I 
118TH CONGRESS 
1ST SESSION H. R. 4857 
To amend title 23, United States Code, to modify the transportation finance 
infrastructure and innovation program with respect to community devel-
opment financial institutions, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 25, 2023 
Mr. DESAULNIER introduced the following bill; which was referred to the 
Committee on Transportation and Infrastructure 
A BILL 
To amend title 23, United States Code, to modify the trans-
portation finance infrastructure and innovation program 
with respect to community development financial institu-
tions, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Equitable Transit Ori-
ented Development Support Act’’. 
SEC. 2. INFRASTRUCTURE FINANCE. 
(a) GENERALLY APPLICABLE PROVISIONS.—Section 
601(a) of title 23, United States Code, is amended— 
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(1) by inserting ‘‘and section 611’’ after ‘‘609’’; 
(2) in paragraph (2)— 
(A) in subparagraph (C) by striking ‘‘; 
and’’ and inserting a semicolon; 
(B) in subparagraph (D) by striking the 
period and inserting ‘‘; and’’; and 
(C) by adding at the end the following: 
‘‘(E) capitalizing a CDFI TOD account.’’; 
(3) in paragraph (12)— 
(A) in subparagraph (E) by striking ‘‘; 
and’’ and inserting a semicolon; 
(B) in subparagraph (H) by striking the 
period and inserting ‘‘; and’’; and 
(C) by adding at the end the following: 
‘‘(I) the capitalization of a CDFI TOD ac-
count.’’; and 
(4) by adding at the end the following: 
‘‘(23) CDFI.—The term ‘CDFI’ has the mean-
ing given the term ‘community development financial 
institution’ under section 103 of the Riegle Commu-
nity Development and Regulatory Improvement Act 
of 1994 (12 U.S.C. 4702). 
‘‘(24) CDFI TOD ACCOUNT.—The term ‘CDFI 
TOD account’ means an account— 
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‘‘(A) established within a CDFI under sec-
tion 611(c); 
‘‘(B) capitalized with the proceeds of a se-
cured loan made to a CDFI in accordance with 
sections 602 and 603; 
‘‘(C) for the purpose of making loans to 
sponsors 
of 
transit-oriented 
development 
projects in accordance with section 611.’’. 
(b) DETERMINATION OF ELIGIBILITY AND PROJECT 
SELECTION.—Section 602 of title 23, United States Code, 
is amended— 
(1) in subsection (a)— 
(A) in paragraph (2) by adding at the end 
the following: 
‘‘(C) CDFI.—Notwithstanding subpara-
graphs (A) and (B), in a case in which the Fed-
eral credit instrument is provided to a CDFI, 
the Secretary may rely upon a credit assess-
ment of the CDFI by the Secretary of Treasury 
in lieu of investment grade ratings and credit 
opinions from rating agencies.’’; 
(B) in paragraph (4) by inserting ‘‘CDFI,’’ 
after ‘‘partnership,’’; 
(C) in paragraph (5)(B) by inserting at 
the end the following: 
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‘‘(v) CDFI TOD ACCOUNTS.—In the 
case of a project capitalizing a CDFI TOD 
account, eligible project costs shall not ex-
ceed $100,000,000.’’; 
(D) in paragraph (6)— 
(i) in subparagraph (C) by striking 
‘‘or’’; 
(ii) in subparagraph (D) by striking 
the period and inserting ‘‘; or’’; and 
(iii) by adding at the end the fol-
lowing: 
‘‘(E) in the case of a CDFI TOD account, 
the unconditional promissory obligation of a 
CDFI.’’; 
(E) in paragraph (7)— 
(i) by striking ‘‘State or local govern-
ment or’’ and inserting ‘‘State or local gov-
ernment,’’; and 
(ii) by inserting ‘‘or a CDFI,’’ before 
‘‘the project’’; 
(F) in paragraph (9)— 
(i) by striking ‘‘The Secretary’’ and 
inserting ‘‘(A) IN
GENERAL—The Sec-
retary’’; 
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(ii) by redesignating subparagraphs 
(A), (B), and (C) as clauses (i), (ii), and 
(iii); and 
(iii) by adding at the end the fol-
lowing: 
‘‘(B) CDFI TOD ACCOUNTS.—With respect 
to financial assistance provided to a CDFI 
under the TIFIA program, the Secretary shall 
deem that the project generates beneficial ef-
fects.’’; and 
(G) in paragraph (10)— 
(i) in subparagraph (A) by striking 
‘‘subparagraph (B)’’ and inserting ‘‘sub-
paragraphs (B) and (C)’’; and 
(ii) by adding at the end the fol-
lowing: 
‘‘(C) CDFI TOD ACCOUNT.—In the case of 
a project capitalizing a CDFI TOD account, 
the CDFI shall demonstrate to the Secretary, 
not later than two years after the date on which 
a secured loan is obligated for the project under 
the TIFIA program, that the CDFI has exe-
cuted a loan agreement with a project sponsor 
in accordance with section 611. After the dem-
onstration is made, the CDFI may draw upon 
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the secured loan. At the end of the 2-year pe-
riod, to the extent the CDFI has not used the 
loan commitment, the Secretary may extend the 
time period for using the loan commitment or 
withdraw the loan commitment.’’; and 
(2) in subsection (b)(3)— 
(A) by striking ‘‘The Secretary’’ and in-
serting ‘‘(A) IN GENERAL—The Secretary’’; 
(B) by redesignating subparagraphs (A) 
and (B) as clauses (i) and (ii), respectively; and 
(C) by adding at the end the following: 
‘‘(B) 
CDFI 
TOD
ACCOUNT.—Notwith-
standing subparagraph (A), in the case of an 
applicant that is a CDFI, in lieu of a prelimi-
nary rating opinion letter, the Secretary may 
rely upon a letter from the Secretary of the 
Treasury that verifies the applicant is a CDFI 
certified by the Community Development Fi-
nancial Institutions Fund of the Department of 
the Treasury.’’. 
(c) SECURED LOANS.—Section 603 of title 23, 
United States Code, is amended— 
(1) in subsection (a)(3) by striking ‘‘section 
602(b)(3)(B)’’ 
and 
inserting 
‘‘section 
603(b)(3)(A)(ii) or, with respect to a CDFI, the let-
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ter of the Secretary of Treasury under section 
602(b)(3)(B)’’; 
(2) in subsection (b)— 
(A) in paragraph (2)— 
(i) in subparagraph (A) by striking 
‘‘subparagraph (B)’’ and inserting ‘‘sub-
paragraphs (B) and (C)’’; and 
(ii) by adding at the end the fol-
lowing: 
‘‘(C) CDFI TOD ACCOUNT.—In the case of 
a project capitalizing a CDFI TOD account, 
the maximum amount of a secured loan made 
to a CDFI shall be determined in accordance 
with section 602(a)(5)(B)(v).’’; 
(B) in paragraph (3)(A)(i)— 
(i) in subclause (IV) by striking ‘‘; or’’ 
and inserting ‘‘;’’; 
(ii) in subclause (V) by striking ‘‘; 
and’’ and inserting ‘‘; or’’; and 
(iii) by adding at the end the fol-
lowing: 
‘‘(VI) in the case of a secured 
loan for a project capitalizing a CDFI 
TOD account, any other revenue 
sources available to a CDFI, including 
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repayments from loans made for 
projects in accordance with section 
611; and’’; 
(C) in paragraph (4)(B)— 
(i) in the header by inserting ‘‘and 
CDFI TOD accounts’’ after ‘‘infrastruc-
ture projects’’; 
(ii) in clause (i) by striking ‘‘or a 
rural projects fund’’ and inserting ‘‘, a 
rural projects fund, or a CDFI TOD ac-
count’’; and 
(iii) in clause (ii) by striking ‘‘and 
rural project funds’’ and inserting ‘‘, rural 
projects funds, and CDFI TOD accounts’’; 
(D) in paragraph (5)(B)— 
(i) in the header by inserting ‘‘and 
CDFI TOD account’’ after ‘‘Rural projects 
fund’’; and 
(ii) by inserting ‘‘or CDFI TOD ac-
count’’ after ‘‘rural projects fund’’; and 
(E) in paragraph (9) by adding at the end 
the following: 
‘‘(C) CDFI TOD ACCOUNT.—A project cap-
italizing a CDFI TOD account shall satisfy 
subparagraph (A) through compliance with the 
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Federal share requirement described in section 
611(c)(3)(A).’’. 
(d) PROGRAM ADMINISTRATION.—Section 605 of 
title 23, United States Code, is amended— 
(1) in subsection (d) by inserting ‘‘, community 
development,’’ after ‘‘field of municipal’’; 
(2) by redesignating subsections (e) and (f) as 
subsections (g) and (h), respectively; 
(3) by inserting after subsection (d) the fol-
lowing: 
‘‘(e) ASSISTANCE FROM THE SECRETARY OF TREAS-
URY.—The Secretary shall consult with the Secretary of 
the Treasury in assessing the creditworthiness of CDFI 
applicants and shall enter into a memorandum of under-
standing pursuant to section 611(b) of this chapter 
through which the Secretary of the Treasury provides as-
sistance in the credit underwriting, servicing, and moni-
toring of Federal credit instruments provided to CDFI 
TOD accounts. 
‘‘(f) IMPLEMENTATION.—Not later than 180 days 
after enactment of Section 611, the Secretary shall imple-
ment this section by releasing program guidance and solic-
iting applications.’’; and 
(4) in subsection (h) (as so redesignated)— 
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(A) in the heading by inserting ‘‘and CDFI 
TOD accounts’’ after ‘‘small projects’’; and 
(B) in paragraph (1)— 
(i) by striking ‘‘608(a)(5)’’ and insert-
ing ‘‘608(a)(6)’’; 
(ii) by striking ‘‘$2,000,000’’ and in-
serting ‘‘$4,000,000’’; and 
(iii) by striking ‘‘$75,000,000’’ and 
inserting ‘‘$100,000,000’’. 
(e) FUNDING.—Section 608(a) of title 23, United 
States Code, is amended— 
(1) by redesignating paragraphs (4) and (5) as 
paragraphs (5) and (6), respectively; 
(2) by inserting after paragraph (3) the fol-
lowing: 
‘‘(4) CDFI SET ASIDE.— 
‘‘(A) IN GENERAL.—Of the total amount 
of funds made available to carry out the TIFIA 
program for each fiscal year, not more than 10 
percent shall be set aside for CDFI TOD ac-
counts. 
‘‘(B) REOBLIGATION.—Any amounts set 
aside under subparagraph (A) that remain un-
obligated by June 1 of the fiscal year for which 
the amounts were set aside shall be available 
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for obligation by the Secretary on projects other 
than CDFI TOD accounts.’’; and 
(3) by adding at the end the following: 
‘‘(7) REIMBURSEMENTS TO THE SECRETARY OF 
THE TREASURY.—Of the amounts authorized for the 
administration of the TIFIA program under para-
graph (6), the Secretary may use not more than 10 
percent for each fiscal year to reimburse the Sec-
retary of the Treasury for assistance provided pur-
suant to a memorandum of understanding under 
section 611(b).’’. 
(f) COMMUNITY DEVELOPMENT FINANCIAL INSTITU-
TION TRANSIT-ORIENTED DEVELOPMENT.— 
(1) IN GENERAL.—Chapter 6 of title 23, United 
States Code, is amended by adding at the end the 
following: 
‘‘§ 611. Community development financial institution 
transit-oriented development 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) CDFI TOD PROJECT.—The term ‘CDFI 
TOD project’ means a project located within one- 
half mile in an urban area or three-fourths of a mile 
in a rural area of a fixed guideway transit facility, 
passenger rail station, intercity bus station or inter-
modal facility that supports— 
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‘‘(A) commercial facilities or businesses 
that are located in low-income communities and 
are— 
‘‘(i) owned by low-income persons; 
‘‘(ii) principally serve low-income per-
sons or low-income community residents; 
or 
‘‘(iii) principally employ low-income 
persons; 
‘‘(B) community facilities that are located 
in low-income communities or principally serve 
low-income persons; or 
‘‘(C) housing that is principally affordable 
to low-income persons. 
‘‘(2) INVESTMENT
AREA.—The term ‘Invest-
ment Area’ has the meaning given the term in sec-
tion 1805.201(b)(3)(B)(ii) of title 12, Code of Fed-
eral Regulations (as in effect on the date of enact-
ment of this section). 
‘‘(3) LOAN.—The term ‘loan’ means any form 
of direct financial assistance that is required to be 
repaid over a period of time provided by a CDFI to 
a project sponsor for all or part of the costs of a 
CDFI TOD project. 
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‘‘(4) LOW-INCOME
COMMUNITY.—The term 
‘low-income community’ means a community that is 
located in an Investment Area. 
‘‘(5) LOW-INCOME PERSON.—The term ‘low-in-
come person’ means a person whose income does not 
exceed the level established for low-income (as such 
term is defined in section 1805.104 of title 12, Code 
of Federal Regulations, as in effect on the date of 
enactment of this section). 
‘‘(6) PROJECT
SPONSOR.—The term ‘project 
sponsor’ means a public or private entity approved 
by a CDFI and developing a CDFI TOD project in 
accordance with this section. 
‘‘(b) MEMORANDUM OF UNDERSTANDING.—The Sec-
retary shall enter into a memorandum of understanding 
with the Secretary of Treasury to support consultation 
with the Community Development Financial Institutions 
Fund to provide the necessary credit underwriting, serv-
icing, and monitoring of CDFI applicants and participants 
in the TIFIA program. 
‘‘(c) CDFI TOD ACCOUNTS.— 
‘‘(1) IN GENERAL.—The Secretary shall require 
any CDFI participating in the program authorized 
in this section to establish a CDFI TOD account 
into which the proceeds of a secured loan made to 
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the CDFI in accordance with sections 602 and 603 
and any loan repayments from public or private enti-
ties receiving loans made to fund CDFI TOD 
projects will be deposited. 
‘‘(2) AMOUNTS
IN
ACCOUNT.—Any principal 
loan repayments and any investment income derived 
from funds deposited to a CDFI TOD account shall 
be— 
‘‘(A) credited to the account; 
‘‘(B) available for providing loans to 
project sponsors; 
‘‘(C) available for repaying the secured 
loan made to the CDFI in accordance with sec-
tions 602 and 603; and 
‘‘(D) invested in such financing instru-
ments as the Secretary may approve to earn in-
terest to augment the lending capacity of the 
account. 
‘‘(3) LOANS.—Any loan to a project sponsor 
funded from the account shall— 
‘‘(A) be in an amount determined by the 
CDFI, but in any case not exceed 80 percent of 
eligible project costs; 
‘‘(B) commence repayment not later than 
5 years after the project has been completed; 
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‘‘(C) have a final maturity not later than 
30 years after the date of the first payment on 
the loan; 
‘‘(D) be set at a rate not greater than the 
level needed to fully reimburse the CDFI’s ad-
ministrative, monitoring, servicing, and capital 
charges associated with the loan; and 
‘‘(E) be secured and have a priority of pay-
ment as determined by the CDFI. 
‘‘(4) 
REVOLVING
LOAN
STRUCTURE.—The 
CDFI may apply loan repayments to fund additional 
loans provided such relending does not impair the 
ability of the CDFI to repay its secured loan in full 
and timely fashion. 
‘‘(5) 
DELEGATED
LENDING
MODEL.—The 
CDFI is authorized to provide loans for CDFI TOD 
projects under a delegated lending model. No provi-
sion of this section shall restrict the ability of the 
CDFI to establish the terms and conditions of loans 
to project sponsors under this section. 
‘‘(d) DISCONTINUANCE OF FUNDING.—If the Sec-
retary determines that a CDFI is not implementing the 
CDFI TOD account in accordance with the application of 
such account, the Secretary may prohibit the CDFI from 
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drawing down any additional proceeds from a secured loan 
commitment. 
‘‘(e) FORMS OF ASSISTANCE FROM A CDFI.— 
‘‘(1) IN GENERAL.—A CDFI may, using funds 
deposited into the CDFI TOD account, make loans 
to a public or private entity to carry out a CDFI 
TOD project. 
‘‘(2) SUBORDINATION OF LOAN.—The amount 
of a loan or other form of credit assistance provided 
for a project described in subsection (c)(3) may be 
subordinated to any other debt financing for the 
project. 
‘‘(f) ANNUAL REPORT TO THE SECRETARY.—Any 
CDFI participating in this program shall make an annual 
report to the Secretary not later than September 30 of 
each year and such other reports as the Secretary may 
require under guidelines issued to carry out this section. 
‘‘(g) APPLICABILITY OF FEDERAL LAW.—The re-
quirements of this title and title 49 that would otherwise 
apply to funds made available under this chapter or such 
title and projects assisted with those funds shall apply to 
CDFI TOD projects assisted by the CDFI under this 
chapter, except to the extent the Secretary determines that 
any requirement of such title is not applicable or is not 
consistent with the objectives of this section. 
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‘‘(h) UNITED STATES NOT OBLIGATED.—The de-
posit of Federal funds into a CDFI under this section 
shall not be construed as a commitment, guarantee, or ob-
ligation on the part of the United States to any third 
party, nor shall any third party have any right against 
the United States for payment solely by virtue of the con-
tribution. Any security or debt financing instrument 
issued by the CDFI shall expressly state that the security 
or instrument does not constitute a commitment, guar-
antee, or obligation of the United States. 
‘‘(i) PROGRAM ADMINISTRATION.—For each fiscal 
year, a CDFI may not expend more than 2 percent of the 
Federal assistance received under this chapter to pay the 
reasonable costs of administering a CDFI TOD account 
pursuant to this section.’’. 
(2) CLERICAL AMENDMENT.—The analysis for 
chapter 6 of title 23, United States Code, is amend-
ed by adding at the end the following: 
‘‘611. Community development financial institution transit-oriented develop-
ment.’’. 
Æ 
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