able, in whole or in part, from dedicated revenue 
sources that also secure the project obligations. 
(4) PUBLIC SPONSORSHIP OF PRIVATE ENTI-
TIES.—In the case of a project carried out by an en-
tity that is not a State or local government or an 
agency or instrumentality of a State or local govern-
ment, the project shall be publicly sponsored. 
(c) SELECTION CRITERIA.— 
(1) ESTABLISHMENT.—The Secretary shall es-
tablish criteria for the selection of projects that meet 
the eligibility requirements of subsection (b). Such 
criteria shall be designed to ensure a diversity of 
project types and geographical locations, and shall 
include the following: 
(A) The extent to which the project is 
statewide or regionally significant, with respect 
to the generation of increased recreational op-
portunities. 
(B) The extent to which assistance under 
this title would foster innovative public-private 
partnerships and attract private debt or equity 
investment. 
(C) The likelihood that assistance under 
this title would enable the project to proceed at 
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an earlier date than the project would otherwise 
be able to proceed. 
(D) The extent to which the project uses 
new or innovative approaches. 
(E) The amount of budget authority re-
quired to fund the Federal credit instrument 
for the project made available under this title. 
(F) The extent to which the project helps 
maintain or protect the environment. 
(G) The extent to which assistance under 
this section reduces the contribution of Federal 
grant assistance to the project. 
(2) SPECIAL
RULE
FOR
CERTAIN
COMBINED 
PROJECTS.—For a project described in section 
206(b), the Secretary shall only consider the criteria 
described in subparagraphs (B) through (G) of para-
graph (1). 
(d) FEDERAL REQUIREMENTS.—Nothing in this sec-
tion may be construed to alter, affect, or annul the appli-
cability of any other Federal laws or regulations. 
SEC. 208. SECURED LOANS AND LOAN GUARANTEES. 
(a) AUTHORITY.—The Secretary may enter into 
agreements with eligible entities to make, and may make, 
secured loans to such entities as provided under this sec-
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tion for eligible projects selected under section 207 for fi-
nancial assistance under this section. 
(b) USE.— 
(1) IN GENERAL.—The proceeds of a secured 
loan under this section shall be used only— 
(A) to finance eligible project costs of an 
eligible project selected under section 207; 
(B) subject to paragraph (2) of this sub-
section, to refinance interim construction fi-
nancing of eligible project costs of an eligible 
project selected under section 207; or 
(C) to refinance long-term project obliga-
tions or Federal credit instruments, if such refi-
nancing provides additional funding capacity for 
the completion, enhancement, or expansion of a 
project that— 
(i) is selected under section 207; or 
(ii) was originally financed, in whole 
or in part, with amounts provided other 
than under this title, if the project other-
wise meets the requirements of section 
207. 
(2) LIMITATION ON REFINANCING OF INTERIM 
CONSTRUCTION FINANCING.—The proceeds of a se-
cured loan under this section made for an eligible 
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project may not be used for the purpose under para-
graph (1)(B) after the expiration of the 12-month 
period beginning upon the date of substantial com-
pletion of the project. 
(c) RISK ASSESSMENT.—Before entering into an 
agreement under this subsection for a secured loan, the 
Secretary, in consultation with the Director of the Office 
of Management and Budget and each rating agency pro-
viding a preliminary rating opinion letter under section 
207(b)(1)(B), shall determine an appropriate capital re-
serve subsidy amount for the secured loan, taking into ac-
count each such preliminary rating opinion letter. 
(d) INVESTMENT-GRADE RATING REQUIREMENT FOR 
SENIOR OBLIGATIONS.—The execution of a secured loan 
under this section shall be contingent on receipt by the 
senior obligations of the project of an investment-grade 
rating. 
(e) TERMS AND LIMITATIONS.— 
(1) MAXIMUM AMOUNT.—The amount of a se-
cured loan under this section shall not exceed the 
lesser of— 
(A) an amount equal to 49 percent of the 
reasonably anticipated eligible project costs; or 
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(B) if the secured loan does not receive an 
investment-grade rating, the amount of the sen-
ior project obligations of the project. 
(2) PAYMENT.—A secured loan under this sec-
tion— 
(A) shall be payable, in whole or in part, 
from State or local taxes, user fees, or other 
dedicated revenue sources that also secure the 
senior project obligations of the relevant 
project; 
(B) shall include a rate covenant, coverage 
requirement, or similar security feature sup-
porting the project obligations; and 
(C) may have a lien on revenues described 
in subparagraph (A), subject to any lien secur-
ing project obligations. 
(3) INTEREST RATE.—The interest rate on a 
secured loan under this section shall be— 
(A) not less than the yield on United 
States Treasury securities of a similar maturity 
to the maturity of the secured loan on the date 
of execution of the loan agreement; and 
(B) fixed for the term of the loan. 
(4) MATURITY DATE.— 
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(A) IN GENERAL.—Except as provided in 
subparagraph (B), the final maturity date of a 
secured loan under this section for an eligible 
project shall be not later than 35 years after 
the date of substantial completion of the 
project. 
(B) SPECIAL
RULE
FOR
STATE
INFRA-
STRUCTURE
FINANCING
AUTHORITIES.—The 
final maturity date of a secured loan under this 
section made to a State infrastructure financing 
authority shall be not later than 35 years after 
the date on which loan amounts are first dis-
bursed. 
(5) 
NONSUBORDINATION.—A 
secured 
loan 
under this section shall not be subordinated to the 
claims of any holder of project obligations in the 
event of bankruptcy, insolvency, or liquidation of the 
obligor. 
(6) FEES.—The Secretary may establish fees in 
connection with a secured loan under this section, in 
amounts sufficient to cover all or a portion of the 
costs to the Federal Government of secured loans 
under this section. 
(7) USE OF PROCEEDS FOR PAYMENT OF NON- 
FEDERAL SHARE.—The proceeds of a secured loan 
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under this section may be used to pay any non-Fed-
eral share required with respect to other funding ob-
tained for project costs, but only if such secured 
loan is repaid using non-Federal funds. 
(8) MAXIMUM
FEDERAL
INVOLVEMENT.—For 
any project for which assistance is provided under 
this title, the total amount of Federal assistance 
from all sources, including this title, shall not exceed 
80 percent of the total project cost. 
(9) OTHERS.—A secured loan provided for a 
project under this section shall be subject to such 
other terms and conditions, and contain such cov-
enants, representations, warranties, and require-
ments (including requirements for audits), as the 
Secretary determines to be appropriate. 
(f) REPAYMENT.— 
(1) SCHEDULE.—The Secretary shall establish 
a repayment schedule for each secured loan provided 
under this section, based on the projected cash flow 
from project revenues and other repayment sources. 
(2) COMMENCEMENT.— 
(A) IN GENERAL.—Except as provided in 
subparagraph (B), scheduled loan repayments 
of principal or interest on a secured loan under 
this section for an eligible project shall com-
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mence not later than 5 years after the date of 
substantial completion of the project. 
(B) SPECIAL
RULE
FOR
STATE
INFRA-
STRUCTURE FINANCING AUTHORITIES.—Sched-
uled loan repayments of principal or interest on 
a secured loan made under this section to a 
State infrastructure financing authority shall 
commence not later than 5 years after the date 
on which amounts are first disbursed. 
(3) DEFERRED PAYMENTS.— 
(A) AUTHORIZATION.—If, at any time 
after the date of substantial completion of a 
project for which a secured loan is provided 
under this section, the project is unable to gen-
erate sufficient revenues to pay the scheduled 
loan repayments of principal and interest on the 
loan, the Secretary may, subject to subpara-
graph (C), allow the obligor to add unpaid prin-
cipal and interest to the outstanding balance of 
the secured loan. 
(B) INTEREST.—Any payment deferred 
pursuant to subparagraph (A) shall— 
(i) continue to accrue interest in ac-
cordance with subsection (e)(3) until fully 
repaid; and 
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(ii) be amortized over the remaining 
term of the secured loan. 
(C) CRITERIA.—Any payment deferral pur-
suant to subparagraph (A) shall be contingent 
on the project meeting— 
(i) standards for reasonable assurance 
of repayment, as the Secretary shall estab-
lish; and 
(ii) such other criteria as the Sec-
retary may establish. 
(4) PREPAYMENT.— 
(A) USE OF EXCESS REVENUES.—Any ex-
cess revenues from an eligible project that re-
main after satisfying scheduled debt service re-
quirements on the project obligations and se-
cured loan and all deposit requirements under 
the terms of any trust agreement, bond resolu-
tion, or similar agreement securing project obli-
gations may be applied annually to prepay a se-
cured loan under this section without penalty. 
(B) 
USE
OF
PROCEEDS
OF
REFI-
NANCING.—A secured loan under this section 
may be prepaid at any time, without penalty, 
from the proceeds of refinancing from non-Fed-
eral funding sources. 
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(g) SALE OF SECURED LOANS.— 
(1) IN GENERAL.—Subject to paragraph (2), if 
the Secretary determines that the sale or reoffering 
of a secured loan under this section for an eligible 
project can be made on favorable terms, the Sec-
retary may sell the loan to another entity or reoffer 
the loan into the capital markets as soon as prac-
ticable after the date of substantial completion of a 
project and after providing notice to the obligor. 
(2) CONSENT OF OBLIGOR.—In making a sale 
or reoffering under paragraph (1), the Secretary 
may not change the original terms and conditions of 
the secured loan without the written consent of the 
obligor. 
(h) LOAN GUARANTEES.— 
(1) IN GENERAL.—In lieu of making a secured 
loan under this section for an eligible project, the 
Secretary may provide a loan guarantee for a project 
obligation for the project funded by a qualified lend-
er (as such term is defined in section 211), but only 
if the Secretary determines that the cost as such 
term is defined in section 502 of the Federal Credit 
Reform Act of 1990 (2 U.S.C. 661a) of the loan 
guarantee is substantially the same as or less than 
that of making a secured loan. 
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(2) TERMS.—The terms of a loan guarantee 
provided under this subsection shall be consistent 
with the terms established in this section for a se-
cured loan, except that the interest rate on the guar-
anteed loan and any prepayment features shall be 
negotiated between the obligor and the qualified 
lender, subject to the consent of the Secretary. 
SEC. 209. PROGRAM ADMINISTRATION. 
(a) REQUIREMENT.—The Secretary shall establish a 
uniform system to service the Federal credit instruments 
made available under this title. 
(b) FEES.— 
(1) IN GENERAL.—The Secretary may collect 
and spend fees, to the extent provided in advance in 
appropriations Acts, in amounts sufficient to cover— 
(A) the costs of services obtained pursuant 
to subsection (d); and 
(B) all or a portion of the costs to the 
Federal Government of servicing the Federal 
credit instruments provided under this title. 
(c) SERVICER.— 
(1) IN GENERAL.—The Secretary may appoint 
a financial entity to assist the Secretary in servicing 
Federal credit instruments provided under this title. 
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(2) DUTIES.—A servicer appointed under para-
graph (1) shall act as the agent for the Secretary. 
(3) FEE.—A servicer appointed under para-
graph (1) shall receive a servicing fee, subject to ap-
proval by the Secretary. 
(d) ASSISTANCE FROM EXPERTS.—The Secretary 
may retain the services, including counsel, of organizations 
and entities with expertise in the field of municipal and 
project finance to assist in the underwriting and servicing 
of Federal credit instruments provided under this title. 
SEC. 210. STATE AND LOCAL PERMITS. 
The provision of financial assistance under section 
208 for an eligible project shall not— 
(1) relieve any recipient of such assistance of 
any obligation to obtain any required State or local 
permit or approval with respect to the project; 
(2) limit the right of any unit of State or local 
government to approve or regulate any rate of re-
turn on private equity invested in the project; or 
(3) otherwise supersede any State or local law 
or regulation applicable to the construction or oper-
ation of the project. 
SEC. 211. DEFINITIONS. 
In this title, the following definitions shall apply: 
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tutional buyer, as such term is defined in sec-
tion 230.144A(a) of title 17, Code of Federal 
Regulations (or any successor regulation), 
known as Rule 144A(a) of the Securities and 
Exchange Commission and issued under the Se-
curities Act of 1933 (15 U.S.C. 77a et seq.). 
(B) INCLUSIONS.—Such term includes— 
(i) a qualified retirement plan (as de-
fined in section 4974(c) of the Internal 
Revenue Code of 1986) that is a qualified 
institutional buyer; and 
(ii) a governmental plan (as defined in 
section 414(d) of the Internal Revenue 
Code of 1986) that is a qualified institu-
tional buyer. 
(11) RATING AGENCY.—The term ‘‘rating agen-
cy’’ means a credit rating agency registered with the 
Securities and Exchange Commission as a nationally 
recognized statistical rating organization (as defined 
in section 3(a) of the Securities Exchange Act of 
1934 (15 U.S.C. 78c(a))). 
(12) 
SECRETARY.—The 
term 
‘‘Secretary’’ 
means the Secretary of Housing and Urban Develop-
ment. 
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(13) SECURED
LOAN.—The term ‘‘secured 
loan’’ means a direct loan or other debt obligation 
issued by an obligor and funded by the Secretary 
pursuant to section 208. 
(14) STATE.—The term ‘‘State’’ means a State, 
the District of Columbia, the Commonwealth of 
Puerto Rico, and any other territory or possession of 
the United States. 
(15) STATE INFRASTRUCTURE FINANCING AU-
THORITY.—The term ‘‘State infrastructure financing 
authority’’ means the State entity established or des-
ignated by the Governor of a State to receive assist-
ance under this title. 
(16) SUBSIDY
AMOUNT.—The term ‘‘subsidy 
amount’’ means, with respect to a Federal credit in-
strument, the amount of budget authority sufficient 
to cover the estimated long-term cost to the Federal 
Government of the Federal credit instrument, as cal-
culated on a net present value basis, excluding ad-
ministrative costs and any incidental effects on gov-
ernmental receipts or outlays in accordance with the 
Federal Credit Reform Act of 1990 (2 U.S.C. 661 
et seq.). 
(17) SUBSTANTIAL
COMPLETION.—The term 
‘‘substantial completion’’ means, with respect to a 
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project, the earliest date on which a project is con-
sidered capable of performing the functions for 
which the project is designed. 
SEC. 212. REGULATIONS. 
The Secretary may issue such regulations as the Sec-
retary considers appropriate to carry out this title. 
SEC. 213. FUNDING. 
From amounts made available for Federal purposes 
under section 5 of the Land and Water Conservation Fund 
Act of 1965 (16 U.S.C. 460l–7), there is authorized to 
be appropriated to the Secretary to carry out this title 
$50,000,000 for each of fiscal years 2026 through 2030, 
to remain available until expended, of which in each such 
fiscal year— 
(1) the Secretary may use for the administra-
tion of this title, including program administration 
under section 209, not more than $2,200,000; and 
(2) the remainder shall be available for costs 
(as such term is defined in section 502 of the Fed-
eral Credit Reform Act of 1990 (2 U.S.C. 661a)) of 
loans and loan guarantees under section 208. 
SEC. 214. REPORT TO CONGRESS. 
Not later than 2 years after the date of enactment 
of this Act, and every 2 years thereafter, the Secretary 
shall submit to the Congress a report summarizing the fi-
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nancial performance of the projects that are receiving, or 
have received, assistance under this title, including a rec-
ommendation as to whether the objectives of this title are 
being met. 
Æ 
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