of the programs for mortgage insurance under this section 
and section 223(h), and the loan program under sub-
section (i) of this section, in a manner that ensures that 
information concerning such programs will be available to 
child care providers throughout the United States. 
‘‘(k) REGULATIONS.—The Secretary shall— 
‘‘(1) issue any regulations necessary to carry 
out this section; and 
‘‘(2) in carrying out paragraph (1), consult with 
the Secretary of Health and Human Services with 
respect to any aspects of the regulations regarding 
child care facilities. 
‘‘(l) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated to carry out this section 
$10,000,000 for fiscal year 2008, to remain available until 
expended, of which not more than 3 percent may be used 
for loans under subsection (i).’’. 
SEC. 5. INSURANCE FOR MORTGAGES FOR ACQUISITION OR 
REFINANCING DEBT OF EXISTING CHILD 
CARE FACILITIES IN THE GULF COAST. 
(a) IN GENERAL.—Section 223 of the National 
Housing Act (12 U.S.C. 1715n) is amended by adding at 
the end the following: 
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‘‘(h) MORTGAGE INSURANCE FOR PURCHASE OR RE-
FINANCING OF EXISTING CHILD CARE FACILITIES IN THE 
GULF COAST.— 
‘‘(1) DEFINITIONS.—In this subsection, the 
terms that are defined in section 257(a) have the 
same meanings as provided in that section. 
‘‘(2) AUTHORITY.—Notwithstanding any other 
provision of this Act, the Secretary may insure 
under any section of this title a mortgage executed 
in connection with— 
‘‘(A) the purchase or refinancing of an ex-
isting child care facility that is located in an 
area for which the President declared that a 
major disaster exists, in accordance with section 
401 of the Robert T. Stafford Disaster Relief 
and Emergency Assistance Act (42 U.S.C. 
5170), as a consequence of Hurricane Katrina 
or Rita of 2005; 
‘‘(B) the purchase of a structure located in 
such an area to serve as a child care facility; or 
‘‘(C) the refinancing of existing debt of an 
existing child care facility located in such an 
area. 
‘‘(3) PURCHASE OF EXISTING FACILITIES AND 
STRUCTURES.—In the case of the purchase under 
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this subsection of an existing child care facility or 
purchase of an existing structure to serve as such a 
facility, the Secretary shall prescribe any terms and 
conditions that the Secretary considers necessary to 
ensure that— 
‘‘(A) the facility or structure purchased 
continues to be used as a child care facility; and 
‘‘(B) the facility complies with any laws, 
standards, and requirements applicable to such 
facilities under the laws of the State, munici-
pality, or other unit of general local government 
in which the facility is or is to be located. 
‘‘(4) REFINANCING OF EXISTING FACILITIES.— 
In the case of refinancing of an existing child care 
facility, the Secretary shall prescribe 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; 
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‘‘(C) the existing facility is economically 
viable; and 
‘‘(D) the facility complies with any laws, 
standards, and requirements applicable to such 
facilities under the laws of the State, munici-
pality, or other unit of general local government 
in which the facility is or is to be located. 
‘‘(5) LIMITATION ON INSURANCE AUTHORITY.— 
The authority of the Secretary to enter into commit-
ments to insure mortgages under this subsection is 
subject to section 257(f).’’. 
SEC. 6. STUDY OF AVAILABILITY OF SECONDARY MARKETS 
FOR MORTGAGES ON CHILD CARE FACILI-
TIES. 
(a) STUDY.—The Secretary of the Treasury shall 
conduct a study of the secondary mortgage markets to de-
termine— 
(1) whether such a market exists for purchase 
of mortgages on new and rehabilitated child care fa-
cilities and mortgages for acquisition and refi-
nancing debt of existing child care facilities, includ-
ing mortgages eligible for insurance under sections 
223(h) and 257 of the National Housing Act (as 
added by this Act); 
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(2) whether such a market would affect the 
availability of credit available for development of 
child care facilities, particularly facilities located in 
areas for which the President declared that a major 
disaster exists, in accordance with section 401 of the 
Robert T. Stafford Disaster Relief and Emergency 
Assistance Act (42 U.S.C. 5170), as a consequence 
of Hurricane Katrina or Rita of 2005, 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 loans for 
child care facilities, particularly for facilities located 
in the areas referred to in paragraph (2), is needed 
to meet the demand for such facilities. 
(b) REPORT.—Not later than 1 year after the date 
of enactment of this Act, the Secretary of the Treasury 
shall submit to Congress a report regarding the results 
of the study conducted under this section. 
SEC. 7. TECHNICAL AND FINANCIAL ASSISTANCE GRANTS. 
(a) DEFINITIONS.—In this section: 
(1) CHILD CARE FACILITY.—The term ‘‘child 
care facility’’ has the meaning given that term in 
section 257(a) of the National Housing Act, as 
added by section 3 of this Act. 
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(2) ELIGIBLE INTERMEDIARY.—The term ‘‘eli-
gible intermediary’’ means a intermediary organiza-
tion that— 
(A) is described in section 501(c)(3) of the 
Internal Revenue Code of 1986; 
(B) is exempt from taxation under section 
501(a) of such Code; and 
(C) has demonstrated experience in— 
(i) financing the construction and ren-
ovation of physical facilities; 
(ii) providing technical and financial 
assistance to child care providers or other 
similar entities; 
(iii) working with businesses (whether 
small or large); and 
(iv) securing private sources for cap-
ital financing; and 
(3) ELIGIBLE RECIPIENT.—The term ‘‘eligible 
recipient’’ means any— 
(A) existing or start-up center-based or 
home-based child care provider; and 
(B) organization in the process of estab-
lishing a center-based or home-based child care 
program or otherwise seeking to provide child 
care services. 
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(4) EQUIPMENT.—The term ‘‘equipment’’ has 
the meaning given that term in section 257(a) of the 
National Housing Act, as added by section 3 of this 
Act. 
(b) GRANT AUTHORITY.—The Secretary of Housing 
and Urban Development, in consultation with the Sec-
retary of Health and Human Services, may award grants 
on a competitive basis in accordance with this section to 
eligible intermediaries for use in accordance with sub-
sections (e) and (f). 
(c) APPLICATIONS.—To be eligible to receive a grant 
under this section an eligible intermediary shall submit to 
the Secretary an application, in such form and containing 
such information as the Secretary may require. 
(d) PRIORITY.—In awarding grants under this sec-
tion the Secretary shall give a priority to applicants under 
subsection (c) that serve low-income or rural areas. 
(e) USE OF FUNDS.— 
(1) REVOLVING
LOAN
FUND.—Each eligible 
intermediary that receives a grant under this section 
shall deposit the grant amount into a child care re-
volving loan fund established by the eligible inter-
mediary. 
(2) ELIGIBLE
ASSISTANCE.—Subject to sub-
section (f), from amounts deposited into the revolv-
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ing loan fund under paragraph (1), each eligible 
intermediary shall provide to eligible recipients— 
(A) financial assistance (in the form of 
loans, grants, investments, guarantees, interest 
subsidies, and other appropriate forms of assist-
ance) for the construction of new child care fa-
cilities located in an area for which the Presi-
dent declared that a major disaster exists, in 
accordance with section 401 of the Robert T. 
Stafford Disaster Relief and Emergency Assist-
ance Act (42 U.S.C. 5170), as a consequence of 
Hurricane Katrina or Rita of 2005, for plan-
ning of such child care facilities, and for acqui-
sition or improvement of such child care facili-
ties or equipment for such child care facilities; 
and 
(B) technical assistance in obtaining public 
or private financing for such construction, plan-
ning, acquisition, and improvement of such 
child care facilities, including developing and 
implementing financing resources, options, and 
plans for such eligible recipients. 
(3) LOAN REPAYMENTS AND INVESTMENT PRO-
CEEDS.—Any amount received by an eligible inter-
mediary from an eligible recipient in the form of 
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