Race to the Job Initiative Act

To establish a grant program to provide grants to eligible low-income communities for community development, and for other purposes. 1. Short title This Act may be cited as the Race to the Job Initiative Act 2. Establishment (a) In general The Secretary of the Treasury shall establish and administer a grant program to provide grants to eligible low-income communities for community development. (b) Limitations (1) Number of grant recipients in first year Not later than one year after the date of the enactment of this Act, the Secretary shall select 30 eligible low-income communities to receive grants under section 3. (2) Number of grant recipients in second year Not later than one year after the date on which the Secretary selects 30 eligible low-income communities under paragraph (1), the Secretary shall select an additional 20 eligible low-income communities to receive grants under section 3. (3) Geographic limitation The Secretary may not select more than 3 eligible low-income communities located in the same State to receive grants under section 3. (c) Application (1) In general To be selected to receive grants under section 3, an eligible low-income community shall submit an application to the Secretary at such time, in such manner, and containing such information as the Secretary may require. (2) Other requirements (A) Partner community development financial institution In an application submitted under this subsection, an eligible low-income community shall specify at least one community development financial institution to receive a capital assistance grant under section 4. (B) Concentrated poverty Each application under this subsection shall include a description of how the eligible low-income community has experienced concentrated poverty. (C) Development proposal Each application under this subsection shall include a description of how the eligible low-income community plans to use the grant funds awarded under section 3 to— (i) improve the economy of the community without displacing residents that reside in the community on the date the application for such grant funds is submitted; (ii) create programs that would benefit disadvantaged populations that reside in the community; (iii) establish or expand an anchor institution, as such term is defined under section 3(1)(B); (iv) identify and target a high-growth sector of the economy; (v) offer affordable financial services to the local community; and (vi) identify potential investors to target for matching funds. (d) Priority In awarding grants under section 3, the Secretary shall give priority to an eligible low-income community that is experiencing a high poverty rate at the time the application for such grant is submitted. 3. Grants to eligible low-income communities The Secretary shall award to each eligible low-income community selected under section 2(b) each of the following grants: (1) Anchor institution grants (A) Use of funds (i) In general Grant funds awarded under this paragraph shall be used to establish or expand anchor institutions in the eligible low-income community. (ii) Limitation Grant funds awarded under this paragraph may not be used to fund more than 25 percent of the total cost associated with the establishment or expansion of an anchor institution. (iii) Job training programs If grant funds awarded under this paragraph are used to establish or expand an anchor institution in the eligible low-income community that provides job training programs, such funds may only be used to fund job training programs that serve residents of such eligible low-income community. (B) Anchor institution defined In this paragraph, the term anchor institution (C) Authorization of appropriations For grants under this paragraph, there is authorized to be appropriated $100,000,000 for fiscal year 2017, to remain available until expended. (2) Infrastructure grants (A) Use of funds (i) In general Grant funds awarded under this paragraph shall be used for public infrastructure improvement projects in the eligible low-income community. (ii) Limitation Grant funds awarded under this paragraph may not be used to fund more than 10 percent of the total cost associated with a public infrastructure improvement project. (B) Authorization of appropriations For grants under this paragraph, there is authorized to be appropriated $200,000,000 for fiscal year 2017, to remain available until expended. (3) Technical assistance grants (A) In general Grant funds awarded under this paragraph shall be used to make technical assistance grants. (B) Authorization of appropriations For grants under this paragraph, there is authorized to be appropriated $20,000,000 for fiscal year 2017, to remain available until expended. 4. Capital assistance grants to partner community development financial institutions (a) In general The Secretary shall award a capital assistance grant to each community development financial institution that is specified in the application of an eligible low-income community selected under section 2(b) to receive grants under section 3. (b) Use of funds Grant funds awarded under this section may be used to make loans to, and invest in, businesses, organizations, or public-private partnerships located in the eligible low-income community. (c) Authorization of appropriations For grants under this section, there is authorized to be appropriated $200,000,000 for fiscal year 2017, to remain available until expended. 5. Tax credit for community investment (a) In general Section 45D of subpart D of part IV of subchapter A of chapter 1 (1) by redesignating subsection (i) as subsection (j); and (2) by inserting after subsection (h) the following new subsection: (i) Special rules for certain partner community development financial institutions For purposes of this section, in the case of a partner community development financial institution that is specified in the application of an eligible low-income community selected under section 2(b) of the Race to the Job Initiative Act to receive grants under section 3 of such Act— (1) such institution shall be treated as a qualified community development entity without regard to the allocation limitations under subsection (f); and (2) the term ‘low-income community’ shall mean such eligible low-income community. . (b) Applicability The amendments made by this section shall apply with respect to a partner community development financial institution that is specified in the application of an eligible low-income community selected by the Secretary under section 2(b) after the date of the enactment of this Act. 6. Increase in CDFI award amounts Section 108(d) of the Community Development Banking and Financial Institutions Act of 1994 ( 12 U.S.C. 4704 (1) in paragraph (1), by inserting after assistance (or, in the case of a community development financial institution receiving a capital assistance grant under section 4 of the Race to the Job Initiative Act, $20,000,000) (2) by adding at the end the following: (4) Annual assistance limitation for certain institutions In the case of a community development financial institution receiving a capital assistance grant under section 4 of the Race to the Job Initiative Act, the Fund may not provide such community development financial institution and its subsidiaries and affiliates with more than— (A) $10,000,000 in annual financial assistance; and (B) $500,000 in annual technical assistance. . 7. Definitions In this Act: (1) Community development financial institution The term community development financial institution 12 U.S.C. 4702 (2) Eligible low-income community The term eligible low-income community (A) a census tract with a poverty rate of at least 30 percent (as determined by the Office of Management and Budget using the most recent decennial census for which data are available); and (B) with an unemployment rate that is at least 150 percent of the national average (as determined by the Bureau of Labor Statistics). (3) State The term State

Summary: Race to the Job Initiative Act This bill requires the Department of the Treasury to establish and administer a grant program to provide anchor institution (i.e., a hospital, college, research center, or nonprofit institution) grants and infrastructure grants to eligible low-income communities for community development. Treasury shall select: (1) within the first year after enactment of this bill, 30 of such low-income communities to receive these grants; and (2) within the second year, an additional 20 of these communities. Treasury must award a capital assistance grant to each community development financial institution specified in the grantee's application to make loans to, and invest in, businesses, organizations, or public-private partnerships located in the eligible low-income community. The bill amends the Internal Revenue Code to allow a new markets tax credit for investment in a partner community development financial institution without regard to allocation limitations on such credit. The bill amends the Community Development Banking and Financial Institutions Act of 1994 to limit to $20 million (in the aggregate, during a three-year period) an award from the Community Development Financial Institutions (CDFI) Fund to a community development financial institution and its subsidiaries and affiliates receiving a capital assistance grant under this bill. CDFI funds are limited annually for these entities to: (1) $10 million for financial assistance, and (2) $500,000 for technical assistance.