I 

117TH CONGRESS 

1ST SESSION H. R. 3323 

To strengthen the ability of the Federal Home Loan Bank system to provide 

critical financing to address the economic crisis caused by the COVID– 

19 and to meet the short- and long-term housing and community economic development needs of low-income communities, including Tribal 

communities, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 18, 2021 

Mr. TORRES of New York introduced the following bill; which was referred 

to the Committee on Financial Services, and in addition to the Committees on Ways and Means, and Small Business, 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 strengthen the ability of the Federal Home Loan Bank 

system to provide critical financing to address the economic crisis caused by the COVID–19 and to meet the 

short- and long-term housing and community economic 

development needs of low-income communities, including 

Tribal communities, 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, 


pbinns on DSKJLVW7X2PROD with BILLS
2 

•HR 3323 IH

1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Federal Home Loan 

3 Banks’ Mission Implementation Act’’. 

4 SEC. 2. PURPOSE. 

5 The purpose of this Act is to promote economic recov6 ery in response to the COVID–19 pandemic and to meet 

7 the short- and long-term housing and community eco8 nomic development needs of low-income communities, in9 cluding Tribal communities, by— 

10 (1) increasing the ability of the Federal Home 

11 Loan Banks to accept, as collateral, small business 

12 loans guaranteed by the Small Business Administra13 tion; 

14 (2) authorizing the Federal Home Loan Banks 

15 to accept government guaranteed loans as collateral 

16 to support COVID–19 programs; 

17 (3) allowing community development financial 

18 institutions and credit unions to pledge community 

19 financial institution collateral, such as small busi20 ness, small agriculture, and community development 

21 loans, and enable the Federal Housing Finance 

22 Agency to raise the threshold for qualification as a 

23 community financial institution; 

24 (4) providing letters of credit to provide liquid25 ity, and support, stabilize and strengthen local, Trib26 al, State and Federal governmental entities public 


pbinns on DSKJLVW7X2PROD with BILLS
3 

•HR 3323 IH

1 unit deposits, housing and community development 

2 efforts, and vital public financing; 

3 (5) increasing funding for the Affordable Hous4 ing Program established by each Federal Home 

5 Loan Bank under section 10(j) of the Federal Home 

6 Loan Bank Act (12 U.S.C. 1430(j)) and establishing 

7 a 2-percent set aside for Native American Tribes; 

8 and 

9 (6) creating a community economic development 

10 investment program within the Federal Home Loan 

11 Bank system to generate financial opportunity, cre12 ate jobs, and stimulate economic development in dis13 tressed urban, rural, Tribal, and suburban commu14 nities in the United States. 

15 SEC. 3. FHLB ADVANCES SECURED BY SBA LOANS. 

16 Section 7 of the Small Business Act (15 U.S.C. 636) 

17 is amended by adding at the end the following: 

18 ‘‘(o) FEDERAL HOME LOAN BANK ADVANCES.— 

19 ‘‘(1) DEFINITION OF BANK.—In this sub20 section, the term ‘Bank’ means a Federal Home 

21 Loan Bank, as defined in section 2 of the Federal 

22 Home Loan Bank Act (12 U.S.C. 1422). 

23 ‘‘(2) ADVANCES.—A Bank that, in the exercise 

24 of its authority under section 10 of the Federal 

25 Home Loan Bank Act (12 U.S.C. 1430) to make seVerDate Sep 11 2014 06:09 Jul 01, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H3323.IH H3323

pbinns on DSKJLVW7X2PROD with BILLS
4 

•HR 3323 IH

1 cured advances, accepts as collateral a loan guaran2 teed by the Administration under this Act or any 

3 other provision of law, including loans guaranteed 

4 under section 7(a)— 

5 ‘‘(A) may exercise all of the rights and 

6 remedies contained in any pledge or similar se7 curity agreement between the Bank and the 

8 lending or participating institution that made 

9 or purchased the loan; and 

10 ‘‘(B) in the event of default on the loan, 

11 shall possess the same rights and remedies as 

12 such a lending or participating institution 

13 would possess in the same circumstance, includ14 ing collecting monies due on the guarantee di15 rectly from the Administration. 

16 ‘‘(3) TRANSFER OF GUARANTEE.—With respect 

17 to a guaranteed loan that a Bank accepts as collat18 eral under paragraph (2), the guarantee obligation 

19 of the Administration on the loan shall transfer to 

20 the Bank.’’. 


pbinns on DSKJLVW7X2PROD with BILLS
5 

•HR 3323 IH

1 SEC. 4. MAKING GOVERNMENT GUARANTEED LOANS IN RE2 SPONSE TO THE COVID–19 CRISIS ELIGIBLE 

3 COLLATERAL FOR THE FEDERAL HOME LOAN 

4 BANKS. 

5 Section 10(a)(3) of the Federal Home Loan Bank 

6 Act (12 U.S.C. 1430(a)(3)) is amended by adding at the 

7 end the following: 

8 ‘‘(F) Loans guaranteed or insured by the 

9 United States Government or any agency there10 of and made by any member under programs or 

11 facilities established by the Secretary of the 

12 Treasury or the Board of Governors of the Fed13 eral Reserve System under the CARES Act 

14 (Public Law 116–136) or other similar pro15 grams or facilities in subsequently enacted Acts 

16 to address the impact to the economy from the 

17 COVID–19 crisis, including other similar pro18 grams or facilities established under section 

19 13(3) of the Federal Reserve Act (12 U.S.C. 

20 343(3)). 

21 ‘‘(G) Loans guaranteed by the Small Busi22 ness Administration under the Small Business 

23 Act (15 U.S.C. 631 et seq.) or any other provi24 sion of law.’’. 


pbinns on DSKJLVW7X2PROD with BILLS
6 

•HR 3323 IH

1 SEC. 5. ADDING CREDIT UNIONS TO THE DEFINITION OF 

2 COMMUNITY FINANCIAL INSTITUTIONS AND 

3 EXPANDING THE PURPOSES OF ADVANCES 

4 AND COLLATERAL AVAILABLE TO CERTAIN 

5 COMMUNITY DEVELOPMENT FINANCIAL IN6 STITUTIONS. 

7 (a) IN GENERAL.—Section 10(a) of the Federal 

8 Home Loan Bank Act (12 U.S.C. 1430(a)) is amended— 

9 (1) in paragraph (2)(B), by inserting ‘‘or quali10 fying community development financial institution’’ 

11 after ‘‘community financial institution’’; and 

12 (2) in paragraph (3)(E), by inserting ‘‘or quali13 fying community development financial institution’’ 

14 after ‘‘community financial institution’’. 

15 (b) DEFINITIONS.—Section 2 of the Federal Home 

16 Loan Bank Act (12 U.S.C. 1422) is amended— 

17 (1) in paragraph (10)— 

18 (A) by striking ‘‘INSTITUTION.—’’ and all 

19 that follows through ‘‘The term’’ and inserting 

20 ‘‘INSTITUTION.—The term’’; 

21 (B) by striking subparagraph (B); 

22 (C) by redesignating clauses (i) and (ii) as 

23 subparagraphs (A) and (B), respectively, and 

24 adjusting the margins accordingly; 

25 (D) in subparagraph (A), as so redesig26 nated, by inserting ‘‘(12 U.S.C. 1811 et seq.) 


pbinns on DSKJLVW7X2PROD with BILLS
7 

•HR 3323 IH

1 or the Federal Credit Union Act (12 U.S.C. 

2 1751 et seq.)’’ before the semicolon; and 

3 (E) in subparagraph (B), as so redesig4 nated, by striking ‘‘$1,000,000,000’’ and insert5 ing ‘‘assets at a level set by the Agency, but not 

6 more than $10,000,000,000’’; and 

7 (2) by adding at the end the following: 

8 ‘‘(13) QUALIFYING COMMUNITY DEVELOPMENT

9 FINANCIAL INSTITUTION.—The term ‘qualifying 

10 community development financial institution’ means 

11 an entity that— 

12 ‘‘(A) has been certified as a community de13 velopment financial institution (as such term is 

14 defined in section 103 of the Riegle Community 

15 Development and Regulatory Improvement Act 

16 of 1994 (12 U.S.C. 4702) by the Secretary of 

17 the Treasury; and 

18 ‘‘(B) satisfies the average total assets 

19 threshold requirement for a community finan20 cial institution set forth in paragraph (10).’’. 

21 SEC. 6. STANDBY LETTERS OF CREDIT. 

22 The Federal Home Loan Bank Act (12 U.S.C. 1421 

23 et seq.) is amended— 


pbinns on DSKJLVW7X2PROD with BILLS
8 

•HR 3323 IH

1 (1) in section 2 (12 U.S.C. 1422), as amended 

2 by section 5 of this Act, is amended by adding at 

3 the end the following: 

4 ‘‘(14) EMPLOYEE- OR COMMUNITY-OWNED COM5 PANY.—The term ‘employee- or community-owned 

6 company’ means— 

7 ‘‘(A) an organization described in section 

8 1381 of the Internal Revenue Code of 1986; 

9 ‘‘(B) an eligible worker-owned cooperative, 

10 as defined in section 1042(c)(2) of the Internal 

11 Revenue Code of 1986; and 

12 ‘‘(C) an employee stock ownership plan, as 

13 defined in section 4975(e)(7) of the Internal 

14 Revenue Code of 1986, which meets the re15 quirements of section 409 of such Code.’’; and 

16 (2) in section 11 (12 U.S.C. 1431), by adding 

17 at the end the following: 

18 ‘‘(m) STANDBY LETTERS OF CREDIT.— 

19 ‘‘(1) IN GENERAL.—Each Federal Home Loan 

20 Bank is authorized to issue and confirm standby let21 ters of credit, secured by collateral eligible to secure 

22 advances, to support any activity permitted under 

23 law or regulation applicable to the member or non24 member mortgagee eligible to receive advances under 

25 section 10b, subject to safety and soundness overVerDate Sep 11 2014 06:09 Jul 01, 2021 Jkt 019200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H3323.IH H3323

pbinns on DSKJLVW7X2PROD with BILLS
9 

•HR 3323 IH

1 sight, including the purposes described in paragraph 

2 (2). 

3 ‘‘(2) PURPOSES.—Each Bank is authorized to 

4 issue or confirm on behalf of members or non-mem5 ber mortgagees standby letters of credit that comply 

6 with the requirements of this subsection for any of 

7 the following purposes: 

8 ‘‘(A) To assist members or non-member 

9 mortgagees in facilitating residential housing fi10 nance. 

11 ‘‘(B) To assist members or non-member 

12 mortgagees in facilitating community lending. 

13 ‘‘(C) To assist members or non-member 

14 mortgagees with asset or liability management. 

15 ‘‘(D) To provide members or non-member 

16 mortgagees with liquidity or other funding. 

17 ‘‘(E) To assist members in facilitating 

18 business retention or facilitating business tran19 sition to employee- or community-owned compa20 nies or assisting those companies.’’. 

21 SEC. 7. LETTERS OF CREDIT ON TAX EXEMPT BONDS. 

22 (a) IN GENERAL.—Clause (iv) of section 

23 149(b)(3)(A) of the Internal Revenue Code of 1986 is 

24 amended by striking ‘‘a bond during the period beginning 

25 on the date of the enactment of this clause and ending 


pbinns on DSKJLVW7X2PROD with BILLS
10 

•HR 3323 IH

1 on December 31, 2010’’ and inserting ‘‘a municipal bond 

2 (as defined in section 75(b)(1)) on or after the date of 

3 enactment of the Federal Home Loan Banks’ Mission Im4 plementation Act’’. 

5 (b) SAFETY AND SOUNDNESS REQUIREMENTS.— 

6 Subparagraph (E) of section 149(b)(3) of the Internal 

7 Revenue Code of 1986 is amended by striking ‘‘which are 

8 at least’’ and all that follows through the period and in9 serting ‘‘as are established by the Director of the Federal 

10 Housing Finance Agency from time to time.’’. 

11 (c) EFFECTIVE DATE.—The amendments made by 

12 this section shall apply to guarantees made after the date 

13 of enactment of this Act. 

14 (d) SUNSET.—Effective on the date that is 2 years 

15 after the date on which the Federal Emergency Manage16 ment Agency terminates the emergency declared on March 

17 13, 2020 by the President under the Robert T. Stafford 

18 Disaster Relief and Emergency Assistance Act (42 U.S.C. 

19 4121 et seq.) relating to the Coronavirus Disease 2019 

20 (COVID–19) pandemic, section 149(b)(3) of the Internal 

21 Revenue Code of 1986 is amended— 

22 (1) in subparagraph (A)(iv), by striking ‘‘a mu23 nicipal bond (as defined in section 75(b)(1)) on or 

24 after the date of enactment of the Federal Home 

25 Loan Banks’ Mission Implementation Act’’ and inVerDate Sep 11 2014 06:09 Jul 01, 2021 Jkt 019200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H3323.IH H3323

pbinns on DSKJLVW7X2PROD with BILLS
11 

•HR 3323 IH

1 serting ‘‘a bond during the period beginning on the 

2 date of the enactment of this clause and ending on 

3 December 31, 2010’’; and 

4 (2) in subparagraph (E), by striking ‘‘as are es5 tablished by the Director of the Federal Housing Fi6 nance Agency from time to time’’ and inserting 

7 ‘‘which are at least as stringent as such require8 ments which apply under regulations applicable to 

9 such guarantees by Federal home loan banks as in 

10 effect on April 9, 2008’’. 

11 SEC. 8. AFFORDABLE HOUSING PROGRAM. 

12 (a) IN GENERAL.—Section 10 of the Federal Home 

13 Loan Bank Act (12 U.S.C. 1430) is amended— 

14 (1) in subsection (j)— 

15 (A) in paragraph (3)— 

16 (i) in the matter preceding subpara17 graph (A), by striking ‘‘such as the fol18 lowing:’’ and inserting ‘‘such as—’’; 

19 (ii) in subparagraph (A)— 

20 (I) by inserting ‘‘the’’ before 

21 ‘‘purchase’’; and 

22 (II) by striking the comma at the 

23 end and inserting a semicolon; 

24 (iii) in subparagraph (B)— 


pbinns on DSKJLVW7X2PROD with BILLS
12 

•HR 3323 IH

1 (I) by inserting ‘‘the’’ before 

2 ‘‘purchase’’; and 

3 (II) by striking ‘‘and’’ at the end; 

4 (iv) in subparagraph (C)— 

5 (I) by inserting ‘‘the’’ before 

6 ‘‘purchase’’; and 

7 (II) by striking the period at the 

8 end and inserting a semicolon; and 

9 (v) by adding at the end the following: 

10 ‘‘(D) the purchase or rehabilitation of 

11 housing financed by a community land trust; 

12 and 

13 ‘‘(E) the purchase or rehabilitation of 

14 housing in qualified manufactured home com15 munities owned by nonprofit organizations or 

16 the residents.’’; and 

17 (B) in paragraph (5)(C)— 

18 (i) by striking ‘‘10’’ and inserting 

19 ‘‘20’’; 

20 (ii) by striking ‘‘100,000,000’’ and in21 serting ‘‘200,000,000’’; and 

22 (iii) by adding at the end the fol23 lowing: ‘‘Of such contribution, an amount 

24 equal to not less than 2 percent of 20 per25 cent of the preceding year’s net income 


pbinns on DSKJLVW7X2PROD with BILLS
13 

•HR 3323 IH

1 shall be used to support subsidized grants 

2 or advances through the Affordable Hous3 ing Program benefitting federally recog4 nized Indian Tribes and communities, 

5 which includes awards outside of the dis6 trict of a Bank.’’. 

7 (b) DEFINITIONS.—Section 2 of the Federal Home 

8 Loan Bank Act (12 U.S.C. 1422), as amended by section 

9 6 of this Act, is amended by adding at the end the fol10 lowing: 

11 ‘‘(16) MANUFACTURED HOME.—The term 

12 ‘manufactured home’ has the meaning given the 

13 term in section 603 of the National Manufactured 

14 Housing Construction and Safety Standards Act of 

15 1974 (42 U.S.C. 5402). 

16 ‘‘(17) QUALIFIED MANUFACTURED HOME COM17 MUNITY.— 

18 ‘‘(A) IN GENERAL.—The term ‘qualified 

19 manufactured home community’ means— 

20 ‘‘(i) a cooperative controlled by resi21 dents or a nonprofit or municipal housing 

22 corporation established pursuant to the 

23 laws of the State in which the property 

24 used as a manufactured home community 

25 is located; and 


pbinns on DSKJLVW7X2PROD with BILLS
14 

•HR 3323 IH

1 ‘‘(ii)(I) in the case of a community 

2 owned by a cooperative corporation or 

3 membership nonprofit, with membership 

4 interests that are sold on a non-appre5 ciating basis, has only 1 class of member6 ship consisting solely of residents and 

7 homeowners that occupy a home in that 

8 manufactured home community; or 

9 ‘‘(II) in the case of a community 

10 owned by a nonprofit corporation— 

11 ‘‘(aa) the nonprofit exists for the 

12 purposes of preserving and improving 

13 affordable housing and is primarily 

14 for residential purposes; and 

15 ‘‘(bb) the intent of the nonprofit 

16 in acquiring the community is for the 

17 purposes of preserving and improving 

18 the manufactured home community. 

19 ‘‘(B) GOVERNANCE.—An entity shall not 

20 be treated as a qualified manufactured home 

21 community unless governance of the entity is 

22 carried out by members elected to a board of 

23 directors with voting structured equitably 

24 among all members.’’. 


pbinns on DSKJLVW7X2PROD with BILLS
15 

•HR 3323 IH

1 (c) TECHNICAL AND CONFORMING AMENDMENTS.— 

2 Section 10 of the Federal Home Loan Bank Act (12 

3 U.S.C. 1430) is amended— 

4 (1) in subsection (c), by striking ‘‘Federal home 

5 loan bank’’ and inserting ‘‘Federal Home Loan 

6 Bank’’; 

7 (2) in subsection (h)(2), by striking ‘‘section 

8 10(a) of this Act’’ and inserting ‘‘subsection (a)’’; 

9 and 

10 (3) in subsection (j)— 

11 (A) in paragraph (2), in the matter pre12 ceding subparagraph (A), by striking ‘‘Board’s 

13 regulations’’ and inserting ‘‘regulations promul14 gated by the Director’’; 

15 (B) in paragraph (6)— 

16 (i) in subparagraph (A), by striking 

17 ‘‘this paragraph’’ and inserting ‘‘paragraph 

18 (5)’’; 

19 (ii) in subparagraph (C), in the sec20 ond sentence, by striking ‘‘Board’s deci21 sion’’ and inserting ‘‘decision of the Direc22 tor’’; and 

23 (iii) in subparagraph (F), by inserting 

24 ‘‘NOTIFICATION.—’’ before ‘‘The Direc25 tor’’; 


pbinns on DSKJLVW7X2PROD with BILLS
16 

•HR 3323 IH

1 (C) in paragraph (8), in the matter pre2 ceding subparagraph (A), by striking ‘‘para3 graph’’ and inserting ‘‘subsection’’; 

4 (D) in paragraph (12)— 

5 (i) in subparagraph (A), by inserting 

6 ‘‘IN GENERAL.—’’ before ‘‘The Director’’; 

7 and 

8 (ii) in subparagraph (B), by inserting 

9 ‘‘ANALYSES.—’’ before ‘‘The analyses’’; 

10 and 

11 (E) in paragraph (13), in the matter pre12 ceding subparagraph (A), by striking ‘‘sub13 section—’’ and inserting ‘‘subsection:’’. 

14 SEC. 9. COMMUNITY INVESTMENT CASH ADVANCE AND 

15 COMMUNITY ECONOMIC DEVELOPMENT PRO16 GRAM. 

17 (a) IN GENERAL.—Section 10 of the Federal Home 

18 Loan Bank Act (12 U.S.C. 1430) is amended by inserting 

19 after subsection (e) the following: 

20 ‘‘(f) COMMUNITY INVESTMENT CASH ADVANCE AND

21 COMMUNITY ECONOMIC DEVELOPMENT PROGRAM.— 

22 ‘‘(1) IN GENERAL.—Pursuant to regulations 

23 promulgated by the Director, each Bank— 

24 ‘‘(A) may establish community investment 

25 cash advance programs to provide financing for 


pbinns on DSKJLVW7X2PROD with BILLS
17 

•HR 3323 IH

1 members or nonmember mortgagees eligible to 

2 receive advances under section 10b to provide 

3 projects targeted to certain economic develop4 ment activities and specific beneficiaries, includ5 ing certain geographic areas and at certain tar6 geted income levels established by the Bank 

7 with the prior approval of Director; and 

8 ‘‘(B) shall provide targeted community eco9 nomic development grants and lending. 

10 ‘‘(2) MIXED-USE PROJECTS.—With respect to a 

11 project funded under a program established under 

12 this subsection involving a combination of housing 

13 projects and economic development projects, only the 

14 economic development components of the project 

15 shall be required to meet the appropriate targeted 

16 income level for the program. 

17 ‘‘(3) PRICING AND AVAILABILITY OF AD18 VANCES.—A Bank shall price advances to members 

19 under this subsection as provided in section 1266.5 

20 of title 12, Code of Federal Regulations, or any suc21 cessor regulation, and may price such advances at 

22 rates below the price of advances of similar amounts, 

23 maturities, and terms made pursuant to subsection 

24 (a). 


pbinns on DSKJLVW7X2PROD with BILLS
18 

•HR 3323 IH

1 ‘‘(4) ADVANCES TO NON-MEMBER MORTGAGEES

2 ELIGIBLE TO RECEIVE ADVANCES.— 

3 ‘‘(A) IN GENERAL.—A Bank may offer ad4 vances under a program established under this 

5 subsection to non-member mortgagees eligible 

6 to receive advances under subsection (b) at the 

7 Bank’s option. 

8 ‘‘(B) PRICING.—A Bank shall price ad9 vances under this paragraph to non-member 

10 mortgagees eligible to receive advances under 

11 section 10b as provided in section 1266.17 of 

12 title 12, Code of Federal Regulations, or any 

13 successor regulation, and may price such ad14 vances at rates below the price of advances of 

15 similar amounts, maturities, and terms made 

16 pursuant to section 10b. 

17 ‘‘(5) PRICING PASS-THROUGH.—A Bank may 

18 require that borrowers receiving advances made 

19 under a program established under this subsection 

20 pass through the benefit of any price reduction from 

21 regular advance pricing to borrowers of the Bank. 

22 ‘‘(6) DISCOUNT FUND.— 

23 ‘‘(A) IN GENERAL.—A Bank may establish 

24 a discount fund that the Bank may use to re25 duce the price of advances made under a proVerDate Sep 11 2014 06:09 Jul 01, 2021 Jkt 019200 PO 00000 Frm 00018 Fmt 6652 Sfmt 6201 E:\BILLS\H3323.IH H3323

pbinns on DSKJLVW7X2PROD with BILLS
19 

•HR 3323 IH

1 gram established under this subsection below 

2 the advance prices provided for by part 1292 of 

3 title 12, Code of Federal Regulations, or any 

4 successor regulation. 

5 ‘‘(B) FAIR DISTRIBUTION SCHEME.—Price 

6 reductions made through a discount fund under 

7 subparagraph (A) shall be made in accordance 

8 with a fair distribution scheme. 

9 ‘‘(7) COMMUNITY ECONOMIC DEVELOPING

10 GRANTS AND LENDING.— 

11 ‘‘(A) DEFINITIONS.—In this paragraph: 

12 ‘‘(i) ELIGIBLE ENTITY.—The term ‘el13 igible entity’ means— 

14 ‘‘(I) a locally owned nonprofit or15 ganization described in section 

16 501(c)(3) of the Internal Revenue 

17 Code of 1986 and exempt from tax18 ation under section 501(a) of such 

19 Code or a community development 

20 corporation— 

21 ‘‘(aa) that has experience in 

22 developing and managing eco23 nomic development projects; 

24 ‘‘(bb) that is governed by a 

25 board of directors consisting of 


pbinns on DSKJLVW7X2PROD with BILLS
20 

•HR 3323 IH

1 residents of the community and 

2 business and civic leaders; and 

3 ‘‘(cc) the principal purpose 

4 of which is to plan, develop, or 

5 manage low-income housing or 

6 community development projects; 

7 ‘‘(II) a non-depository commu8 nity development financial institution, 

9 as defined in section 103 of the Riegle 

10 Community Development and Regu11 latory Improvement Act of 1994 (12 

12 U.S.C. 4702), that is certified by the 

13 Community Development Financial 

14 Institutions Fund under section 

15 1805.201 of title 12, Code of Federal 

16 Regulations, or any successor regula17 tion; 

18 ‘‘(III) a federally recognized In19 dian Tribe or community; or 

20 ‘‘(IV) a regional or national non21 profit community development or co22 operative development intermediary. 

23 ‘‘(ii) LOW-INCOME COMMUNITY.—The 

24 term ‘low-income community’ has the 


pbinns on DSKJLVW7X2PROD with BILLS
21 

•HR 3323 IH

1 meaning given the term in section 45D(e) 

2 of the Internal Revenue Code of 1986. 

3 ‘‘(iii) RURAL COMMUNITY.—The term 

4 ‘rural community’ means a city, town, or 

5 Census Designated Place with a population 

6 of not more than 20,000, according to the 

7 most recent decennial census conducted by 

8 the Bureau of the Census. 

9 ‘‘(iv) VERY LOW-INCOME HOUSE10 HOLD.—The term ‘very low-income house11 hold’ means a household with an income 

12 that is not greater than 50 percent of the 

13 area median income. 

14 ‘‘(B) REQUIREMENT.—Each Bank shall 

15 establish a program to provide grants or sub16 sidize the interest rate on advances to members 

17 engaged in lending to eligible entities for eco18 nomic development activities that serve low-in19 come or rural communities. 

20 ‘‘(C) USE OF FUNDS.—The entire amount 

21 of a grant or subsidized advance provided under 

22 this paragraph— 

23 ‘‘(i) shall benefit the communities as24 sisted by the recipient of the grant or sub25 sidized advance; 


pbinns on DSKJLVW7X2PROD with BILLS
22 

•HR 3323 IH

1 ‘‘(ii) shall not be used for the purpose 

2 of financial education or to support a 

3 sports stadium or arena; and 

4 ‘‘(iii) shall provide at least 2 percent 

5 of grants or advance funds to benefit fed6 erally recognized Indian Tribes or commu7 nities, which may include a Bank providing 

8 grants or advance funds outside of the dis9 trict of the Bank. 

10 ‘‘(D) ELIGIBLE ACTIVITIES.—Economic 

11 development activities that are eligible to be 

12 carried out under this paragraph include— 

13 ‘‘(i) providing grants and equity in14 vestments, including those that capitalize a 

15 revolving loan fund of a Treasury-certified 

16 non-depository community development fi17 nancial institution for eligible economic de18 velopment activities similar to the author19 ity provided within the Affordable Housing 

20 Program under subsection (j); 

21 ‘‘(ii) providing awards consistent with 

22 awards provided under section 680 of the 

23 Community Block Grant Act (42 U.S.C. 

24 9921); 


pbinns on DSKJLVW7X2PROD with BILLS
23 

•HR 3323 IH

1 ‘‘(iii) financing business transitions to 

2 worker-owned cooperatives or financing the 

3 sales of business assets to employees or 

4 community stakeholders that preserve jobs 

5 in low- and moderate-income communities; 

6 ‘‘(iv) financing capital expenditures, 

7 such as the purchase of equipment or real 

8 property for nonprofit organizations, in9 cluding child care or health care facilities 

10 in low-income communities, that provide 

11 service to low-income households; 

12 ‘‘(v) financing operating expenses for 

13 nonprofit community development organi14 zations engaged in community economic 

15 development activities benefitting very low16 income households; 

17 ‘‘(vi) water, road, broadband, clean 

18 energy, or municipal infrastructure invest19 ments, including investments to address 

20 climate change, in Native American tribal 

21 lands and economically distressed rural 

22 communities; 

23 ‘‘(vii) providing community facilities 

24 or infrastructure, including public transit, 

25 green space consisting of parks with trees 


pbinns on DSKJLVW7X2PROD with BILLS
24 

•HR 3323 IH

1 and shrubbery, heat-reflecting road and 

2 sidewalk upgrades, tornado shelters, public 

3 restrooms, or environmental cooling loca4 tions accessible to the public in low-income 

5 communities; and 

6 ‘‘(viii) any other activity established 

7 by the Director in consultation with Con8 gress, the Federal Home Loan Banks and 

9 their housing advisory councils, and the 

10 public. 

11 ‘‘(E) PRIORITIES FOR MAKING GRANTS

12 AND ADVANCES.—In using amounts provided 

13 under this paragraph, each Bank member shall 

14 give priority to qualified projects such as— 

15 ‘‘(i) grants or advances for mixed-use 

16 housing developments that provide eco17 nomic activity and affordable housing for 

18 low-income and rural communities; 

19 ‘‘(ii) grants or advances for child care 

20 facilities that serve low-income households; 

21 ‘‘(iii) grants or advances for programs 

22 that provide economic opportunities for 

23 formerly incarcerated individuals; 

24 ‘‘(iv) grants or advances that enable 

25 conversion to employee- or communityVerDate Sep 11 2014 06:09 Jul 01, 2021 Jkt 019200 PO 00000 Frm 00024 Fmt 6652 Sfmt 6201 E:\BILLS\H3323.IH H3323

pbinns on DSKJLVW7X2PROD with BILLS
25 

•HR 3323 IH

1 owned companies or financing the sales of 

2 business assets to employees or community 

3 stakeholders; 

4 ‘‘(v) grants or advances to established 

5 regional and national intermediary organi6 zations that already receive Federal funds 

7 and have the capacity to deliver economic 

8 development activities to low-income house9 holds; and 

10 ‘‘(vi) any other priority established by 

11 the Agency in consultation with the Banks, 

12 Bank members, housing advisory councils 

13 of the Banks, Congress, and the public. 

14 ‘‘(F) REQUIREMENTS FOR PROJECTS IN

15 RURAL COMMUNITIES.—With respect to a 

16 project carried out by an eligible entity in a 

17 rural community under this paragraph— 

18 ‘‘(i) not less than 51 percent of the 

19 population served by the project shall re20 side in the rural community; 

21 ‘‘(ii) the projects shall primarily serve 

22 and benefit rural residents and commu23 nities; and 

24 ‘‘(iii) the rural community shall be 

25 within the jurisdiction of the eligible entity. 


pbinns on DSKJLVW7X2PROD with BILLS
26 

•HR 3323 IH

1 ‘‘(G) REPORT.—Each member receiving a 

2 grant or advance under this paragraph shall re3 port annually to the Bank making the grant or 

4 advance concerning the use by the member of 

5 the grant or advance. 

6 ‘‘(H) CONTRIBUTION TO PROGRAM.—Each 

7 Bank shall annually contribute 10 percent of 

8 the preceding year’s net income, or such pro9 rated sums as may be required to ensure that 

10 the aggregate contribution of the Banks shall 

11 not be less than $100,000,000 for each such 

12 year, to support grants and subsidized advances 

13 made under this paragraph.’’. 

Æ 


pbinns on DSKJLVW7X2PROD with BILLS