cluding tax credits and loan guarantees, involve pri-
vate investment institutions and universities, and 
provide technical expertise for small businesses; 
(6) existing Federal community economic devel-
opment programs build upon ongoing efforts to en-
courage economic growth in distressed communities, 
helping to create new affordable housing opportuni-
ties, allowing communities to address important pub-
lic safety, access to capital, infrastructure, and envi-
ronmental concerns, and providing social services in-
cluding affordable health care, transportation, child 
care, and youth development; 
(7) the continuing success of Federal commu-
nity economic development programs will depend in 
great measure upon the ability of community-based 
organizations and private sector institutions to form 
partnerships that connect residents of distressed 
neighborhoods to jobs and other opportunities; 
(8) the Federal Government administers various 
programs that employ the services and capabilities 
of community-based organizations to deliver a wide 
range of services to residents of distressed commu-
nities; 
(9) Federal community economic development 
programs help achieve lasting improvement and en-
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hance domestic prosperity by the establishment of 
stable and diversified local economies, sustainable 
development, and improved local conditions; 
(10) there is a need for greater cooperation be-
tween the Federal Government, States, and other 
entities to ensure that, consistent with national com-
munity economic development objectives, Federal 
programs are compatible with, and further the objec-
tives of, State, regional, and local economic develop-
ment plans and comprehensive economic develop-
ment strategies; 
(11) while economic development is an inher-
ently local process, the Federal Government should 
work in closer partnership with community-based 
economic development organizations to ensure that 
existing resources are fully utilized and all Ameri-
cans have an opportunity to participate in the eco-
nomic growth of the United States; and 
(12) extending technical assistance to commu-
nity-based economic development organizations may 
be necessary or desirable to— 
(A) alleviate economic distress; 
(B) encourage and support public-private 
partnerships for the formation and improve-
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ment of economic development strategies that 
promote the growth of the national economy; 
(C) stimulate modernization and techno-
logical advances in the generation and commer-
cialization of goods and services; and 
(D) enhance the effectiveness of United 
States companies in the global economy. 
(b) PURPOSES.—The purposes of this Act are— 
(1) to provide a new source of Federal funding 
to enhance the capabilities of nonprofit, nongovern-
mental, community-based economic development or-
ganizations, or collaborations of such organizations, 
to leverage private sector investment as part of an 
overall community development strategy; 
(2) to establish educational programs for non-
profit, nongovernmental, community-based organiza-
tions to expand their project development capabili-
ties; 
(3) to increase the use of tax incentives to le-
verage private sector investment in community eco-
nomic development projects; 
(4) to promote and facilitate investments in 
community-based economic development projects 
from traditional and nontraditional capital sources; 
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(5) to encourage partnerships between commu-
nity-based organizations that will expand and en-
hance the expertise of emerging such nonprofit, non-
governmental organizations in utilizing private sec-
tor investment as part of their comprehensive com-
munity development strategies; and 
(6) to ensure that viable community economic 
development 
projects 
are 
successfully 
pursued 
throughout the United States in communities having 
a wide range of economic, geographic, and social 
characteristics. 
SEC. 3. GRANTS TO INCREASE CAPACITY AND EXPERTISE 
OF NONPROFIT, NONGOVERNMENTAL COM-
MUNITY-BASED ORGANIZATIONS INVOLVED 
IN COMMUNITY ECONOMIC DEVELOPMENT 
ACTIVITIES. 
(a) GRANT AUTHORITY.—The Secretary of Housing 
and Urban Development may make grants under this sec-
tion only to eligible community-based economic develop-
ment organizations only for the purposes under subsection 
(c). 
(b) ELIGIBLE COMMUNITY-BASED ECONOMIC DE-
VELOPMENT ORGANIZATIONS.—For purposes of this sec-
tion, the term ‘‘eligible community-based economic devel-
opment organization’’ means a community-based economic 
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development organization (as such term is defined under 
section 7), or a collaboration of such organizations (such 
as city or state community economic development associa-
tions), that demonstrates management capacity by meet-
ing, as determined by the Secretary, two or more of the 
following requirements: 
(1) AFFORDABLE HOUSING.—Having completed 
construction of 10 or more dwelling units of afford-
able housing. 
(2) FACILITIES.—Having completed construc-
tion of a commercial, industrial, retail, or commu-
nity facility project. 
(3) PARTNERING.—Partnering, or having a his-
tory of partnering, with community-based economic 
development organizations to provide training, edu-
cation, capacity, technical assistance, or other men-
toring services. 
(4) SUPPORT OF EMERGING ORGANIZATIONS.— 
Exhibiting willingness to form operational partner-
ships and execute contractual agreements with 
emerging community-based economic development 
organizations. 
(5) OWNERSHIP
OF
ASSETS.—Having owner-
ship of tangible assets the value of which are equal 
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to or exceed the value of the grant requested under 
this section. 
(c) USE OF FUNDS.— 
(1) PURPOSES.—Amounts from grants under 
this section may be used only for the following pur-
poses: 
(A) SALARIES AND ADMINISTRATIVE EX-
PENSES.—For salaries or administrative ex-
penses of the grantee or an emerging commu-
nity-based economic development organization 
that is undertaking a community economic de-
velopment project. 
(B) TECHNICAL ASSISTANCE.—To provide 
technical assistance to an emerging community- 
based economic development organization that 
is undertaking a community economic develop-
ment project. 
(C) TRAINING AND RESEARCH.—Through 
subgrants pursuant to paragraph (2), for train-
ing, research, and technical assistance relating 
to community economic development, including 
subgrants for program evaluation and economic 
impact analyses. 
(2) 
EXPENDITURE.—Amounts 
from 
grants 
under this section may be used directly by the eligi-
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for a grant does not have access to other traditional 
local financial sources. 
(4) The extent to which such an organization 
represents nonprofit, nongovernmental organizations 
that serve low-income communities and persons. 
(5) The extent to which such an organization 
will implement a plan to become financially sustain-
able. 
(e) AMOUNT.—A grant under this section to a single 
grantee shall be in an amount that is not less than 
$250,000 and does not exceed $1,000,000. 
(f) PROHIBITION OF MATCHING FUNDS REQUIRE-
MENT.—The Secretary may not require a grantee under 
this section to provide amounts from sources other than 
this section to fund the specific activities to be carried out 
with grant amounts under this section. 
(g) ELIGIBILITY FOR COMMUNITY REINVESTMENT 
ACT CREDITS.—In assessing and taking into account, 
under section 804(a) of the Community Reinvestment Act 
of 1977, the record of any regulated financial institution, 
the appropriate Federal financial supervisory agency (as 
defined in section 803(1) of such Act) may consider as 
a factor investments in community economic development 
projects of eligible community-based economic develop-
ment organizations in determining whether the institution 
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is meeting the credit needs of its community for purposes 
of such section 804(a). 
(h) AUTHORIZATION OF APPROPRIATIONS.— 
(1) IN GENERAL.—There are authorized to be 
appropriated 
for 
grants 
under 
this 
section 
$75,000,000 for each of fiscal years 2008, 2009, 
and 2010. 
(2) SET-ASIDE
FOR
TECHNICAL
ASSISTANCE 
AND
TRAINING.—Of the amount made available 
under this Act for each fiscal year, $10,000,000 
shall be available only for technical assistance and 
training activities, to be conducted by national com-
munity development organizations, state community 
development associations, or city community develop-
ment associations, which have extensive nationwide 
partnerships and experience in working with commu-
nity-based economic development organizations, as 
authorized by section 4 of the HUD Demonstration 
Act of 1993 (42 U.S.C. 9816 note), as in effect im-
mediately before May 1, 2000. Of the amount re-
served for use under this paragraph, not less than 
$4,000,000 shall be used for the support of develop-
ment organizations in rural areas. 
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SEC. 4. ASSESSMENT OF COMMUNITY-BASED ECONOMIC 
DEVELOPMENT EXPERTISE. 
(a) CAPABILITY STUDY.—The Secretary shall con-
duct a study to assess the capability needs of community- 
based economic development organizations, which shall— 
(1) analyze, evaluate, and recommend processes 
to improve the administrative and operational capa-
bilities of such organizations to acceptable levels of 
success in support of the role of the Federal Govern-
ment in community economic development; and 
(2) assess the extent to which federal agencies 
can incorporate such organizations into the formula-
tion of the strategic plans of funding agencies and, 
if the extent or quality of this type of involvement 
is satisfactory, can support the role of the federal 
government in community economic development. 
The Secretary shall submit a report regarding the results 
of the study under this subsection not later than the expi-
ration of the 6-month period beginning on the date of the 
enactment of this Act. 
(b) ANNUAL REPORTS
TO CONGRESS.—Not later 
than the first March 1 occurring after the end of each 
fiscal year for which amounts are made available for 
grants under section 3, the Secretary shall submit a report 
to the Congress, which shall include— 
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(1) an evaluation of the progress made during 
such fiscal year to enhance the administrative and 
operational capabilities of community-based eco-
nomic development organizations in support of the 
role of the Federal Government in community eco-
nomic development; 
(2) an assessment of the extent to which Fed-
eral agencies have, during such fiscal year, involved 
community-based economic development organiza-
tions in responsibilities for carrying out community 
economic development programs administered by the 
agencies and delivering services under such pro-
grams that enhance the operational capabilities of 
the organizations; and 
(3) a plan for making recommendations for ac-
tions or measures to further involve community- 
based economic development organizations in the 
strategic operations of Federal agencies in support 
of community economic development. 
(c) FINAL EVALUATION.—The Secretary shall select 
an independent entity that has experience with national 
community economic development activities, nonprofit 
community-based developers, and impact evaluation and 
analysis to conduct an evaluation of the impact of the 
grant program under section 3. The evaluation shall be 
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conducted upon the termination of the program. Not later 
than 6 months after the conclusion of the last fiscal year 
for which amounts are made available for grants under 
section 3, the entity conducting the evaluation shall sub-
mit to the Secretary and the Congress a final report re-
garding the evaluation. 
SEC. 5. ADVISORY COUNCIL. 
(a) ESTABLISHMENT AND DUTIES.—The Secretary 
shall establish an advisory council to be known as the Sec-
retary’s Advisory Council on Community Economic Devel-
opment (in this section referred to as the ‘‘Advisory Coun-
cil’’). The Advisory Council shall make recommendations 
to the Secretary on carrying out this Act, including rec-
ommendations on developing plans under section 4(b)(3) 
and reviewing and making recommendations on such plans 
that have been developed. 
(b) MEMBERSHIP.—The Advisory Council shall con-
sist of not less than 19 members, appointed by the Sec-
retary, as follows: 
(1) EX
OFFICIO
MEMBERS.—The following 
members, who shall serve as nonvoting members: 
(A) The Secretary of Housing and Urban 
Development, or the designee of such Secretary. 
(B) The Secretary of Health and Human 
Services, or the designee of such Secretary. 
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(C) The Assistant Secretary for Economic 
Development of the Department of Commerce, 
or the designee of the Assistant Secretary. 
(D) The Administrator of the Community 
Development Financial Institutions Fund, or 
the designee of the Administrator. 
(E) The Under Secretary of Agriculture 
for Rural Development, or the designee of the 
Under Secretary. 
(2) OTHER
MEMBERS.—No fewer than 14 
members, who are not officers or employees of the 
Federal Government, who shall serve as voting mem-
bers: 
(A) No fewer than 2 individuals who con-
duct research on community economic develop-
ment activities. 
(B) No fewer than 2 individuals who are 
experts in community economic development fi-
nancing. 
(C) No fewer than 3 individuals who are 
publicly elected officials. 
(D) No fewer than 7 individuals who are 
representatives of community-based economic 
development organizations that carry out com-
munity economic development activities. 
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(c) TRAVEL EXPENSES.—Members of the Advisory 
Council shall not receive any pay by reason of their service 
on the Advisory Council, but shall receive travel expenses, 
including per diem in lieu of subsistence, in accordance 
with sections 5702 and 5703 of title 5, United States 
Code. 
SEC. 6. COORDINATION WITH PRESIDENT’S ANNUAL BUDG-
ET REQUEST. 
The President of the United States shall include, to-
gether with each annual budget of the United States Gov-
ernment required to be submitted under section 1105(a) 
of title 31, United States Code, a report regarding Federal 
financial support for community economic development 
that includes— 
(1) a detailed summary of the total level of 
funding committed to community-based economic de-
velopment organizations throughout all Federal 
agencies; 
(2) a statement of projected funding levels for 
the grant program under section 3 of this Act for 
the upcoming fiscal year and each fiscal year there-
after until 2014, and projected funding levels for fi-
nancial assistance for economic development activi-
ties for each Federal agency that provides such as-
sistance; 
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(3) an identification and analysis of the method 
(including grant agreements, procurement contracts, 
and cooperative agreements (as such terms are used 
in chapter 63 of title 31, United States Code) by 
which such financial assistance is provided for each 
such economic development activity; and 
(4) Recommendations for specific activities and 
measures to enhance community-based economic de-
velopment capacity building in states having less 
concentrated economic and infrastructure resources 
and to strengthen nationwide community-based eco-
nomic development. 
SEC. 7. DEFINITIONS. 
For purposes of this Act, the following definitions 
shall apply: 
(1) COMMUNITY-BASED
ECONOMIC
DEVELOP-
MENT ORGANIZATION.— 
(A) IN GENERAL.—For purposes of this 
section, the term ‘‘community-based economic 
development organization’’ means a nonprofit, 
nongovernmental organization that— 
(i) has as its primary mission to 
serve, or provide investment capital for, 
low-income communities and low-income 
persons; and 
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(ii)(I) maintains accountability to resi-
dents of low-income communities through 
their representation on any governing 
board of the organization or on any advi-
sory board to the organization; or 
(II) maintains accountability to low- 
income communities by having a board pri-
marily consisting of leaders of community- 
based development organizations from its 
region or State on its governing board. 
(B) NONDISCRIMINATION AGAINST FAITH- 
BASED
ORGANIZATIONS.—Such term shall in-
clude any faith-based organization that complies 
with the requirements under clauses (i) and (ii) 
of subparagraph (A). 
(C) TREATMENT OF COMMUNITY DEVEL-
OPMENT
FINANCIAL
INSTITUTIONS.—The re-
quirements of subparagraph (A) shall be treat-
ed as met by any community development fi-
nancial institution (as such term is defined in 
section 103 of the Community Development 
Banking and Financial Institutions Act of 1994 
(12 U.S.C. 4702). 
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(2) 
COMMUNITY
ECONOMIC
DEVELOPMENT 
PROJECT.—The term ‘‘community economic develop-
ment project’’ means a project that involves— 
(A) investment in business enterprises, in-
cluding investments in the form of loan origina-
tion, equity investment, and monetary assist-
ance to home buyers or to business owners for 
business development projects; or 
(B) the construction or rehabilitation of fa-
cilities, including commercial or industrial facili-
ties, homes, apartment buildings, and commu-
nity parks. 
(3) LOW-INCOME
COMMUNITIES
AND
PER-
SONS.—The terms ‘‘low-income communities’’ and 
‘‘low-income persons’’ shall have the meanings given 
such terms in section 45D of the Internal Revenue 
Code of 1986 (26 U.S.C. 45D). 
(4) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Housing and Urban Development. 
Æ 
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