I 

110TH CONGRESS 

1ST SESSION H. R. 1411 

To provide for the construction and rehabilitation of child care facilities 

in areas of the Gulf Coast affected by Hurricanes Katrina and Rita. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 8, 2007 

Mr. JEFFERSON (for himself, Mr. TAYLOR, Ms. NORTON, Mr. ELLISON, and 

Ms. CORRINE BROWN of Florida) introduced the following bill; which was 

referred to the Committee on Financial Services 

A BILL 

To provide for the construction and rehabilitation of child 

care facilities in areas of the Gulf Coast affected by 

Hurricanes Katrina and Rita. 

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 ‘‘Emergency Gulf Coast 

5 Child Care Construction and Rebuilding Act’’. 

6 SEC. 2. CONGRESSIONAL FINDINGS. 

7 The Congress finds that— 


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1 (1) the Bureau of the Census has reported that, 

2 before Hurricane Katrina occurred, there were in 

3 New Orleans— 

4 (A) 25,000 two-parent families with chil5 dren under the age of 18; 

6 (B) 26,000 female-headed households with 

7 children under 18 and no husband present; and 

8 (C) more than 18,000 households con9 sisting of an individual more than 65 years old 

10 living alone; 

11 (2) studies have determined that reopening 

12 child care facilities after Hurricane Katrina was cru13 cial for helping parents get back to work and busi14 nesses to recover; 

15 (3) studies have shown that a lack of available 

16 and affordable child care greatly impedes economic 

17 recovery and reduces worker productivity; 

18 (4) the National Association of Child Care Re19 source and Referral Agencies reported in a study 

20 published by the Mississippi State University Early 

21 Childhood Institute that between 62 and 94 percent 

22 of the licensed child care slots in the three coastal 

23 counties in Mississippi hardest hit by Hurricanes 

24 Katrina and Rita were lost;


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1 (5) initial assessments determined that one2 fourth of the licensed child care centers, in Jackson 

3 County, Mississippi, representing 11 percent of the 

4 county’s licensed child care capacity, were damaged 

5 beyond repair and another 39 percent of centers 

6 needed repairs; 

7 (6) before Hurricanes Katrina and Rita, New 

8 Orleans had 1,912 day care slots at 266 licensed 

9 child care centers, but now 75 percent of those slots 

10 and 80 percent of those centers are gone;

11 (7) studies have determined that— 

12 (A) 33 of 61 neighborhoods in New Orle13 ans lost all their licensed day care centers; 

14 (B) another 19 neighborhoods lost at least 

15 some day care slots; and 

16 (C) several neighborhoods completely lack17 ing licensed child care have already shown 

18 strong signs of recovery, including Bywater and 

19 Broadmoor, while areas such as Central City, 

20 Mid-City, and Uptown have lost 60 percent or 

21 more of their centers; 

22 (8) only 55 child care centers were open in New 

23 Orleans at the end of September 2006 and of those 

24 10 participated in the Federal Head Start program, 


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1 which is one-third the participation level pre2 Katrina; 

3 (9) a recent study found that the New Orleans 

4 still lacks any coordinated plan for returning child 

5 care to neighborhoods that need it most; and 

6 (10) studies have stated that the most effective 

7 way to rebuild the child care infrastructure is to 

8 help child care programs in the disaster area reopen 

9 as rapidly as is safe, by giving priority to licensed 

10 early childhood facilities and by recruiting, training, 

11 and retaining child-care professionals. 

12 SEC. 3. USE OF COMMUNITY DEVELOPMENT BLOCK 

13 GRANTS TO ESTABLISH CHILD CARE FACILI14 TIES IN THE GULF COAST. 

15 Section 105(a) of the Housing and Community De16 velopment Act of 1974 (42 U.S.C. 5305(a)) is amended— 

17 (1) in paragraph (24), by striking ‘‘and’’ at the 

18 end; 

19 (2) in paragraph (25), by striking the period at 

20 the end and inserting ‘‘; and’’; and 

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

22 ‘‘(26) the construction and rebuilding of child 

23 care facilities that are located in any area for which 

24 the President declared that a major disaster exists, 

25 in accordance with section 401 of the Robert T. 


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1 Stafford Disaster Relief and Emergency Assistance 

2 Act (42 U.S.C. 5170), as a consequence of Hurri3 cane Katrina or Rita of 2005.’’. 

4 SEC. 4. INSURANCE FOR MORTGAGES ON NEW AND REHA5 BILITATED CHILD CARE FACILITIES IN THE 

6 GULF COAST. 

7 Title II of the National Housing Act (12 U.S.C. 1707 

8 et seq.) is amended by adding at the end the following: 

9 ‘‘SEC. 257. MORTGAGE INSURANCE FOR CHILD CARE FA10 CILITIES IN THE GULF COAST. 

11 ‘‘(a) DEFINITIONS.—In this section: 

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

13 care facility’— 

14 ‘‘(A) means a public or private facility 

15 that— 

16 ‘‘(i) has as its purpose the care and 

17 development of— 

18 ‘‘(I) children who are less than 

19 16 years of age; or 

20 ‘‘(II) school-age children and 

21 youth during non-school hours; and 

22 ‘‘(ii) is operated in accordance with all 

23 applicable State and local laws and regula24 tions; and 


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1 ‘‘(B) does not include any facility for 

2 school-age children that is primarily for use 

3 during normal school hours. 

4 ‘‘(2) EQUIPMENT.—The term ‘equipment’ in5 cludes— 

6 ‘‘(A) machinery, utilities, and built-in 

7 equipment, and any necessary enclosure or 

8 structure to house them; and 

9 ‘‘(B) any other items necessary for the 

10 functioning of a particular facility as a child 

11 care facility, including necessary furniture, 

12 books, and curricular and program materials. 

13 ‘‘(3) FIRST MORTGAGE.—The term ‘first mort14 gage’— 

15 ‘‘(A) means such classes of first liens as 

16 are commonly given to secure advances (includ17 ing advances during construction) on, or the 

18 unpaid purchase price of, real estate under the 

19 laws of the State in which the real estate is lo20 cated, together with the credit instrument or in21 struments (if any) secured thereby; and 

22 ‘‘(B) includes any mortgage in the form of 

23 1 or more trust mortgages or mortgage inden24 tures or deeds of trust, securing notes, bonds, 

25 or other credit instruments, that, by the same 


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1 instrument or by a separate instrument, creates 

2 a security interest in initial equipment, whether 

3 or not attached to the realty. 

4 ‘‘(4) MORTGAGE.—The term ‘mortgage’ means 

5 a first mortgage on real estate in fee simple, or on 

6 the interest of either the lessor or lessee thereof 

7 under a lease having a period of not less than 7 

8 years to run beyond the maturity date of the mort9 gage. 

10 ‘‘(5) MORTGAGOR.—The term ‘mortgagor’ has 

11 the meaning given the term in section 207(a). 

12 ‘‘(b) INSURANCE OF MORTGAGES.—In order to facili13 tate the establishment and rehabilitation of child care fa14 cilities, the Secretary may— 

15 ‘‘(1) insure a mortgage that is secured by a 

16 property or project that is— 

17 ‘‘(A) a new child care facility, including a 

18 new addition to an existing child care facility 

19 (regardless of whether the existing facility is 

20 being rehabilitated), that meets the require21 ments of subsection (c); or 

22 ‘‘(B) a substantially rehabilitated child 

23 care facility, including equipment to be used in 

24 the operation of the facility, that meets the re25 quirements of subsection (c); and 


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1 ‘‘(2) make a commitment to insure any mort2 gage described in paragraph (1) before the date of 

3 execution or disbursement of the mortgage. 

4 ‘‘(c) TERMS AND CONDITIONS.— 

5 ‘‘(1) ELIGIBLE CHILD CARE FACILITIES.—Each 

6 mortgage insured under this section shall be secured 

7 by a child care facility that meets the following re8 quirements: 

9 ‘‘(A) LOCATION IN GULF COAST.—The fa10 cility is located, or to be located, in an area for 

11 which the President declared that a major dis12 aster exists, in accordance with section 401 of 

13 the Robert T. Stafford Disaster Relief and 

14 Emergency Assistance Act (42 U.S.C. 5170), as 

15 a consequence of Hurricane Katrina or Rita of 

16 2005. 

17 ‘‘(B) COMPLIANCE WITH STANDARDS.— 

18 The facility complies, or will comply, with any 

19 laws, standards, and requirements applicable to 

20 such facilities under the laws of the State, mu21 nicipality, or other unit of general local govern22 ment in which the facility is or is to be located. 

23 ‘‘(2) APPROVED MORTGAGOR.— 


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1 ‘‘(A) IN GENERAL.—Each mortgage in2 sured under this section shall be executed by a 

3 mortgagor approved by the Secretary. 

4 ‘‘(B) REGULATION.—The Secretary may— 

5 ‘‘(i) require an approved mortgagor 

6 who executes a mortgage under subpara7 graph (A) to be regulated with respect to 

8 charges and methods of financing and, if 

9 the mortgagor is a corporate entity, with 

10 respect to capital structure and rate of re11 turn; and 

12 ‘‘(ii) as an aid to the regulation of any 

13 mortgagor under clause (i), make such 

14 contracts with and acquire for not more 

15 than $100 such stock or interest in such 

16 mortgagor as the Secretary considers to be 

17 necessary. 

18 ‘‘(C) STOCK OR INTEREST.—Any stock or 

19 interest purchased under subparagraph (B)(ii) 

20 shall be— 

21 ‘‘(i) paid for out of the General Insur22 ance Fund; and 

23 ‘‘(ii) redeemed by the mortgagor at 

24 par upon the termination of all obligations 

25 of the Secretary under the insurance. 


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1 ‘‘(3) PRINCIPAL OBLIGATION.—Each mortgage 

2 insured under this section shall involve a principal 

3 obligation in an amount not to exceed 90 percent of 

4 the estimated value of the property or project, or 95 

5 percent of the estimated value of the property or 

6 project in the case of a mortgagor that is a private 

7 nonprofit corporation or association (as defined pur8 suant to section 221(d)(3)), including— 

9 ‘‘(A) equipment to be used in the operation 

10 of the facility when the proposed improvements 

11 are completed and the equipment is installed; or 

12 ‘‘(B) a solar energy system (as defined in 

13 subparagraph (3) of the last paragraph of sec14 tion 2(a)) or residential energy conservation 

15 measures (as defined in subparagraphs (A) 

16 through (G) and (I) of section 210(11) of the 

17 National Energy Conservation Policy Act), in 

18 cases in which the Secretary determines that 

19 such measures are in addition to those required 

20 under the minimum property standards and will 

21 be cost-effective over the life of the measure. 

22 ‘‘(4) AMORTIZATION AND INTEREST.—Each 

23 mortgage insured under this section shall— 


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1 ‘‘(A) provide for complete amortization by 

2 periodic payments under such terms as the Sec3 retary shall prescribe; 

4 ‘‘(B) have a maturity date satisfactory to 

5 the Secretary, but in no event longer than 40 

6 years; and 

7 ‘‘(C) bear interest at such rate as may be 

8 agreed upon by the mortgagor and the mort9 gagee, and the Secretary shall not issue any 

10 regulations or establish any terms or conditions 

11 that interfere with the ability of the mortgagor 

12 and mortgagee to determine the interest rate. 

13 ‘‘(5) RELEASE.—The Secretary may consent to 

14 the release of a part or parts of the mortgaged prop15 erty or project from the lien of any mortgage in16 sured under this section upon such terms and condi17 tions as the Secretary may prescribe. 

18 ‘‘(6) MORTGAGE INSURANCE TERMS.—Sub19 sections (d), (e), (g), (h), (i), (j), (k), (l), and (n) of 

20 section 207 apply to any mortgage insured under 

21 this section, except that all references in such sub22 sections to section 207 shall be construed, for pur23 poses of mortgage insurance under this section, to 

24 refer to this section. 


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1 ‘‘(d) MORTGAGE INSURANCE FOR FIRE SAFETY

2 EQUIPMENT LOANS.— 

3 ‘‘(1) AUTHORITY.—The Secretary may, upon 

4 such terms and conditions as the Secretary may pre5 scribe, make commitments to insure and insure 

6 loans made by financial institutions or other ap7 proved mortgagees to child care facilities to provide 

8 for the purchase and installation of fire safety equip9 ment necessary for compliance with the 1967 edition 

10 of the Life Safety Code of the National Fire Protec11 tion Association (or any subsequent edition specified 

12 by the Secretary of Health and Human Services). 

13 ‘‘(2) LOAN REQUIREMENTS.—To be eligible for 

14 insurance under this subsection a loan shall— 

15 ‘‘(A) not exceed the estimate by the Sec16 retary of the reasonable cost of the equipment 

17 fully installed; 

18 ‘‘(B) bear interest at such rate as may be 

19 agreed upon by the mortgagor and the mort20 gagee; 

21 ‘‘(C) have a maturity date satisfactory to 

22 the Secretary; 

23 ‘‘(D) be made by a financial institution or 

24 other mortgagee approved by the Secretary as 


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1 eligible for insurance under section 2 or a mort2 gagee approved under section 203(b)(1); 

3 ‘‘(E) comply with other such terms, condi4 tions, and restrictions as the Secretary may 

5 prescribe; and 

6 ‘‘(F) be made with respect to a child care 

7 facility that complies with the requirements 

8 under subparagraphs (A) and (B) of subsection 

9 (c)(1) of this section. 

10 ‘‘(3) INSURANCE REQUIREMENTS.— 

11 ‘‘(A) SECTION 2.—Subsections (c), (d), 

12 and (h) of section 2 shall apply to any loan in13 sured under this subsection, except that all ref14 erences in such subsections to ‘this section’ or 

15 ‘this title’ shall be construed, for purposes of 

16 this subsection, to refer to this subsection. 

17 ‘‘(B) SECTION 220.—Paragraphs (5), (6), 

18 (7), (9), and (10) of section 220(h) shall apply 

19 to any loan insured under this subsection, ex20 cept that all references in such paragraphs to 

21 home improvement loans shall be construed, for 

22 purposes of this subsection, to refer to loans 

23 under this subsection. 

24 ‘‘(e) SCHEDULES AND DEADLINES.—The Secretary 

25 shall establish schedules and deadlines for the processing 


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1 and approval (or provision of notice of disapproval) of ap2 plications for mortgage insurance under this section. 

3 ‘‘(f) LIMITATION ON INSURANCE AUTHORITY.— 

4 ‘‘(1) TERMINATION.—No mortgage may be in5 sured under this section or section 223(h) after De6 cember 30, 2009, except pursuant to a commitment 

7 to insure issued on or before such date. 

8 ‘‘(2) AGGREGATE PRINCIPAL AMOUNT LIMITA9 TION.— 

10 ‘‘(A) IN GENERAL.—The aggregate prin11 cipal amount of mortgages for which the Sec12 retary enters into commitments to insure under 

13 this section or section 223(h) on or before the 

14 date described in paragraph (1) may not exceed 

15 $100,000,000. 

16 ‘‘(B) REPORT.—If, on the date described 

17 in paragraph (1), the aggregate insurance au18 thority provided under this paragraph has not 

19 been fully used, the Secretary of the Treasury 

20 shall submit to Congress a report evaluating the 

21 need for continued mortgage insurance under 

22 this section. 

23 ‘‘(g) NONDISCRIMINATION REQUIREMENT.— 

24 ‘‘(1) IN GENERAL.—A child care facility receiv25 ing assistance under this title may not discriminate 


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1 on the basis of race, color, or national origin (to the 

2 extent provided in title VI of the Civil Rights Act of 

3 1964 (42 U.S.C. 2000d et seq.)), religion (subject to 

4 subparagraph (B)), national origin, sex (to the ex5 tent provided in title IX of the Education Amend6 ments of 1972 (20 U.S.C. 1681 et seq.)), or dis7 ability (to the extent provided in section 504 of the 

8 Rehabilitation Act of 1973 (29 U.S.C. 794)), under 

9 any program or activity receiving Federal financial 

10 assistance under this title. 

11 ‘‘(2) FACILITIES OF RELIGIOUS ORGANIZA12 TIONS.—The prohibition with respect to religion 

13 under paragraph (1) shall not apply to a child care 

14 facility that is controlled by, or that is closely identi15 fied with, the tenets of a particular religious organi16 zation, if the application of this paragraph would not 

17 be consistent with the religious tenets of such orga18 nization. 

19 ‘‘(h) LIABILITY INSURANCE.—A child care provider 

20 operating a child care facility assisted under this section 

21 or section 223(h) shall obtain and maintain liability insur22 ance in such amounts and subject to such requirements 

23 as the Secretary considers to be appropriate. 

24 ‘‘(i) SMALL PURPOSE LOANS.— 


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1 ‘‘(1) IN GENERAL.—To the extent that amounts 

2 are made available pursuant to subsection (l), the 

3 Secretary shall make loans, directly or indirectly, to 

4 providers of child care facilities that comply with the 

5 requirements under subparagraph (A) and (B) of 

6 subsection (c)(1) for reconstruction or renovation of 

7 such facilities, in accordance with this subsection. 

8 ‘‘(2) REQUIREMENTS.—A loan under this sub9 section— 

10 ‘‘(A) may be made only for a child care fa11 cility that is financially and operationally viable, 

12 as determined under standards established by 

13 the Secretary; 

14 ‘‘(B) may not have a term to maturity ex15 ceeding 7 years; 

16 ‘‘(C) shall bear interest at a rate estab17 lished by the Secretary; and 

18 ‘‘(D) shall be subject to such other terms 

19 and conditions as the Secretary may establish 

20 by regulation. 

21 ‘‘(3) AGGREGATE LOAN AMOUNT.—The aggre22 gate amount of loans under this subsection to a sin23 gle provider may not exceed $100,000. 

24 ‘‘(j) NOTIFICATION.—The Secretary shall take such 

25 actions as may be necessary to publicize the availability 


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1 of the programs for mortgage insurance under this section 

2 and section 223(h), and the loan program under sub3 section (i) of this section, in a manner that ensures that 

4 information concerning such programs will be available to 

5 child care providers throughout the United States. 

6 ‘‘(k) REGULATIONS.—The Secretary shall— 

7 ‘‘(1) issue any regulations necessary to carry 

8 out this section; and 

9 ‘‘(2) in carrying out paragraph (1), consult with 

10 the Secretary of Health and Human Services with 

11 respect to any aspects of the regulations regarding 

12 child care facilities. 

13 ‘‘(l) AUTHORIZATION OF APPROPRIATIONS.—There is 

14 authorized to be appropriated to carry out this section 

15 $10,000,000 for fiscal year 2008, to remain available until 

16 expended, of which not more than 3 percent may be used 

17 for loans under subsection (i).’’. 

18 SEC. 5. INSURANCE FOR MORTGAGES FOR ACQUISITION OR 

19 REFINANCING DEBT OF EXISTING CHILD 

20 CARE FACILITIES IN THE GULF COAST. 

21 (a) IN GENERAL.—Section 223 of the National 

22 Housing Act (12 U.S.C. 1715n) is amended by adding at 

23 the end the following: 


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1 ‘‘(h) MORTGAGE INSURANCE FOR PURCHASE OR RE2 FINANCING OF EXISTING CHILD CARE FACILITIES IN THE

3 GULF COAST.— 

4 ‘‘(1) DEFINITIONS.—In this subsection, the 

5 terms that are defined in section 257(a) have the 

6 same meanings as provided in that section. 

7 ‘‘(2) AUTHORITY.—Notwithstanding any other 

8 provision of this Act, the Secretary may insure 

9 under any section of this title a mortgage executed 

10 in connection with— 

11 ‘‘(A) the purchase or refinancing of an ex12 isting child care facility that is located in an 

13 area for which the President declared that a 

14 major disaster exists, in accordance with section 

15 401 of the Robert T. Stafford Disaster Relief 

16 and Emergency Assistance Act (42 U.S.C. 

17 5170), as a consequence of Hurricane Katrina 

18 or Rita of 2005; 

19 ‘‘(B) the purchase of a structure located in 

20 such an area to serve as a child care facility; or 

21 ‘‘(C) the refinancing of existing debt of an 

22 existing child care facility located in such an 

23 area. 

24 ‘‘(3) PURCHASE OF EXISTING FACILITIES AND

25 STRUCTURES.—In the case of the purchase under 


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1 this subsection of an existing child care facility or 

2 purchase of an existing structure to serve as such a 

3 facility, the Secretary shall prescribe any terms and 

4 conditions that the Secretary considers necessary to 

5 ensure that— 

6 ‘‘(A) the facility or structure purchased 

7 continues to be used as a child care facility; and 

8 ‘‘(B) the facility complies with any laws, 

9 standards, and requirements applicable to such 

10 facilities under the laws of the State, munici11 pality, or other unit of general local government 

12 in which the facility is or is to be located. 

13 ‘‘(4) REFINANCING OF EXISTING FACILITIES.— 

14 In the case of refinancing of an existing child care 

15 facility, the Secretary shall prescribe any terms and 

16 conditions that the Secretary considers necessary to 

17 ensure that— 

18 ‘‘(A) the refinancing is used to lower the 

19 monthly debt service costs (taking into account 

20 any fees or charges connected with such refi21 nancing) of the existing facility; 

22 ‘‘(B) the proceeds of any refinancing will 

23 be employed only to retire the existing indebted24 ness and pay the necessary cost of refinancing 

25 on the existing facility; 


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1 ‘‘(C) the existing facility is economically 

2 viable; and 

3 ‘‘(D) the facility complies with any laws, 

4 standards, and requirements applicable to such 

5 facilities under the laws of the State, munici6 pality, or other unit of general local government 

7 in which the facility is or is to be located. 

8 ‘‘(5) LIMITATION ON INSURANCE AUTHORITY.— 

9 The authority of the Secretary to enter into commit10 ments to insure mortgages under this subsection is 

11 subject to section 257(f).’’. 

12 SEC. 6. STUDY OF AVAILABILITY OF SECONDARY MARKETS 

13 FOR MORTGAGES ON CHILD CARE FACILI14 TIES. 

15 (a) STUDY.—The Secretary of the Treasury shall 

16 conduct a study of the secondary mortgage markets to de17 termine— 

18 (1) whether such a market exists for purchase 

19 of mortgages on new and rehabilitated child care fa20 cilities and mortgages for acquisition and refi21 nancing debt of existing child care facilities, includ22 ing mortgages eligible for insurance under sections 

23 223(h) and 257 of the National Housing Act (as 

24 added by this Act); 


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1 (2) whether such a market would affect the 

2 availability of credit available for development of 

3 child care facilities, particularly facilities located in 

4 areas for which the President declared that a major 

5 disaster exists, in accordance with section 401 of the 

6 Robert T. Stafford Disaster Relief and Emergency 

7 Assistance Act (42 U.S.C. 5170), as a consequence 

8 of Hurricane Katrina or Rita of 2005, or would 

9 lower development costs of such facilities; and 

10 (3) the extent to which such a market or other 

11 activities to provide credit enhancement for loans for 

12 child care facilities, particularly for facilities located 

13 in the areas referred to in paragraph (2), is needed 

14 to meet the demand for such facilities. 

15 (b) REPORT.—Not later than 1 year after the date 

16 of enactment of this Act, the Secretary of the Treasury 

17 shall submit to Congress a report regarding the results 

18 of the study conducted under this section. 

19 SEC. 7. TECHNICAL AND FINANCIAL ASSISTANCE GRANTS. 

20 (a) DEFINITIONS.—In this section: 

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

22 care facility’’ has the meaning given that term in 

23 section 257(a) of the National Housing Act, as 

24 added by section 3 of this Act. 


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1 (2) ELIGIBLE INTERMEDIARY.—The term ‘‘eli2 gible intermediary’’ means a intermediary organiza3 tion that— 

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

5 Internal Revenue Code of 1986; 

6 (B) is exempt from taxation under section 

7 501(a) of such Code; and 

8 (C) has demonstrated experience in— 

9 (i) financing the construction and ren10 ovation of physical facilities; 

11 (ii) providing technical and financial 

12 assistance to child care providers or other 

13 similar entities; 

14 (iii) working with businesses (whether 

15 small or large); and 

16 (iv) securing private sources for cap17 ital financing; and 

18 (3) ELIGIBLE RECIPIENT.—The term ‘‘eligible 

19 recipient’’ means any— 

20 (A) existing or start-up center-based or 

21 home-based child care provider; and 

22 (B) organization in the process of estab23 lishing a center-based or home-based child care 

24 program or otherwise seeking to provide child 

25 care services. 


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1 (4) EQUIPMENT.—The term ‘‘equipment’’ has 

2 the meaning given that term in section 257(a) of the 

3 National Housing Act, as added by section 3 of this 

4 Act. 

5 (b) GRANT AUTHORITY.—The Secretary of Housing 

6 and Urban Development, in consultation with the Sec7 retary of Health and Human Services, may award grants 

8 on a competitive basis in accordance with this section to 

9 eligible intermediaries for use in accordance with sub10 sections (e) and (f). 

11 (c) APPLICATIONS.—To be eligible to receive a grant 

12 under this section an eligible intermediary shall submit to 

13 the Secretary an application, in such form and containing 

14 such information as the Secretary may require. 

15 (d) PRIORITY.—In awarding grants under this sec16 tion the Secretary shall give a priority to applicants under 

17 subsection (c) that serve low-income or rural areas. 

18 (e) USE OF FUNDS.— 

19 (1) REVOLVING LOAN FUND.—Each eligible 

20 intermediary that receives a grant under this section 

21 shall deposit the grant amount into a child care re22 volving loan fund established by the eligible inter23 mediary. 

24 (2) ELIGIBLE ASSISTANCE.—Subject to sub25 section (f), from amounts deposited into the revolvVerDate Aug 31 2005 17:58 Mar 10, 2007 Jkt 059196 PO 00000 Frm 00023 Fmt 6652 Sfmt 6201 E:\BILLS\H1411.IH H1411

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1 ing loan fund under paragraph (1), each eligible 

2 intermediary shall provide to eligible recipients— 

3 (A) financial assistance (in the form of 

4 loans, grants, investments, guarantees, interest 

5 subsidies, and other appropriate forms of assist6 ance) for the construction of new child care fa7 cilities located in an area for which the Presi8 dent declared that a major disaster exists, in 

9 accordance with section 401 of the Robert T. 

10 Stafford Disaster Relief and Emergency Assist11 ance Act (42 U.S.C. 5170), as a consequence of 

12 Hurricane Katrina or Rita of 2005, for plan13 ning of such child care facilities, and for acqui14 sition or improvement of such child care facili15 ties or equipment for such child care facilities; 

16 and 

17 (B) technical assistance in obtaining public 

18 or private financing for such construction, plan19 ning, acquisition, and improvement of such 

20 child care facilities, including developing and 

21 implementing financing resources, options, and 

22 plans for such eligible recipients. 

23 (3) LOAN REPAYMENTS AND INVESTMENT PRO24 CEEDS.—Any amount received by an eligible inter25 mediary from an eligible recipient in the form of 


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1 loan principal repayment or investment proceeds 

2 shall be deposited into the child care revolving fund 

3 of the eligible intermediary for redistribution to 

4 other eligible recipients in accordance with this sec5 tion. 

6 (f) ALLOCATION OF FUNDS.—Of the amounts dis7 tributed from the revolving loan fund of an eligible inter8 mediary under subsection (e)(2) in each fiscal year— 

9 (1) not less than 50 percent shall be used for 

10 financial assistance pursuant to subparagraph (A) of 

11 subsection (e)(2), except that the amount made 

12 available to any eligible recipient under this para13 graph may not exceed 40 percent of the total costs 

14 incurred by that eligible recipient in connection with 

15 the construction, planning, acquisition, or improve16 ment assisted; and 

17 (2) the amount remaining after distribution 

18 under paragraph (1), shall be used to provide tech19 nical assistance pursuant to subparagraph (B) of 

20 subsection (e)(2). 

21 (g) DAVIS BACON ACT.—The Act of March 3, 1931 

22 (popularly known as the Davis-Bacon Act) shall apply to 

23 actions taken under this Act. 


rwilkins on PROD1PC63 with BILLS
26 

•HR 1411 IH

1 (h) AUTHORIZATION OF APPROPRIATIONS.—There is 

2 authorized to be appropriated to carry out this section 

3 $1,000,000 for fiscal year 2008. 

Æ 


rwilkins on PROD1PC63 with BILLS