‘‘(D) award Initiative funds to eligible 
partnerships through an annual competitive 
process in accordance with paragraph (3); 
‘‘(E) contract with a national food access 
organization to assist in the review of applica-
tions from partnerships and to provide technical 
assistance to local food access organizations in 
the proposed partnerships; 
‘‘(F) award and disburse funds to partner-
ships or eligible local projects in a timely man-
ner; 
‘‘(G) create and meet performance bench-
marks and reporting guidelines, as approved by 
the Secretary, including for— 
‘‘(i) the amount of capital raised and 
leveraged from financial institutions, part-
nerships, and other resources; 
‘‘(ii) the geographic diversity of part-
nerships; and 
‘‘(iii) the proportion of projects fund-
ed by the partnership that are in severely 
distressed low-income communities; 
‘‘(H) develop program guidelines and oper-
ating procedures for the Initiative, including— 
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‘‘(i) 
maximum 
grant 
and 
loan 
amounts for projects; 
‘‘(ii) eligible uses of funds; 
‘‘(iii) prudent underwriting criteria; 
‘‘(iv) performance targets; 
‘‘(v) reporting guidelines; 
‘‘(vi) limits on administrative costs; 
and 
‘‘(vii) implementation milestones; 
‘‘(I) monitor the performance of partner-
ships; and 
‘‘(J) collect data, compile information, and 
conduct such research studies as the national 
fund manager determines to be relevant to the 
successful implementation of the Initiative, in-
cluding— 
‘‘(i) to assess national and local mar-
ket conditions; 
‘‘(ii) to determine barriers to market 
entry; and 
‘‘(iii) to identify opportunities for the 
development or retention of supermarkets 
and other fresh, healthy food retail enter-
prises in underserved communities. 
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‘‘(3) CRITERIA
FOR
AWARDING
NATIONAL 
FUNDS TO PARTNERSHIPS.— 
‘‘(A) IN
GENERAL.—The national fund 
manager shall award national funds to partner-
ships through a competitive process on an an-
nual basis. 
‘‘(B) FIRST
ROUND
PRIORITY.—In the 
first round of funding, the national fund man-
ager shall give priority to a limited number of 
existing partnerships that have demonstrable 
capacity to implement fresh food financing pro-
grams in underserved areas quickly, and for 
which there is demonstrable, significant need 
for improved access to healthy food. 
‘‘(C) ADDITIONAL
ROUNDS.—Additional 
rounds shall be designed to promote geographic 
diversity. 
‘‘(D) CRITERIA.—In awarding national 
funds to partnerships, the national fund man-
ager shall consider— 
‘‘(i) the amount of funds and other 
resources pledged by a partnership to 
match or leverage national funds; 
‘‘(ii) the degree of State, local, or trib-
al government support of the partnership 
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as evidenced by matching grant and loan 
funds or other types of support, such as al-
location of tax-exempt bonds, loan guaran-
tees, and coordination of resources from 
other State or local economic development 
programs; 
‘‘(iii) the capacity of the partnership 
to successfully develop and manage loan 
and grant programs; 
‘‘(iv) the lack of supermarkets and 
other fresh, healthy food retail enterprises 
in low- and moderate-income areas that 
would be served by the partnership; 
‘‘(v) the experience of the food access 
or community health organization of the 
partnership in outreach about access to 
healthy foods and local healthy food access 
issues; 
‘‘(vi) the degree of community engage-
ment and support in the development and 
retention of supermarkets and other fresh, 
healthy food retail enterprises; and 
‘‘(vii) the contribution of the program 
of the partnership to the overall geographic 
diversity of the Initiative. 
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‘‘(4) ADMINISTRATIVE COSTS.— 
‘‘(A) IN
GENERAL.—Not later than 45 
days after the date of receipt of an award, the 
national fund manager shall submit to the Sec-
retary for approval a 3-year program and oper-
ating budget and detailed work plan that shall 
include— 
‘‘(i) costs for research and evaluation, 
technical assistance, and training; and 
‘‘(ii) program and operating costs. 
‘‘(B) EARNED
REVENUES.—Earned reve-
nues from loan fees and interest may be ex-
pended on program and operating costs in ac-
cordance with the budget approved by the Sec-
retary. 
‘‘(C) BASIS
OF
REVIEW.—The Secretary 
shall base the review under subparagraph (A) 
on— 
‘‘(i) the likelihood of the plan and ex-
penditures to further the purposes of this 
section; and 
‘‘(ii) whether the administrative costs 
are reasonable, connected to the costs of 
operation, and reflect efficient operations 
by the national fund manager. 
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‘‘(f) PARTNERSHIPS.— 
‘‘(1) IN GENERAL.—Each partnership that re-
ceives assistance through the Initiative shall provide 
financial and technical assistance to eligible fresh, 
healthy food retail projects in underserved areas 
within the defined communities of the partnership. 
‘‘(2) ADMINISTRATION.—Each partnership shall 
designate a community development financial insti-
tution or other organization that is capable of ad-
ministering a loan and grant program— 
‘‘(A) to execute grant agreements with the 
national fund manager; and 
‘‘(B) to serve as the manager of local 
funds. 
‘‘(3) RESPONSIBILITIES OF PARTNERSHIPS.—A 
partnership shall— 
‘‘(A) raise other forms of financial assist-
ance to match the national funds received by 
the partnership; 
‘‘(B) provide marketing and outreach to 
communities, the supermarket industry, other 
fresh, healthy food retailers, State and local 
government officials, and civic and public inter-
est organizations— 
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‘‘(i) to solicit applications from under-
served areas from across the State or local-
ity to be served by the partnership; and 
‘‘(ii) to inform the communities and 
other persons about the availability of 
grants, loans, training, and technical as-
sistance; 
‘‘(C) review and underwrite projects to de-
termine whether— 
‘‘(i) a proposed project meets the cri-
teria for eligible projects under subsection 
(c)(3); and 
‘‘(ii) a proposed project meets the cri-
teria for priority projects under subsection 
(c)(4); 
‘‘(D) provide technical assistance services 
to eligible fresh, healthy food retail operators 
and developers; 
‘‘(E) track and report outcomes, includ-
ing— 
‘‘(i) the number of jobs created or re-
tained; 
‘‘(ii) the quantity of fresh, healthy 
food retail space created or retained; and 
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‘‘(iii) such other health and economic 
indicators as are required by the national 
fund manager; 
‘‘(F) monitor and audit funded projects to 
ensure compliance with the Initiative, the na-
tional fund manager, and partnership program 
requirements for a period of at least 3 years; 
‘‘(G) submit an annual report to the na-
tional fund manager that describes— 
‘‘(i) the activities of the partnership; 
‘‘(ii) the expenditure of local funds; 
and 
‘‘(iii) success in meeting performance 
targets and satisfying such other terms 
and conditions as are specified in the 
agreement between the partnership and the 
national fund manager; and 
‘‘(H) coordinate with the national fund 
manager for the smooth operation of the Initia-
tive. 
‘‘(4) ADMINISTRATIVE COSTS.— 
‘‘(A) IN GENERAL.—As a condition on the 
receipt of assistance under this section, each 
partnership shall submit to the national fund 
manager for approval a 3-year budget and plan 
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for all program and operating costs, includ-
ing— 
‘‘(i) costs for research and evaluation, 
technical assistance, and training; and 
‘‘(ii) administrative and operating 
costs. 
‘‘(B) EARNED
REVENUES.—Earned reve-
nues from loan fees and interest may be ex-
pended on program and operating costs in ac-
cordance with the budget approved by the na-
tional fund manager. 
‘‘(C) BASIS
OF
REVIEW.—The national 
fund manager shall base the review under sub-
paragraph (A) on the likelihood of the budget 
and plan to further the purposes of this section. 
‘‘(g) EVALUATION AND MONITORING.— 
‘‘(1) IN GENERAL.—Program evaluation and fi-
nancial audits shall occur at all levels of the Initia-
tive to ensure that— 
‘‘(A) national and local funds are used 
properly; and 
‘‘(B) the objectives of the Initiative are 
met. 
‘‘(2) PROGRAM
EVALUATION
AND
FINANCIAL 
AUDITS.— 
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‘‘(A) IN GENERAL.—The Secretary shall— 
‘‘(i) conduct periodic program evalua-
tions and financial audits of the national 
fund manager, partnerships, and projects 
funded by the Initiative; and 
‘‘(ii) share with the national fund 
manager the results of the evaluations and 
audits. 
‘‘(B) FUNDED PROJECTS.—The Secretary 
or the national fund manager shall evaluate 
partnerships to assess the health and economic 
impacts of projects funded by the Initiative. 
‘‘(C) OTHER IMPACTS.— 
‘‘(i) SECRETARY
OF
HEALTH
AND 
HUMAN
SERVICES.—The 
Secretary 
of 
Health and Human Services shall conduct 
research studies and evaluate the health 
impacts of the Initiative. 
‘‘(ii) COMMUNITY DEVELOPMENT FI-
NANCIAL
INSTITUTIONS.—Representatives 
of the Community Development Financial 
Institutions shall conduct research studies 
and evaluate the economic impacts of the 
Initiative. 
‘‘(D) PARTNERSHIPS.— 
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‘‘(i) IN GENERAL.—Each partnership 
shall— 
‘‘(I) conduct periodic administra-
tive and financial audits of projects 
funded by the Initiative; and 
‘‘(II) share with the national 
fund manager the results of the au-
dits. 
‘‘(ii) FAILURE OF PARTNERSHIP.—In 
a case in which a partnership fails, the na-
tional fund manager shall take over the 
portfolio of the failed partnership. 
‘‘(h) ADMINISTRATIVE PROVISIONS.— 
‘‘(1) IN GENERAL.—Not later than 180 days 
after the date of enactment of this section, the Sec-
retary shall promulgate regulations— 
‘‘(A) for the conduct of a rigorous per-
formance evaluation to determine the impact of 
the Initiative at the end of the initial 5-year pe-
riod, which the Secretary shall submit to Con-
gress; 
‘‘(B) to establish metrics for evaluating the 
effectiveness of the Initiative; and 
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‘‘(C) under which the Secretary shall as-
sess whether the Initiative should be extended 
at the end of the initial 5-year period. 
‘‘(2) 
TERMINATION
OF
CONTRACTS
FOR 
CAUSE.—The Secretary may promulgate regulations 
under which the Secretary may terminate contracts 
for cause if the Secretary determines that to be nec-
essary. 
‘‘(i) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated to the Secretary to carry 
out this section $125,000,000, to remain available until 
expended.’’. 
(b) CONFORMING AMENDMENT.—Section 296(b) of 
the Department of Agriculture Reorganization Act of 
1994 (7 U.S.C. 7014(b)) is amended— 
(1) in paragraph (6)(C), by striking ‘‘or’’ at the 
end; 
(2) in paragraph (7), by striking the period at 
the end and inserting ‘‘; or’’; and 
(3) by adding at the end the following: 
‘‘(8) the authority of the Secretary to establish 
in the Department the Healthy Food Financing Ini-
tiative in accordance with section 242.’’. 
Æ 
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