ticipation of major community stakeholders, and for
other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘American Cities In-
vestment Act of 1996’’.
SEC. 2. COMMUNITY DEVELOPMENT LOAN GUARANTEES.
(a) ADVANCES
FROM
FEDERAL
HOME
LOAN
BANKS.—Section 108 of the Housing and Community De-
velopment Act of 1974 (42 U.S.C. 5308) is amended by
adding at the end the following new subsection:
‘‘(s) AUTHORITY TO GUARANTEE ADVANCES FROM
FEDERAL HOME LOAN BANKS.—
‘‘(1) LIMITATION ON MAXIMUM OUTSTANDING
LOAN
GUARANTEES.—Notwithstanding any other
provision of this section, the maximum aggregate
outstanding amount of notes and obligations of a
single issuer guaranteed under this section shall be
an amount determined by the Secretary based on the
amount of the grant approval for the issuer under
section 106 or 107, the fiscal condition of the issuer,
and the potential return on investment of the
projects to be undertaken with the proceeds of such
notes and obligations, but may not in any case ex-
ceed the discounted present value (based on the pre-
vailing Federal funds rate) of the grants that the is-
suer would receive over a period not to exceed 20
years if the issuer’s annual grant amount over such
period were equal to 80 percent of the current grant
approval for the issuer. The amount of an advance
guaranteed under paragraph (2) shall be included in
the aggregate outstanding amount of notes and
loans for purposes of the limitation under this para-
graph.
‘‘(2) SECURITY.—The Secretary may use any
authority provided for guaranteed loans authorized
by this section to guarantee advances made under
section 10b(c) of the Federal Home Loan Bank Act,
but only if the unit of general local government for
the eligible public entity or designated public agency
to which the advance is made pledges any grants to
which it becomes eligible under this title as security
for repayment of the advance.’’.
(b) STAKEHOLDER PARTICIPATION.—Section 108 of
the Housing and Community Development Act of 1974
(42 U.S.C. 5308) is amended by adding after subsection
(s), as added by subsection (a) of this section, the follow-
ing new subsection:
‘‘(t) STAKEHOLDER PARTICIPATION.—
‘‘(1) REQUIREMENT.—For the purposes of the
development of activities to be funded under this
section, the community participation requirements of
section 104(a) shall be expanded to include partici-
pation of major stakeholders. Such stakeholders may
include, but not be limited to the chief executives of
the following entities:
‘‘(A) The board of education.
‘‘(B) The police and fire departments.
‘‘(C) Utility companies.
‘‘(D) Universities.
‘‘(E) Chambers of commerce.
‘‘(F) Labor unions.
‘‘(G) Transportation authorities.
‘‘(H) Health Facilities.
‘‘(I) Locally owned radio and television
stations.
‘‘(J) Libraries.
‘‘(K) Cultural institutions.
‘‘(L) Religious institutions.
‘‘(M) Sports franchises.
‘‘(N) Professional and social service asso-
ciations.
‘‘(2) DEFINITION.—For purposes of this sub-
section, the term ‘stakeholder’ means a public or pri-
vate organizational entity whose future well-being
depends upon the applicant’s continued social and
economic viability.’’.
SEC. 3. FEDERAL HOME LOAN BANK ADVANCES.
Section 10b of the Federal Home Loan Bank Act (12
U.S.C. 1430b) is amended by adding at the end the follow-
ing new subsection:
‘‘(c) ADVANCES TO UNITS OF LOCAL GOVERNMENT
FOR COMMUNITY DEVELOPMENT PURPOSES.—A Federal
Home Loan Bank may make advances to an eligible public
entity (as such term is defined in section 108(o) of the
Housing and Community Development Act of 1974) or a
public agency designated by an eligible public entity in the
same manner provided for advances to nonmember mort-
gagees under this section, except that advances under this
subsection shall not be subject to the requirements under
this section regarding security, but may be made only pur-
suant to a guarantee provided under section 108(s)(2) of
the Housing and Community Development Act of 1974.’’.
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