I 

111TH CONGRESS 

2D SESSION H. R. 6462 

To amend the Department of Agriculture Reorganization Act of 1994 to 

establish in the Department of Agriculture a Healthy Food Financing 

Initiative. 

IN THE HOUSE OF REPRESENTATIVES 

NOVEMBER 30, 2010 

Ms. SCHWARTZ (for herself, Mr. BURGESS, Mr. BLUMENAUER, Ms. 

VELA ́ZQUEZ, Mr. FATTAH, and Mr. RUSH) introduced the following bill; 

which was referred to the Committee on Agriculture 

A BILL 

To amend the Department of Agriculture Reorganization 

Act of 1994 to establish in the Department of Agriculture a Healthy Food Financing Initiative. 

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 ‘‘Healthy Food Financ5 ing Initiative’’. 

6 SEC. 2. HEALTHY FOOD FINANCING INITIATIVE. 

7 (a) IN GENERAL.—Subtitle D of the Department of 

8 Agriculture Reorganization Act of 1994 (7 U.S.C. 6951) 

9 is amended by adding at the end the following: 


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1 ‘‘SEC. 242. HEALTHY FOOD FINANCING INITIATIVE. 

2 ‘‘(a) PURPOSE.—The purpose of this section is to es3 tablish a program to improve access to healthy foods in 

4 underserved areas, to create and preserve quality jobs, and 

5 to revitalize low-income communities by providing loans 

6 and grants to eligible fresh, healthy food retailers to over7 come the higher costs and initial barriers to entry in un8 derserved, urban, suburban, and rural areas. 

9 ‘‘(b) DEFINITIONS.—In this section: 

10 ‘‘(1) COMMUNITY DEVELOPMENT FINANCIAL IN11 STITUTION.—The term ‘community development fi12 nancial institution’ has the meaning given the term 

13 in section 103 of the Community Development 

14 Banking and Financial Institutions Act of 1994 (12 

15 U.S.C. 4702). 

16 ‘‘(2) FOOD ACCESS ORGANIZATION.—The term 

17 ‘food access organization’ means a nonprofit organi18 zation with expertise in improving access to healthy 

19 food in underserved communities. 

20 ‘‘(3) INITIATIVE.—The term ‘Initiative’ means 

21 the Healthy Food Financing Initiative established in 

22 the Department by subsection (c)(1). 

23 ‘‘(4) LOCAL FUNDS.—The term ‘local funds’ 

24 means the allocation of national funds and any other 

25 forms of financial assistance (including grants, 

26 loans, and equity investments) that are raised by 


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1 partnerships to carry out the purposes of this sec2 tion. 

3 ‘‘(5) NATIONAL FUNDS.—The term ‘national 

4 funds’ means any Federal appropriation made to 

5 carry out this section and any other forms of finan6 cial assistance (including grants, loans, and equity 

7 investments) that are raised by the national fund 

8 manager to carry out the purposes of this section. 

9 ‘‘(6) NATIONAL FUND MANAGER.—The term 

10 ‘national fund manager’ means a community devel11 opment financial institution in existence as of the 

12 date of enactment of this section and certified by the 

13 Community Development Financial Institutions 

14 Fund of the Department of the Treasury that is des15 ignated by the Secretary to manage the Initiative for 

16 purposes of— 

17 ‘‘(A) raising private capital; 

18 ‘‘(B) providing financial and technical as19 sistance to partnerships; and 

20 ‘‘(C) funding eligible projects directly at 

21 the request of partnerships to attract fresh, 

22 healthy food retailers to underserved urban, 

23 suburban, and rural areas, in accordance with 

24 this section. 

25 ‘‘(7) PARTNERSHIP.— 


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1 ‘‘(A) IN GENERAL.—The term ‘partner2 ship’ means a regional, State, or local public 

3 and private partnership that is organized to im4 prove access to fresh, healthy foods by pro5 viding financial and technical assistance to eli6 gible projects. 

7 ‘‘(B) INCLUSIONS.—The term ‘partnership’ 

8 includes— 

9 ‘‘(i) an unit of State, local, or tribal 

10 government or a quasi-public State or local 

11 government agency; 

12 ‘‘(ii) a food access or community 

13 health organization committed to improv14 ing access to healthy foods; 

15 ‘‘(iii) a community development finan16 cial institution or other organization that 

17 is capable of administering a loan and 

18 grant program in accordance with this sec19 tion; and 

20 ‘‘(iv) other organizations interested in 

21 improving access to healthy foods in under22 served areas. 

23 ‘‘(c) ESTABLISHMENT.— 

24 ‘‘(1) IN GENERAL.—There is established in the 

25 Department a Healthy Food Financing Initiative. 


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1 ‘‘(2) MANAGEMENT.—Not later than 1 year 

2 after the date of enactment of this section, the Sec3 retary shall select and enter into a grant agreement 

4 with a national fund manager who shall be respon5 sible for the management of the Initiative nationally. 

6 ‘‘(3) ELIGIBLE PROJECTS.— 

7 ‘‘(A) IN GENERAL.—Subject to the re8 quirements of this paragraph, the national fund 

9 manager shall establish the eligibility criteria 

10 for projects to be assisted by the Initiative. 

11 ‘‘(B) REQUIREMENTS.—To be eligible to 

12 receive assistance through the Initiative, a 

13 project shall— 

14 ‘‘(i) include a supermarket, grocery 

15 store, farmers market, or other fresh, 

16 healthy food retailer; 

17 ‘‘(ii) consist of a for-profit business 

18 enterprise, a member- or worker-owned co19 operative, or a nonprofit organization; 

20 ‘‘(iii) meet the eligibility criteria es21 tablished under this section; 

22 ‘‘(iv) continue to be a viable business 

23 enterprise with a financial viability plan; 


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1 ‘‘(v) require an investment of public 

2 funding to move forward and be competi3 tive; 

4 ‘‘(vi) operate on a self-service basis; 

5 ‘‘(vii) in accordance with subpara6 graph (C), expand or preserve the avail7 ability of healthy, fresh, high quality un8 prepared and unprocessed foods, particu9 larly fresh fruits and vegetables, in under10 served areas; and 

11 ‘‘(viii) agree to accept benefits under 

12 the supplemental nutrition assistance pro13 gram established under the Food and Nu14 trition Act of 2008 (7 U.S.C. 2011 et 

15 seq.). 

16 ‘‘(C) REQUIREMENTS.— 

17 ‘‘(i) DEFINITIONS.—In this subpara18 graph: 

19 ‘‘(I) PERISHABLE FOOD.— 

20 ‘‘(aa) IN GENERAL.—The 

21 term ‘perishable food’ means food 

22 that is fresh, refrigerated, or fro23 zen. 

24 ‘‘(bb) EXCLUSION.—The 

25 term ‘perishable food’ does not 


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1 include packaged or canned 

2 goods. 

3 ‘‘(II) STAPLE FOOD.— 

4 ‘‘(aa) IN GENERAL.—The 

5 term ‘staple food’ means food 

6 that is a basic dietary item, in7 cluding bread, flour, fruits, vege8 tables, and meat. 

9 ‘‘(bb) EXCLUSIONS.—The 

10 term ‘staple food’ does not in11 clude snack or accessory food 

12 (such as chips, soda, coffee, con13 diments, and spices) or ready-to14 eat, prepared food. 

15 ‘‘(III) VARIETY.—The term ‘vari16 ety’ means an assortment of different 

17 types of food items. 

18 ‘‘(ii) IN GENERAL.—For purposes of 

19 subparagraph (B)(vii), to expand or pre20 serve the availability of fresh fruits and 

21 vegetables in underserved areas shall 

22 mean, with respect to a project, that the 

23 project maintains a store that— 

24 ‘‘(I) carries a full line of fresh 

25 produce, as defined by the national 


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1 fund manager to reflect differences in 

2 project size and overall store size; 

3 ‘‘(II) sells food for home prepara4 tion and consumption; and 

5 ‘‘(III) at a minimum— 

6 ‘‘(aa) offers for sale at least 

7 3 different varieties of food in 

8 each of the 4 staple food groups 

9 (bread and grains, dairy, fruits 

10 and vegetables, and meat, poul11 try, and fish), with perishable 

12 food in at least 2 categories, on 

13 a daily basis; or 

14 ‘‘(bb) has a store at which 

15 at least 50 percent of the total 

16 sales of the store (including food 

17 and nonfood items or services) 

18 are from the sale of eligible sta19 ple food. 

20 ‘‘(D) INCOME CRITERIA.—Each eligible 

21 project shall be located in— 

22 ‘‘(i) a low- or moderate-income census 

23 tract, as determined by the Bureau of the 

24 Census of the Department of Commerce; 


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1 ‘‘(ii) a population census tract that is 

2 treated as a low-income community under 

3 section 45D(e) of the Internal Revenue 

4 Code of 1986; or 

5 ‘‘(iii) an area that significantly serves 

6 an adjacent area that meets the criteria 

7 described in clause (i) or (ii), as approved 

8 by the national fund manager. 

9 ‘‘(E) UNDERSERVED CRITERIA.— 

10 ‘‘(i) IN GENERAL.—Each eligible 

11 project shall be located in an underserved 

12 area, as determined by the partnerships 

13 according to criteria established by the na14 tional fund manager. 

15 ‘‘(ii) FACTORS.—In determining 

16 whether an area is an underserved area, 

17 the following factors shall be taken into 

18 consideration: 

19 ‘‘(I) Population density. 

20 ‘‘(II) Below average supermarket 

21 density or sales. 

22 ‘‘(III) Car ownership. 

23 ‘‘(IV) Geographical or physical 

24 barriers, such as highways, moun25 tains, major parks, or bodies of water. 


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1 ‘‘(iii) LOCATIONS.—On an annual 

2 basis, the national fund manager shall col3 lect data and publish maps that show the 

4 location of underserved areas. 

5 ‘‘(4) PRIORITY PROJECTS.— 

6 ‘‘(A) IN GENERAL.—Priority shall be given 

7 to projects that— 

8 ‘‘(i) are located in severely distressed 

9 low-income communities, as defined by the 

10 Community Development Financial Insti11 tutions Fund of the Department of the 

12 Treasury; and 

13 ‘‘(ii) include 1 or more of the fol14 lowing characteristics: 

15 ‘‘(I) The project will create or re16 tain quality jobs in the community, as 

17 determined in accordance with sub18 paragraph (B). 

19 ‘‘(II) The project has community 

20 support in terms of store quality, af21 fordability, site location, and coordina22 tion with local community plans or 

23 other programs promoting community 

24 and economic development. 


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1 ‘‘(III) The project supports re2 gional food systems and locally grown 

3 foods, to the extent available. 

4 ‘‘(IV) In major metropolitan 

5 areas, the project is associated with a 

6 transit-oriented development project. 

7 ‘‘(V) In areas with public transit, 

8 the project is accessible by public 

9 transit. 

10 ‘‘(VI) The project involves the 

11 reuse of a building that is listed in or 

12 eligible for the National Register of 

13 Historic Places. 

14 ‘‘(VII) The project involves a 

15 brownfield or grayfield (as those 

16 terms are used in the Comprehensive 

17 Environmental Response, Compensa18 tion, and Liability Act of 1980 (42 

19 U.S.C. 9601 et seq.)). 

20 ‘‘(VIII) The estimated energy 

21 consumption of the project, calculated 

22 using building energy software ap23 proved by the Department of Energy, 

24 will qualify the project for designation 

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1 lished by section 324A of the Energy 

2 Policy and Conservation Act (42 

3 U.S.C. 6294a). 

4 ‘‘(IX) The project involves 

5 women- and minority-owned busi6 nesses. 

7 ‘‘(B) QUALITY JOBS.—For purposes of 

8 subparagraph (A)(ii)(I), a quality job is a job 

9 that— 

10 ‘‘(i) provides wages that are com11 parable to or better than similar positions 

12 in existing businesses of similar size in 

13 similar local economies; 

14 ‘‘(ii) offers benefits that are com15 parable to or better than what is offered 

16 for similar positions in existing local busi17 nesses of similar size in similar local econo18 mies; and 

19 ‘‘(iii) is targeted for residents of 

20 neighborhoods with a high proportion of 

21 persons of low income (as that term is de22 fined in section 102(a) of the Housing and 

23 Community Development Act of 1974 (42 

24 U.S.C. 5302(a))) through local targeted 

25 hiring programs. 


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1 ‘‘(d) DUTIES OF THE SECRETARY.— 

2 ‘‘(1) IN GENERAL.—The Secretary shall— 

3 ‘‘(A) designate a national fund manager to 

4 manage national funds; 

5 ‘‘(B) oversee the Initiative nationally; 

6 ‘‘(C) work closely with the designated na7 tional fund manager— 

8 ‘‘(i) to ensure that funds are used ap9 propriately and in the most effective man10 ner practicable; and 

11 ‘‘(ii) to develop the program strategy 

12 into a detailed work plan, program, and 

13 operating budget; 

14 ‘‘(D) review and approve the operating 

15 budget for the national fund manager to ensure 

16 that the administrative costs are— 

17 ‘‘(i) reasonable (not more than 5 per18 cent of the total budget); 

19 ‘‘(ii) connected to the costs of oper20 ations; and 

21 ‘‘(iii) reflect efficient operations by the 

22 national fund manager; and 

23 ‘‘(E) make available to the public an an24 nual report, using data obtained from the De25 partment of Agriculture, the Department of 


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1 Health and Human Services, and the Commu2 nity Development Financial Institutions, that 

3 describes the impacts of the Initiative, including 

4 tracking health and economic development indi5 cators at the local, State, and national levels to 

6 determine the impacts of individual projects 

7 and the collective impact in local areas and 

8 statewide of funded projects and the Initiative 

9 overall. 

10 ‘‘(2) NATIONAL FUND MANAGER.—The Sec11 retary shall— 

12 ‘‘(A) select the national fund manager 

13 through a competitive process from among com14 munity development financial institutions that 

15 have a proven and recent track record of suc16 cess and effectiveness in— 

17 ‘‘(i) attracting private capital; 

18 ‘‘(ii) developing and managing pro19 grams that provide grants and loans to 

20 support supermarkets and other fresh, 

21 healthy food retail business enterprises in 

22 low- and moderate-income communities, in23 cluding the development of grocery stores, 

24 farmers markets, and other fresh, healthy 

25 food retail models; 


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1 ‘‘(iii) making and servicing loans that 

2 are similar to loans proposed in the Initia3 tive or having a record of otherwise suc4 cessfully investing in fresh, healthy food 

5 retail development projects; 

6 ‘‘(iv) effectively managing multiple 

7 contracts and subcontractors; 

8 ‘‘(v) effectively managing large capital 

9 pools, of at least $100,000,000; and 

10 ‘‘(vi) providing or contracting for the 

11 provision of technical assistance; and 

12 ‘‘(B) administer the Initiative by approving 

13 the disbursement of funds to the national fund 

14 manager in a manner that facilitates the imple15 mentation of the overall Initiative. 

16 ‘‘(3) COORDINATION.— 

17 ‘‘(A) IN GENERAL.—Not later than 45 

18 days after the date of receipt of an award, the 

19 national fund manager shall develop, with guid20 ance from and in consultation with the Sec21 retary, and submit to the Secretary, a detailed 

22 work plan. 

23 ‘‘(B) APPROVAL REQUIRED.—The Sec24 retary shall review and approve the work plan, 

25 program budget, and administrative costs under 


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1 subsection (e)(4)(C) prior to entering into an 

2 agreement with the national fund manager to 

3 administer the Initiative. 

4 ‘‘(4) PERFORMANCE TARGETS.— 

5 ‘‘(A) IN GENERAL.—The Secretary shall 

6 conduct financial audits of, and establish per7 formance targets for, the national fund man8 ager, which shall include, at a minimum, the re9 quirements described in this paragraph. 

10 ‘‘(B) GEOGRAPHIC SPREAD.—Partnerships 

11 funded by the Initiative shall be geographically 

12 diverse and representative of the underserved 

13 areas across the United States. 

14 ‘‘(C) FOCUS ON LOW-INCOME COMMU15 NITIES.—A substantial portion of the projects 

16 funded by partnerships shall serve very low17 and low-income communities, as defined by the 

18 Bureau of the Census of the Department of 

19 Commerce. 

20 ‘‘(D) FINANCIAL EFFECTIVENESS OF THE

21 NATIONAL FUND MANAGER.—The national fund 

22 manager and any local financial institution in23 volved in a partnership shall demonstrate on24 going capacity and timeliness in raising private 


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1 capital and disbursing funds as required under 

2 the Initiative. 

3 ‘‘(E) TECHNICAL ASSISTANCE EFFECTIVE4 NESS OF THE NATIONAL FUND MANAGER.—The 

5 provision of technical assistance by the national 

6 fund manager shall be evaluated based on— 

7 ‘‘(i) the responsiveness of the national 

8 fund manager to requests for assistance; 

9 and 

10 ‘‘(ii) the ability of the national fund 

11 manager to craft programs that develop 

12 needed new capacities in partnerships. 

13 ‘‘(F) IMPACT.—Performance targets shall 

14 address the allocation of funds by the national 

15 fund manager to partnerships and the tracking 

16 and reporting of the impacts of the funds in im17 proving access to fresh, healthy foods and in 

18 achieving other related impacts. 

19 ‘‘(e) DUTIES OF THE NATIONAL FUND MANAGER.— 

20 ‘‘(1) ALLOCATION OF FUNDS.— 

21 ‘‘(A) IN GENERAL.—The national fund 

22 manager shall— 

23 ‘‘(i) allocate at least 70 percent of any 

24 Federal appropriation made to carry out 

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1 lected based on the criteria described in 

2 paragraph (3); and 

3 ‘‘(ii) retain not more than 30 percent 

4 of any Federal appropriation made to 

5 carry out this section to undertake financ6 ing activities described in subparagraph 

7 (C), including a reasonable amount for ad8 ministrative costs (not to exceed 5 percent) 

9 approved by the Secretary in accordance 

10 with paragraph (4)(C). 

11 ‘‘(B) USE OF THE NATIONAL FUNDS BY

12 PARTNERSHIP PROGRAMS.— 

13 ‘‘(i) IN GENERAL.—As a condition on 

14 the receipt of funds, each partnership shall 

15 use— 

16 ‘‘(I) the national funds received 

17 from the national fund manager under 

18 subparagraph (A)(i) to create 1 or 

19 more revolving loan programs or other 

20 revolving pools of capital or other 

21 products to facilitate financing of local 

22 projects as determined by the agree23 ment between the partnership and the 

24 national fund manager; and 


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1 ‘‘(II) any remaining funds for 

2 grants, or, as approved, for innovative 

3 financing mechanisms. 

4 ‘‘(ii) LIMITATIONS.— 

5 ‘‘(I) IN GENERAL.—Use of funds 

6 for administrative costs and other 

7 purposes shall be— 

8 ‘‘(aa) limited in accordance 

9 with the terms of the agreement 

10 negotiated between the national 

11 fund manager and partnerships; 

12 ‘‘(bb) based on whether ad13 ministrative costs are reasonable, 

14 connected to the costs of oper15 ation, and reflect efficient oper16 ations by the partnership; and 

17 ‘‘(cc) determined using cri18 teria including geographic cov19 erage, program duration, and 

20 total funding amount. 

21 ‘‘(II) GOAL.—The goal of this 

22 clause to limit administrative costs to 

23 the maximum extent practicable, but 

24 in no case may the amount used for 


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1 administrative costs exceed 10 percent 

2 of the Federal funds allocated. 

3 ‘‘(C) USE OF THE NATIONAL FUNDS BY

4 THE NATIONAL FUND MANAGER.—The national 

5 fund manager shall use national funds de6 scribed in subparagraph (A)(ii) to undertake fi7 nancing and other activities to enhance and 

8 maximize the effectiveness of the Initiative, as 

9 determined by the agreement with the Sec10 retary, including— 

11 ‘‘(i) attracting other forms of financial 

12 assistance to match or leverage the na13 tional funds; 

14 ‘‘(ii) awarding national funds to part15 nerships in accordance with paragraph (3); 

16 ‘‘(iii) creating and managing pools of 

17 grant or loan capital that blend or leverage 

18 national funds with other forms of finan19 cial assistance, including capital in the 

20 form of tax credits under section 45D of 

21 the Internal Revenue Code of 1986, for the 

22 benefit of partnerships; 

23 ‘‘(iv) creating and managing pools of 

24 grant or loan capital that blend or leverage 

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1 nancial assistance, including capital in the 

2 form of tax credits under section 45D of 

3 the Internal Revenue Code of 1986, to fi4 nance eligible local projects identified by 

5 partnerships or the national fund manager 

6 that have special or unique characteristics; 

7 ‘‘(v) providing loans or grants directly 

8 to eligible local projects as matching funds 

9 if requested by a partnership; 

10 ‘‘(vi) providing credit enhancement or 

11 other financial products and instruments 

12 for the benefit of partnerships or eligible 

13 local projects; 

14 ‘‘(vii) providing technical assistance; 

15 and 

16 ‘‘(viii) funding reasonable administra17 tive costs approved by the Secretary in ac18 cordance with paragraph (4)(C). 

19 ‘‘(2) RESPONSIBILITIES OF THE NATIONAL

20 FUND MANAGER.—The designated national fund 

21 manager shall— 

22 ‘‘(A) raise other forms of financial assist23 ance to match or leverage the national funds; 


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1 ‘‘(B) use administrative funds to develop 

2 appropriate training programs and offer tech3 nical assistance services to— 

4 ‘‘(i) partnerships; 

5 ‘‘(ii) State, local, and tribal govern6 ments; 

7 ‘‘(iii) the food retail industry; and 

8 ‘‘(iv) food access and health advocacy 

9 organizations to augment local capacities; 

10 ‘‘(C) develop financial products such as 

11 loans, grants, and credit enhancement tools 

12 that can be used by partnerships to incentivize 

13 and support the development and retention of 

14 supermarkets and other fresh, healthy food re15 tail in underserved areas; 

16 ‘‘(D) award Initiative funds to eligible 

17 partnerships through an annual competitive 

18 process in accordance with paragraph (3); 

19 ‘‘(E) contract with a national food access 

20 organization to assist in the review of applica21 tions from partnerships and to provide technical 

22 assistance to local food access organizations in 

23 the proposed partnerships; 


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1 ‘‘(F) award and disburse funds to partner2 ships or eligible local projects in a timely man3 ner; 

4 ‘‘(G) create and meet performance bench5 marks and reporting guidelines, as approved by 

6 the Secretary, including for— 

7 ‘‘(i) the amount of capital raised and 

8 leveraged from financial institutions, part9 nerships, and other resources; 

10 ‘‘(ii) the geographic diversity of part11 nerships; and 

12 ‘‘(iii) the proportion of projects fund13 ed by the partnership that are in severely 

14 distressed low-income communities; 

15 ‘‘(H) develop program guidelines and oper16 ating procedures for the Initiative, including— 

17 ‘‘(i) maximum grant and loan 

18 amounts for projects; 

19 ‘‘(ii) eligible uses of funds; 

20 ‘‘(iii) prudent underwriting criteria; 

21 ‘‘(iv) performance targets; 

22 ‘‘(v) reporting guidelines; 

23 ‘‘(vi) limits on administrative costs; 

24 and 

25 ‘‘(vii) implementation milestones; 


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1 ‘‘(I) monitor the performance of partner2 ships; and 

3 ‘‘(J) collect data, compile information, and 

4 conduct such research studies as the national 

5 fund manager determines to be relevant to the 

6 successful implementation of the Initiative, in7 cluding— 

8 ‘‘(i) to assess national and local mar9 ket conditions; 

10 ‘‘(ii) to determine barriers to market 

11 entry; and 

12 ‘‘(iii) to identify opportunities for the 

13 development or retention of supermarkets 

14 and other fresh, healthy food retail enter15 prises in underserved communities. 

16 ‘‘(3) CRITERIA FOR AWARDING NATIONAL

17 FUNDS TO PARTNERSHIPS.— 

18 ‘‘(A) IN GENERAL.—The national fund 

19 manager shall award national funds to partner20 ships through a competitive process on an an21 nual basis. 

22 ‘‘(B) FIRST ROUND PRIORITY.—In the 

23 first round of funding, the national fund man24 ager shall give priority to existing partnerships 

25 that have demonstrable capacity to implement 


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1 fresh food financing programs in underserved 

2 areas quickly. 

3 ‘‘(C) ADDITIONAL ROUNDS.—Additional 

4 rounds shall be designed to promote geographic 

5 diversity. 

6 ‘‘(D) CRITERIA.—In awarding national 

7 funds to partnerships, the national fund man8 ager shall consider— 

9 ‘‘(i) the amount of funds and other 

10 resources pledged by a partnership to 

11 match or leverage national funds; 

12 ‘‘(ii) the degree of State, local, or trib13 al government support of the partnership 

14 as evidenced by matching grant and loan 

15 funds or other types of support, such as al16 location of tax-exempt bonds, loan guaran17 tees, and coordination of resources from 

18 other State or local economic development 

19 programs; 

20 ‘‘(iii) the capacity of the partnership 

21 to successfully develop and manage loan 

22 and grant programs; 

23 ‘‘(iv) the lack of supermarkets and 

24 other fresh, healthy food retail enterprises 


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1 in low- and moderate-income areas that 

2 would be served by the partnership; 

3 ‘‘(v) the experience of the food access 

4 or community health organization of the 

5 partnership in outreach about access to 

6 healthy foods and local healthy food access 

7 issues; 

8 ‘‘(vi) the degree of community engage9 ment and support in the development and 

10 retention of supermarkets and other fresh, 

11 healthy food retail enterprises; and 

12 ‘‘(vii) the contribution of the program 

13 of the partnership to the overall geographic 

14 diversity of the Initiative. 

15 ‘‘(4) ADMINISTRATIVE COSTS.— 

16 ‘‘(A) IN GENERAL.—Not later than 45 

17 days after the date of receipt of an award, the 

18 national fund manager shall submit to the Sec19 retary for approval a 3-year program and oper20 ating budget and detailed work plan that shall 

21 include— 

22 ‘‘(i) costs for research and evaluation, 

23 technical assistance, and training; and 

24 ‘‘(ii) program and operating costs. 


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1 ‘‘(B) EARNED REVENUES.—Earned reve2 nues from loan fees and interest may be ex3 pended on program and operating costs in ac4 cordance with the budget approved by the Sec5 retary. 

6 ‘‘(C) BASIS OF REVIEW.—The Secretary 

7 shall base the review under subparagraph (A) 

8 on— 

9 ‘‘(i) the likelihood of the plan and ex10 penditures to further the purposes of this 

11 section; and 

12 ‘‘(ii) whether the administrative costs 

13 are reasonable, connected to the costs of 

14 operation, and reflect efficient operations 

15 by the national fund manager. 

16 ‘‘(f) PARTNERSHIPS.— 

17 ‘‘(1) IN GENERAL.—Each partnership that re18 ceives assistance through the Initiative shall provide 

19 financial and technical assistance to eligible fresh, 

20 healthy food retail projects in underserved areas 

21 within the defined communities of the partnership. 

22 ‘‘(2) ADMINISTRATION.—Each partnership shall 

23 designate a community development financial insti24 tution or other organization that is capable of ad25 ministering a loan and grant program— 


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1 ‘‘(A) to execute grant agreements with the 

2 national fund manager; and 

3 ‘‘(B) to serve as the manager of local 

4 funds. 

5 ‘‘(3) RESPONSIBILITIES OF PARTNERSHIPS.—A 

6 partnership shall— 

7 ‘‘(A) raise other forms of financial assist8 ance to match the national funds received by 

9 the partnership; 

10 ‘‘(B) provide marketing and outreach to 

11 communities, the supermarket industry, other 

12 fresh, healthy food retailers, State and local 

13 government officials, and civic and public inter14 est organizations— 

15 ‘‘(i) to solicit applications from under16 served areas from across the State or local17 ity to be served by the partnership; and 

18 ‘‘(ii) to inform the communities and 

19 other persons about the availability of 

20 grants, loans, training, and technical as21 sistance; 

22 ‘‘(C) review and underwrite projects to de23 termine whether— 


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1 ‘‘(i) a proposed project meets the cri2 teria for eligible projects under subsection 

3 (c)(3); and 

4 ‘‘(ii) a proposed project meets the cri5 teria for priority projects under subsection 

6 (c)(4); 

7 ‘‘(D) provide technical assistance services 

8 to eligible fresh, healthy food retail operators 

9 and developers; 

10 ‘‘(E) track and report outcomes, includ11 ing— 

12 ‘‘(i) the number of jobs created or re13 tained; 

14 ‘‘(ii) the quantity of fresh, healthy 

15 food retail space created or retained; and 

16 ‘‘(iii) such other health and economic 

17 indicators as are required by the national 

18 fund manager; 

19 ‘‘(F) monitor and audit funded projects to 

20 ensure compliance with the Initiative, the na21 tional fund manager, and partnership program 

22 requirements for a period of at least 3 years; 

23 ‘‘(G) submit an annual report to the na24 tional fund manager that describes— 

25 ‘‘(i) the activities of the partnership; 


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1 ‘‘(ii) the expenditure of local funds; 

2 and 

3 ‘‘(iii) success in meeting performance 

4 targets and satisfying such other terms 

5 and conditions as are specified in the 

6 agreement between the partnership and the 

7 national fund manager; and 

8 ‘‘(H) coordinate with the national fund 

9 manager for the smooth operation of the Initia10 tive. 

11 ‘‘(4) ADMINISTRATIVE COSTS.— 

12 ‘‘(A) IN GENERAL.—As a condition on the 

13 receipt of assistance under this section, each 

14 partnership shall submit to the national fund 

15 manager for approval a 3-year budget and plan 

16 for all program and operating costs, includ17 ing— 

18 ‘‘(i) costs for research and evaluation, 

19 technical assistance, and training; and 

20 ‘‘(ii) administrative and operating 

21 costs. 

22 ‘‘(B) EARNED REVENUES.—Earned reve23 nues from loan fees and interest may be ex24 pended on program and operating costs in acVerDate Mar 15 2010 05:31 Dec 01, 2010 Jkt 099200 PO 00000 Frm 00030 Fmt 6652 Sfmt 6201 E:\BILLS\H6462.IH H6462

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1 cordance with the budget approved by the na2 tional fund manager. 

3 ‘‘(C) BASIS OF REVIEW.—The national 

4 fund manager shall base the review under sub5 paragraph (A) on the likelihood of the budget 

6 and plan to further the purposes of this section. 

7 ‘‘(g) EVALUATION AND MONITORING.— 

8 ‘‘(1) IN GENERAL.—Program evaluation and fi9 nancial audits shall occur at all levels of the Initia10 tive to ensure that— 

11 ‘‘(A) national and local funds are used 

12 properly; and 

13 ‘‘(B) the objectives of the Initiative are 

14 met. 

15 ‘‘(2) PROGRAM EVALUATION AND FINANCIAL

16 AUDITS.— 

17 ‘‘(A) IN GENERAL.—The Secretary shall— 

18 ‘‘(i) conduct periodic program evalua19 tions and financial audits of the national 

20 fund manager, partnerships, and projects 

21 funded by the Initiative; and 

22 ‘‘(ii) share with the national fund 

23 manager the results of the evaluations and 

24 audits. 


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1 ‘‘(B) FUNDED PROJECTS.—The Secretary 

2 or the national fund manager shall evaluate 

3 partnerships to assess the health and economic 

4 impacts of projects funded by the Initiative. 

5 ‘‘(C) OTHER IMPACTS.— 

6 ‘‘(i) SECRETARY OF HEALTH AND

7 HUMAN SERVICES.—The Secretary of 

8 Health and Human Services shall conduct 

9 research studies and evaluate the health 

10 impacts of the Initiative. 

11 ‘‘(ii) COMMUNITY DEVELOPMENT FI12 NANCIAL INSTITUTIONS.—Representatives 

13 of the Community Development Financial 

14 Institutions shall conduct research studies 

15 and evaluate the economic impacts of the 

16 Initiative. 

17 ‘‘(D) PARTNERSHIPS.— 

18 ‘‘(i) IN GENERAL.—Each partnership 

19 shall— 

20 ‘‘(I) conduct periodic administra21 tive and financial audits of projects 

22 funded by the Initiative; and 

23 ‘‘(II) share with the national 

24 fund manager the results of the au25 dits. 


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1 ‘‘(ii) FAILURE OF PARTNERSHIP.—In 

2 a case in which a partnership fails, the na3 tional fund manager shall take over the 

4 portfolio of the failed partnership. 

5 ‘‘(h) ADMINISTRATIVE PROVISIONS.—Not later than 

6 180 days after the date of enactment of this section, the 

7 Secretary shall promulgate such regulations as may be 

8 necessary to carry out this section, including regulations— 

9 ‘‘(1) for the conduct of a performance evalua10 tion at the end of the initial 5-year period; 

11 ‘‘(2) to terminate the contract for cause; and 

12 ‘‘(3) to extend the contract for an additional 5- 

13 year period. 

14 ‘‘(i) AUTHORIZATION OF APPROPRIATIONS.—There is 

15 authorized to be appropriated to the Secretary to carry 

16 out this section $500,000,000, to remain available until 

17 expended.’’. 

18 (b) CONFORMING AMENDMENT.—Section 296(b) of 

19 the Department of Agriculture Reorganization Act of 

20 1994 (7 U.S.C. 7014(b)) is amended— 

21 (1) in paragraph (6)(C), by striking ‘‘or’’ at the 

22 end; 

23 (2) in paragraph (7), by striking the period at 

24 the end and inserting ‘‘; or’’; and 

25 (3) by adding at the end the following: 


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1 ‘‘(8) the authority of the Secretary to establish 

2 in the Department the Healthy Food Financing Ini3 tiative in accordance with section 242.’’. 

Æ 


pwalker on DSKD5P82C1PROD with BILLS