of funds to small and rural communities.--
                    (A) In general.--The Director shall--
                            (i) award not less than 15 percent of the 
                        funds under the grant program to eligible 
                        entities described in paragraph (1)(A); and
                            (ii) ensure diversity among the geographic 
                        regions and the size of the population of the 
                        communities served by recipients of grants that 
                        are eligible entities described in paragraph 
                        (1)(A).
                    (B) Insufficient applications.--If the Director 
                determines that insufficient approvable applications 
                have been submitted by eligible entities described in 
                paragraph (1)(A), the Director may award less than 15 
                percent of the funds under the grant program to 
                eligible entities described in paragraph (1)(A).
            (3) Federal share.--
                    (A) In general.--Except as provided in subparagraph 
                (B), the Federal share of the cost of a project carried 
                out using a grant under the grant program may not 
                exceed 80 percent.
                    (B) Exceptions.--
                            (i) Small and rural communities.--In the 
                        case of an eligible entity described in 
                        paragraph (1)(A), the Federal share of the cost 
                        of a project carried out using a grant under 
                        the grant program may be 90 percent.
                            (ii) Indian tribes.--In the case of an 
                        eligible entity that is an Indian tribe, the 
                        Federal share of the cost of a project carried 
                        out using a grant under the grant program may 
                        be 100 percent.
                    (C) Non-federal share.--
                            (i) In-kind contributions.--For the 
                        purposes of this section, in-kind contributions 
                        may be used for all or part of the non-Federal 
                        share of the cost of a project carried out 
                        using a grant under the grant program.
                            (ii) Other federal funding.--Federal 
                        funding from sources other than the grant 
                        program may not be used for the non-Federal 
                        share of the cost of a project carried out 
                        using a grant under the grant program.
            (4) Availability of funds.--
                    (A) In general.--An eligible entity that receives a 
                grant under the grant program shall--
                            (i) obligate any funds received under the 
                        grant program not later than 2 years after the 
                        date on which the grant agreement under 
                        subsection (g) is made; and
                            (ii) expend any funds received under the 
                        grant program not later than 4 years after the 
                        date on which the grant agreement under 
                        subsection (g) is made.
                    (B) Unobligated amounts.--After the date described 
                in subparagraph (A)(i), the Secretary may award to 
                another eligible entity, to carry out activities under 
                this section, any amounts that an eligible entity has 
                not obligated under subparagraph (A)(i).
    (d) Application.--
            (1) In general.--An eligible entity that desires a grant 
        under this section shall submit to the Director an application, 
        at such time and in such manner as the Director shall 
        prescribe, that contains--
                    (A) a description of the project proposed to be 
                carried out by the eligible entity;
                    (B) a budget for the project that includes the 
                anticipated Federal share of the cost of the project 
                and a description of the source of the non-Federal 
                share;
                    (C) the designation of a lead agency or 
                organization, which may be the eligible entity, to 
                receive and manage any funds received by the eligible 
                entity under the grant program;
                    (D) a signed copy of a memorandum of understanding 
                among local jurisdictions, including, as appropriate, a 
                State, a tribe, units of general purpose local 
                government, units of special purpose local government, 
                metropolitan planning organizations, rural planning 
                organizations, and regional councils that 
                demonstrates--
                            (i) the creation of an eligible entity;
                            (ii) a description of the nature and extent 
                        of planned collaboration between the eligible 
                        entity and any partners of the eligible entity;
                            (iii) a commitment to develop a 
                        comprehensive regional plan; and
                            (iv) a commitment to implement the plan 
                        after the plan is developed;
                    (E) a certification that the eligible entity has--
                            (i) secured the participation, or made a 
                        good-faith effort to secure the participation, 
                        of transportation providers and public housing 
                        agencies within the area affected by the 
                        comprehensive regional plan and the entities 
                        described in clause (ii); and
                            (ii) created, or will create not later than 
                        1 year after the date of the grant award, a 
                        regional advisory board to provide input and 
                        feedback on the development of the 
                        comprehensive regional plan that includes 
                        representatives of a State, the metropolitan 
                        planning organization, the rural planning 
                        organization, the regional council, local 
                        jurisdictions, non-profit organizations, and 
                        others, as deemed appropriate by the eligible 
                        entity, given the local context of the 
                        comprehensive planning effort; and
                    (F) a certification that the eligible entity has 
                solicited public comment on the contents of the project 
                description under subparagraph (A) that includes--
                            (i) a description of the process for 
                        receiving public comment relating to the 
                        proposal; and
                            (ii) such other information as the Director 
                        may require;
                    (G) a description of how the eligible entity will 
                carry out the activities under subsection (f); and
                    (H) such additional information as the Director may 
                require.
            (2) Indian tribes.--An eligible entity that is an Indian 
        tribe is not required to submit the certification under 
        paragraph (1)(E).
    (e) Selection.--In evaluating an application for a grant under the 
grant program, the Director shall consider the extent to which the 
application--
            (1) demonstrates the technical capacity of the eligible 
        entity to carry out the project;
            (2) demonstrates the extent to which the consortium has 
        developed partnerships throughout an entire region, including, 
        as appropriate, partnerships with the entities described in 
        subsection (d)(1)(D);
            (3) demonstrates integration with local efforts in economic 
        development and job creation;
            (4) demonstrates a strategy for implementing a 
        comprehensive regional plan through regional infrastructure 
        investment plans and local land use plans;
            (5) promotes diversity among the geographic regions and the 
        size of the population of the communities served by recipients 
        of grants under this section;
            (6) demonstrates a commitment to seeking substantial public 
        input during the planning process and public participation in 
        the development of the comprehensive regional plan;
            (7) demonstrates that a Federal grant is necessary to 
        accomplish the project proposed to be carried out;
            (8) minimizes the Federal share necessary to carry out the 
        project and leverages State, local, or private resources;
            (9) has a high quality overall; and
            (10) demonstrates such other qualities as the Director may 
        determine.
    (f) Eligible Activities.--An eligible entity that receives a grant 
under this section shall carry out a project that includes 1 or more of 
the following activities:
            (1) Coordinating locally defined planning processes across 
        jurisdictions and agencies.
            (2) Identifying potential regional partnerships for 
        developing and implementing a comprehensive regional plan.
            (3) Conducting or updating assessments to determine 
        regional needs, including healthy housing, and promote economic 
        and community development.
            (4) Developing or updating--
                    (A) a comprehensive regional plan; or
                    (B) goals and strategies to implement an existing 
                comprehensive regional plan.
            (5) Implementing local zoning and other code changes 
        necessary to implement a comprehensive regional plan and 
        promote sustainable development.
    (g) Grant Agreement.--Each eligible entity that receives a grant 
under this section shall agree to establish, in coordination with the 
Director, performance measures, reporting requirements, and any other 
requirements that the Director determines are necessary, that must be 
met at the end of each year in which the eligible entity receives funds 
under the grant program.
    (h) Public Outreach.--
            (1) Outreach required.--Each eligible entity that receives 
        a grant under the grant program shall perform substantial 
        outreach activities--
                    (A) to engage a broad cross-section of community 
                stakeholders in the process of developing a 
                comprehensive regional plan, including low-income 
                families, minorities, older adults, and economically 
                disadvantaged community members; and
                    (B) to create an effective means for stakeholders 
                to participate in the development and implementation of 
                a comprehensive regional plan.
            (2) Finalization of comprehensive regional plan.--
                    (A) In general.--An eligible entity that receives a 
                grant under the grant program may not finalize a 
                comprehensive regional plan before the eligible entity 
                holds a public hearing to obtain the views of citizens, 
                public agencies, and other interested parties.
                    (B) Availability of information.--Not later than 30 
                days before a hearing described in subparagraph (A), an 
                eligible entity shall make the proposed comprehensive 
                regional plan and all information relevant to the 
                hearing available to the public for inspection during 
                normal business hours.
                    (C) Notice.--Not later than 30 days before a 
                hearing described in subparagraph (A), an eligible 
                entity shall publish notice--
                            (i) of the hearing; and
                            (ii) that the information described in 
                        subparagraph (B) is available.
    (i) Violation of Grant Agreement or Failure To Comply With Public 
Outreach Requirements.--If the Director determines that an eligible 
entity has not met the performance measures established under 
subsection (g), is not making reasonable progress toward meeting such 
measures, is otherwise in violation of the grant agreement, or has not 
complied with the public outreach requirements under subsection (h), 
the Director may--
            (1) withhold financial assistance until the requirements 
        under the grant agreement or under subsection (h), as 
        applicable, are met; or
            (2) terminate the grant agreement.
    (j) Report on the Comprehensive Planning Grant.--
            (1) In general.--Not later than 90 days after the date on 
        which the grant agreement under subsection (g) expires, an 
        eligible entity that receives a grant under the grant program 
        shall submit a final report on the project to the Secretary.
            (2) Contents of report.--The report shall include--
                    (A) a detailed explanation of the activities 
                undertaken using the grant, including an explanation of 
                the completed project and how it achieves specific 
                transit-oriented, transportation, housing, or 
                sustainable community goals within the region;
                    (B) a discussion of any obstacles encountered in 
                the planning process and how the eligible entity 
                overcame the obstacles;
                    (C) an evaluation of the success of the project 
                using the performance standards and measures 
                established under subsection (g), including an 
                evaluation of the planning process and how the project 
                contributes to carrying out the comprehensive regional 
                plan; and
                    (D) any other information the Director may require.
            (3) Interim report.--The Director may require an eligible 
        entity to submit an interim report, before the date on which 
        the project for which the grant is awarded is completed.
    (k) Authorization of Appropriations.--
            (1) Authorization.--There are authorized to be appropriated 
        to the Secretary for the award of grants under this section, to 
        remain available until expended--
                    (A) $100,000,000 for fiscal year 2012; and
                    (B) $125,000,000 for each of fiscal years 2013 
                through 2016.
            (2) Technical assistance.--The Director may use not more 
        than 2 percent of the amounts made available under this 
        subsection for a fiscal year for technical assistance under 
        section 5(c)(3).

SEC. 7. COMMUNITY CHALLENGE GRANT PROGRAM.

    (a) Definitions.--In this section--
            (1) the terms ``consortium of units of general local 
        governments'', ``eligible entity'', and ``eligible partner'' 
        have the same meaning as in section 6; and
            (2) the term ``grant program'' means the community 
        challenge grant program established under subsection (b).
    (b) Community Challenge Grant Program Established.--The Director 
shall establish a community challenge grant program to make grants to 
eligible entities to--
            (1) promote integrated planning and investments across 
        policy and governmental jurisdictions; and
            (2) implement projects identified in a comprehensive 
        regional plan.
    (c) Grants.--
            (1) Diversity of grantees.--The Director shall ensure 
        geographic diversity among and adequate representation from 
        eligible entities in each of the categories described in 
        section 6(c)(1).
            (2) Terms and conditions.--Except as otherwise provided in 
        this section, a grant under the grant program shall be made on 
        the same terms and conditions as a grant under section 6.
            (3) Expending funds.--An eligible entity that receives a 
        grant under the grant program shall expend any funds received 
        under the grant program not later than 5 years after the date 
        on which the grant agreement under subsection (g) is made.
    (d) Application.--
            (1) Contents.--An eligible entity that desires a grant 
        under the grant program shall submit to the Director an 
        application, at such time and in such manner as the Director 
        shall prescribe, that contains--
                    (A) a copy of the comprehensive regional plan, 
                whether developed as part of the comprehensive planning 
                grant program under section 6 or developed 
                independently;
                    (B) a description of the project or projects 
                proposed to be carried out using a grant under the 
                grant program;
                    (C) a description of any preliminary actions that 
                have been or must be taken at the local or regional 
                level to implement the project or projects under 
                subparagraph (B), including the revision of land use or 
                zoning policies;
                    (D) a signed copy of a memorandum of understanding 
                among local jurisdictions, including, as appropriate, a 
                State, units of general purpose local government, units 
                of special purpose local government, metropolitan 
                planning organizations, rural planning organizations, 
                and regional councils that demonstrates--
                            (i) the creation of a consortium of units 
                        of general local government; and
                            (ii) a commitment to implement the 
                        activities described in the comprehensive 
                        regional plan; and
                    (E) a certification that the eligible entity has 
                solicited public comment on the contents of the project 
                or projects described in subparagraph (B) that 
                includes--
                            (i) a certification that the eligible 
                        entity made information about the project or 
                        projects available and afforded citizens, 
                        public agencies, and other interested parties a 
                        reasonable opportunity to examine the content 
                        of the project or projects and to submit 
                        comments;
                            (ii) a description of the process for 
                        receiving public comment, and a description of 
                        the outreach efforts to affected populations 
                        and stakeholders;
                            (iii) a certification that the eligible 
                        entity--
                                    (I) held a public hearing to obtain 
                                the views of citizens, public agencies, 
                                and other interested parties;
                                    (II) made the proposed project and 
                                all information relevant to the hearing 
                                available for inspection by the public 
                                during normal business hours not less 
                                than 30 days before the hearing under 
                                subclause (I); and
                                    (III) published a notice informing 
                                the public of the hearing under 
                                subclause (I) and the availability of 
                                the information described in subclause 
                                (II); and
                    (F) a budget for the project that includes the 
                Federal share of the cost of the project or projects 
                requested and a description of the source of the non-
                Federal share; and
                    (G) such additional information as the Director may 
                require.
            (2) Indian tribes.--An eligible entity that is an Indian 
        tribe is not required to submit a memorandum of understanding 
        under paragraph (1)(D).
    (e) Selection.--In evaluating an application for a grant under the 
grant program, the Director shall consider the extent to which the 
application--
            (1) demonstrates the technical capacity of the eligible 
        entity to carry out the project;
            (2) demonstrates the extent to which the eligible entity 
        has developed partnerships throughout an entire region, 
        including partnerships with units of special purpose local 
        government and transportation providers;
            (3) demonstrates clear and meaningful interjurisdictional 
        cooperation and coordination of housing (including healthy 
        housing), transportation, and environmental policies and plans;
            (4) demonstrates a commitment to implementing a 
        comprehensive regional plan and documents action taken or 
        planned to implement the plan;
            (5) minimizes the Federal share necessary to carry out the 
        project and leverages a significant amount of State, local, or 
        private resources;
            (6) identifies original and innovative ideas to overcoming 
        regional problems, including local land use and zoning (or 
        other code) obstacles to carrying out the comprehensive 
        regional plan;
            (7) promotes diversity among the geographic regions and the 
        size of the population of the communities served by recipients 
        of grants under the grant program;
            (8) demonstrates a commitment to substantial public input 
        throughout the implementation process;
            (9) demonstrates that a Federal grant is necessary to 
        accomplish the project or projects proposed to be carried out;
            (10) has a high quality overall; and
            (11) demonstrates such other qualities as the Director may 
        determine.
    (f) Grant Activities.--
            (1) Planning activities.--An eligible entity that receives 
        a grant under the grant program may use not more than 10 
        percent of the grant for planning activities. Activities 
        related to the updating, reform, or development of a local 
        code, plan, or ordinance to implement projects contained in a 
        comprehensive regional plan shall not be considered planning 
        activities for the purposes of a grant under the grant program.
            (2) Projects and investments.--An eligible entity that 
        receives a grant under the grant program shall carry out 1 or 
        more projects that are designed to achieve the goals identified 
        in a comprehensive regional plan.
    (g) Grant Agreement.--Each eligible entity that receives a grant 
under the grant program shall agree to establish, in coordination with 
the Director, performance measures, reporting requirements, and any 
other requirements that the Director determines are necessary, that 
must be met at the end of each year in which the eligible entity 
receives funds under the grant program.
    (h) Violation of Grant Agreement.--If the Director determines that 
an eligible entity has not met the performance measures established 
under subsection (g), is not making reasonable progress toward meeting 
such measures, or is otherwise in violation of the grant agreement, the 
Director may--
            (1) withhold financial assistance until the requirements 
        under the grant agreement are met; or
            (2) terminate the grant agreement.
    (i) Report on the Community Challenge Grant.--
            (1) In general.--Not later than 90 days after the date on 
        which the grant agreement under subsection (g) expires, an 
        eligible entity that receives a grant under the grant program 
        shall submit a final report on the project to the Secretary.
            (2) Contents of report.--The report shall include--
                    (A) a detailed explanation of the activities 
                undertaken using the grant, including an explanation of 
                the completed project and how it achieves specific 
                transit-oriented, transportation, housing, or 
                sustainable community goals within the region;
                    (B) a discussion of any obstacles encountered in 
                the planning and implementation process and how the 
                eligible entity overcame the obstacles;
                    (C) an evaluation of the success of the project 
                using the performance standards and measures 
                established under subsection (g), including an 
                evaluation of the planning and implementation process 
                and how the project contributes to carrying out the 
                comprehensive regional plan; and
                    (D) any other information the Director may require.
            (3) Interim report.--The Director may require an eligible 
        entity to submit an interim report, before the date on which 
        the project for which the grant is awarded is completed.
    (j) Authorization of Appropriations.--
            (1) Authorization.--There are authorized to be appropriated 
        to the Secretary for the award of grants under this section, to 
        remain available until expended--
                    (A) $30,000,000 for each of fiscal years 2012 and 
                2013;
                    (B) $35,000,000 for fiscal year 2014;
                    (C) $40,000,000 for fiscal year 2015; and
                    (D) $45,000,000 for fiscal year 2016.

SEC. 8. CREDIT FACILITY TO SUPPORT TRANSIT-ORIENTED DEVELOPMENT.

    (a) Definitions.--In this section--
            (1) Eligible applicant.--The term ``eligible applicant'' 
        means a State or local government.
            (2) Eligible area.--The term ``eligible area'' means the 
        area within \1/2\ mile of an existing or planned major transit 
        facility.
            (3) Eligible borrower.--The term ``eligible borrower'' 
        means--
                    (A) a governmental entity, authority, agency, or 
                instrumentality;
                    (B) a corporation, partnership, joint venture, or 
                trust on behalf of which an eligible applicant has 
                submitted an application under subsection (c); or
                    (C) any other legal entity undertaking an 
                infrastructure development project on behalf of which 
                an eligible applicant has submitted an application 
                under subsection (c).
            (4) Major transit facility.--The term ``major transit 
        facility'' means--
                    (A) a fixed-guideway transit station;
                    (B) a high speed rail or intercity rail station;
                    (C) a transit hub connecting more than 3 local 
                transit lines; or
                    (D) a transit center located in an area other than 
                an urbanized area.
            (5) Planned major transit facility.--The term ``planned 
        major transit facility'' means a major transit facility for 
        which appropriate environmental reviews have been completed and 
        for which funding for construction can be reasonably 
        anticipated.
            (6) Project.--The term ``project'' means an infrastructure 
        project that is used to support a transit-oriented development 
        in an eligible area, including--
                    (A) property enhancement, including conducting 
                environmental remediation, park development, and open 
                space acquisition;
                    (B) improvement of mobility and parking, including 
                rehabilitating, or providing for additional, streets, 
                transit stations, structured parking, walkways, and 
                bikeways;
                    (C) utility development, including rehabilitating 
                existing, or providing for new drinking water, 
                wastewater, electric, and gas utilities; or
                    (D) community facilities, including child care 
                centers.
    (b) Loan Program Established.--The Secretary may make or guarantee 
loans under this section to eligible borrowers for projects.
    (c) Application.--
            (1) In general.--An eligible applicant may submit to the 
        Secretary an application for a loan or loan guarantee under 
        this section--
                    (A) to fund a project carried out by the eligible 
                applicant; or
                    (B) on behalf of an eligible borrower, to fund a 
                project carried out by the eligible borrower.
    (d) Selection Criteria.--
            (1) In general.--The Secretary may make a loan or loan 
        guarantee under this section for a project that--
                    (A) is part of a community-wide development plan, 
                as defined by the Secretary;
                    (B) promotes sustainable development; and
                    (C) ensures that not less than 15 percent of any 
                housing units constructed or substantially 
                rehabilitated as part of transit-oriented development 
                supported by the project are affordable over the long-
                term to, and occupied at time of initial occupancy by--
                            (i) renters with incomes at or below 60 
                        percent of the area median; or
                            (ii) homeowners with incomes at or below 
                        100 percent of the area median.
            (2) Considerations.--The Secretary shall select the 
        recipients of loans and loan guarantees under this section 
        based on the extent to which--
                    (A) the transit-oriented development supported by 
                the project will encourage increased use of transit;
                    (B) the transit-oriented development supported by 
                the project will create or preserve long-term 
                affordable housing units in addition to the housing 
                units required to be made available under paragraph 
                (1)(C) or will provide deeper affordability than 
                required under paragraph (1)(C);
                    (C) the project will facilitate and encourage 
                additional development or redevelopment in the overall 
                transit station area;
                    (D) the local government has adopted policies 
                that--
                            (i) promote long-term affordable housing; 
                        and
                            (ii) allow high-density, mixed-use 
                        development near transit stations;
                    (E) the transit-oriented development supported by 
                the project is part of a comprehensive regional plan;
                    (F) the eligible borrower has established a 
                reliable, dedicated revenue source to repay the loan;
                    (G) the project is not financially viable for the 
                eligible borrower without a loan or loan guarantee 
                under this section; and
                    (H) a loan or loan guarantee under this section 
                would be used in conjunction with non-Federal loans to 
                fund the project.
    (e) Eligible Sources of Repayment.--A loan made or guaranteed under 
this section shall be repayable, in whole or in part, from dedicated 
revenue sources, which may include--
            (1) user fees;
            (2) property tax revenues;
            (3) sales tax revenues;
            (4) other revenue sources dedicated to the project by 
        property owners and businesses; and
            (5) a bond or other indebtedness backed by one of the 
        revenue sources listed in this paragraph.
    (f) Interest Rate.--The Secretary shall establish an interest rate 
for loans made or guaranteed under this section with reference to a 
benchmark interest rate (yield) on marketable Treasury securities with 
a maturity that is similar to the loans made or guaranteed under this 
section.
    (g) Maximum Maturity.--The maturity of a loan made or guaranteed 
under this section may not exceed the lesser of--
            (1) 35 years; or
            (2) 90 percent of the useful life of any project to be 
        financed by the loan, as determined by the Secretary.
    (h) Maximum Loan Guarantee Rate.--
            (1) In general.--The guarantee rate on a loan guaranteed 
        under this section may not exceed 75 percent of the amount of 
        the loan.
            (2) Lower guarantee rate for low-risk borrowers.--The 
        Secretary shall establish a guarantee rate for loans to 
        eligible borrowers that the Secretary determines pose a lower 
        risk of default that is lower than the guarantee rate for loans 
        to other eligible borrowers.
    (i) Fees.--The Secretary shall establish fees for loans made or 
guaranteed under this section at a level that is sufficient to cover 
all or part of the costs to the Federal Government of making or 
guaranteeing a loan under this section.
    (j) Nonsubordination.--A loan made or guaranteed under this section 
may not be subordinated to the claims of any holder of an obligation 
relating to the project in the event of bankruptcy, insolvency, or 
liquidation.
    (k) Commencement of Repayment.--The scheduled repayment of 
principal or interest on a loan made or guaranteed under this section 
shall commence not later than 5 years after the date of substantial 
completion of the project.
    (l) Repayment Deferral for Loans.--
            (1) In general.--If, at any time after the date of 
        substantial completion of a project, the Secretary determines 
        that dedicated revenue sources of an eligible borrower are 
        insufficient to make the scheduled loan repayments of principal 
        and interest on a loan made or guaranteed under this section, 
        the Secretary may, subject to criteria established by the 
        Secretary, allow the eligible borrower to add unpaid principal 
        and interest to the outstanding balance of the loan.
            (2) Treatment of deferred payments.--Any payment deferred 
        under this section shall--
                    (A) continue to accrue interest until fully repaid; 
                and
                    (B) be scheduled to be amortized over the remaining 
                term of the loan.
    (m) Authorization of Appropriations.--There are authorized to be 
appropriated for the cost of loans and loan guarantees under this 
section $20,000,000 for each of fiscal years 2012 through 2016.

SEC. 9. HEALTHY HOMES.

    (a) Federal Initiative To Support Healthy Housing and Eradicate 
Housing-Related Health Hazards.--The Secretary, acting through the 
Director of the Office of Healthy Homes and Lead Hazard Control and in 
consultation with the Secretary of Energy, the Administrator of the 
Environmental Protection Agency, the Secretary of Agriculture, the 
Director of the National Institute of Standards and Technology, the 
Director of the National Institute of Environmental Health Sciences, 
and the Director of the Centers for Disease Control, shall lead the 
Federal initiative to support healthy housing and eradicate housing-
related health hazards by--
            (1) reviewing, monitoring, and evaluating Federal housing, 
        health, energy, and environmental programs and identifying 
        areas of overlap and duplication that could be improved;
            (2) identifying best practices and model programs, 
        including practices and programs that link services for low-
        income families and services for health hazards;
            (3) identifying best practices for finance products, 
        building codes, and regulatory practices;
            (4) researching training programs and work practices that 
        can accurately assess housing-related health hazards;
            (5) promoting collaboration among Federal, State, local, 
        and tribal agencies and non-governmental organizations; and
            (6) coordinating with all relevant Federal agencies.
    (b) Assessment.--The Secretary shall conduct a collaborative, 
interagency assessment of best practices for--
            (1) coordinating activities relating to healthy housing;
            (2) removing unnecessary barriers to interagency 
        coordination in Federal statutes and regulations; and
            (3) creating incentives in programs of the Federal 
        Government to advance the complementary goals of improving 
        environmental health, energy conservation, and the availability 
        of housing.
    (c) Study and Report on Sustainable Building Features and Indoor 
Environmental Quality in Housing.--
            (1) Study.--The Secretary, in consultation with the 
        Secretary of Energy, the Director of the National Institute of 
        Standards and Technology, the Director of the National 
        Institute of Environmental Health Sciences, the Director of the 
        Centers for Disease Control, and any other Federal agency that 
        the Secretary determines is appropriate, shall conduct a 
        detailed study of how sustainable building features in housing, 
        such as energy efficiency, affect--
                    (A) the quality of the indoor environment;
                    (B) the prevalence of housing-related health 
                hazards; and
                    (C) the health of occupants of the housing.
            (2) Report.--Not later than 3 years after the date of 
        enactment of this Act, the Secretary shall submit to the 
        Committee on Banking, Housing, and Urban Affairs and the 
        Committee on Appropriations of the Senate and the Committee on 
        Financial Services and the Committee on Appropriations of the 
        House of Representatives a report containing the results of the 
        study under paragraph (1).
    (d) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary to carry out this section.

SEC. 10. INELIGIBILITY OF INDIVIDUALS WHO ARE NOT LAWFULLY PRESENT.

    No housing assisted using a grant under this Act may be made 
available to an individual who is not lawfully present in the United 
States. Nothing in this Act may be construed to alter the restrictions 
or definitions under section 214 of the Housing and Community 
Development Act of 1980 (42 U.S.C. 1436a).
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