(3) Municipal staff necessary to carry out 
projects for such facilities. 
(4) Updates to comprehensive plans or housing 
plans of the community. 
(d) APPLICATION.—To be eligible to receive a loan 
under this section, an eligible community shall submit to 
the Secretary an application at such time and in such 
manner as the Secretary shall require that contains, in 
addition to any other information the Secretary may re-
quire, the following information: 
(1) The identification of projects for which loan 
funds will be used. 
(2) A certification that loan funds will be used 
only for the purposes described in subsection (c). 
(3) Documentation demonstrating the legal ca-
pacity and financial ability of the community to 
repay the loan. Such documentation shall include— 
(A) evidence that the community has a 
dedicated source of revenue from any energy 
tax revenue it receives from the State; 
(B) an estimate of any energy tax revenue 
the community expects to receive during the 10- 
year period beginning on the first day of the 
first fiscal year that begins after the date funds 
from the loan are made available to the eligible 
VerDate Mar 15 2010 
00:22 Oct 08, 2010
Jkt 099200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H6246.IH
H6246
tjames on DSKG8SOYB1PROD with BILLS
community from the State office, if any, that 
distributes energy tax revenue to energy-pro-
ducing communities; and 
(C) documentation of any non-Federal sup-
plemental funds to be made available for essen-
tial community facilities to be funded with loan 
amounts received under this section. 
(e) PRIORITY TREATMENT.—In approving applica-
tions for loans under this section, the Secretary shall give 
priority to any applicant acting on behalf of an eligible 
community, that— 
(1) has submitted to the Secretary completed 
plans or studies that identify specific infrastructure 
or capacity needs that will be addressed by projects 
funded with the loan amounts received under this 
section; or 
(2) demonstrates that projects funded with loan 
amounts received under this section will be carried 
out with regional cooperation with adjacent jurisdic-
tions. 
(f) LOAN TERMS.— 
(1) AMOUNT.—The principal amount of any 
loan under this section may not exceed the lesser 
of— 
(A) $20,000,000; or 
VerDate Mar 15 2010 
00:22 Oct 08, 2010
Jkt 099200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H6246.IH
H6246
tjames on DSKG8SOYB1PROD with BILLS
(B) 80 percent of the energy tax revenue 
that the applicant expects to receive during the 
period described in subsection (d)(2)(B). 
(2) INTEREST RATE.—Interest rates on loans 
under this section shall be subject to the provisions 
of section 307(a)(4) of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1927(a)(4)) appli-
cable to loans under sections 306(a)(1) and 310B of 
such Act (7 U.S.C. 1926(a) and 1932). 
(3) TERM TO MATURITY.—The period for re-
payment of loans under this section shall not be 
longer than 15 years. 
(g) FORGIVENESS.—If an applicant is unable to 
repay the full balance of the loan it receives under this 
section because circumstances beyond the control of the 
applicant prevented the applicant from collecting the 
amount of expected energy tax revenue specified in the 
application submitted under subsection (c), the Secretary 
may forgive an amount that equals not more than 50 per-
cent of the remaining balance of such loan. 
(h) REPORT.—Each year, until the loan an eligible 
community receives under this section is repaid, such com-
munity shall submit to the Secretary of Agriculture a re-
port. Each report shall contain a description of the 
VerDate Mar 15 2010 
02:27 Oct 09, 2010
Jkt 099200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H6246.IH
H6246
tjames on DSKG8SOYB1PROD with BILLS
progress made on each project or investment financed with 
funds received from a loan under this section. 
(i) APPROPRIATIONS.—For costs (as such term is de-
fined under section 502 of the Federal Credit Reform Act 
of 1990 (2 U.S.C. 661a)) of loans under this section, there 
are authorized to be appropriated an aggregate of 
$75,000,000 for fiscal year 2011 and 2012. 
(j) MAXIMUM AMOUNT OF COMMITMENTS.—The Sec-
retary may not make loans under this section or enter into 
commitments to make such loans, the total amount of 
which, exceeds $400,000,000. 
(k) SUNSET.—The Secretary may not make or enter 
into a commitment to make a loan under this section after 
September 30, 2012. 
SEC. 3. WAIVER OF INCOME MAXIMUMS FOR SELECTED 
USDA RURAL DEVELOPMENT PROGRAMS. 
(a) SECTION 502 LOANS.—For each of fiscal years 
2011 through 2016, with respect to an applicant for a di-
rect loan or a guaranteed loan under section 502 of the 
Housing Act of 1949 (42 U.S.C. 1472), who resides in 
an eligible community described in section 2(b)— 
(1) the Secretary shall waive any income limita-
tions related to obtaining a loan under section 502 
of such Act (42 U.S.C. 1472); and 
VerDate Mar 15 2010 
02:27 Oct 09, 2010
Jkt 099200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H6246.IH
H6246
tjames on DSKG8SOYB1PROD with BILLS
(2) the requirement related to eligibility of bor-
rowers under section 502(h)(3) of such Act (42 
U.S.C. 1472(h)(3)) shall not apply. 
(b) SITE LOANS; MULTI-FAMILY HOUSING LOANS.— 
For each of fiscal years 2011 through 2016, the following 
shall apply: 
(1) SECTION 524.—Any organization or tribe re-
ceiving a loan under section 524 of the Housing Act 
of 1949 (42 U.S.C. 1490d) shall waive any income 
limitations related to the occupancy of any housing 
built on any building site that is located in an eligi-
ble community described in section 2(b) of this Act 
and that is financed by such loan. 
(2) SECTION
538.—Any organization, State 
agency, subdivision thereof, Indian tribe, or private 
entity that receives a loan under section 538 of such 
Act (42 U.S.C. 1490p–2) shall waive any income 
limitations related to the occupancy of any housing 
that is located in an eligible community described in 
section 2(b) of this Act and for which the develop-
ment costs were funded by such a loan. 
Æ 
VerDate Mar 15 2010 
00:22 Oct 08, 2010
Jkt 099200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6301
E:\BILLS\H6246.IH
H6246
tjames on DSKG8SOYB1PROD with BILLS