(2) to identify regional partnerships for devel-
oping and implementing a comprehensive regional 
plan; 
(3) to conduct or update assessments to deter-
mine regional needs and promote economic and com-
munity development; 
(4) to develop or update— 
(A) a comprehensive regional plan; or 
(B) goals and strategies to implement an 
existing comprehensive regional plan and other 
related activities; and 
(5) to identify local zoning and other code 
changes necessary to implement a comprehensive re-
gional plan and promote sustainable development. 
(c) GRANTS.— 
(1) DIVERSITY
OF
GRANTEES.—The Director 
shall ensure geographic diversity among and ade-
quate representation from each of the following cat-
egories: 
(A) SMALL AND RURAL COMMUNITIES.— 
Eligible entities that represent all or part of a 
noncore area, a micropolitan area, or a small 
metropolitan statistical area with a population 
of not more than 200,000. 
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(B) MID-SIZED
METROPOLITAN
COMMU-
NITIES.—Eligible entities that represent all or 
part of a metropolitan statistical area with a 
population of more than 200,000 and not more 
than 500,000. 
(C) 
LARGE
METROPOLITAN
COMMU-
NITIES.—Eligible entities that represent all or 
part of a metropolitan statistical area with a 
population of more than 500,000. 
(2) AWARD OF FUNDS TO SMALL AND RURAL 
COMMUNITIES.— 
(A) IN GENERAL.—The Director shall— 
(i) award not less than 15 percent of 
the funds under the grant program to eli-
gible 
entities 
described 
in 
paragraph 
(1)(A); and 
(ii) ensure diversity among the geo-
graphic regions and the size of the popu-
lation of the communities served by recipi-
ents of grants that are eligible entities de-
scribed in paragraph (1)(A). 
(B) INSUFFICIENT APPLICATIONS.—If the 
Director determines that insufficient approvable 
applications have been submitted by eligible en-
tities described in paragraph (1)(A), the Direc-
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tor may award less than 15 percent of the 
funds under the grant program to eligible enti-
ties described in paragraph (1)(A). 
(3) FEDERAL SHARE.— 
(A) IN GENERAL.—Except as provided in 
subparagraph (B), the Federal share of the cost 
of a project carried out using a grant under the 
grant program may not exceed 80 percent. 
(B) EXCEPTIONS.— 
(i) 
SMALL
AND
RURAL
COMMU-
NITIES.—In the case of an eligible entity 
described in paragraph (1)(A), the Federal 
share of the cost of a project carried out 
using a grant under the grant program 
may be 90 percent. 
(ii) INDIAN TRIBES.—In the case of 
an eligible entity that is an Indian tribe, 
the Federal share of the cost of a project 
carried out using a grant under the grant 
program may be 100 percent. 
(C) NON-FEDERAL SHARE.— 
(i) 
IN-KIND
CONTRIBUTIONS.—For 
the purposes of this section, in-kind con-
tributions may be used for all or part of 
the non-Federal share of the cost of a 
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project carried out using a grant under the 
grant program. 
(ii) OTHER
FEDERAL
FUNDING.— 
Federal funding from sources other than 
the grant program may not be used for the 
non-Federal share of the cost of a project 
carried out using a grant under the grant 
program. 
(4) AVAILABILITY OF FUNDS.— 
(A) IN GENERAL.—An eligible entity that 
receives a grant under the grant program 
shall— 
(i) obligate any funds received under 
the grant program not later than 2 years 
after the date on which the grant agree-
ment under subsection (g) is made; and 
(ii) expend any funds received under 
the grant program not later than 4 years 
after the date on which the grant agree-
ment under subsection (g) is made. 
(B) UNOBLIGATED
AMOUNTS.—After the 
date described in subparagraph (A)(i), the Sec-
retary may award to another eligible entity, to 
carry out activities under this section, any 
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amounts that an eligible entity has not obli-
gated under subparagraph (A)(i). 
(d) APPLICATION.— 
(1) IN GENERAL.—An eligible entity that de-
sires a grant under this section shall submit to the 
Director an application, at such time and in such 
manner as the Director shall prescribe, that con-
tains— 
(A) a description of the project proposed to 
be carried out by the eligible entity; 
(B) a budget for the project that includes 
the anticipated Federal share of the cost of the 
project and a description of the source of the 
non-Federal share; 
(C) the designation of a lead agency or or-
ganization, which may be the eligible entity, to 
receive and manage any funds received by the 
eligible entity under the grant program; 
(D) a signed copy of a memorandum of 
understanding among local jurisdictions, includ-
ing, as appropriate, a State, a tribe, units of 
general purpose local government, units of spe-
cial purpose local government, metropolitan 
planning organizations, rural planning organi-
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zations, and regional councils that dem-
onstrates— 
(i) the creation of an eligible entity; 
(ii) a description of the nature and ex-
tent of planned collaboration between the 
eligible entity and any partners of the eligi-
ble entity; 
(iii) a commitment to develop a com-
prehensive regional plan; and 
(iv) a commitment to implement the 
plan after the plan is developed; 
(E) a certification that the eligible entity 
has— 
(i) secured the participation, or made 
a good-faith effort to secure the participa-
tion, of transportation providers and public 
housing agencies within the area affected 
by the comprehensive regional plan and the 
entities described in clause (ii); and 
(ii) created, or will create not later 
than 1 year after the date of the grant 
award, a regional advisory board to provide 
input and feedback on the development of 
the comprehensive regional plan that in-
cludes representatives of a State, the met-
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ropolitan planning organization, the rural 
planning organization, the regional council, 
local jurisdictions, non-profit organizations, 
and others, as deemed appropriate by the 
eligible entity, given the local context of 
the comprehensive planning effort; 
(F) a certification that the eligible entity 
has solicited public comment on the contents of 
the project description under subparagraph (A) 
that includes— 
(i) a description of the process for re-
ceiving public comment relating to the pro-
posal; and 
(ii) such other information as the Di-
rector may require; 
(G) a description of how the eligible entity 
will carry out the activities under subsection (f); 
and 
(H) such additional information as the Di-
rector may require. 
(2) INDIAN TRIBES.—An eligible entity that is 
an Indian tribe is not required to submit the certifi-
cation under paragraph (1)(E). 
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(e) SELECTION.—In evaluating an application for a 
grant under the grant program, the Director shall con-
sider the extent to which the application— 
(1) demonstrates the technical capacity of the 
eligible entity to carry out the project; 
(2) demonstrates the extent to which the con-
sortium has developed partnerships throughout an 
entire region, including, as appropriate, partnerships 
with the entities described in subsection (d)(1)(D); 
(3) demonstrates integration with local efforts 
in economic development and job creation; 
(4) demonstrates a strategy for implementing a 
comprehensive regional plan through regional infra-
structure investment plans and local land use plans; 
(5) promotes diversity among the geographic re-
gions and the size of the population of the commu-
nities served by recipients of grants under this sec-
tion; 
(6) demonstrates a commitment to seeking sub-
stantial public input during the planning process 
and public participation in the development of the 
comprehensive regional plan; 
(7) demonstrates that a Federal grant is nec-
essary to accomplish the project proposed to be car-
ried out; 
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(8) minimizes the Federal share necessary to 
carry out the project and leverages State, local, or 
private resources; 
(9) has a high quality overall; and 
(10) demonstrates such other qualities as the 
Director may determine. 
(f) ELIGIBLE ACTIVITIES.—An eligible entity that re-
ceives a grant under this section shall carry out a project 
that includes 1 or more of the following activities: 
(1) Coordinating locally defined planning proc-
esses across jurisdictions and agencies. 
(2) Identifying potential regional partnerships 
for developing and implementing a comprehensive 
regional plan. 
(3) Conducting or updating assessments to de-
termine regional needs, including healthy housing, 
and promote economic and community development. 
(4) Developing or updating— 
(A) a comprehensive regional plan; or 
(B) goals and strategies to implement an 
existing comprehensive regional plan. 
(5) Implementing local zoning and other code 
changes necessary to implement a comprehensive re-
gional plan and promote sustainable development. 
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(g) GRANT AGREEMENT.—Each eligible entity that 
receives a grant under this section shall agree to establish, 
in coordination with the Director, performance measures, 
reporting requirements, and any other requirements that 
the Director determines are necessary, that must be met 
at the end of each year in which the eligible entity receives 
funds under the grant program. 
(h) PUBLIC OUTREACH.— 
(1) OUTREACH REQUIRED.—Each eligible entity 
that receives a grant under the grant program shall 
perform substantial outreach activities— 
(A) to engage a broad cross-section of 
community stakeholders in the process of devel-
oping a comprehensive regional plan, including 
low-income families, minorities, older adults, 
and economically disadvantaged community 
members; and 
(B) to create an effective means for stake-
holders to participate in the development and 
implementation of a comprehensive regional 
plan. 
(2) FINALIZATION
OF
COMPREHENSIVE
RE-
GIONAL PLAN.— 
(A) IN GENERAL.—An eligible entity that 
receives a grant under the grant program may 
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not finalize a comprehensive regional plan be-
fore the eligible entity holds a public hearing to 
obtain the views of citizens, public agencies, and 
other interested parties. 
(B) AVAILABILITY OF INFORMATION.—Not 
later than 30 days before a hearing described in 
subparagraph (A), an eligible entity shall make 
the proposed comprehensive regional plan and 
all information relevant to the hearing available 
to the public for inspection during normal busi-
ness hours. 
(C) NOTICE.—Not later than 30 days be-
fore a hearing described in subparagraph (A), 
an eligible entity shall publish notice— 
(i) of the hearing; and 
(ii) that the information described in 
subparagraph (B) is available. 
(i) VIOLATION OF GRANT AGREEMENT OR FAILURE 
TO COMPLY WITH PUBLIC OUTREACH REQUIREMENTS.— 
If the Director determines that an eligible entity has not 
met the performance measures established under sub-
section (g), is not making reasonable progress toward 
meeting such measures, is otherwise in violation of the 
grant agreement, or has not complied with the public out-
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reach requirements under subsection (h), the Director 
may— 
(1) withhold financial assistance until the re-
quirements under the grant agreement or under sub-
section (h), as applicable, are met; or 
(2) terminate the grant agreement. 
(j) REPORT
ON
THE COMPREHENSIVE PLANNING 
GRANT.— 
(1) IN GENERAL.—Not later than 90 days after 
the date on which the grant agreement under sub-
section (g) expires, an eligible entity that receives a 
grant under the grant program shall submit a final 
report on the project to the Secretary. 
(2) CONTENTS OF REPORT.—The report shall 
include— 
(A) a detailed explanation of the activities 
undertaken using the grant, including an expla-
nation of the completed project and how it 
achieves 
specific 
transit-oriented, 
transpor-
tation, housing, or sustainable community goals 
within the region; 
(B) a discussion of any obstacles encoun-
tered in the planning process and how the eligi-
ble entity overcame the obstacles; 
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(C) an evaluation of the success of the 
project using the performance standards and 
measures established under subsection (g), in-
cluding an evaluation of the planning process 
and how the project contributes to carrying out 
the comprehensive regional plan; and 
(D) any other information the Director 
may require. 
(3) INTERIM REPORT.—The Director may re-
quire an eligible entity to submit an interim report, 
before the date on which the project for which the 
grant is awarded is completed. 
(k) AUTHORIZATION OF APPROPRIATIONS.— 
(1) AUTHORIZATION.—There are authorized to 
be appropriated to the Secretary for the award of 
grants under this section, to remain available until 
expended— 
(A) $100,000,000 for fiscal year 2012; and 
(B) $125,000,000 for each of fiscal years 
2013 through 2016. 
(2) TECHNICAL
ASSISTANCE.—The Director 
may use not more than 2 percent of the amounts 
made available under this subsection for a fiscal 
year for technical assistance under section 5(c)(3). 
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SEC. 7. COMMUNITY CHALLENGE GRANT PROGRAM. 
(a) DEFINITIONS.—In this section— 
(1) the terms ‘‘consortium of units of general 
local governments’’, ‘‘eligible entity’’, and ‘‘eligible 
partner’’ have the same meaning as in section 6; and 
(2) the term ‘‘grant program’’ means the com-
munity challenge grant program established under 
subsection (b). 
(b) COMMUNITY CHALLENGE GRANT PROGRAM ES-
TABLISHED.—The Director shall establish a community 
challenge grant program to make grants to eligible entities 
to— 
(1) promote integrated planning and invest-
ments across policy and governmental jurisdictions; 
and 
(2) implement projects identified in a com-
prehensive regional plan. 
(c) GRANTS.— 
(1) DIVERSITY
OF
GRANTEES.—The Director 
shall ensure geographic diversity among and ade-
quate representation from eligible entities in each of 
the categories described in section 6(c)(1). 
(2) TERMS AND CONDITIONS.—Except as other-
wise provided in this section, a grant under the 
grant program shall be made on the same terms and 
conditions as a grant under section 6. 
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(3) EXPENDING
FUNDS.—An eligible entity 
that receives a grant under the grant program shall 
expend any funds received under the grant program 
not later than 5 years after the date on which the 
grant agreement under subsection (g) is made. 
(d) APPLICATION.— 
(1) CONTENTS.—An eligible entity that desires 
a grant under the grant program shall submit to the 
Director an application, at such time and in such 
manner as the Director shall prescribe, that con-
tains— 
(A) a copy of the comprehensive regional 
plan, whether developed as part of the com-
prehensive planning grant program under sec-
tion 6 or developed independently; 
(B) a description of the project or projects 
proposed to be carried out using a grant under 
the grant program; 
(C) a description of any preliminary ac-
tions that have been or must be taken at the 
local or regional level to implement the project 
or projects under subparagraph (B), including 
the revision of land use or zoning policies; 
(D) a signed copy of a memorandum of 
understanding among local jurisdictions, includ-
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ing, as appropriate, a State, units of general 
purpose local government, units of special pur-
pose local government, metropolitan planning 
organizations, rural planning organizations, and 
regional councils that demonstrates— 
(i) the creation of a consortium of 
units of general local government; and 
(ii) a commitment to implement the 
activities described in the comprehensive 
regional plan; 
(E) a certification that the eligible entity 
has solicited public comment on the contents of 
the project or projects described in subpara-
graph (B) that includes— 
(i) a certification that the eligible en-
tity made information about the project or 
projects available and afforded citizens, 
public agencies, and other interested par-
ties a reasonable opportunity to examine 
the content of the project or projects and 
to submit comments; 
(ii) a description of the process for re-
ceiving public comment, and a description 
of the outreach efforts to affected popu-
lations and stakeholders; and 
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(iii) a certification that the eligible en-
tity— 
(I) held a public hearing to ob-
tain the views of citizens, public agen-
cies, and other interested parties; 
(II) made the proposed project 
and all information relevant to the 
hearing available for inspection by the 
public during normal business hours 
not less than 30 days before the hear-
ing under subclause (I); and 
(III) published a notice informing 
the public of the hearing under sub-
clause (I) and the availability of the 
information described in subclause 
(II); 
(F) a budget for the project that includes 
the Federal share of the cost of the project or 
projects requested and a description of the 
source of the non-Federal share; and 
(G) such additional information as the Di-
rector may require. 
(2) INDIAN TRIBES.—An eligible entity that is 
an Indian tribe is not required to submit a memo-
randum of understanding under paragraph (1)(D). 
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(e) SELECTION.—In evaluating an application for a 
grant under the grant program, the Director shall con-
sider the extent to which the application— 
(1) demonstrates the technical capacity of the 
eligible entity to carry out the project; 
(2) demonstrates the extent to which the eligi-
ble entity has developed partnerships throughout an 
entire region, including partnerships with units of 
special purpose local government and transportation 
providers; 
(3) demonstrates clear and meaningful inter-
jurisdictional cooperation and coordination of hous-
ing (including healthy housing), transportation, and 
environmental policies and plans; 
(4) demonstrates a commitment to imple-
menting a comprehensive regional plan and docu-
ments action taken or planned to implement the 
plan; 
(5) minimizes the Federal share necessary to 
carry out the project and leverages a significant 
amount of State, local, or private resources; 
(6) identifies original and innovative ideas to 
overcoming regional problems, including local land 
use and zoning (or other code) obstacles to carrying 
out the comprehensive regional plan; 
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(7) promotes diversity among the geographic re-
gions and the size of the population of the commu-
nities served by recipients of grants under the grant 
program; 
(8) demonstrates a commitment to substantial 
public input throughout the implementation process; 
(9) demonstrates that a Federal grant is nec-
essary to accomplish the project or projects proposed 
to be carried out; 
(10) has a high quality overall; and 
(11) demonstrates such other qualities as the 
Director may determine. 
(f) GRANT ACTIVITIES.— 
(1) PLANNING ACTIVITIES.—An eligible entity 
that receives a grant under the grant program may 
use not more than 10 percent of the grant for plan-
ning activities. Activities related to the updating, re-
form, or development of a local code, plan, or ordi-
nance to implement projects contained in a com-
prehensive regional plan shall not be considered 
planning activities for the purposes of a grant under 
the grant program. 
(2) PROJECTS AND INVESTMENTS.—An eligible 
entity that receives a grant under the grant program 
shall carry out 1 or more projects that are designed 
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to achieve the goals identified in a comprehensive re-
gional plan. 
(g) GRANT AGREEMENT.—Each eligible entity that 
receives a grant under the grant program shall agree to 
establish, in coordination with the Director, performance 
measures, reporting requirements, and any other require-
ments that the Director determines are necessary, that 
must be met at the end of each year in which the eligible 
entity receives funds under the grant program. 
(h) VIOLATION OF GRANT AGREEMENT.—If the Di-
rector determines that an eligible entity has not met the 
performance measures established under subsection (g), is 
not making reasonable progress toward meeting such 
measures, or is otherwise in violation of the grant agree-
ment, the Director may— 
(1) withhold financial assistance until the re-
quirements under the grant agreement are met; or 
(2) terminate the grant agreement. 
(i) REPORT
ON
THE
COMMUNITY
CHALLENGE 
GRANT.— 
(1) IN GENERAL.—Not later than 90 days after 
the date on which the grant agreement under sub-
section (g) expires, an eligible entity that receives a 
grant under the grant program shall submit a final 
report on the project to the Secretary. 
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(2) CONTENTS OF REPORT.—The report shall 
include— 
(A) a detailed explanation of the activities 
undertaken using the grant, including an expla-
nation of the completed project and how it 
achieves 
specific 
transit-oriented, 
transpor-
tation, housing, or sustainable community goals 
within the region; 
(B) a discussion of any obstacles encoun-
tered in the planning and implementation proc-
ess and how the eligible entity overcame the ob-
stacles; 
(C) an evaluation of the success of the 
project using the performance standards and 
measures established under subsection (g), in-
cluding an evaluation of the planning and im-
plementation process and how the project con-
tributes to carrying out the comprehensive re-
gional plan; and 
(D) any other information the Director 
may require. 
(3) INTERIM REPORT.—The Director may re-
quire an eligible entity to submit an interim report, 
before the date on which the project for which the 
grant is awarded is completed. 
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(j) AUTHORIZATION OF APPROPRIATIONS.— 
(1) AUTHORIZATION.—There are authorized to 
be appropriated to the Secretary for the award of 
grants under this section, to remain available until 
expended— 
(A) $30,000,000 for each of fiscal years 
2012 and 2013; 
(B) $35,000,000 for fiscal year 2014; 
(C) $40,000,000 for fiscal year 2015; and 
(D) $45,000,000 for fiscal year 2016. 
SEC. 8. CREDIT FACILITY TO SUPPORT TRANSIT-ORIENTED 
DEVELOPMENT. 
(a) DEFINITIONS.—In this section— 
(1) ELIGIBLE APPLICANT.—The term ‘‘eligible 
applicant’’ means a State or local government. 
(2) ELIGIBLE AREA.—The term ‘‘eligible area’’ 
means the area within 1⁄2 mile of an existing or 
planned major transit facility. 
(3) ELIGIBLE BORROWER.—The term ‘‘eligible 
borrower’’ means— 
(A) a governmental entity, authority, agen-
cy, or instrumentality; 
(B) a corporation, partnership, joint ven-
ture, or trust on behalf of which an eligible ap-
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plicant has submitted an application under sub-
section (c); or 
(C) any other legal entity undertaking an 
infrastructure development project on behalf of 
which an eligible applicant has submitted an 
application under subsection (c). 
(4) MAJOR
TRANSIT
FACILITY.—The term 
‘‘major transit facility’’ means— 
(A) a fixed-guideway transit station; 
(B) a high speed rail or intercity rail sta-
tion; 
(C) a transit hub connecting more than 3 
local transit lines; or 
(D) a transit center located in an area 
other than an urbanized area. 
(5) PLANNED MAJOR TRANSIT FACILITY.—The 
term ‘‘planned major transit facility’’ means a major 
transit facility for which appropriate environmental 
reviews have been completed and for which funding 
for construction can be reasonably anticipated. 
(6) PROJECT.—The term ‘‘project’’ means an 
infrastructure project that is used to support a tran-
sit-oriented development in an eligible area, includ-
ing— 
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(A) property enhancement, including con-
ducting environmental remediation, park devel-
opment, and open space acquisition; 
(B) improvement of mobility and parking, 
including rehabilitating, or providing for addi-
tional, streets, transit stations, structured park-
ing, walkways, and bikeways; 
(C) utility development, including rehabili-
tating existing, or providing for new drinking 
water, wastewater, electric, and gas utilities; or 
(D) community facilities, including child 
care centers. 
(b) LOAN PROGRAM ESTABLISHED.—The Secretary 
may make or guarantee loans under this section to eligible 
borrowers for projects. 
(c) APPLICATION.— 
(1) IN
GENERAL.—An eligible applicant may 
submit to the Secretary an application for a loan or 
loan guarantee under this section— 
(A) to fund a project carried out by the eli-
gible applicant; or 
(B) on behalf of an eligible borrower, to 
fund a project carried out by the eligible bor-
rower. 
(d) SELECTION CRITERIA.— 
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(1) IN GENERAL.—The Secretary may make a 
loan or loan guarantee under this section for a 
project that— 
(A) is part of a community-wide develop-
ment plan, as defined by the Secretary; 
(B) promotes sustainable development; and 
(C) ensures that not less than 15 percent 
of any housing units constructed or substan-
tially rehabilitated as part of transit-oriented 
development supported by the project are af-
fordable over the long-term to, and occupied at 
time of initial occupancy by— 
(i) renters with incomes at or below 
60 percent of the area median; or 
(ii) homeowners with incomes at or 
below 100 percent of the area median. 
(2) CONSIDERATIONS.—The Secretary shall se-
lect the recipients of loans and loan guarantees 
under this section based on the extent to which— 
(A) the transit-oriented development sup-
ported by the project will encourage increased 
use of transit; 
(B) the transit-oriented development sup-
ported by the project will create or preserve 
long-term affordable housing units in addition 
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to the housing units required to be made avail-
able under paragraph (1)(C) or will provide 
deeper affordability than required under para-
graph (1)(C); 
(C) the project will facilitate and encour-
age additional development or redevelopment in 
the overall transit station area; 
(D) the local government has adopted poli-
cies that— 
(i) promote long-term affordable hous-
ing; and 
(ii) allow high-density, mixed-use de-
velopment near transit stations; 
(E) the transit-oriented development sup-
ported by the project is part of a comprehensive 
regional plan; 
(F) the eligible borrower has established a 
reliable, dedicated revenue source to repay the 
loan; 
(G) the project is not financially viable for 
the eligible borrower without a loan or loan 
guarantee under this section; and 
(H) a loan or loan guarantee under this 
section would be used in conjunction with non- 
Federal loans to fund the project. 
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(e) ELIGIBLE SOURCES
OF REPAYMENT.—A loan 
made or guaranteed under this section shall be repayable, 
in whole or in part, from dedicated revenue sources, which 
may include— 
(1) user fees; 
(2) property tax revenues; 
(3) sales tax revenues; 
(4) other revenue sources dedicated to the 
project by property owners and businesses; and 
(5) a bond or other indebtedness backed by one 
of the revenue sources listed in this paragraph. 
(f) INTEREST RATE.—The Secretary shall establish 
an interest rate for loans made or guaranteed under this 
section with reference to a benchmark interest rate (yield) 
on marketable Treasury securities with a maturity that 
is similar to the loans made or guaranteed under this sec-
tion. 
(g) MAXIMUM MATURITY.—The maturity of a loan 
made or guaranteed under this section may not exceed the 
lesser of— 
(1) 35 years; or 
(2) 90 percent of the useful life of any project 
to be financed by the loan, as determined by the 
Secretary. 
(h) MAXIMUM LOAN GUARANTEE RATE.— 
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(1) IN
GENERAL.—The guarantee rate on a 
loan guaranteed under this section may not exceed 
75 percent of the amount of the loan. 
(2) LOWER GUARANTEE RATE FOR LOW-RISK 
BORROWERS.—The Secretary shall establish a guar-
antee rate for loans to eligible borrowers that the 
Secretary determines pose a lower risk of default 
that is lower than the guarantee rate for loans to 
other eligible borrowers. 
(i) FEES.—The Secretary shall establish fees for 
loans made or guaranteed under this section at a level that 
is sufficient to cover all or part of the costs to the Federal 
Government of making or guaranteeing a loan under this 
section. 
(j) NONSUBORDINATION.—A loan made or guaran-
teed under this section may not be subordinated to the 
claims of any holder of an obligation relating to the project 
in the event of bankruptcy, insolvency, or liquidation. 
(k) COMMENCEMENT OF REPAYMENT.—The sched-
uled repayment of principal or interest on a loan made 
or guaranteed under this section shall commence not later 
than 5 years after the date of substantial completion of 
the project. 
(l) REPAYMENT DEFERRAL FOR LOANS.— 
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(1) IN
GENERAL.—If, at any time after the 
date of substantial completion of a project, the Sec-
retary determines that dedicated revenue sources of 
an eligible borrower are insufficient to make the 
scheduled loan repayments of principal and interest 
on a loan made or guaranteed under this section, the 
Secretary may, subject to criteria established by the 
Secretary, allow the eligible borrower to add unpaid 
principal and interest to the outstanding balance of 
the loan. 
(2) TREATMENT OF DEFERRED PAYMENTS.— 
Any payment deferred under this section shall— 
(A) continue to accrue interest until fully 
repaid; and 
(B) be scheduled to be amortized over the 
remaining term of the loan. 
(m) AUTHORIZATION OF APPROPRIATIONS.—There 
are authorized to be appropriated for the cost of loans and 
loan guarantees under this section $20,000,000 for each 
of fiscal years 2012 through 2016. 
SEC. 9. HEALTHY HOMES. 
(a) FEDERAL INITIATIVE TO SUPPORT HEALTHY 
HOUSING AND ERADICATE HOUSING-RELATED HEALTH 
HAZARDS.—The Secretary, acting through the Director of 
the Office of Healthy Homes and Lead Hazard Control 
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and in consultation with the Secretary of Energy, the Ad-
ministrator of the Environmental Protection Agency, the 
Secretary of Agriculture, the Director of the National In-
stitute of Standards and Technology, the Director of the 
National Institute of Environmental Health Sciences, and 
the Director of the Centers for Disease Control, shall lead 
the Federal initiative to support healthy housing and 
eradicate housing-related health hazards by— 
(1) reviewing, monitoring, and evaluating Fed-
eral housing, health, energy, and environmental pro-
grams and identifying areas of overlap and duplica-
tion that could be improved; 
(2) identifying best practices and model pro-
grams, including practices and programs that link 
services for low-income families and services for 
health hazards; 
(3) identifying best practices for finance prod-
ucts, building codes, and regulatory practices; 
(4) researching training programs and work 
practices that can accurately assess housing-related 
health hazards; 
(5) promoting collaboration among Federal, 
State, local, and tribal agencies and non-govern-
mental organizations; and 
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(6) coordinating with all relevant Federal agen-
cies. 
(b) ASSESSMENT.—The Secretary shall conduct a 
collaborative, interagency assessment of best practices 
for— 
(1) coordinating activities relating to healthy 
housing; 
(2) removing unnecessary barriers to inter-
agency coordination in Federal statutes and regula-
tions; and 
(3) creating incentives in programs of the Fed-
eral Government to advance the complementary 
goals of improving environmental health, energy con-
servation, and the availability of housing. 
(c) STUDY AND REPORT ON SUSTAINABLE BUILDING 
FEATURES AND INDOOR ENVIRONMENTAL QUALITY IN 
HOUSING.— 
(1) STUDY.—The Secretary, in consultation 
with the Secretary of Energy, the Director of the 
National Institute of Standards and Technology, the 
Director of the National Institute of Environmental 
Health Sciences, the Director of the Centers for Dis-
ease Control, and any other Federal agency that the 
Secretary determines is appropriate, shall conduct a 
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detailed study of how sustainable building features 
in housing, such as energy efficiency, affect— 
(A) the quality of the indoor environment; 
(B) the prevalence of housing-related 
health hazards; and 
(C) the health of occupants of the housing. 
(2) REPORT.—Not later than 3 years after the 
date of enactment of this Act, the Secretary shall 
submit to the Committee on Banking, Housing, and 
Urban Affairs and the Committee on Appropriations 
of the Senate and the Committee on Financial Serv-
ices and the Committee on Appropriations of the 
House of Representatives a report containing the re-
sults of the study under paragraph (1). 
(d) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated such sums as may be 
necessary to carry out this section. 
SEC. 10. INELIGIBILITY OF INDIVIDUALS WHO ARE NOT 
LAWFULLY PRESENT. 
No housing assisted using a grant under this Act may 
be made available to an individual who is not lawfully 
present in the United States. Nothing in this Act may be 
construed to alter the restrictions or definitions under sec-
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tion 214 of the Housing and Community Development Act 
of 1980 (42 U.S.C. 1436a). 
Æ 
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