I 
108TH CONGRESS 
2D SESSION 
H. R. 5265
To amend the National Housing Act to authorize the Secretary of Housing 
and Urban Development to insure mortgages for the acquisition, con-
struction, or substantial rehabilitation of child care and development 
facilities and to establish the Children’s Development Commission (Kiddie 
Mac) to certify such facilities for such insurance, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
OCTOBER 7, 2004
Mrs. MALONEY introduced the following bill; which was referred to the 
Committee on Financial Services 
A BILL 
To amend the National Housing Act to authorize the Sec-
retary of Housing and Urban Development to insure 
mortgages for the acquisition, construction, or substan-
tial rehabilitation of child care and development facilities 
and to establish the Children’s Development Commission 
(Kiddie Mac) to certify such facilities for such insurance, 
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 ‘‘Children’s Develop-
ment Commission Act (Kiddie Mac)’’.
SEC. 2. CONGRESSIONAL FINDINGS. 
The Congress finds the following: 
(1) The need for quality nursery schools, both 
full-time and part-time child care centers and after-
school programs, neighborhood-run mothers-day-out 
programs, and family child care providers has grown 
among working parents, and parents who stay at 
home, who want their children to have access to 
early childhood education. 
(2) All parents should have access to safe, stim-
ulating, and educational early childhood education 
programs for their children, whether such programs 
are carried out in a child care center, a part-time 
nursery school (including a nursery school operated 
by a religious organization), or a certified child care 
provider’s home. 
(3) The number of available enrollment oppor-
tunities for children to receive quality child care 
services is not meeting the demand for such services. 
(4) In 1995 there were about 21,000,000 chil-
dren less than 6 years of age, of whom 31 percent 
were participating in center-based child care services 
and 14 percent were receiving child care in homes. 
Between 1992 and 2005 the participation of women 
24 to 54 years of age in the labor force is projected 
to increase from 75 percent to 83 percent.
(5) In States that have set up a mechanism to 
provide capital improvements for child care facilities, 
the demand for services of such facilities still has 
not been met. 
(6) The United States is behind other western, 
industrialized countries when it comes to providing 
child care services. In France, almost 100 percent of 
all children 3 to 5 years of age attend nursery 
school. In Germany this number is 78 percent. In 
Japan 90 percent of such children attend some form 
of preschool care. In all of these countries early 
childhood care has proven to increase children’s de-
velopment and performance. 
SEC. 3. INSURANCE FOR MORTGAGES ON NEW AND REHA-
BILITATED CHILD CARE AND DEVELOPMENT 
FACILITIES. 
Title II of the National Housing Act (12 U.S.C. 1707 
et seq.) is amended by adding at the end the following 
new section: 
‘‘SEC. 257. MORTGAGE INSURANCE FOR CHILD CARE AND 
DEVELOPMENT FACILITIES. 
‘‘(a) PURPOSE.—The purpose of this section is to fa-
cilitate and assist in the provision and development of li-
censed child care and development facilities.
‘‘(b) GENERAL INSURANCE AUTHORITY.—The Sec-
retary may insure mortgages (including advances on such 
mortgages during construction) in accordance with the 
provisions of this section and upon such terms and condi-
tions as the Secretary may prescribe and may make com-
mitments for insurance of such mortgages before the date 
of their execution or disbursement thereon. 
‘‘(c) ELIGIBLE MORTGAGES.—To carry out the pur-
pose of this section, the Secretary may insure any mort-
gage that covers a new child care and development facility, 
including a new addition to an existing child care and de-
velopment facility (regardless of whether the existing facil-
ity is being rehabilitated), or a substantially rehabilitated 
child care and development facility, including equipment 
to be used in the operation of the facility, subject to the 
following conditions: 
‘‘(1) APPROVED
MORTGAGOR.—The mortgage 
shall be executed by a mortgagor approved by the 
Secretary. The Secretary may, in the discretion of 
the Secretary, require any such mortgagor to be reg-
ulated or restricted as to charges and methods of fi-
nancing and, if the mortgagor is a corporate entity, 
as to capital structure and rate of return. As an aid 
to the regulation or restriction of any mortgagor 
with respect to any of the foregoing matters, the
Secretary may make such contracts with and acquire 
for not more than $100 such stock or interest in 
such mortgagor as the Secretary may consider nec-
essary. Any stock or interest so purchased shall be 
paid for out of the General Insurance Fund, and 
shall be redeemed by the mortgagor at par upon the 
termination of all obligations of the Secretary under 
the insurance. 
‘‘(2) PRINCIPAL OBLIGATION.—
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), the mortgage shall involve a 
principal obligation in an amount not to exceed 
80 percent of the estimated value of the prop-
erty or project, or 85 percent of the estimated 
value of the property or project in the case only 
of a mortgagor that is a private nonprofit cor-
poration or association (as such term is defined 
pursuant to section 221(d)(3)), including—
‘‘(i) equipment to be used in the oper-
ation of the facility when the proposed im-
provements are completed and the equip-
ment is installed; or 
‘‘(ii) a solar energy system (as defined 
in subparagraph (3) of the last paragraph 
of section 2(a)) or residential energy con-
servation measures (as defined in subpara-
graphs (A) through (G) and (I) of section 
210(11) of the National Energy Conserva-
tion Policy Act), in cases in which the Sec-
retary determines that such measures are 
in addition to those required under the 
minimum property standards and will be 
cost-effective over the life of the measure. 
‘‘(B) INCREASE FOR CERTAIN DISTRESSED 
AREAS.—In the case of any mortgage for a 
child care and development facility that is lo-
cated in a distressed area and for which more 
than 50 percent of the children served by the 
facility are children of families or individuals 
who are eligible for assistance under a State 
program for temporary assistance for needy 
families that is funded under part A of title IV 
of the Social Security Act, the mortgage shall 
involve principal obligation in an amount not to 
exceed the sum of the amount determined 
under subparagraph (A) for the mortgagor and 
5 percent of the estimated value of the property 
or project. 
‘‘(3) 
AMORTIZATION
AND
INTEREST.—The 
mortgage shall—
‘‘(A) provide for complete amortization by 
periodic payments under such terms as the Sec-
retary shall prescribe; 
‘‘(B) have a maturity satisfactory to the 
Secretary, but in no event longer than 25 years; 
and 
‘‘(C) bear interest at such rate as may be 
agreed upon by the mortgagor and the mort-
gagee, and the Secretary shall not issue any 
regulations or establish any terms or conditions 
that interfere with the ability of the mortgagor 
and mortgagee to determine the interest rate. 
‘‘(d) CERTIFICATION BY CHILDREN’S DEVELOPMENT 
COMMISSION.—The Secretary may not insure a mortgage 
under this section unless the Children’s Development 
Commission established under section 258 certifies that 
the facility is in compliance, or will be in compliance not 
later than 12 months after such certification, with—
‘‘(1) any laws, standards, and requirements ap-
plicable to such facilities under the laws of the 
State, municipality, or other unit of general local 
government in which the facility is or is to be lo-
cated; and
‘‘(2) after the effective date of the standards 
and 
requirements 
established 
under 
section 
258(c)(2), such standards and requirements. 
‘‘(e) LOW-INCOME CLIENTELE.—The Secretary may 
not insure a mortgage under this section unless the mort-
gage certifies, to the satisfaction of the Secretary, that not 
less than 20 percent of the children served by the facility 
during the period that the mortgage is outstanding shall 
be children of families having incomes less than the me-
dian income for the metropolitan statistical area in which 
the facility is located. 
‘‘(f) RELEASE.—The Secretary may consent to the 
release of a part or parts of the mortgaged property or 
project from the lien of any mortgage insured under this 
section upon such terms and conditions as the Secretary 
may prescribe. 
‘‘(g) MORTGAGE INSURANCE TERMS.—The provi-
sions of subsections (d), (e), (g), (h), (i), (j), (k), (l), and 
(n) of section 207 shall apply to mortgages insured under 
this section, except that all references in such subsections 
to section 207 shall be considered, for purposes of mort-
gage insurance under this section, to refer to this section. 
‘‘(h) MORTGAGE INSURANCE
FOR FIRE SAFETY 
EQUIPMENT LOANS.—
‘‘(1) AUTHORITY.—The Secretary may, upon 
such terms and condition as the Secretary may pre-
scribe, make commitments to insure and insure 
loans made by financial institutions or other ap-
proved mortgagees to child care and development fa-
cilities to provide for the purchase and installation 
of fire safety equipment necessary for compliance 
with the 1967 edition of the Life Safety Code of the 
National Fire Protection Association (or any subse-
quent edition specified by the Secretary of Health 
and Human Services). 
‘‘(2) LOAN REQUIREMENTS.—To be eligible for 
insurance under this subsection a loan shall—
‘‘(A) not exceed the Secretary’s estimate of 
the reasonable cost of the equipment fully in-
stalled; 
‘‘(B) bear interest at such rate as may be 
agreed upon by the mortgagor and the mort-
gagee; 
‘‘(C) have a maturity satisfactory to the 
Secretary; 
‘‘(D) be made by a financial institution or 
other mortgagee approved by the Secretary as 
eligible for insurance under section 2 or a mort-
gagee approved under section 203(b)(1);
‘‘(E) comply with other such terms, condi-
tions, and restrictions as the Secretary may 
prescribe; and 
‘‘(F) be made with respect to a child care 
and development facility that complies with the 
requirement under subsection (d). 
‘‘(3) INSURANCE REQUIREMENTS.—The provi-
sions of paragraphs (5), (6), (7), (9), and (10) of 
section 220(h) shall apply to loans insured under 
this subsection, except that all references in such 
paragraphs to home improvement loans shall be con-
sidered, for purposes of this subsection, to refer to 
loans under this subsection. The provisions of sub-
sections (c), (d), and (h) of section 2 shall apply to 
loans insured under this subsection, except that all 
references in such subsections to ‘this section’ or 
‘this title’ shall be considered, for purposes of this 
subsection, to refer to this subsection. 
‘‘(i) SCHEDULES AND DEADLINES.—The Secretary 
shall establish schedules and deadlines for the processing 
and approval (or provision of notice of disapproval) of ap-
plications for mortgage insurance under this section. 
‘‘(j) DEFINITIONS.—For the purposes of this section, 
the following definitions shall apply:
‘‘(1) CHILD CARE AND DEVELOPMENT FACIL-
ITY.—The term ‘child care and development facility’ 
means a public facility, proprietary facility, or facil-
ity of a private nonprofit corporation or association 
that—
‘‘(A) has as its purpose the care and devel-
opment of children less than 12 years of age; 
and 
‘‘(B) is licensed or regulated by the State 
in which it is located (or, if there is no State 
law providing for such licensing and regulation 
by the State, by the municipality or other polit-
ical subdivision in which the facility is located). 
The term does not include facilities for school-age 
children primarily for use during normal school 
hours. The term includes facilities for training indi-
viduals to provide child care and development serv-
ices. 
‘‘(2) DISTRESSED AREA.—The term ‘distressed 
area’ means an area that—
‘‘(A) meets the requirements under sub-
chapter U of chapter I of the Internal Revenue 
Code (26 U.S.C. 1391 et seq.) for designation 
as an enterprise community or empowerment 
zone under such subchapter; or
‘‘(B) is a census tract that has a median 
income that does not exceed 50 percent of the 
median income for the region in which the cen-
sus tract is located, as determined by the Sec-
retary. 
For purposes of subparagraph (B), a region shall be 
determined by the Secretary in the same manner as 
areas are determined for purposes of determining in-
come limitations for assistance under section 8 of 
the United States Housing Act of 1937 (42 U.S.C. 
1437f). 
‘‘(3) EQUIPMENT.—The term ‘equipment’ in-
cludes machinery, utilities, and built-in equipment 
and any necessary enclosures or structures to house 
them, and any other items necessary for the func-
tioning of a particular facility as a child care and 
development facility, including necessary furniture. 
Such term includes books, curricular, and program 
materials. 
‘‘(4) MORTGAGE; 
FIRST
MORTGAGE; 
MORT-
GAGEE.—The term ‘mortgage’ means a first mort-
gage on real estate in fee simple, or on the interest 
of either the lessor or lessee thereof under a lease 
having a period of not less than 7 years to run be-
yond the maturity date of the mortgage. The term
‘first mortgage’ means such classes of first liens as 
are commonly given to secure advances (including 
advances during construction) on, or the unpaid pur-
chase price of, real estate under the laws of the 
State in which the real estate is located, together 
with the credit instrument or instruments (if any) 
secured thereby, and any mortgage may be in the 
form of one or more trust mortgages or mortgage in-
dentures or deeds of trust, securing notes, bonds, or 
other credit instruments, and, by the same instru-
ment or by a separate instrument, may create a se-
curity interest in initial equipment, whether or not 
attached to the realty. The term ‘mortgagor’ has the 
meaning given the term in section 207(a). 
‘‘(k) LIMITATION ON INSURANCE AUTHORITY.—
‘‘(1) TERMINATION.—No mortgage may be in-
sured under this section or section 223(h) after Sep-
tember 30, 2014, except pursuant to a commitment 
to insure issued on or before such date. 
‘‘(2) AGGREGATE PRINCIPAL AMOUNT LIMITA-
TION.—The aggregate principal amount of mort-
gages for which the Secretary enters into commit-
ments to insure under this section or section 223(h) 
on or before the date under paragraph (1) may not 
exceed $2,000,000,000. If, upon the date under
paragraph (1), the aggregate insurance authority 
provided under this paragraph has not been fully 
used, the Secretary of the Treasury shall submit a 
report to the Congress evaluating the need for con-
tinued mortgage insurance under this section. 
‘‘(l) REGULATIONS.—The Secretary shall issue any 
regulations necessary to carry out this section. In issuing 
such regulations, the Secretary shall consult with the Sec-
retary of Health and Human Services with respect to any 
aspects of the regulations regarding child care and devel-
opment facilities.’’. 
SEC. 4. INSURANCE FOR MORTGAGES FOR ACQUISITION OR 
REFINANCING DEBT OF EXISTING CHILD 
CARE AND DEVELOPMENT FACILITIES. 
Section 223 of the National Housing Act (12 U.S.C. 
1715n) is amended by adding at the end the following new 
subsection: 
‘‘(h) MORTGAGE INSURANCE FOR PURCHASE OR RE-
FINANCING OF EXISTING CHILD CARE AND DEVELOP-
MENT FACILITIES.—
‘‘(1) AUTHORITY.—Notwithstanding any other 
provision of this Act, the Secretary may insure 
under any section of this title a mortgage executed 
in connection with the purchase or refinancing of an 
existing child care and development facility, the pur-
chase of a structure to serve as a child care and de-
velopment facility, or the refinancing of existing debt 
of an existing child care and development facility. 
‘‘(2) PURCHASE OF EXISTING FACILITIES AND 
STRUCTURES.—In the case of the purchase under 
this subsection of an existing child care and develop-
ment facility or purchase of an existing structure to 
serve as such a facility, the Secretary shall prescribe 
any terms and conditions that the Secretary con-
siders necessary to ensure that—
‘‘(A) the facility or structure purchased 
continues to be used as a child care and devel-
opment facility; and 
‘‘(B) the facility complies with the same 
requirements applicable under section 257(d) to 
facilities having mortgages insured under such 
section. 
‘‘(3) REFINANCING OF EXISTING FACILITIES.—
In the case of refinancing of an existing child care 
and development facility, the Secretary shall pre-
scribe any terms and conditions that the Secretary 
considers necessary to ensure that—
‘‘(A) the refinancing is used to lower the 
monthly debt service costs (taking into account
any fees or charges connected with such refi-
nancing) of the existing facility; 
‘‘(B) the proceeds of any refinancing will 
be employed only to retire the existing indebted-
ness and pay the necessary cost of refinancing 
on the existing facility; 
‘‘(C) the existing facility is economically 
viable; and 
‘‘(D) the facility complies with the same 
requirements applicable under section 257(d) to 
facilities having mortgages insured under such 
section. 
‘‘(4) DEFINITIONS.—For purposes of this sub-
section, the terms defined in section 257(j) shall 
have the same meanings as provided under such sec-
tion. 
‘‘(5) LIMITATION ON INSURANCE AUTHORITY.—
The authority of the Secretary to enter into commit-
ments to insure mortgages under this subsection is 
subject to the limitations under section 257(k).’’. 
SEC. 5. CHILDREN’S DEVELOPMENT COMMISSION. 
Title II of the National Housing Act (12 U.S.C. 1707 
et seq.) is amended by adding at the end (after section 
257, as added by section 3 of this Act) the following new 
section:
‘‘SEC. 
258. 
CHILDREN’S 
DEVELOPMENT 
COMMISSION 
(KIDDIE MAC). 
‘‘(a) ESTABLISHMENT.—There is hereby established 
a commission to be known as the Children’s Development 
Commission or Kiddie Mac. 
‘‘(b) MEMBERSHIP.—
‘‘(1) APPOINTMENT.—The Commission shall be 
composed of 7 members appointed by the President, 
not later than the expiration of the 3-month period 
beginning upon the enactment of this section, by and 
with the advice and consent of the Senate, as fol-
lows: 
‘‘(A) The Secretary of Housing and Urban 
Development or the Secretary’s designee. 
‘‘(B) The Secretary of Health and Human 
Services or the Secretary’s designee. 
‘‘(C) The Secretary of the Treasury or the 
Secretary’s designee. 
‘‘(D) 4 members shall be appointed from 
among 12 individuals recommended jointly by 
the Speaker of the House of Representatives, 
the Majority Leader of the Senate, Minority 
Leader of the House of Representatives, the 
Minority Leader of the Senate.
‘‘(2) QUALIFICATIONS
OF
CONGRESSIONALLY 
RECOMMENDED
MEMBERS.—Of the members ap-
pointed under paragraph (1)(D)—
‘‘(A) each shall be an individual who ac-
tively participates or is employed in the field of 
child care and has academic, licensing, or other 
credentials relating to such participation or em-
ployment; and 
‘‘(B) not more than 2 may be of the same 
political party. 
‘‘(3) TERMS.—Each appointed member of the 
Commission shall serve for a term of 3 years. 
‘‘(4) VACANCIES.—Any member appointed to 
fill a vacancy occurring before the expiration of the 
term for which the member’s predecessor was ap-
pointed shall be appointed only for the remainder of 
that term. A member may serve after the expiration 
of that member’s term until a successor has taken 
office. A vacancy in the Commission shall be filled 
in the manner in which the original appointment was 
made. 
‘‘(5) CHAIRPERSON.—The chairperson of the 
Commission shall be designated by the President at 
the time of appointment.
‘‘(6) QUORUM.—A majority of the members of 
the Commission shall constitute a quorum for the 
transaction of business. 
‘‘(7) VOTING.—Each member of the Commis-
sion shall be entitled to 1 vote, which shall be equal 
to the vote of every other member of the Commis-
sion. 
‘‘(8) PROHIBITION
ON
ADDITIONAL
PAY.—
Members of the Commission shall serve without 
compensation, but shall be reimbursed for travel, 
subsistence, and other necessary expenses incurred 
in the performance of their duties as members of the 
Commission. 
‘‘(c) FUNCTIONS.—The Commission shall carry out 
the following functions: 
‘‘(1) CERTIFICATION
OF
COMPLIANCE.—The 
Commission shall collect such information and make 
such determinations as may be necessary to deter-
mine, for purposes of section 257(d), whether child 
care and development facilities comply, or will be in 
compliance within 12 months, with—
‘‘(A) any laws, standards, and require-
ments applicable to such facilities under the 
laws of the State, municipality, or other unit of
general local government in which the facility is 
or is to be located, and 
‘‘(B) after the effective date of the stand-
ards and requirements established under para-
graph (2), such standards and requirements, 
and shall issue certifications of such compliance. 
‘‘(2) ESTABLISHMENT OF STANDARDS.—
‘‘(A) STUDY.—Not later than 12 months 
after the date on which appointment of initial 
membership of the Commission is completed, 
the Commission, in consultation with the Sec-
retary of Housing and Urban Development and 
the Secretary of Health and Human Services, 
shall conduct a study to determine the laws, 
standards, and requirements referred to in 
paragraph (1)(A) that are applicable in each 
State. Taking into consideration the findings of 
the study, the Secretary shall establish stand-
ards and requirements regarding child care and 
development facilities that are designed to en-
sure that mortgage insurance is provided under 
section 257 and section 223(h) only for safe, 
clean, and healthy facilities that provide appro-
priate care and development services for chil-
dren.
‘‘(B) 
PUBLICATION.—The 
Commission 
shall issue regulations providing for the stand-
ards and requirements established under sub-
paragraph (A) to take effect, for purposes of 
sections 257(d)(2) and 223(h)(2)(B) and para-
graph (1)(B) of this section, not later than 18 
months after the date of the enactment of this 
section. 
‘‘(3) SMALL
PURPOSE
LOANS.—The Commis-
sion shall, to the extent amounts are made available 
for such purpose pursuant to subsection (i) and 
qualified requests are received, make loans, directly 
or indirectly to providers of child care and develop-
ment facilities for reconstruction or renovation of 
such facilities, subject to the following requirements: 
‘‘(A) Loans under this paragraph shall be 
made only for such facilities that are financially 
and operationally viable, as determined under 
standards and guidelines to be established by 
the Commission. 
‘‘(B) The aggregate amount of loans made 
under this paragraph to a single borrower may 
not exceed $50,000. 
‘‘(C) A loan made under this paragraph 
may not have a term exceeding 15 years.
‘‘(D) Loans under this paragraph shall 
bear interest at rates and be made under such 
other conditions and terms as the Commission 
shall provide. 
‘‘(4) NOTIFICATION.—The Commission shall 
take such actions as may be necessary to publicize 
the availability of the programs for mortgage insur-
ance under sections 257 and 223(h) and loans under 
paragraph (3) of this subsection in a manner that 
ensures that information concerning such programs 
will be available to child care providers throughout 
the United States. 
‘‘(5) TECHNICAL
ASSISTANCE.—The Commis-
sion shall make available, to mortgagors of mort-
gages insured under section 257 or 223(h) and to 
borrowers under paragraph (3) of this subsection, 
technical assistance and expertise in the business as-
pects of operating child care and development facili-
ties (including business planning and quality control 
assistance). The Commission shall provide such as-
sistance and expertise directly and in coordination 
with appropriate Federal agencies (including the De-
partment of Housing and Urban Development, the 
Department of Health and Human Services, the De-
partment of Defense, and the Small Business Ad-
ministration), 
‘‘(6) LIABILITY INSURANCE.—The Commission 
shall—
‘‘(A) not later than 12 months after the 
date on which appointment of initial member-
ship of the Commission is completed—
‘‘(i) establish standards and guide-
lines, applicable to mortgage insurance 
under sections 257 and 223(h) and loans 
under paragraph (3) of this subsection, 
that require child care providers operating 
child care and development facilities as-
sisted under such provisions to obtain and 
maintain 
liability 
insurance 
in 
such 
amounts and subject to such requirements 
as the Commission considers appropriate; 
and 
‘‘(ii) submit a report to the Congress 
that analyzes the need for making financial 
and technical assistance available to such 
child care providers to identify and obtain 
liability insurance adequate to comply with 
such standards and guidelines, identifies 
appropriate methods of providing such as-
sistance, sets forth a program for the Com-
mission to provide such technical assist-
ance, and makes recommendations for any 
legislation necessary to implement a pro-
gram to provide such appropriate financial 
assistance; and 
‘‘(B) beginning not later than the effective 
date of the standards and guidelines established 
under subparagraph (A)(i), carry out the tech-
nical assistance program set forth in the report 
under subparagraph (A)(ii). 
‘‘(7) RESEARCH FOUNDATION.—Not later than 
12 months after the date of the enactment of this 
section, the Commission shall submit a report to the 
Congress recommending a plan for establishing and 
funding a foundation that is an entity independent 
of the Commission (but which maintains association 
with the Commission)—
‘‘(A) which shall have as its purpose—
‘‘(i) to support research relating to 
child care and development facilities; 
‘‘(ii) to fund pilot programs to test in-
novative methods for improving child care; 
and
‘‘(iii) to engage in activities and pub-
lish materials to assist persons interested 
in mortgage insurance under sections 257 
and 223(h) and other assistance provided 
by the Commission; and 
‘‘(B) which shall have the authority to ac-
cept, use, and dispose of gifts, bequests, or de-
vises of services or property, both real and per-
sonal, for the purpose of aiding or facilitating 
the work of the foundation. 
‘‘(8) STUDY
REGARDING
CAPITAL
NEEDS
OF 
CENTER-BASED CHILD CARE IN LOW-INCOME COM-
MUNITIES.—The Commission shall provide for the 
conducting of a study of center-based child care for 
families in low-income communities and neighbor-
hoods that—
‘‘(A) determines the existing supply and 
quality of such care in such areas; 
‘‘(B) identifies the economic and other 
market barriers in such areas to—
‘‘(i) creating an adequate supply of 
center-based child care services; and 
‘‘(ii) achieving a quality standard in 
child care centers adequate to support 
early childhood programs; and
‘‘(C) proposes public policy and private 
sector initiatives that might be taken to ensure 
that such areas have—
‘‘(i) a supply of center-based child 
care facilities sufficient for child care needs 
of the areas and to facilitate employment 
and support the goals of welfare reform; 
‘‘(ii) appropriate child care choices; 
and 
‘‘(iii) sufficient quality of care nec-
essary to prepare at-risk children for 
school. 
The Commission shall submit to the Congress a re-
port regarding the results of the study conducted 
under this section not later than the expiration of 
the 18-month period beginning on the date of the 
appointment of the executive director pursuant to 
subsection (f)(1). 
‘‘(d) NONDISCRIMINATION REQUIREMENT.—
‘‘(1) IN GENERAL.—The Commission may not 
certify under subsection (c)(1) or carry out any ac-
tivities of the Commission with respect to any child 
care and development facility if the provider of the 
facility discriminates on account of race, color, reli-
gion (subject to paragraph (2)), national origin, sex
(to the extent provided in title IX of the Education 
Amendments of 1972 (20 U.S.C. 1681 et seq.)), or 
handicapping condition. 
‘‘(2) FACILITIES
OF
RELIGIOUS
ORGANIZA-
TIONS.—The prohibition with respect to religion 
shall not apply to a child care and development facil-
ity which is controlled by or which is closely identi-
fied with the tenets of a particular religious organi-
zation if the application of this subsection would not 
be consistent with the religious tenets of such orga-
nization. 
‘‘(3) CERTIFICATION.—As a condition of certifi-
cation under subsection (c)(1) and eligibility for a 
loan under subsection (c)(3), the provider of a child 
care and development facility shall certify to the 
Commission that the provider does not discriminate, 
as required by the provisions of paragraph (1) of 
this subsection. 
‘‘(e) POWERS.—
‘‘(1) ASSISTANCE FROM FEDERAL AGENCIES.—
The Commission may secure directly from any de-
partment or agency of the Federal Government such 
information as the Commission may require for car-
rying out its functions. Upon request of the Com-
mission, any such department or agency shall fur-
nish such information. 
‘‘(2) ASSISTANCE
FROM
GENERAL
SERVICES 
ADMINISTRATION.—The Administrator of General 
Services shall provide to the Commission, on a reim-
bursable basis, such administrative support services 
as the Commission may request. 
‘‘(3) ASSISTANCE
FROM
DEPARTMENT
OF 
HOUSING AND URBAN DEVELOPMENT.—Upon the re-
quest of the Commission, the Secretary of Housing 
and Urban Development shall, to the extent possible 
and subject to the discretion of the Secretary, detail 
any of the personnel of the Department of Housing 
and Urban Development, on a nonreimbursable 
basis, to assist the Commission in carrying out its 
functions under this section. 
‘‘(4) MAILS.—The Commission may use the 
United States mails in the same manner and under 
the same conditions as other Federal agencies. 
‘‘(f) STAFF.—
‘‘(1) EXECUTIVE DIRECTOR.—The Commission 
shall appoint an executive director, who shall be 
compensated at a rate fixed by the Commission, but 
which shall not exceed the rate established for level
I of the Executive Schedule under title 5, United 
States Code. 
‘‘(2) OTHER PERSONNEL.—In addition to the 
executive director, the Commission may appoint and 
fix the compensation of such personnel as the Com-
mission considers necessary, in accordance with the 
provisions of title 5, United States Code, governing 
appointments to the competitive service, and the 
provisions of chapter 51 and subchapter III of chap-
ter 53 of such title, relating to classification and 
General Schedule pay rates. 
‘‘(g) REPORTS.—Not later than March 31 of each 
year, the Commission shall submit a report to the Presi-
dent and the Congress regarding the operations and activi-
ties of the Commission during the preceding calendar year. 
Each annual report shall include a copy of the Commis-
sion’s financial statements and such information and other 
evidence as is necessary to demonstrate that the activities 
of the Commission during the year for which the report 
is made. The Commission may also submit reports to the 
Congress and President at such other times as the Com-
mission deems desirable. 
‘‘(h) DEFINITIONS.—For purposes of this section, the 
terms defined in section 257(j) shall have the same mean-
ings as provided under such section.
‘‘(i) AUTHORIZATION OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Commission to 
carry out this section $20,000,000 for fiscal year 2005, 
to remain available until expended, of which not more than 
$2,500,000 shall be available for administrative costs of 
the Commission and the remainder of which shall be avail-
able only for loans under subsection (c)(3).’’. 
SEC. 6. STUDY OF AVAILABILITY OF SECONDARY MARKETS 
FOR MORTGAGES ON CHILD CARE FACILI-
TIES. 
The Secretary of the Treasury shall conduct a study 
of the secondary mortgage markets to determine—
(1) whether such a market exists for purchase 
of mortgages eligible for insurance under sections 
223(h) and 257 of the National Housing Act (as 
added by this Act); 
(2) whether such a market would affect the 
availability of credit available for development of 
child care and development facilities or would lower 
development costs of such facilities; and 
(3) the extent to which such a market or other 
activities to provide credit enhancement for child 
care and development facilities loans is needed to 
meet the demand for such facilities.
The Secretary of the Treasury shall submit to the Con-
gress a report regarding the results of the study conducted 
under this section not later than the expiration of the 2-
year period beginning on the date of the enactment of this 
Act.
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