Health and Human Services, and the Commu-
nity Development Financial Institutions, that 
describes the impacts of the Initiative, including 
tracking health and economic development indi-
cators at the local, State, and national levels to 
determine the impacts of individual projects 
and the collective impact in local areas and 
statewide of funded projects and the Initiative 
overall. 
‘‘(2) NATIONAL
FUND
MANAGER.—The Sec-
retary shall— 
‘‘(A) select the national fund manager 
through a competitive process from among com-
munity development financial institutions that 
have a proven and recent track record of suc-
cess and effectiveness in— 
‘‘(i) attracting private capital; 
‘‘(ii) developing and managing pro-
grams that provide grants and loans to 
support supermarkets and other fresh, 
healthy food retail business enterprises in 
low- and moderate-income communities, in-
cluding the development of grocery stores, 
farmers markets, and other fresh, healthy 
food retail models; 
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‘‘(iii) making and servicing loans that 
are similar to loans proposed in the Initia-
tive or having a record of otherwise suc-
cessfully investing in fresh, healthy food 
retail development projects; 
‘‘(iv) effectively managing multiple 
contracts and subcontractors; 
‘‘(v) effectively managing large capital 
pools, of at least $100,000,000; and 
‘‘(vi) providing or contracting for the 
provision of technical assistance; and 
‘‘(B) administer the Initiative by approving 
the disbursement of funds to the national fund 
manager in a manner that facilitates the imple-
mentation of the overall Initiative. 
‘‘(3) COORDINATION.— 
‘‘(A) IN
GENERAL.—Not later than 45 
days after the date of receipt of an award, the 
national fund manager shall develop, with guid-
ance from and in consultation with the Sec-
retary, and submit to the Secretary, a detailed 
work plan. 
‘‘(B) APPROVAL
REQUIRED.—The Sec-
retary shall review and approve the work plan, 
program budget, and administrative costs under 
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subsection (e)(4)(C) prior to entering into an 
agreement with the national fund manager to 
administer the Initiative. 
‘‘(4) PERFORMANCE TARGETS.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
conduct financial audits of, and establish per-
formance targets for, the national fund man-
ager, which shall include, at a minimum, the re-
quirements described in this paragraph. 
‘‘(B) GEOGRAPHIC SPREAD.—Partnerships 
funded by the Initiative shall be geographically 
diverse and representative of the underserved 
areas across the United States. 
‘‘(C) FOCUS
ON
LOW-INCOME
COMMU-
NITIES.—A substantial portion of the projects 
funded by partnerships shall serve very low- 
and low-income communities, as defined by the 
Bureau of the Census of the Department of 
Commerce. 
‘‘(D) FINANCIAL EFFECTIVENESS OF THE 
NATIONAL FUND MANAGER.—The national fund 
manager and any local financial institution in-
volved in a partnership shall demonstrate on- 
going capacity and timeliness in raising private 
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capital and disbursing funds as required under 
the Initiative. 
‘‘(E) TECHNICAL ASSISTANCE EFFECTIVE-
NESS OF THE NATIONAL FUND MANAGER.—The 
provision of technical assistance by the national 
fund manager shall be evaluated based on— 
‘‘(i) the responsiveness of the national 
fund manager to requests for assistance; 
and 
‘‘(ii) the ability of the national fund 
manager to craft programs that develop 
needed new capacities in partnerships. 
‘‘(F) IMPACT.—Performance targets shall 
address the allocation of funds by the national 
fund manager to partnerships and the tracking 
and reporting of the impacts of the funds in im-
proving access to fresh, healthy foods and in 
achieving other related impacts. 
‘‘(e) DUTIES OF THE NATIONAL FUND MANAGER.— 
‘‘(1) ALLOCATION OF FUNDS.— 
‘‘(A) IN
GENERAL.—The national fund 
manager shall— 
‘‘(i) allocate at least 70 percent of any 
Federal appropriation made to carry out 
this section to partnerships that are se-
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lected based on the criteria described in 
paragraph (3); and 
‘‘(ii) retain not more than 30 percent 
of any Federal appropriation made to 
carry out this section to undertake financ-
ing activities described in subparagraph 
(C), including a reasonable amount for ad-
ministrative costs (not to exceed 5 percent) 
approved by the Secretary in accordance 
with paragraph (4)(C). 
‘‘(B) USE OF THE NATIONAL FUNDS BY 
PARTNERSHIP PROGRAMS.— 
‘‘(i) IN GENERAL.—As a condition on 
the receipt of funds, each partnership shall 
use— 
‘‘(I) the national funds received 
from the national fund manager under 
subparagraph (A)(i) to create 1 or 
more revolving loan programs or other 
revolving pools of capital or other 
products to facilitate financing of local 
projects as determined by the agree-
ment between the partnership and the 
national fund manager; and 
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‘‘(II) any remaining funds for 
grants, or, as approved, for innovative 
financing mechanisms. 
‘‘(ii) LIMITATIONS.— 
‘‘(I) IN GENERAL.—Use of funds 
for administrative costs and other 
purposes shall be— 
‘‘(aa) limited in accordance 
with the terms of the agreement 
negotiated between the national 
fund manager and partnerships; 
‘‘(bb) based on whether ad-
ministrative costs are reasonable, 
connected to the costs of oper-
ation, and reflect efficient oper-
ations by the partnership; and 
‘‘(cc) determined using cri-
teria including geographic cov-
erage, program duration, and 
total funding amount. 
‘‘(II) GOAL.—The goal of this 
clause to limit administrative costs to 
the maximum extent practicable, but 
in no case may the amount used for 
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administrative costs exceed 10 percent 
of the Federal funds allocated. 
‘‘(C) USE OF THE NATIONAL FUNDS BY 
THE NATIONAL FUND MANAGER.—The national 
fund manager shall use national funds de-
scribed in subparagraph (A)(ii) to undertake fi-
nancing and other activities to enhance and 
maximize the effectiveness of the Initiative, as 
determined by the agreement with the Sec-
retary, including— 
‘‘(i) attracting other forms of financial 
assistance to match or leverage the na-
tional funds; 
‘‘(ii) awarding national funds to part-
nerships in accordance with paragraph (3); 
‘‘(iii) creating and managing pools of 
grant or loan capital that blend or leverage 
national funds with other forms of finan-
cial assistance, including capital in the 
form of tax credits under section 45D of 
the Internal Revenue Code of 1986, for the 
benefit of partnerships; 
‘‘(iv) creating and managing pools of 
grant or loan capital that blend or leverage 
the national funds with other forms of fi-
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nancial assistance, including capital in the 
form of tax credits under section 45D of 
the Internal Revenue Code of 1986, to fi-
nance eligible local projects identified by 
partnerships or the national fund manager 
that have special or unique characteristics; 
‘‘(v) providing loans or grants directly 
to eligible local projects as matching funds 
if requested by a partnership; 
‘‘(vi) providing credit enhancement or 
other financial products and instruments 
for the benefit of partnerships or eligible 
local projects; 
‘‘(vii) providing technical assistance; 
and 
‘‘(viii) funding reasonable administra-
tive costs approved by the Secretary in ac-
cordance with paragraph (4)(C). 
‘‘(2) RESPONSIBILITIES
OF
THE
NATIONAL 
FUND
MANAGER.—The designated national fund 
manager shall— 
‘‘(A) raise other forms of financial assist-
ance to match or leverage the national funds; 
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‘‘(B) use administrative funds to develop 
appropriate training programs and offer tech-
nical assistance services to— 
‘‘(i) partnerships; 
‘‘(ii) State, local, and tribal govern-
ments; 
‘‘(iii) the food retail industry; and 
‘‘(iv) food access and health advocacy 
organizations to augment local capacities; 
‘‘(C) develop financial products such as 
loans, grants, and credit enhancement tools 
that can be used by partnerships to incentivize 
and support the development and retention of 
supermarkets and other fresh, healthy food re-
tail in underserved areas; 
‘‘(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; 
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‘‘(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— 
‘‘(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; 
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‘‘(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. 
‘‘(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 existing partnerships 
that have demonstrable capacity to implement 
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fresh food financing programs in underserved 
areas quickly. 
‘‘(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 
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 
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