II 

112TH CONGRESS 

2D SESSION S. 2053 

To encourage transit-oriented development, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

FEBRUARY 1, 2012 

Mr. BENNET (for himself and Mr. WARNER) introduced the following bill; 

which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs 

A BILL 

To encourage transit-oriented development, 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 ‘‘Jumpstarting Transit5 Oriented Development Act’’. 

6 SEC. 2. FINDINGS. 

7 Congress finds the following: 

8 (1) Transit has the potential to transform com9 munities into vibrant economic engines that will 


jbell on DSK7SPTVN1PROD with BILLS
2 

•S 2053 IS

1 strengthen the economic outlook for the United 

2 States. 

3 (2) There are more than 3,700 transit stations 

4 in the United States, and communities are building 

5 and proposing thousands more. 

6 (3) Transit stations can be the focal point for 

7 significant economic development, commonly known 

8 as transit-oriented development. 

9 (4) Transit-oriented development brings numer10 ous benefits, such as increased property values, re11 duced cost of living, increased business activity, and 

12 reduced traffic congestion. 

13 (5) Transit-oriented development that provides 

14 residential opportunities affordable to families of all 

15 incomes, coupled with expanded commercial and 

16 business development along a transit corridor, will 

17 increase transit ridership, allowing transit agencies 

18 to recover more of their costs from the farebox and 

19 rely less on taxpayer support. 

20 (6) Despite these benefits, a lack of planning 

21 capacity and financing tools at the local level are 

22 major barriers to transit-oriented development. 

23 (7) Given the economic potential of transit-ori24 ented development, it is in the interest of the Fed25 eral Government to work in partnership with States 


jbell on DSK7SPTVN1PROD with BILLS
3 

•S 2053 IS

1 and local communities to promote transit-oriented 

2 development. 

3 SEC. 3. TRANSIT-ORIENTED DEVELOPMENT. 

4 Chapter 53 of title 49, United States Code, is amend5 ed by adding at the end the following: 

6 ‘‘§ 5341. Transit-Oriented Development Planning Pro7 gram 

8 ‘‘(a) DEFINITIONS.—In this section, the following 

9 definitions shall apply: 

10 ‘‘(1) ELIGIBLE AREA.—The term ‘eligible area’ 

11 means the area within one half-mile of an existing 

12 or planned major transit facility. 

13 ‘‘(2) ELIGIBLE RECIPIENT.—The term ‘eligible 

14 recipient’ means— 

15 ‘‘(A) a transit agency, a unit of local gov16 ernment, a metropolitan planning organization, 

17 a tribal government, and a State; and 

18 ‘‘(B) an entity described in subparagraph 

19 (A), in partnership with a public or private 

20 agency or organization. 

21 ‘‘(3) MAJOR TRANSIT FACILITY.—The term 

22 ‘major transit facility’ means— 

23 ‘‘(A) a station that is part of a fixed-guide24 way public transportation system; 


jbell on DSK7SPTVN1PROD with BILLS
4 

•S 2053 IS

1 ‘‘(B) a high-speed rail or intercity rail sta2 tion; 

3 ‘‘(C) a transit hub; or 

4 ‘‘(D) a transit center located in an other 

5 than urbanized area. 

6 ‘‘(4) PLANNED MAJOR TRANSIT FACILITY.—The 

7 term ‘planned major transit facility’ means a major 

8 transit facility for which— 

9 ‘‘(A) any environmental review required 

10 under this chapter or the rules of the Depart11 ment or the Federal Transit Administration has 

12 been completed; and 

13 ‘‘(B) funding for construction can be rea14 sonably anticipated. 

15 ‘‘(5) PROGRAM.—The term ‘Program’ means 

16 the program established under subsection (b). 

17 ‘‘(6) TRANSIT HUB.—The term ‘transit hub’ 

18 means a transit station or facility connecting 3 or 

19 more local or regional transit or rail lines. 

20 ‘‘(b) ESTABLISHMENT OF PROGRAM.—The Secretary 

21 may award grants to eligible recipients for the purpose 

22 of establishing a specific, implementable strategy for 

23 mixed-income, mixed-use development in an eligible area. 


jbell on DSK7SPTVN1PROD with BILLS
5 

•S 2053 IS

1 ‘‘(c) CHARACTERISTICS OF THE STRATEGY.—A spe2 cific, implementable strategy for mixed-income, mixed-use 

3 development established under the Program shall— 

4 ‘‘(1) specifically identify activities that the eligi5 ble recipient determines are necessary to create the 

6 conditions that will lead to successful transit-ori7 ented development in the eligible area, which may 

8 include— 

9 ‘‘(A) reducing regulatory or procedural 

10 barriers to private investment in eligible areas; 

11 ‘‘(B) conducting a market assessment of 

12 opportunities for commercial, residential, and 

13 business development; 

14 ‘‘(C) identifying infrastructure needs in the 

15 eligible area, such as sidewalks and street im16 provements; 

17 ‘‘(D) making community engagement ef18 forts; and 

19 ‘‘(E) any other activity that the eligible re20 cipient determines is consistent with this para21 graph; 

22 ‘‘(2) establish a schedule for implementation of 

23 the activities identified under paragraph (1); 

24 ‘‘(3) identify the person responsible for each ac25 tivity identified under paragraph (1); 


jbell on DSK7SPTVN1PROD with BILLS
6 

•S 2053 IS

1 ‘‘(4) include a financing plan for proposed in2 frastructure improvements and development activi3 ties, including any project costs for which funding 

4 has not been identified; and 

5 ‘‘(5) establish a schedule for adoption of the 

6 strategy by relevant State, regional, local, or tribal 

7 governments. 

8 ‘‘(d) EVALUATION CRITERIA.—In awarding grants 

9 under this section, the Secretary, in consultation with the 

10 Secretary of Housing and Urban Development and the 

11 Administrator of the Environmental Protection Agency, 

12 shall consider factors such as— 

13 ‘‘(1) the extent to which the creation of a strat14 egy under subsection (c) would help achieve— 

15 ‘‘(A) increased real estate development 

16 that is accessible by pedestrians from a transit 

17 station in the eligible area; 

18 ‘‘(B) increased transit ridership within the 

19 eligible area; 

20 ‘‘(C) an appropriate mix of uses for the eli21 gible area, determined with reference to local 

22 and regional growth and development plans; 

23 ‘‘(D) preservation of affordable housing 

24 and the ongoing availability of housing in the 


jbell on DSK7SPTVN1PROD with BILLS
7 

•S 2053 IS

1 eligible area that is affordable to families with 

2 a range of incomes; 

3 ‘‘(E) increased access to jobs and employ4 ment centers using transit; and 

5 ‘‘(F) transit, housing, businesses, and fa6 cilities in the eligible area that are accessible to 

7 elderly individuals, individuals with disabilities, 

8 and people of all income ranges; 

9 ‘‘(2) the extent to which development of a strat10 egy under subsection (c) would be coordinated with 

11 all relevant members of the community in which the 

12 eligible area is located, including public-sector, real13 estate, retail, housing, commercial and economic de14 velopment, non-profit, and community-based organi15 zations or businesses; 

16 ‘‘(3) how a strategy under subsection (c) would 

17 be coordinated with relevant regional and local eco18 nomic development, land use, transportation, and 

19 housing plans; 

20 ‘‘(4) the location of the eligible area, to ensure 

21 that eligible recipients selected to participate in the 

22 Program are geographically diverse and include 

23 areas having populations of various sizes; 

24 ‘‘(5) the capacity of the eligible recipient and 

25 any partners of the eligible recipient to implement a 


jbell on DSK7SPTVN1PROD with BILLS
8 

•S 2053 IS

1 strategy under subsection (c) to maximize the likeli2 hood of the successful implementation of a strategy 

3 established under the Program; and 

4 ‘‘(6) the extent to which funds awarded under 

5 the Program would be coordinated with other Fed6 eral funding available to the applicant, as well as 

7 non-Federal revenues, to maximize efficient use of 

8 Federal funding. 

9 ‘‘(e) LIMITATION ON USE OF FUNDS.—A recipient 

10 of funding under the Program may not use the funding 

11 to implement a strategy established under the Program. 

12 ‘‘(f) RESERVATION OF FUNDS.—The Secretary may 

13 reserve not more than 20 percent of the amount of a grant 

14 under the Program until a strategy established under the 

15 Program is adopted by all relevant State, regional, local, 

16 and tribal governments in accordance with the schedule 

17 established under subsection (c)(5). 

18 ‘‘(g) COST SHARING.— 

19 ‘‘(1) FEDERAL SHARE.— 

20 ‘‘(A) IN GENERAL.—Except as provided in 

21 subparagraph (B), the Federal share of the cost 

22 of establishing a strategy under subsection (c) 

23 to be funded using a grant under the Program 

24 shall be not less than 50 percent and not more 

25 than 80 percent. 


jbell on DSK7SPTVN1PROD with BILLS
9 

•S 2053 IS

1 ‘‘(B) TRIBAL GOVERNMENTS.—The Fed2 eral share of the cost of establishing a strategy 

3 under subsection (c) to be funded using a grant 

4 under the Program to an eligible recipient that 

5 is a tribal government shall be 100 percent. 

6 ‘‘(2) CONSIDERATIONS.—In determining the 

7 Federal share of the cost of establishing a strategy 

8 under subsection (c) to be funded using a grant 

9 under the Program, the Secretary shall consider the 

10 demonstrated need of the applicant for assistance 

11 and available resources for establishing the strategy. 

12 ‘‘(3) IN-KIND CONTRIBUTIONS.—In-kind con13 tributions may be used for all or part of the non14 Federal share of the cost of establishing a strategy 

15 under subsection (c). 

16 ‘‘(h) REPORTING REQUIREMENTS.— 

17 ‘‘(1) REPORTS BY RECIPIENTS OF GRANTS.— 

18 Each recipient of a grant under the Program shall 

19 agree to establish, in coordination with the Sec20 retary, performance measures, reporting require21 ments, and any other requirements that the Sec22 retary determines are necessary, that must be met 

23 at the end of each year in which the recipient re24 ceives funds under the Program. 


jbell on DSK7SPTVN1PROD with BILLS
10 

•S 2053 IS

1 ‘‘(2) REPORTS TO CONGRESS.—The Secretary 

2 shall submit to Congress an annual report that con3 tains— 

4 ‘‘(A) a list of— 

5 ‘‘(i) each recipient of a grant under 

6 this section; 

7 ‘‘(ii) the Federal share of the cost of 

8 each strategy established using a grant 

9 under this section; 

10 ‘‘(iii) a description of the eligible area 

11 and the activities a grant under this sec12 tion would support; and 

13 ‘‘(iv) any eligible recipient that ap14 plied for but did not receive a grant under 

15 this section; and 

16 ‘‘(B) a report describing the outcome and 

17 effectiveness of each grant made under this sec18 tion. 

19 ‘‘(i) AUTHORIZATION OF APPROPRIATIONS.— 

20 ‘‘(1) AUTHORIZATION.—There are authorized to 

21 be appropriated $20,000,000 for each fiscal year to 

22 carry out the Program. 

23 ‘‘(2) LIMITATION.—Of amounts authorized for 

24 the program under paragraph (1), 10 percent shall 

25 be available to the Secretary for administration of 


jbell on DSK7SPTVN1PROD with BILLS
11 

•S 2053 IS

1 the program and to provide technical assistance and 

2 training for employees of eligible recipients regard3 ing developing a strategy under subsection (c) and 

4 implementation of transit-oriented development. 

5 ‘‘§ 5342. Transit-Oriented Development Loan Program 

6 ‘‘(a) DEFINITIONS.—In this section, the following 

7 definitions shall apply: 

8 ‘‘(1) ELIGIBLE APPLICANT.—The term ‘eligible 

9 applicant’ means an eligible recipient, as defined in 

10 section 5341. 

11 ‘‘(2) ELIGIBLE AREA.—The term ‘eligible area’ 

12 has the same meaning as in section 5341. 

13 ‘‘(3) ELIGIBLE BORROWER.—The term ‘eligible 

14 borrower’ means— 

15 ‘‘(A) an eligible recipient; 

16 ‘‘(B) a corporation, partnership, joint ven17 ture, or trust on behalf of which an eligible ap18 plicant submits an application under subsection 

19 (c); and 

20 ‘‘(C) any other legal entity undertaking a 

21 project on behalf of which an eligible applicant 

22 submits an application under subsection (c). 

23 ‘‘(4) PROJECT.—The term ‘project’ means an 

24 infrastructure development project that is used to 


jbell on DSK7SPTVN1PROD with BILLS
12 

•S 2053 IS

1 support transit-oriented development in an eligible 

2 area, including— 

3 ‘‘(A) property enhancement, including con4 ducting environmental remediation, park devel5 opment, and open space acquisition; 

6 ‘‘(B) improvement of mobility and parking, 

7 including rehabilitating, or providing for addi8 tional, streets, transit stations, structured park9 ing, walkways, and bikeways; 

10 ‘‘(C) utility development, including reha11 bilitating existing, or providing for new drinking 

12 water, wastewater, electric, and gas utilities; 

13 and 

14 ‘‘(D) any other activities eligible under 

15 joint development guidelines, as that term is de16 fined by the Administrator of the Federal Tran17 sit Administration. 

18 ‘‘(5) TRANSIT-ORIENTED DEVELOPMENT.—The 

19 term ‘transit-oriented development’ has the same 

20 meaning as in section 5341. 

21 ‘‘(b) LOANS AND LOAN GUARANTEES.—The Sec22 retary may make or guarantee loans under this section 

23 to eligible borrowers to carry out projects. 


jbell on DSK7SPTVN1PROD with BILLS
13 

•S 2053 IS

1 ‘‘(c) APPLICATION.—An eligible applicant may sub2 mit to the Secretary an application for a loan or loan guar3 antee under this section— 

4 ‘‘(1) to fund a project carried out by the eligible 

5 applicant; or 

6 ‘‘(2) on behalf of an eligible borrower, to fund 

7 a project carried out by the eligible borrower. 

8 ‘‘(d) SELECTION CRITERIA.— 

9 ‘‘(1) IN GENERAL.—The Secretary may make a 

10 loan or loan guarantee under this section for a 

11 project— 

12 ‘‘(A) to be carried out within an eligible 

13 area; 

14 ‘‘(B) that is part of a community-wide de15 velopment plan; 

16 ‘‘(C) that promotes sustainable develop17 ment designed to include features that reduce 

18 energy consumption and that are environ19 mentally responsible; and 

20 ‘‘(D) for which not less than 15 percent of 

21 any housing units constructed or substantially 

22 rehabilitated as part of a transit-oriented devel23 opment supported by the project are affordable 

24 over the long term to, and occupied at time of 

25 initial occupancy by— 


jbell on DSK7SPTVN1PROD with BILLS
14 

•S 2053 IS

1 ‘‘(i) renters having incomes at or 

2 below 60 percent of the median income for 

3 the metropolitan statistical area in which 

4 the area is located; or 

5 ‘‘(ii) homeowners having incomes at 

6 or below 100 percent of the median income 

7 for the metropolitan statistical area in 

8 which the area is located. 

9 ‘‘(2) CONSIDERATIONS.—The Secretary, in con10 sultation with the Secretary of Housing and Urban 

11 Development and the Administrator of the Environ12 mental Protection Agency, shall select the recipients 

13 of loans and loan guarantees under this section 

14 based on the extent to which— 

15 ‘‘(A) the transit-oriented development sup16 ported by the project would— 

17 ‘‘(i) encourage increased use of transit 

18 in the eligible area; and 

19 ‘‘(ii) create or preserve long-term af20 fordable housing units— 

21 ‘‘(I) in addition to the housing 

22 units required to be made available 

23 under paragraph (1)(C); or 


jbell on DSK7SPTVN1PROD with BILLS
15 

•S 2053 IS

1 ‘‘(II) that are affordable to indi2 viduals having incomes below the in3 comes described in paragraph (1)(C); 

4 ‘‘(B) the project would facilitate and en5 courage additional development or redevelop6 ment in the eligible area; 

7 ‘‘(C) the relevant local government has 

8 adopted policies that— 

9 ‘‘(i) promote long-term affordable 

10 housing; and 

11 ‘‘(ii) allow high-density, mixed-use de12 velopment near transit stations; 

13 ‘‘(D) the transit-oriented development sup14 ported by the project is part of a regional or 

15 local comprehensive plan, including any strategy 

16 developed under section 5341; 

17 ‘‘(E) the eligible borrower has established 

18 a reliable, dedicated revenue source to repay the 

19 loan; 

20 ‘‘(F) the project could not be carried out 

21 without a loan or loan guarantee under this sec22 tion; and 

23 ‘‘(G) a loan or loan guarantee under this 

24 section would be used in conjunction with non25 Federal sources to fund the project. 


jbell on DSK7SPTVN1PROD with BILLS
16 

•S 2053 IS

1 ‘‘(e) ELIGIBLE SOURCES OF REPAYMENT.—A loan 

2 made or guaranteed under this section shall be repayable, 

3 in whole or in part, from dedicated revenue sources, which 

4 may include— 

5 ‘‘(1) user fees; 

6 ‘‘(2) property tax revenues; 

7 ‘‘(3) sales tax revenues; 

8 ‘‘(4) other revenue sources dedicated to the 

9 project by property owners and businesses; or 

10 ‘‘(5) a bond or other indebtedness backed by a 

11 revenue source described in this subsection. 

12 ‘‘(f) INTEREST RATE.—The Secretary shall establish 

13 an interest rate for loans made or guaranteed under this 

14 section with reference to a benchmark interest rate (yield) 

15 on marketable Treasury securities with a maturity that 

16 is similar to the loans made or guaranteed under this sec17 tion. 

18 ‘‘(g) MAXIMUM MATURITY.—The maturity of a loan 

19 made or guaranteed under this section may not exceed the 

20 lesser of— 

21 ‘‘(1) 35 years; or 

22 ‘‘(2) 90 percent of the useful life of any project 

23 to be financed by the loan, as determined by the 

24 Secretary. 

25 ‘‘(h) MAXIMUM LOAN GUARANTEE RATE.— 


jbell on DSK7SPTVN1PROD with BILLS
17 

•S 2053 IS

1 ‘‘(1) IN GENERAL.—The guarantee rate on a 

2 loan guaranteed under this section may not exceed 

3 75 percent of the amount of the loan. 

4 ‘‘(2) LOWER GUARANTEE RATE FOR LOW-RISK

5 BORROWERS.—The Secretary shall establish for 

6 loans to eligible borrowers that the Secretary deter7 mines have less risk of default a guarantee rate that 

8 is lower than the guarantee rate for loans to other 

9 eligible borrowers. 

10 ‘‘(i) FEES.—The Secretary shall establish fees for 

11 loans made or guaranteed under this section at a level that 

12 are sufficient to cover all or part of the costs to the Fed13 eral Government of making or guaranteeing a loan under 

14 this section. 

15 ‘‘(j) NONSUBORDINATION.—A loan made or guaran16 teed under this section may not be subordinated to the 

17 claims of any holder of an obligation relating to the project 

18 in the event of bankruptcy, insolvency, or liquidation. 

19 ‘‘(k) COMMENCEMENT OF REPAYMENT.—The sched20 uled repayment of principal or interest on a loan made 

21 or guaranteed under this section shall commence not later 

22 than 5 years after the date of substantial completion of 

23 the project, as determined by the Secretary. 

24 ‘‘(l) REPAYMENT DEFERRAL FOR LOANS.— 

25 ‘‘(1) IN GENERAL.— 


jbell on DSK7SPTVN1PROD with BILLS
18 

•S 2053 IS

1 ‘‘(A) LOAN MADE BY SECRETARY.—If, at 

2 any time after the date of substantial comple3 tion of a project, the Secretary determines that 

4 dedicated revenue sources of an eligible bor5 rower are insufficient to make the scheduled 

6 loan repayments of principal and interest on a 

7 loan made by the Secretary under this section, 

8 the Secretary may, subject to criteria estab9 lished by the Secretary, allow the eligible bor10 rower to add unpaid principal and interest to 

11 the outstanding balance of the loan. 

12 ‘‘(B) LOAN GUARANTEED BY SEC13 RETARY.—If, at any time after the date of sub14 stantial completion of a project, the Secretary 

15 determines that dedicated revenue sources of an 

16 eligible borrower are insufficient to make the 

17 scheduled loan repayments of principal and in18 terest on a loan guaranteed by the Secretary 

19 under this section, the Secretary may, subject 

20 to criteria established by the Secretary— 

21 ‘‘(i) add unpaid principal and interest 

22 to the outstanding balance of the loan; and 

23 ‘‘(ii) modify the terms of the loan 

24 guarantee to reflect a modification made 

25 under subsection (i). 


jbell on DSK7SPTVN1PROD with BILLS
19 

•S 2053 IS

1 ‘‘(2) TREATMENT OF DEFERRED PAYMENTS.— 

2 Any payment deferred under this section shall— 

3 ‘‘(A) continue to accrue interest until fully 

4 repaid; and 

5 ‘‘(B) be scheduled to be amortized over the 

6 remaining term of the loan. 

7 ‘‘(m) REPORTING REQUIREMENTS.— 

8 ‘‘(1) REPORTS BY RECIPIENTS OF GRANTS.— 

9 Each recipient of a loan or loan guarantee under 

10 this section shall provide regular status reports to 

11 the Secretary. 

12 ‘‘(2) REPORTS TO CONGRESS.—The Secretary 

13 shall submit to Congress an annual report that con14 tains— 

15 ‘‘(A) a list of— 

16 ‘‘(i) each eligible borrower that re17 ceives a loan made or guaranteed under 

18 this section; 

19 ‘‘(ii) a description of the eligible area 

20 and the activities a loan or loan guarantee 

21 under this section would support; and 

22 ‘‘(iii) any eligible applicant that ap23 plied for but did not receive a loan or loan 

24 guarantee under this section; and 


jbell on DSK7SPTVN1PROD with BILLS
20 

•S 2053 IS

1 ‘‘(B) a report describing the outcome and 

2 effectiveness of each loan made or guaranteed 

3 under this section. 

4 ‘‘(n) AUTHORIZATION OF APPROPRIATIONS.—There 

5 are authorized to be appropriated for the cost of loans and 

6 loan guarantees under this section $40,000,000 for each 

7 fiscal year.’’. 

8 SEC. 4. EVALUATION PROCESS AND PROGRAM CRITERIA. 

9 The Secretary shall, after providing notice and an op10 portunity to comment, publish policy guidance regarding 

11 the evaluation process and criteria for the programs estab12 lished under sections 5341 and 5342 of title 49, United 

13 States Code, as added by this Act. 

Æ 


jbell on DSK7SPTVN1PROD with BILLS