‘‘(A) IN GENERAL.—The aggregate prin-
cipal amount of mortgages for which the Sec-
retary enters into commitments to insure under
this section or section 223(h) on or before the
date described in paragraph (1) may not exceed
$2,000,000,000.
‘‘(B) REPORT.—If, on the date described
in paragraph (1), the aggregate insurance au-
thority provided under this paragraph has not
been fully used, the Secretary of the Treasury
shall submit to Congress a report evaluating the
need for continued mortgage insurance under
this section.
‘‘(g) NONDISCRIMINATION REQUIREMENT.—
‘‘(1) IN GENERAL.—A child care facility receiv-
ing assistance under this title may not discriminate
on the basis of race, color, or national origin (to the
extent provided in title VI of the Civil Rights Act of
1964 (42 U.S.C. 2000d et seq.)), religion (subject to
subparagraph (B)), national origin, sex (to the ex-
tent provided in title IX of the Education Amend-
ments of 1972 (20 U.S.C. 1681 et seq.)), or dis-
ability (to the extent provided in section 504 of the
Rehabilitation Act of 1973 (29 U.S.C. 794)), under
any program or activity receiving Federal financial
assistance under this title.
‘‘(2) FACILITIES
OF
RELIGIOUS
ORGANIZA-
TIONS.—The prohibition with respect to religion
under paragraph (1) shall not apply to a child care
facility that is controlled by, or that is closely identi-
fied with, the tenets of a particular religious organi-
zation, if the application of this paragraph would not
be consistent with the religious tenets of such orga-
nization.
‘‘(h) LIABILITY INSURANCE.—A child care provider
operating a child care facility assisted under this section
or section 223(h) shall obtain and maintain liability insur-
ance in such amounts and subject to such requirements
as the Secretary considers to be appropriate.
‘‘(i) SMALL PURPOSE LOANS.—
‘‘(1) IN GENERAL.—To the extent that amounts
are made available pursuant to subsection (l), the
Secretary shall make loans, directly or indirectly, to
providers of child care facilities for reconstruction or
renovation of such facilities, in accordance with this
subsection.
‘‘(2) REQUIREMENTS.—A loan under this
subsection—
‘‘(A) may be made only for a child care fa-
cility that is financially and operationally viable,
as determined under standards established by
the Secretary;
‘‘(B) may not have a term to maturity ex-
ceeding 7 years;
‘‘(C) shall bear interest at a rate estab-
lished by the Secretary; and
‘‘(D) shall be subject to such other terms
and conditions as the Secretary may establish
by regulation.
‘‘(3) AGGREGATE LOAN AMOUNT.—The aggre-
gate amount of loans under this subsection to a sin-
gle provider may not exceed $30,000.
‘‘(j) NOTIFICATION.—The Secretary shall take such
actions as may be necessary to publicize the availability
of the programs for mortgage insurance under this section
and section 223(h), and the loan program under sub-
section (i) of this section, in a manner that ensures that
information concerning such programs will be available to
child care providers throughout the United States.
‘‘(k) REGULATIONS.—The Secretary shall—
‘‘(1) issue any regulations necessary to carry
out this section; and
‘‘(2) in carrying out paragraph (1), consult with
the Secretary of Health and Human Services with
respect to any aspects of the regulations regarding
child care facilities.
‘‘(l) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated to carry out this section
$30,000,000 for fiscal year 2002, to remain available until
expended, of which not more than 10 percent may be used
for loans under subsection (i).’’.
SEC. 4. INSURANCE FOR MORTGAGES FOR ACQUISITION OR
REFINANCING DEBT OF EXISTING CHILD
CARE FACILITIES.
(a) IN GENERAL.—Section 223 of the National
Housing Act (12 U.S.C. 1715n) is amended by adding at
the end the following:
‘‘(h) MORTGAGE INSURANCE FOR PURCHASE OR RE-
FINANCING OF EXISTING CHILD CARE FACILITIES.—
‘‘(1) DEFINITIONS.—In this subsection, the
terms that are defined in section 257(a) have the
same meanings as in that section.
‘‘(2) AUTHORITY.—Notwithstanding any other
provision of this Act, the Secretary may insure
under any section of this title a mortgage executed
in connection with—
‘‘(A) the purchase or refinancing of an ex-
isting child care facility;
‘‘(B) the purchase of a structure to serve
as a child care facility; or
‘‘(C) the refinancing of existing debt of an
existing child care facility.
‘‘(3) PURCHASE OF EXISTING FACILITIES AND
STRUCTURES.—In the case of the purchase under
this subsection of an existing child care facility or
purchase of an existing structure to serve as such a
facility, the Secretary shall prescribe any terms and
conditions that the Secretary considers necessary to
ensure that—
‘‘(A) the facility or structure purchased
continues to be used as a child care facility; and
‘‘(B) the facility receives a certification of
compliance under section 258(c).
‘‘(4) REFINANCING OF EXISTING FACILITIES.—
In the case of refinancing of an existing child care
facility, the Secretary shall prescribe any terms and
conditions that the Secretary considers necessary to
ensure that—
‘‘(A) the refinancing is used to lower the
monthly debt service costs (taking into account
any fees or charges connected with such refi-
nancing) of the existing facility;
‘‘(B) the proceeds of any refinancing will
be employed only to retire the existing indebted-
ness and pay the necessary cost of refinancing
on the existing facility;
‘‘(C) the existing facility is economically
viable; and
‘‘(D) the facility receives a certification of
compliance under section 258(c).
‘‘(5) LIMITATION ON INSURANCE AUTHORITY.—
The authority of the Secretary to enter into commit-
ments to insure mortgages under this subsection is
subject to section 257(f).’’.
SEC. 5. STUDY OF AVAILABILITY OF SECONDARY MARKETS
FOR MORTGAGES ON CHILD CARE FACILI-
TIES.
(a) STUDY.—The Secretary of the Treasury shall
conduct a study of the secondary mortgage markets to
determine—
(1) whether such a market exists for purchase
of mortgages eligible for insurance under sections
223(h) and 257 of the National Housing Act (as
added by this Act);
(2) whether such a market would affect the
availability of credit available for development of
child care facilities or would lower development costs
of such facilities; and
(3) the extent to which such a market or other
activities to provide credit enhancement for loans for
child care facilities is needed to meet the demand for
such facilities.
(b) REPORT.—Not later than 2 years after the date
of enactment of this Act, the Secretary of the Treasury
shall submit to Congress a report regarding the results
of the study conducted under this section.
SEC. 6. TECHNICAL AND FINANCIAL ASSISTANCE GRANTS.
(a) DEFINITIONS.—In this section:
(1) CHILD CARE FACILITY.—The term ‘‘child
care facility’’ has the meaning given that term in
section 257(a) of the National Housing Act, as
added by section 3.
(2) ELIGIBLE INTERMEDIARY.—The term ‘‘eli-
gible intermediary’’ means a private, nonprofit inter-
mediary organization that has demonstrated experi-
ence in—
(A) financing the construction and renova-
tion of physical facilities;
(B) providing technical and financial as-
sistance to child care providers or other similar
entities;
(C) working with small businesses; and
(D) securing private sources for capital fi-
nancing; and
(3) ELIGIBLE RECIPIENT.—The term ‘‘eligible
recipient’’ means any—
(A) existing or start-up center-based or
home-based child care provider; and
(B) organization in the process of estab-
lishing a center-based or home-based child care
program or otherwise seeking to provide child
care services.
(4) EQUIPMENT.—The term ‘‘equipment’’ has
the meaning given that term in section 257(a) of the
National Housing Act, as added by section 3.
(b) GRANT AUTHORITY.—The Secretary of Housing
and Urban Development, in consultation with the Sec-
retary of Health and Human Services, may award grants
on a competitive basis in accordance with this section to
eligible intermediaries for use in accordance with sub-
sections (e) and (f).
(c) APPLICATIONS.—To be eligible to receive a grant
under this section an eligible intermediary shall submit to
the Secretary an application, in such form and containing
such information as the Secretary may require.
(d) PRIORITY.—In awarding grants under this sec-
tion the Secretary shall give a priority to applicants under
subsection (c) that serve low-income or rural areas.
(e) USE OF FUNDS.—
(1) REVOLVING
LOAN
FUND.—Each eligible
intermediary that receives a grant under this section
shall deposit the grant amount into a child care re-
volving loan fund established by the eligible inter-
mediary.
(2) PAYMENTS FROM FUND.—Subject to sub-
section (f), from amounts deposited into the revolv-
ing loan fund under paragraph (1), each eligible
intermediary shall provide technical and financial as-
sistance (in the form of loans, grants, investments,
guarantees, interest subsidies, and other appropriate
forms of assistance) to eligible recipients for the ac-
quisition or improvement of child care facilities or
equipment.
(3) LOAN REPAYMENTS AND INVESTMENT PRO-
CEEDS.—Any amount received by an eligible inter-
mediary from an eligible recipient in the form of a
loan repayment or investment proceeds shall be de-
posited into the child care revolving fund of the eligi-
ble intermediary for redistribution to other eligible
recipients in accordance with this section.
(f) ALLOCATION OF FUNDS.—Of the amounts dis-
tributed from the revolving loan fund of an eligible inter-
mediary under subsection (e)(2) in each fiscal year—
(1) not less than 50 percent shall be used for
the renovation or construction of child care facilities
or the acquisition of equipment by eligible recipients,
except that the amount made available to any eligi-
ble recipient under this paragraph may not exceed
40 percent of the total costs incurred by the eligible
recipient in connection with such renovation, con-
struction, or acquisition; and
(2) the amount remaining after distribution
under paragraph (1), shall be used to provide direct
assistance to eligible recipients in obtaining public or
private financing for the renovation or construction
of child care facilities and the acquisition of equip-
ment, including developing and implementing financ-
ing resources, options, and plans for those recipi-
ents.
(g) DAVIS-BACON ACT.—The Act of March 3, 1931
(popularly known as the Davis-Bacon Act) shall apply to
actions taken under this Act.
(h) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated to carry out this section
$10,000,000 for each of fiscal years 2002 through 2006.
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