I 

112TH CONGRESS 

1ST SESSION H. R. 3325 

To create livable communities through coordinated public investment and 

streamlined requirements, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

NOVEMBER 2, 2011 

Mr. PERLMUTTER (for himself, Mr. MORAN, Mr. AL GREEN of Texas, Ms. 

WATERS, Mr. JOHNSON of Georgia, Mrs. CAPPS, Mr. SIRES, Mr. BLUMENAUER, Mr. LARSON of Connecticut, Mr. CLEAVER, Mr. FILNER, and 

Mr. QUIGLEY) introduced the following bill; which was referred to the 

Committee on Financial Services, and in addition to the Committees on 

Transportation and Infrastructure and Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To create livable communities through coordinated public 

investment and streamlined requirements, 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 ‘‘Livable Communities 

5 Act of 2011’’. 


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1 SEC. 2. FINDINGS. 

2 Congress finds the following: 

3 (1) When rural, suburban, and urban commu4 nities plan transportation, housing, and water infra5 structure strategically it is estimated that these com6 munities could save nearly $122,000,000,000 in in7 frastructure costs over the next 25 years. 

8 (2) Key Federal programs are missing a vital 

9 opportunity to boost economic growth at the local 

10 and regional level through better coordination of 

11 housing, transportation, and related infrastructure 

12 investments. 

13 (3) Federal regulations and policies should sup14 port community efforts to implement and sustain 

15 progress toward the achievement of locally defined 

16 development goals, in terms of— 

17 (A) geographic location and proximity to 

18 existing resources; and 

19 (B) maintaining structural and indoor en20 vironmental quality and minimizing health haz21 ards. 

22 (4) Greater coordination of public investment 

23 will provide direct support for immediate job cre24 ation and lay the groundwork for long-term resil25 ience and prosperity by leveraging significant private 


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1 sector and philanthropic investment to make the 

2 most of Federal funding. 

3 SEC. 3. PURPOSES. 

4 The purposes of this Act are— 

5 (1) to strengthen rural, suburban, and urban 

6 economies by enabling communities to establish 

7 goals for the future and to chart a course for achiev8 ing such goals; 

9 (2) to promote local leadership by encouraging 

10 communities to develop innovative solutions that re11 flect the unique economic assets and needs of the 

12 communities; 

13 (3) to maximize returns on Federal funding of 

14 housing, transportation, and other infrastructure 

15 projects through the coordination of Federal grant 

16 programs, regulations, and requirements, by reduc17 ing the number of duplicative Federal programs and 

18 improving the efficiency and effectiveness of pro19 grams and policies of the Department of Housing 

20 and Urban Development, the Department of Trans21 portation, the Environmental Protection Agency, 

22 and other Federal agencies, as appropriate; and 

23 (4) to ensure that Federal funding supports lo24 cally defined long range development goals. 


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1 SEC. 4. DEFINITIONS. 

2 In this Act, the following definitions shall apply: 

3 (1) AFFORDABLE HOUSING.—The term ‘‘afford4 able housing’’ means housing, the cost of which does 

5 not exceed 30 percent of the income of a family. 

6 (2) COMPREHENSIVE REGIONAL PLAN.—The 

7 term ‘‘comprehensive regional plan’’ means a plan 

8 that— 

9 (A) uses a cooperative, locally controlled 

10 and inclusive public engagement process to 

11 identify needs and goals across a region and to 

12 integrate related planning processes; 

13 (B) prioritizes projects for implementation, 

14 including healthy housing projects; and 

15 (C) is tied to short-term capital improve16 ment programs and annual budgets. 

17 (3) DEPARTMENT.—The term ‘‘Department’’ 

18 means the Department of Housing and Urban De19 velopment. 

20 (4) DIRECTOR.—The term ‘‘Director’’ means 

21 the Director of the Office of Sustainable Housing 

22 and Communities established under section 5. 

23 (5) EXTREMELY LOW-INCOME FAMILY.—The 

24 term ‘‘extremely low-income family’’ means a family 

25 that has an income that does not exceed— 


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1 (A) 30 percent of the median income in 

2 the area where the family lives, as determined 

3 by the Secretary, with appropriate adjustments 

4 for the size of the family; or 

5 (B) a percentage of the median income in 

6 the area where the family lives, as determined 

7 by the Secretary upon a finding by the Sec8 retary that such percentage is necessary due to 

9 unusually high or low family incomes in the 

10 area where the family lives. 

11 (6) HEALTHY HOUSING.—The term ‘‘healthy 

12 housing’’ means housing that is designed, con13 structed, rehabilitated, and maintained in a manner 

14 that supports the health of the occupants of the 

15 housing. 

16 (7) HOUSING-RELATED HEALTH HAZARD.—The 

17 term ‘‘housing-related health hazard’’ means any bi18 ological, physical, or chemical source of exposure or 

19 condition in, or immediately adjacent to, housing 

20 that could adversely affect human health. 

21 (8) INDIAN TRIBE.—The term ‘‘Indian tribe’’ 

22 has the same meaning as in section 4 of the Native 

23 American Housing Assistance and Self-Determina24 tion Act of 1996 (25 U.S.C. 4103). 


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1 (9) LIVABLE COMMUNITY.—The term ‘‘livable 

2 community’’ means a metropolitan, urban, suburban, 

3 or rural community that— 

4 (A) provides safe, reliable, and accessible 

5 transportation choices; 

6 (B) provides long-term affordable, acces7 sible, energy-efficient, and location-efficient 

8 housing choices for people of all ages, incomes, 

9 races, and ethnicities; 

10 (C) supports, revitalizes, and encourages 

11 the growth of existing communities and maxi12 mizes the cost-effectiveness of existing infra13 structure; 

14 (D) promotes economic development and 

15 economic competitiveness; 

16 (E) preserves the environment and natural 

17 resources; 

18 (F) protects agricultural land, rural land, 

19 and green spaces; and 

20 (G) supports public health and improves 

21 the quality of life for residents of, and workers 

22 in, the community. 

23 (10) LOCATION-EFFICIENT.—The term ‘‘loca24 tion-efficient’’ characterizes mixed-use development 


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1 or neighborhoods that integrate housing, commercial 

2 development, and facilities and amenities— 

3 (A) to lower living expenses for working 

4 families; 

5 (B) to enhance mobility; 

6 (C) to encourage private investment in 

7 transit-oriented development; and 

8 (D) to encourage private sector infill devel9 opment and maximize the use of existing infra10 structure. 

11 (11) LOW-INCOME FAMILY.—The term ‘‘low-in12 come family’’ has the meaning given that term in 

13 section 3(b) of the United States Housing Act of 

14 1937 (42 U.S.C. 1437a(b)). 

15 (12) METROPOLITAN PLANNING ORGANIZA16 TION.—The term ‘‘metropolitan planning organiza17 tion’’ means a metropolitan planning organization 

18 described in section 134(b) of title 23, United States 

19 Code or section 5303(b) of title 49, United States 

20 Code. 

21 (13) OFFICE.—The term ‘‘Office’’ means the 

22 Office of Sustainable Housing and Communities es23 tablished under section 5. 


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1 (14) REGIONAL COUNCIL.—The term ‘‘regional 

2 council’’ means a multiservice regional organization 

3 with State and locally defined boundaries that is— 

4 (A) accountable to units of general local 

5 government; 

6 (B) delivers a variety of Federal, State, 

7 and local programs; and 

8 (C) performs planning functions and pro9 vides professional and technical assistance. 

10 (15) RURAL PLANNING ORGANIZATION.—The 

11 term ‘‘rural planning organization’’ means a vol12 untary regional organization of local elected officials 

13 and representatives of local transportation systems 

14 that— 

15 (A) works in cooperation with the depart16 ment of transportation (or equivalent entity) of 

17 a State to plan transportation networks and ad18 vise officials of the State on transportation 

19 planning; and 

20 (B) is located in a rural area— 

21 (i) with a population of not less than 

22 5,000; and 

23 (ii) that is not located in an area rep24 resented by a metropolitan planning orga25 nization. 


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1 (16) SECRETARY.—The term ‘‘Secretary’’ 

2 means the Secretary of Housing and Urban Develop3 ment. 

4 (17) STATE.—The term ‘‘State’’ has the mean5 ing given that term by the Secretary, by rule. 

6 (18) TRANSIT-ORIENTED DEVELOPMENT.—The 

7 term ‘‘transit-oriented development’’ means high8 density, walkable, location-efficient, mixed-use devel9 opment, including commercial development, afford10 able housing, and market-rate housing, that is with11 in walking distance of and accessible to 1 or more 

12 public transportation facilities. 

13 (19) UNIT OF GENERAL LOCAL GOVERN14 MENT.—The term ‘‘unit of general local govern15 ment’’ means— 

16 (A) a city, county, town, township, parish, 

17 village, or other general purpose political sub18 division of a State; or 

19 (B) a combination of general purpose polit20 ical subdivisions, as determined by the Sec21 retary. 

22 (20) UNIT OF SPECIAL PURPOSE LOCAL GOV23 ERNMENT.—The term ‘‘unit of special purpose local 

24 government’’— 


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1 (A) means a division of a unit of general 

2 purpose government that serves a special pur3 pose and does not provide a broad array of 

4 services; and 

5 (B) includes an entity such as a school dis6 trict, a housing agency, a transit agency, and a 

7 parks and recreation district. 

8 (21) VERY LOW-INCOME FAMILY.—The term 

9 ‘‘very low-income family’’ has the same meaning as 

10 in section 3(b) of the United States Housing Act of 

11 1937 (42 U.S.C. 1437a(b)). 

12 SEC. 5. OFFICE OF SUSTAINABLE HOUSING AND COMMU13 NITIES. 

14 (a) OFFICE ESTABLISHED.—There is established in 

15 the Department an Office of Sustainable Housing and 

16 Communities, which shall— 

17 (1) coordinate Federal policies that— 

18 (A) encourage locally directed comprehen19 sive and integrated planning and development 

20 at the State, regional, and local levels; 

21 (B) encourage coordinated public invest22 ments through the development of comprehen23 sive regional plans; 

24 (C) provide long-term affordable, acces25 sible, energy-efficient, healthy, location-efficient 


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1 housing choices for people of all ages, incomes, 

2 races, and ethnicities, particularly for low-, very 

3 low-, and extremely low-income families; and 

4 (D) achieve other goals consistent with the 

5 purposes of this Act; 

6 (2) review Federal programs and policies to de7 termine barriers to interagency collaboration and 

8 make recommendations to promote the ability of 

9 local communities to access resources in the Depart10 ment and throughout the Federal Government and 

11 coordinate with and conduct outreach to Federal 

12 agencies, including the Department of Transpor13 tation and the Environmental Protection Agency, on 

14 methods to reduce duplicative programs and improve 

15 the efficiency and effectiveness of programs within 

16 the Department of Transportation, the Environ17 mental Protection Agency, and the Department of 

18 Housing and Urban Development; 

19 (3) conduct research and advise the Secretary 

20 on the research agenda of the Department relating 

21 to coordinated development, in collaboration with the 

22 Office of Policy Development and Research of the 

23 Department; 

24 (4) implement and oversee the grant programs 

25 established under this Act by— 


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1 (A) developing the process and format for 

2 grant applications for each grant program; 

3 (B) promulgating regulations or guidance 

4 relating to each grant program; 

5 (C) selecting recipients of grants under 

6 each grant program; 

7 (D) creating performance measures for re8 cipients of grants under each grant program; 

9 (E) developing technical assistance and 

10 other guidance to assist recipients of grants and 

11 potential applicants for grants under each grant 

12 program; 

13 (F) monitoring and evaluating the per14 formance of recipients of grants under each 

15 grant program; and 

16 (G) carrying out such other activities relat17 ing to the administration of the grant programs 

18 under this Act as the Secretary determines are 

19 necessary; 

20 (5) provide guidance, information on best prac21 tices, and technical assistance to communities seek22 ing to adopt sustainable development policies and 

23 practices; 


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1 (6) administer initiatives of the Department re2 lating to the policies described in paragraph (1), as 

3 determined by the Secretary; and 

4 (7) work with the Federal Transit Administra5 tion of the Department of Transportation and other 

6 offices and administrations of the Department of 

7 Transportation, as appropriate— 

8 (A) to encourage transit-oriented develop9 ment; and 

10 (B) to coordinate Federal housing, commu11 nity development, and transportation policies, 

12 including the policies described in paragraph 

13 (1). 

14 (b) DIRECTOR.—The head of the Office shall be the 

15 Director of the Office of Sustainable Housing and Com16 munities. 

17 (c) DUTIES RELATING TO GRANT PROGRAMS.— 

18 (1) IN GENERAL.—The Director shall carry out 

19 the grant programs established under this Act. 

20 (2) SMALL AND RURAL COMMUNITIES GRANTS

21 PROGRAM.—The Director shall coordinate with the 

22 Secretary of Agriculture to make grants to small 

23 and rural communities under sections 7 and 8. 

24 (3) TECHNICAL ASSISTANCE FOR GRANT RE25 CIPIENTS AND APPLICANTS.—The Director may— 


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1 (A) coordinate with other Federal agencies 

2 to establish interagency and multidisciplinary 

3 teams to provide technical assistance to recipi4 ents of, and prospective applicants for, grants 

5 under this Act; 

6 (B) by Federal interagency agreement, 

7 transfer funds to another Federal agency to fa8 cilitate and support technical assistance; and 

9 (C) make contracts with third parties to 

10 provide technical assistance to grant recipients 

11 and prospective applicants for grants. 

12 SEC. 6. COMPREHENSIVE PLANNING GRANT PROGRAM. 

13 (a) DEFINITIONS.—In this section— 

14 (1) the term ‘‘consortium of units of general 

15 local governments’’ means a consortium of geo16 graphically contiguous units of general local govern17 ment that the Secretary determines— 

18 (A) represents all or part of a metropolitan 

19 statistical area, a micropolitan statistical area, 

20 or a noncore area; 

21 (B) has the authority under State, tribal, 

22 or local law to carry out planning activities, in23 cluding surveys, land use studies, environmental 

24 or public health analyses, and development of 

25 urban revitalization plans; and 


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1 (C) has provided documentation to the 

2 Secretary sufficient to demonstrate that the 

3 purpose of the consortium is to carry out a 

4 project using a grant awarded under this Act; 

5 (2) the term ‘‘eligible entity’’ means— 

6 (A) a partnership between a consortium of 

7 units of general local government and an eligi8 ble partner; or 

9 (B) an Indian tribe, if— 

10 (i) the Indian tribe has— 

11 (I) a tribal entity that performs 

12 housing and land use planning func13 tions; and 

14 (II) a tribal entity that performs 

15 transportation and transportation 

16 planning functions; and 

17 (ii) the Secretary determines that the 

18 isolated location and land expanse of the 

19 Indian tribe require the Secretary to treat 

20 the tribe as an eligible entity for purposes 

21 of carrying out activities using a grant 

22 under this section; 

23 (3) the term ‘‘eligible partner’’ means— 


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1 (A) a metropolitan planning organization, 

2 a rural planning organization, or a regional 

3 council; or 

4 (B) a metropolitan planning organization, 

5 a rural planning organization, or a regional 

6 council, and— 

7 (i) a State; 

8 (ii) an Indian tribe; 

9 (iii) a State and an Indian tribe; or 

10 (iv) an institution of higher education; 

11 (4) the term ‘‘grant program’’ means the com12 prehensive planning grant program established 

13 under subsection (b); and 

14 (5) the term ‘‘noncore area’’ means a county or 

15 group of counties that are not designated by the Of16 fice of Management and Budget as a micropolitan 

17 statistical area or metropolitan statistical area. 

18 (b) COMPREHENSIVE PLANNING GRANT PROGRAM

19 ESTABLISHED.—The Director shall establish a com20 prehensive planning grant program to make grants to eli21 gible entities to carry out a project— 

22 (1) to coordinate locally defined planning proc23 esses, across jurisdictions and agencies; 


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1 (2) to identify regional partnerships for devel2 oping and implementing a comprehensive regional 

3 plan; 

4 (3) to conduct or update assessments to deter5 mine regional needs and promote economic and com6 munity development; 

7 (4) to develop or update— 

8 (A) a comprehensive regional plan; or 

9 (B) goals and strategies to implement an 

10 existing comprehensive regional plan and other 

11 related activities; and 

12 (5) to identify local zoning and other code 

13 changes necessary to implement a comprehensive re14 gional plan and promote sustainable development. 

15 (c) GRANTS.— 

16 (1) DIVERSITY OF GRANTEES.—The Director 

17 shall ensure geographic diversity among and ade18 quate representation from each of the following cat19 egories: 

20 (A) SMALL AND RURAL COMMUNITIES.— 

21 Eligible entities that represent all or part of a 

22 noncore area, a micropolitan area, or a small 

23 metropolitan statistical area with a population 

24 of not more than 200,000. 


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1 (B) MID-SIZED METROPOLITAN COMMU2 NITIES.—Eligible entities that represent all or 

3 part of a metropolitan statistical area with a 

4 population of more than 200,000 and not more 

5 than 500,000. 

6 (C) LARGE METROPOLITAN COMMU7 NITIES.—Eligible entities that represent all or 

8 part of a metropolitan statistical area with a 

9 population of more than 500,000. 

10 (2) AWARD OF FUNDS TO SMALL AND RURAL

11 COMMUNITIES.— 

12 (A) IN GENERAL.—The Director shall— 

13 (i) award not less than 15 percent of 

14 the funds under the grant program to eli15 gible entities described in paragraph 

16 (1)(A); and 

17 (ii) ensure diversity among the geo18 graphic regions and the size of the popu19 lation of the communities served by recipi20 ents of grants that are eligible entities de21 scribed in paragraph (1)(A). 

22 (B) INSUFFICIENT APPLICATIONS.—If the 

23 Director determines that insufficient approvable 

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1 tor may award less than 15 percent of the 

2 funds under the grant program to eligible enti3 ties described in paragraph (1)(A). 

4 (3) FEDERAL SHARE.— 

5 (A) IN GENERAL.—Except as provided in 

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

7 of a project carried out using a grant under the 

8 grant program may not exceed 80 percent. 

9 (B) EXCEPTIONS.— 

10 (i) SMALL AND RURAL COMMU11 NITIES.—In the case of an eligible entity 

12 described in paragraph (1)(A), the Federal 

13 share of the cost of a project carried out 

14 using a grant under the grant program 

15 may be 90 percent. 

16 (ii) INDIAN TRIBES.—In the case of 

17 an eligible entity that is an Indian tribe, 

18 the Federal share of the cost of a project 

19 carried out using a grant under the grant 

20 program may be 100 percent. 

21 (C) NON-FEDERAL SHARE.— 

22 (i) IN-KIND CONTRIBUTIONS.—For 

23 the purposes of this section, in-kind con24 tributions may be used for all or part of 

25 the non-Federal share of the cost of a 


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1 project carried out using a grant under the 

2 grant program. 

3 (ii) OTHER FEDERAL FUNDING.— 

4 Federal funding from sources other than 

5 the grant program may not be used for the 

6 non-Federal share of the cost of a project 

7 carried out using a grant under the grant 

8 program. 

9 (4) AVAILABILITY OF FUNDS.— 

10 (A) IN GENERAL.—An eligible entity that 

11 receives a grant under the grant program 

12 shall— 

13 (i) obligate any funds received under 

14 the grant program not later than 2 years 

15 after the date on which the grant agree16 ment under subsection (g) is made; and 

17 (ii) expend any funds received under 

18 the grant program not later than 4 years 

19 after the date on which the grant agree20 ment under subsection (g) is made. 

21 (B) UNOBLIGATED AMOUNTS.—After the 

22 date described in subparagraph (A)(i), the Sec23 retary may award to another eligible entity, to 

24 carry out activities under this section, any 


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1 amounts that an eligible entity has not obli2 gated under subparagraph (A)(i). 

3 (d) APPLICATION.— 

4 (1) IN GENERAL.—An eligible entity that de5 sires a grant under this section shall submit to the 

6 Director an application, at such time and in such 

7 manner as the Director shall prescribe, that con8 tains— 

9 (A) a description of the project proposed to 

10 be carried out by the eligible entity; 

11 (B) a budget for the project that includes 

12 the anticipated Federal share of the cost of the 

13 project and a description of the source of the 

14 non-Federal share; 

15 (C) the designation of a lead agency or or16 ganization, which may be the eligible entity, to 

17 receive and manage any funds received by the 

18 eligible entity under the grant program; 

19 (D) a signed copy of a memorandum of 

20 understanding among local jurisdictions, includ21 ing, as appropriate, a State, a tribe, units of 

22 general purpose local government, units of spe23 cial purpose local government, metropolitan 

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1 zations, and regional councils that dem2 onstrates— 

3 (i) the creation of an eligible entity; 

4 (ii) a description of the nature and ex5 tent of planned collaboration between the 

6 eligible entity and any partners of the eligi7 ble entity; 

8 (iii) a commitment to develop a com9 prehensive regional plan; and 

10 (iv) a commitment to implement the 

11 plan after the plan is developed; 

12 (E) a certification that the eligible entity 

13 has— 

14 (i) secured the participation, or made 

15 a good-faith effort to secure the participa16 tion, of transportation providers and public 

17 housing agencies within the area affected 

18 by the comprehensive regional plan and the 

19 entities described in clause (ii); and 

20 (ii) created, or will create not later 

21 than 1 year after the date of the grant 

22 award, a regional advisory board to provide 

23 input and feedback on the development of 

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1 ropolitan planning organization, the rural 

2 planning organization, the regional council, 

3 local jurisdictions, non-profit organizations, 

4 and others, as deemed appropriate by the 

5 eligible entity, given the local context of 

6 the comprehensive planning effort; 

7 (F) a certification that the eligible entity 

8 has solicited public comment on the contents of 

9 the project description under subparagraph (A) 

10 that includes— 

11 (i) a description of the process for re12 ceiving public comment relating to the pro13 posal; and 

14 (ii) such other information as the Di15 rector may require; 

16 (G) a description of how the eligible entity 

17 will carry out the activities under subsection (f); 

18 and 

19 (H) such additional information as the Di20 rector may require. 

21 (2) INDIAN TRIBES.—An eligible entity that is 

22 an Indian tribe is not required to submit the certifi23 cation under paragraph (1)(E). 


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1 (e) SELECTION.—In evaluating an application for a 

2 grant under the grant program, the Director shall con3 sider the extent to which the application— 

4 (1) demonstrates the technical capacity of the 

5 eligible entity to carry out the project; 

6 (2) demonstrates the extent to which the con7 sortium has developed partnerships throughout an 

8 entire region, including, as appropriate, partnerships 

9 with the entities described in subsection (d)(1)(D); 

10 (3) demonstrates integration with local efforts 

11 in economic development and job creation; 

12 (4) demonstrates a strategy for implementing a 

13 comprehensive regional plan through regional infra14 structure investment plans and local land use plans; 

15 (5) promotes diversity among the geographic re16 gions and the size of the population of the commu17 nities served by recipients of grants under this sec18 tion; 

19 (6) demonstrates a commitment to seeking sub20 stantial public input during the planning process 

21 and public participation in the development of the 

22 comprehensive regional plan; 

23 (7) demonstrates that a Federal grant is nec24 essary to accomplish the project proposed to be car25 ried out; 


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1 (8) minimizes the Federal share necessary to 

2 carry out the project and leverages State, local, or 

3 private resources; 

4 (9) has a high quality overall; and 

5 (10) demonstrates such other qualities as the 

6 Director may determine. 

7 (f) ELIGIBLE ACTIVITIES.—An eligible entity that re8 ceives a grant under this section shall carry out a project 

9 that includes 1 or more of the following activities: 

10 (1) Coordinating locally defined planning proc11 esses across jurisdictions and agencies. 

12 (2) Identifying potential regional partnerships 

13 for developing and implementing a comprehensive 

14 regional plan. 

15 (3) Conducting or updating assessments to de16 termine regional needs, including healthy housing, 

17 and promote economic and community development. 

18 (4) Developing or updating— 

19 (A) a comprehensive regional plan; or 

20 (B) goals and strategies to implement an 

21 existing comprehensive regional plan. 

22 (5) Implementing local zoning and other code 

23 changes necessary to implement a comprehensive re24 gional plan and promote sustainable development. 


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1 (g) GRANT AGREEMENT.—Each eligible entity that 

2 receives a grant under this section shall agree to establish, 

3 in coordination with the Director, performance measures, 

4 reporting requirements, and any other requirements that 

5 the Director determines are necessary, that must be met 

6 at the end of each year in which the eligible entity receives 

7 funds under the grant program. 

8 (h) PUBLIC OUTREACH.— 

9 (1) OUTREACH REQUIRED.—Each eligible entity 

10 that receives a grant under the grant program shall 

11 perform substantial outreach activities— 

12 (A) to engage a broad cross-section of 

13 community stakeholders in the process of devel14 oping a comprehensive regional plan, including 

15 low-income families, minorities, older adults, 

16 and economically disadvantaged community 

17 members; and 

18 (B) to create an effective means for stake19 holders to participate in the development and 

20 implementation of a comprehensive regional 

21 plan. 

22 (2) FINALIZATION OF COMPREHENSIVE RE23 GIONAL PLAN.— 

24 (A) IN GENERAL.—An eligible entity that 

25 receives a grant under the grant program may 


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1 not finalize a comprehensive regional plan be2 fore the eligible entity holds a public hearing to 

3 obtain the views of citizens, public agencies, and 

4 other interested parties. 

5 (B) AVAILABILITY OF INFORMATION.—Not 

6 later than 30 days before a hearing described in 

7 subparagraph (A), an eligible entity shall make 

8 the proposed comprehensive regional plan and 

9 all information relevant to the hearing available 

10 to the public for inspection during normal busi11 ness hours. 

12 (C) NOTICE.—Not later than 30 days be13 fore a hearing described in subparagraph (A), 

14 an eligible entity shall publish notice— 

15 (i) of the hearing; and 

16 (ii) that the information described in 

17 subparagraph (B) is available. 

18 (i) VIOLATION OF GRANT AGREEMENT OR FAILURE

19 TO COMPLY WITH PUBLIC OUTREACH REQUIREMENTS.— 

20 If the Director determines that an eligible entity has not 

21 met the performance measures established under sub22 section (g), is not making reasonable progress toward 

23 meeting such measures, is otherwise in violation of the 

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1 reach requirements under subsection (h), the Director 

2 may— 

3 (1) withhold financial assistance until the re4 quirements under the grant agreement or under sub5 section (h), as applicable, are met; or 

6 (2) terminate the grant agreement. 

7 (j) REPORT ON THE COMPREHENSIVE PLANNING

8 GRANT.— 

9 (1) IN GENERAL.—Not later than 90 days after 

10 the date on which the grant agreement under sub11 section (g) expires, an eligible entity that receives a 

12 grant under the grant program shall submit a final 

13 report on the project to the Secretary. 

14 (2) CONTENTS OF REPORT.—The report shall 

15 include— 

16 (A) a detailed explanation of the activities 

17 undertaken using the grant, including an expla18 nation of the completed project and how it 

19 achieves specific transit-oriented, transpor20 tation, housing, or sustainable community goals 

21 within the region; 

22 (B) a discussion of any obstacles encoun23 tered in the planning process and how the eligi24 ble entity overcame the obstacles; 


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1 (C) an evaluation of the success of the 

2 project using the performance standards and 

3 measures established under subsection (g), in4 cluding an evaluation of the planning process 

5 and how the project contributes to carrying out 

6 the comprehensive regional plan; and 

7 (D) any other information the Director 

8 may require. 

9 (3) INTERIM REPORT.—The Director may re10 quire an eligible entity to submit an interim report, 

11 before the date on which the project for which the 

12 grant is awarded is completed. 

13 (k) AUTHORIZATION OF APPROPRIATIONS.— 

14 (1) AUTHORIZATION.—There are authorized to 

15 be appropriated to the Secretary for the award of 

16 grants under this section, to remain available until 

17 expended— 

18 (A) $100,000,000 for fiscal year 2012; and 

19 (B) $125,000,000 for each of fiscal years 

20 2013 through 2016. 

21 (2) TECHNICAL ASSISTANCE.—The Director 

22 may use not more than 2 percent of the amounts 

23 made available under this subsection for a fiscal 

24 year for technical assistance under section 5(c)(3). 


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1 SEC. 7. COMMUNITY CHALLENGE GRANT PROGRAM. 

2 (a) DEFINITIONS.—In this section— 

3 (1) the terms ‘‘consortium of units of general 

4 local governments’’, ‘‘eligible entity’’, and ‘‘eligible 

5 partner’’ have the same meaning as in section 6; and 

6 (2) the term ‘‘grant program’’ means the com7 munity challenge grant program established under 

8 subsection (b). 

9 (b) COMMUNITY CHALLENGE GRANT PROGRAM ES10 TABLISHED.—The Director shall establish a community 

11 challenge grant program to make grants to eligible entities 

12 to— 

13 (1) promote integrated planning and invest14 ments across policy and governmental jurisdictions; 

15 and 

16 (2) implement projects identified in a com17 prehensive regional plan. 

18 (c) GRANTS.— 

19 (1) DIVERSITY OF GRANTEES.—The Director 

20 shall ensure geographic diversity among and ade21 quate representation from eligible entities in each of 

22 the categories described in section 6(c)(1). 

23 (2) TERMS AND CONDITIONS.—Except as other24 wise provided in this section, a grant under the 

25 grant program shall be made on the same terms and 

26 conditions as a grant under section 6. 


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1 (3) EXPENDING FUNDS.—An eligible entity 

2 that receives a grant under the grant program shall 

3 expend any funds received under the grant program 

4 not later than 5 years after the date on which the 

5 grant agreement under subsection (g) is made. 

6 (d) APPLICATION.— 

7 (1) CONTENTS.—An eligible entity that desires 

8 a grant under the grant program shall submit to the 

9 Director an application, at such time and in such 

10 manner as the Director shall prescribe, that con11 tains— 

12 (A) a copy of the comprehensive regional 

13 plan, whether developed as part of the com14 prehensive planning grant program under sec15 tion 6 or developed independently; 

16 (B) a description of the project or projects 

17 proposed to be carried out using a grant under 

18 the grant program; 

19 (C) a description of any preliminary ac20 tions that have been or must be taken at the 

21 local or regional level to implement the project 

22 or projects under subparagraph (B), including 

23 the revision of land use or zoning policies; 

24 (D) a signed copy of a memorandum of 

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1 ing, as appropriate, a State, units of general 

2 purpose local government, units of special pur3 pose local government, metropolitan planning 

4 organizations, rural planning organizations, and 

5 regional councils that demonstrates— 

6 (i) the creation of a consortium of 

7 units of general local government; and 

8 (ii) a commitment to implement the 

9 activities described in the comprehensive 

10 regional plan; 

11 (E) a certification that the eligible entity 

12 has solicited public comment on the contents of 

13 the project or projects described in subpara14 graph (B) that includes— 

15 (i) a certification that the eligible en16 tity made information about the project or 

17 projects available and afforded citizens, 

18 public agencies, and other interested par19 ties a reasonable opportunity to examine 

20 the content of the project or projects and 

21 to submit comments; 

22 (ii) a description of the process for re23 ceiving public comment, and a description 

24 of the outreach efforts to affected popu25 lations and stakeholders; and 


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1 (iii) a certification that the eligible en2 tity— 

3 (I) held a public hearing to ob4 tain the views of citizens, public agen5 cies, and other interested parties; 

6 (II) made the proposed project 

7 and all information relevant to the 

8 hearing available for inspection by the 

9 public during normal business hours 

10 not less than 30 days before the hear11 ing under subclause (I); and 

12 (III) published a notice informing 

13 the public of the hearing under sub14 clause (I) and the availability of the 

15 information described in subclause 

16 (II); 

17 (F) a budget for the project that includes 

18 the Federal share of the cost of the project or 

19 projects requested and a description of the 

20 source of the non-Federal share; and 

21 (G) such additional information as the Di22 rector may require. 

23 (2) INDIAN TRIBES.—An eligible entity that is 

24 an Indian tribe is not required to submit a memo25 randum of understanding under paragraph (1)(D). 


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1 (e) SELECTION.—In evaluating an application for a 

2 grant under the grant program, the Director shall con3 sider the extent to which the application— 

4 (1) demonstrates the technical capacity of the 

5 eligible entity to carry out the project; 

6 (2) demonstrates the extent to which the eligi7 ble entity has developed partnerships throughout an 

8 entire region, including partnerships with units of 

9 special purpose local government and transportation 

10 providers; 

11 (3) demonstrates clear and meaningful inter12 jurisdictional cooperation and coordination of hous13 ing (including healthy housing), transportation, and 

14 environmental policies and plans; 

15 (4) demonstrates a commitment to imple16 menting a comprehensive regional plan and docu17 ments action taken or planned to implement the 

18 plan; 

19 (5) minimizes the Federal share necessary to 

20 carry out the project and leverages a significant 

21 amount of State, local, or private resources; 

22 (6) identifies original and innovative ideas to 

23 overcoming regional problems, including local land 

24 use and zoning (or other code) obstacles to carrying 

25 out the comprehensive regional plan; 


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1 (7) promotes diversity among the geographic re2 gions and the size of the population of the commu3 nities served by recipients of grants under the grant 

4 program; 

5 (8) demonstrates a commitment to substantial 

6 public input throughout the implementation process; 

7 (9) demonstrates that a Federal grant is nec8 essary to accomplish the project or projects proposed 

9 to be carried out; 

10 (10) has a high quality overall; and 

11 (11) demonstrates such other qualities as the 

12 Director may determine. 

13 (f) GRANT ACTIVITIES.— 

14 (1) PLANNING ACTIVITIES.—An eligible entity 

15 that receives a grant under the grant program may 

16 use not more than 10 percent of the grant for plan17 ning activities. Activities related to the updating, re18 form, or development of a local code, plan, or ordi19 nance to implement projects contained in a com20 prehensive regional plan shall not be considered 

21 planning activities for the purposes of a grant under 

22 the grant program. 

23 (2) PROJECTS AND INVESTMENTS.—An eligible 

24 entity that receives a grant under the grant program 

25 shall carry out 1 or more projects that are designed 


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1 to achieve the goals identified in a comprehensive re2 gional plan. 

3 (g) GRANT AGREEMENT.—Each eligible entity that 

4 receives a grant under the grant program shall agree to 

5 establish, in coordination with the Director, performance 

6 measures, reporting requirements, and any other require7 ments that the Director determines are necessary, that 

8 must be met at the end of each year in which the eligible 

9 entity receives funds under the grant program. 

10 (h) VIOLATION OF GRANT AGREEMENT.—If the Di11 rector determines that an eligible entity has not met the 

12 performance measures established under subsection (g), is 

13 not making reasonable progress toward meeting such 

14 measures, or is otherwise in violation of the grant agree15 ment, the Director may— 

16 (1) withhold financial assistance until the re17 quirements under the grant agreement are met; or 

18 (2) terminate the grant agreement. 

19 (i) REPORT ON THE COMMUNITY CHALLENGE

20 GRANT.— 

21 (1) IN GENERAL.—Not later than 90 days after 

22 the date on which the grant agreement under sub23 section (g) expires, an eligible entity that receives a 

24 grant under the grant program shall submit a final 

25 report on the project to the Secretary. 


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1 (2) CONTENTS OF REPORT.—The report shall 

2 include— 

3 (A) a detailed explanation of the activities 

4 undertaken using the grant, including an expla5 nation of the completed project and how it 

6 achieves specific transit-oriented, transpor7 tation, housing, or sustainable community goals 

8 within the region; 

9 (B) a discussion of any obstacles encoun10 tered in the planning and implementation proc11 ess and how the eligible entity overcame the ob12 stacles; 

13 (C) an evaluation of the success of the 

14 project using the performance standards and 

15 measures established under subsection (g), in16 cluding an evaluation of the planning and im17 plementation process and how the project con18 tributes to carrying out the comprehensive re19 gional plan; and 

20 (D) any other information the Director 

21 may require. 

22 (3) INTERIM REPORT.—The Director may re23 quire an eligible entity to submit an interim report, 

24 before the date on which the project for which the 

25 grant is awarded is completed. 


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1 (j) AUTHORIZATION OF APPROPRIATIONS.— 

2 (1) AUTHORIZATION.—There are authorized to 

3 be appropriated to the Secretary for the award of 

4 grants under this section, to remain available until 

5 expended— 

6 (A) $30,000,000 for each of fiscal years 

7 2012 and 2013; 

8 (B) $35,000,000 for fiscal year 2014; 

9 (C) $40,000,000 for fiscal year 2015; and 

10 (D) $45,000,000 for fiscal year 2016. 

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

12 DEVELOPMENT. 

13 (a) DEFINITIONS.—In this section— 

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

15 applicant’’ means a State or local government. 

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

means the area within 1 17 ⁄2 mile of an existing or 

18 planned major transit facility. 

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

20 borrower’’ means— 

21 (A) a governmental entity, authority, agen22 cy, or instrumentality; 

23 (B) a corporation, partnership, joint ven24 ture, or trust on behalf of which an eligible apVerDate Mar 15 2010 03:04 Nov 05, 2011 Jkt 099200 PO 00000 Frm 00038 Fmt 6652 Sfmt 6201 E:\BILLS\H3325.IH H3325

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1 plicant has submitted an application under sub2 section (c); or 

3 (C) any other legal entity undertaking an 

4 infrastructure development project on behalf of 

5 which an eligible applicant has submitted an 

6 application under subsection (c). 

7 (4) MAJOR TRANSIT FACILITY.—The term 

8 ‘‘major transit facility’’ means— 

9 (A) a fixed-guideway transit station; 

10 (B) a high speed rail or intercity rail sta11 tion; 

12 (C) a transit hub connecting more than 3 

13 local transit lines; or 

14 (D) a transit center located in an area 

15 other than an urbanized area. 

16 (5) PLANNED MAJOR TRANSIT FACILITY.—The 

17 term ‘‘planned major transit facility’’ means a major 

18 transit facility for which appropriate environmental 

19 reviews have been completed and for which funding 

20 for construction can be reasonably anticipated. 

21 (6) PROJECT.—The term ‘‘project’’ means an 

22 infrastructure project that is used to support a tran23 sit-oriented development in an eligible area, includ24 ing— 


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1 (A) property enhancement, including con2 ducting environmental remediation, park devel3 opment, and open space acquisition; 

4 (B) improvement of mobility and parking, 

5 including rehabilitating, or providing for addi6 tional, streets, transit stations, structured park7 ing, walkways, and bikeways; 

8 (C) utility development, including rehabili9 tating existing, or providing for new drinking 

10 water, wastewater, electric, and gas utilities; or 

11 (D) community facilities, including child 

12 care centers. 

13 (b) LOAN PROGRAM ESTABLISHED.—The Secretary 

14 may make or guarantee loans under this section to eligible 

15 borrowers for projects. 

16 (c) APPLICATION.— 

17 (1) IN GENERAL.—An eligible applicant may 

18 submit to the Secretary an application for a loan or 

19 loan guarantee under this section— 

20 (A) to fund a project carried out by the eli21 gible applicant; or 

22 (B) on behalf of an eligible borrower, to 

23 fund a project carried out by the eligible bor24 rower. 

25 (d) SELECTION CRITERIA.— 


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

2 loan or loan guarantee under this section for a 

3 project that— 

4 (A) is part of a community-wide develop5 ment plan, as defined by the Secretary; 

6 (B) promotes sustainable development; and 

7 (C) ensures that not less than 15 percent 

8 of any housing units constructed or substan9 tially rehabilitated as part of transit-oriented 

10 development supported by the project are af11 fordable over the long-term to, and occupied at 

12 time of initial occupancy by— 

13 (i) renters with incomes at or below 

14 60 percent of the area median; or 

15 (ii) homeowners with incomes at or 

16 below 100 percent of the area median. 

17 (2) CONSIDERATIONS.—The Secretary shall se18 lect the recipients of loans and loan guarantees 

19 under this section based on the extent to which— 

20 (A) the transit-oriented development sup21 ported by the project will encourage increased 

22 use of transit; 

23 (B) the transit-oriented development sup24 ported by the project will create or preserve 

25 long-term affordable housing units in addition 


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1 to the housing units required to be made avail2 able under paragraph (1)(C) or will provide 

3 deeper affordability than required under para4 graph (1)(C); 

5 (C) the project will facilitate and encour6 age additional development or redevelopment in 

7 the overall transit station area; 

8 (D) the local government has adopted poli9 cies that— 

10 (i) promote long-term affordable hous11 ing; and 

12 (ii) allow high-density, mixed-use de13 velopment near transit stations; 

14 (E) the transit-oriented development sup15 ported by the project is part of a comprehensive 

16 regional plan; 

17 (F) the eligible borrower has established a 

18 reliable, dedicated revenue source to repay the 

19 loan; 

20 (G) the project is not financially viable for 

21 the eligible borrower without a loan or loan 

22 guarantee under this section; and 

23 (H) a loan or loan guarantee under this 

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


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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; and 

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

11 of the revenue sources listed in this paragraph. 

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.— 


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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 a guar6 antee rate for loans to eligible borrowers that the 

7 Secretary determines pose a lower risk of default 

8 that is lower than the guarantee rate for loans to 

9 other eligible borrowers. 

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

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

12 is sufficient to cover all or part of the costs to the Federal 

13 Government of making or guaranteeing a loan under this 

14 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. 

24 (l) REPAYMENT DEFERRAL FOR LOANS.— 


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1 (1) IN GENERAL.—If, at any time after the 

2 date of substantial completion of a project, the Sec3 retary determines that dedicated revenue sources of 

4 an eligible borrower are insufficient to make the 

5 scheduled loan repayments of principal and interest 

6 on a loan made or guaranteed under this section, the 

7 Secretary may, subject to criteria established by the 

8 Secretary, allow the eligible borrower to add unpaid 

9 principal and interest to the outstanding balance of 

10 the loan. 

11 (2) TREATMENT OF DEFERRED PAYMENTS.— 

12 Any payment deferred under this section shall— 

13 (A) continue to accrue interest until fully 

14 repaid; and 

15 (B) be scheduled to be amortized over the 

16 remaining term of the loan. 

17 (m) AUTHORIZATION OF APPROPRIATIONS.—There 

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

19 loan guarantees under this section $20,000,000 for each 

20 of fiscal years 2012 through 2016. 

21 SEC. 9. HEALTHY HOMES. 

22 (a) FEDERAL INITIATIVE TO SUPPORT HEALTHY

23 HOUSING AND ERADICATE HOUSING-RELATED HEALTH

24 HAZARDS.—The Secretary, acting through the Director of 

25 the Office of Healthy Homes and Lead Hazard Control 


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1 and in consultation with the Secretary of Energy, the Ad2 ministrator of the Environmental Protection Agency, the 

3 Secretary of Agriculture, the Director of the National In4 stitute of Standards and Technology, the Director of the 

5 National Institute of Environmental Health Sciences, and 

6 the Director of the Centers for Disease Control, shall lead 

7 the Federal initiative to support healthy housing and 

8 eradicate housing-related health hazards by— 

9 (1) reviewing, monitoring, and evaluating Fed10 eral housing, health, energy, and environmental pro11 grams and identifying areas of overlap and duplica12 tion that could be improved; 

13 (2) identifying best practices and model pro14 grams, including practices and programs that link 

15 services for low-income families and services for 

16 health hazards; 

17 (3) identifying best practices for finance prod18 ucts, building codes, and regulatory practices; 

19 (4) researching training programs and work 

20 practices that can accurately assess housing-related 

21 health hazards; 

22 (5) promoting collaboration among Federal, 

23 State, local, and tribal agencies and non-govern24 mental organizations; and 


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1 (6) coordinating with all relevant Federal agen2 cies. 

3 (b) ASSESSMENT.—The Secretary shall conduct a 

4 collaborative, interagency assessment of best practices 

5 for— 

6 (1) coordinating activities relating to healthy 

7 housing; 

8 (2) removing unnecessary barriers to inter9 agency coordination in Federal statutes and regula10 tions; and 

11 (3) creating incentives in programs of the Fed12 eral Government to advance the complementary 

13 goals of improving environmental health, energy con14 servation, and the availability of housing. 

15 (c) STUDY AND REPORT ON SUSTAINABLE BUILDING

16 FEATURES AND INDOOR ENVIRONMENTAL QUALITY IN

17 HOUSING.— 

18 (1) STUDY.—The Secretary, in consultation 

19 with the Secretary of Energy, the Director of the 

20 National Institute of Standards and Technology, the 

21 Director of the National Institute of Environmental 

22 Health Sciences, the Director of the Centers for Dis23 ease Control, and any other Federal agency that the 

24 Secretary determines is appropriate, shall conduct a 


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1 detailed study of how sustainable building features 

2 in housing, such as energy efficiency, affect— 

3 (A) the quality of the indoor environment; 

4 (B) the prevalence of housing-related 

5 health hazards; and 

6 (C) the health of occupants of the housing. 

7 (2) REPORT.—Not later than 3 years after the 

8 date of enactment of this Act, the Secretary shall 

9 submit to the Committee on Banking, Housing, and 

10 Urban Affairs and the Committee on Appropriations 

11 of the Senate and the Committee on Financial Serv12 ices and the Committee on Appropriations of the 

13 House of Representatives a report containing the re14 sults of the study under paragraph (1). 

15 (d) AUTHORIZATION OF APPROPRIATIONS.—There 

16 are authorized to be appropriated such sums as may be 

17 necessary to carry out this section. 

18 SEC. 10. INELIGIBILITY OF INDIVIDUALS WHO ARE NOT 

19 LAWFULLY PRESENT. 

20 No housing assisted using a grant under this Act may 

21 be made available to an individual who is not lawfully 

22 present in the United States. Nothing in this Act may be 

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1 tion 214 of the Housing and Community Development Act 

2 of 1980 (42 U.S.C. 1436a). 

Æ 


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