Livable Communities Act of 2021
Bill: S.2616 | Sponsor: Sen. Menendez, Robert (D-NJ)
Policy area: Housing and Community Development

Summary:
Livable Communities Act of 2021
This bill creates the Office of Sustainable Communities in the Department of Housing and Urban Development (HUD) to coordinate the provision of long-term affordable housing, transportation, and environmental projects and to administer grant programs established in the bill.
The bill creates the Comprehensive Planning Grant Program and the Community Challenge Grant Program to be administered by the office. Grants under the Comprehensive Planning Grant Program must be used for specified activities related to the coordination, development, or updating of a comprehensive regional plan across jurisdictions and agencies. Grants offered under the Community Challenge Grant Program must be used to promote integrated planning and investments across policy and governmental jurisdictions and to implement projects identified in a regional plan.
The bill also creates a program that requires HUD to provide loans and loan guarantees to projects that meet specified criteria. Eligible projects must be part of a community-wide development plan, promote sustainable development, and ensure that housing units associated with the project are affordable and initially occupied by lower-income renters or homeowners.

To create livable communities through coordinated public investment and 
           streamlined requirements, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Livable Communities Act of 2021''.

SEC. 2. FINDINGS.

    Congress finds that--
            (1) key Federal programs can boost economic growth at the 
        local and regional level through better coordination of 
        housing, transportation, and related infrastructure 
        investments;
            (2) Federal regulations and policies should support 
        community efforts to implement and sustain progress toward the 
        achievement of locally-defined development goals, in terms of--
                    (A) geographic location and proximity to existing 
                resources;
                    (B) developing transportation choices that serve 
                the needs of all users and fit within the context of 
                the community;
                    (C) maintaining structural and indoor environmental 
                quality and minimizing health hazards; and
                    (D) ensuring that minority and low-income 
                communities have greater access to existing and future 
                transportation services and healthy and affordable 
                housing resources;
            (3) greater coordination of public investment will provide 
        direct support for immediate job creation and lay the 
        groundwork for long-term resilience and prosperity by 
        leveraging significant private sector and philanthropic 
        investment to make the most of Federal funding; and
            (4) improved coordination of Federal housing, 
        transportation, water infrastructure, and climate and 
        resiliency investments will strengthen local communities' 
        ability to plan for and respond to the effects of climate 
        change.

SEC. 3. PURPOSES.

    The purposes of this Act are--
            (1) to strengthen rural, suburban, and urban economies by 
        enabling communities to establish goals for the future and to 
        chart a course for achieving such goals;
            (2) to promote local leadership by encouraging communities 
        to develop innovative solutions that reflect the unique 
        economic assets and needs of the communities;
            (3) to maximize returns on Federal funding of housing, 
        transportation, and environmental infrastructure and resiliency 
        projects through the coordination of Federal grant programs and 
        improving the efficiency and effectiveness of programs and 
        policies of the Department of Housing and Urban Development, 
        the Department of Transportation, the Environmental Protection 
        Agency, and other Federal agencies, as appropriate;
            (4) to ensure that Federal funding supports locally defined 
        long range development goals;
            (5) to make investments in housing, transportation, 
        environmental, and resiliency projects in and for the benefit 
        of historically disadvantaged or underserved minority and low-
        income communities;
            (6) to support a Federal initiative to support healthy 
        housing and reduce the prevalence and severity of housing-
        related health hazards; and
            (7) to support the efforts of local communities to address 
        the impact of climate change, including increased resilience to 
        extreme weather events.

SEC. 4. DEFINITIONS.

    In this Act, the following definitions shall apply:
            (1) Affordable housing.--The term ``affordable housing'' 
        means housing, the cost of which does not exceed 30 percent of 
        the income of low-, very low-, and extremely low-income 
        families.
            (2) Comprehensive regional plan.--The term ``comprehensive 
        regional plan'' means a plan that--
                    (A) uses a cooperative, locally controlled, and 
                inclusive public engagement process to identify needs 
                and goals across a region and to integrate related 
                planning processes;
                    (B) prioritizes projects for implementation, 
                including healthy housing projects; and
                    (C) is tied to capital improvement programs and 
                annual budgets.
            (3) Department.--The term ``Department'' means the 
        Department of Housing and Urban Development.
            (4) Director.--The term ``Director'' means the Director of 
        the Office of Sustainable Housing and Communities established 
        under section 5.
            (5) Extremely low-income family.--The term ``extremely low-
        income family'' has the meaning given that term in section 3(b) 
        of the United States Housing Act of 1937 (42 U.S.C. 1437a(b)).
            (6) Healthy housing.--The term ``healthy housing'' means 
        housing, including senior housing and residential care 
        facilities, that is designed, constructed, rehabilitated, and 
        maintained in a manner that supports the health of the 
        occupants of the housing.
            (7) High-poverty community.--The term ``high-poverty 
        community'' means a census tract with a poverty rate of not 
        less than 25 percent, according to the most recent 5-year 
        estimate of the American Community Survey of the Bureau of the 
        Census.
            (8) Housing-related health hazard.--The term ``housing-
        related health hazard'' means any biological, physical, or 
        chemical source of exposure or condition in, or immediately 
        adjacent to, housing that could adversely affect human health.
            (9) Indian tribe.--The term ``Indian tribe'' has the 
        meaning given the term in section 4(e) of the Indian Self-
        Determination and Education Assistance Act (25 U.S.C. 450b(e)).
            (10) Livable community.--The term ``livable community'' 
        means a metropolitan, urban, suburban, or rural community 
        that--
                    (A) provides transportation choices that are safe, 
                reliable, affordable, accessible, and accommodative for 
                individuals with disabilities;
                    (B) provides long-term affordable housing that 
                provides accessible, energy-efficient, and location-
                efficient choices for people of all ages, incomes, 
                races, and ethnicities;
                    (C) supports, revitalizes, and encourages the 
                growth of existing communities and maximizes the cost-
                effectiveness of existing infrastructure;
                    (D) promotes economic development and economic 
                competitiveness;
                    (E) preserves the environment and natural resources 
                and increases community resilience to natural or 
                anthropogenic environmental disasters;
                    (F) protects agricultural land, rural land, and 
                green spaces; and
                    (G) supports public health and improves the quality 
                of life for residents of, and workers in, the 
                community.
            (11) Location-efficient.--The term ``location-efficient'' 
        characterizes mixed-use development or neighborhoods that 
        integrate housing, transportation choices, commercial 
        development, and facilities and amenities--
                    (A) to lower living expenses for working families;
                    (B) to enhance economic and physical mobility;
                    (C) to encourage private investment in transit-
                oriented development; and
                    (D) to encourage private sector infill development 
                and maximize the use of existing infrastructure.
            (12) Long-term affordable housing.--The term ``long-term 
        affordable housing'' means housing that is affordable housing 
        for a period of not less than 30 years.
            (13) Low-income family.--The term ``low-income family'' has 
        the meaning given the term in section 3(b) of the United States 
        Housing Act of 1937 (42 U.S.C. 1437a(b)).
            (14) Metropolitan planning organization.--The term 
        ``metropolitan planning organization'' means a metropolitan 
        planning organization described in section 134(b) of title 23, 
        United States Code or section 5303(b) of title 49, United 
        States Code.
            (15) Office.--The term ``Office'' means the Office of 
        Sustainable Housing and Communities established under section 
        5.
            (16) Regional council.--The term ``regional council'' means 
        a multiservice regional organization with State and locally 
        defined boundaries that is--
                    (A) accountable to units of general local 
                government;
                    (B) delivers a variety of Federal, State, and local 
                programs; and
                    (C) performs planning functions and provides 
                professional and technical assistance.
            (17) Rural planning organization.--The term ``rural 
        planning organization'' means a voluntary regional organization 
        of local elected officials and representatives of local 
        transportation systems--
                    (A) that--
                            (i) works in cooperation with the 
                        department of transportation (or equivalent 
                        entity) of a State to plan transportation 
                        networks and advise officials of the State on 
                        transportation planning; and
                            (ii) is located in a rural area--
                                    (I) with a population of not less 
                                than 5,000; and
                                    (II) that is not located in an area 
                                represented by a metropolitan planning 
                                organization; or
                    (B) that is a regional transportation planning 
                organization, as defined in section 5303 of title 49, 
                United States Code.
            (18) Secretary.--The term ``Secretary'' means the Secretary 
        of Housing and Urban Development.
            (19) State.--The term ``State'' has the meaning given the 
        term in section 5302 of title 49, United States Code.
            (20) Sustainable development.--The term ``sustainable 
        development'' means development that--
                    (A) fulfills a current and future social need of a 
                community;
                    (B) promotes economic competitiveness or growth and 
                creates new economic opportunity; and
                    (C) uses natural resources responsibly, minimizes 
                ecological and environmental impacts, and improves 
                community resilience to natural disasters while 
                preserving the ability of future generations to meet 
                their own needs.
            (21) Transit-oriented development.--The term ``transit-
        oriented development'' means high-density, walkable, accessible 
        to individuals with disabilities, and location-efficient mixed-
        use development, including commercial development, and 
        affordable and market-rate housing, that is within walking 
        distance of and accessible to 1 or more public transportation 
        facilities with frequent service.
            (22) Unit of general local government.--The term ``unit of 
        general local government'' means--
                    (A) a city, county, town, township, parish, 
                village, or other general purpose political subdivision 
                of a State; or
                    (B) a combination of general purpose political 
                subdivisions, as determined by the Secretary.
            (23) Unit of special purpose local government.--The term 
        ``unit of special purpose local government''--
                    (A) means a division of a unit of general local 
                government that serves a special purpose and does not 
                provide a broad array of services; and
                    (B) includes an entity such as a school district, a 
                housing agency, a transit agency, and a parks and 
                recreation district.
            (24) Very low-income family.--The term ``very low-income 
        family'' has the meaning given the term in section 3(b) of the 
        United States Housing Act of 1937 (42 U.S.C. 1437a(b)).

SEC. 5. OFFICE OF SUSTAINABLE HOUSING AND COMMUNITIES.

    (a) Office Established.--There is established in the Department an 
Office of Sustainable Housing and Communities, which shall--
            (1) coordinate the policies of the Department with those of 
        other Federal agencies that--
                    (A) encourage locally directed comprehensive and 
                integrated planning and development at the State, 
                regional, and local levels;
                    (B) encourage coordinated public investments 
                through the development of comprehensive regional 
                plans;
                    (C) provide long-term affordable housing that 
                provides accessible, energy-efficient, healthy, and 
                location-efficient choices for people of all ages, 
                incomes, races, and ethnicities and individuals with 
                disabilities, particularly for low-, very low-, and 
                extremely low-income families; and
                    (D) achieve other goals consistent with the 
                purposes of this Act;
            (2) review Federal programs and policies to determine 
        barriers to interagency collaboration and make recommendations 
        to promote the ability of local communities, including high-
        poverty communities, to access resources in the Department and 
        throughout the Federal Government and coordinate with and 
        conduct outreach to Federal agencies, including the Department 
        of Transportation and the Environmental Protection Agency, on 
        methods to improve the efficiency and effectiveness of programs 
        within the Department of Transportation, the Environmental 
        Protection Agency, the Department of Agriculture, and the 
        Department;
            (3) review Federal programs and policies to--
                    (A) identify barriers to high-poverty individuals 
                and communities' access to Federal State, local, and 
                private resources; and
                    (B) make recommendations--
                            (i) to promote the ability of high-poverty 
                        communities to access resources in the 
                        Department and throughout the Federal 
                        Government and coordinate with and conduct 
                        outreach to Federal agencies, including the 
                        Department of Transportation and the 
                        Environmental Protection Agency; and
                            (ii) for methods to improve the access of 
                        high-poverty communities to Federal resources 
                        and programs within the Department of 
                        Transportation, the Environmental Protection 
                        Agency, and the Department;
            (4) conduct research and advise the Secretary on the 
        research agenda of the Department relating to coordinated 
        development, in collaboration with the Office of Policy 
        Development and Research of the Department;
            (5) implement and oversee the grant programs established 
        under this Act;
            (6) provide guidance, information on best practices, and 
        technical assistance to communities seeking to adopt 
        sustainable development policies and practices;
            (7) administer initiatives of the Department relating to 
        the policies described in paragraph (1), as determined by the 
        Secretary; and
            (8) work with the Federal Transit Administration and the 
        Federal Highway Administration of the Department of 
        Transportation and other offices and administrations of the 
        Department of Transportation, as appropriate--
                    (A) to encourage transit-oriented development;
                    (B) to coordinate Federal housing, community 
                development, and transportation policies, including the 
                policies described in paragraph (1); and
                    (C) to address combined household housing and 
                transportation expenses in a coordinated manner.
    (b) Director.--The head of the Office shall be the Director of the 
Office of Sustainable Housing and Communities.
    (c) Duties Relating to Grant Programs.--
            (1) In general.--The Director shall carry out the grant 
        programs established under this Act.
            (2) Small and rural communities grant program.--The 
        Director shall coordinate with the Secretary of Agriculture to 
        make grants to small and rural communities under sections 7 and 
        8.
            (3) Technical assistance for grant recipients and 
        applicants.--The Director may--
                    (A) coordinate with other Federal agencies to 
                establish interagency and multidisciplinary teams to 
                provide technical assistance to recipients of, and 
                prospective applicants for, grants under this Act;
                    (B) by Federal interagency agreement, transfer 
                funds to another Federal agency to facilitate and 
                support technical assistance; and
                    (C) make contracts with third parties to provide 
                technical assistance to grant recipients and 
                prospective applicants for grants.

SEC. 6. COMPREHENSIVE PLANNING GRANT PROGRAM.

    (a) Definitions.--In this section:
            (1) Consortium of units of general local governments.--The 
        term ``consortium of units of general local governments'' means 
        a consortium of geographically contiguous units of general 
        local government that the Secretary determines--
                    (A) represents all or part of a metropolitan 
                statistical area, a micropolitan statistical area, or a 
                noncore area, as those terms are defined by the Office 
                of Management and Budget;
                    (B) has the authority under State, Tribal, or local 
                law to carry out planning activities, including 
                surveys, land use studies, environmental or public 
                health analyses, and development of urban 
                revitalization plans; and
                    (C) has provided documentation to the Secretary 
                sufficient to demonstrate that the purpose of the 
                consortium is to carry out a project using a grant 
                awarded under this Act.
            (2) Eligible entity.--The term ``eligible entity'' means--
                    (A) a partnership between a consortium of units of 
                general local government and an eligible partner, which 
                shall designate a lead applicant to be the entity to 
                establish the direct grant relationship with the 
                Secretary; or
                    (B) an Indian tribe, if the Indian tribe has a 
                Tribal entity that performs--
                            (i) housing and land use planning 
                        functions; or
                            (ii) transportation or transportation 
                        planning functions.
            (3) Eligible partner.--The term ``eligible partner'' 
        means--
                    (A) a metropolitan planning organization, a rural 
                planning organization, or a regional council; or
                    (B) a metropolitan planning organization, a rural 
                planning organization, or a regional council, and--
                            (i) a State;
                            (ii) an Indian Tribe;
                            (iii) a State and an Indian Tribe;
                            (iv) a community development corporation; 
                        or
                            (v) an institution of higher education.
            (4) Grant program.--The term ``grant program'' means the 
        comprehensive planning grant program established under 
        subsection (b).
            (5) Noncore area.--The term ``noncore area'' means a county 
        or group of counties that are not designated by the Office of 
        Management and Budget as a micropolitan statistical area or 
        metropolitan statistical area.
    (b) Comprehensive Planning Grant Program Established.--The Director 
shall establish a comprehensive planning grant program to make grants 
to eligible entities to carry out a project--
            (1) to coordinate locally defined planning processes across 
        jurisdictions and agencies;
            (2) to identify regional partnerships for developing and 
        implementing a comprehensive regional plan that advances the 
        sustainability goals of the region;
            (3) to conduct or update assessments to determine regional 
        needs and promote economic and community development;
            (4) to develop or update--
                    (A) a comprehensive regional plan; or
                    (B) goals and strategies to implement an existing 
                comprehensive regional plan and other related 
                activities; and
            (5) to identify local zoning and other code or policy 
        changes necessary to implement a comprehensive regional plan 
        and promote sustainable development and fair housing.
    (c) Grants.--
            (1) Diversity of grantees.--The Director shall ensure 
        geographic diversity among and adequate representation from 
        each of the following categories:
                    (A) Small and rural communities.--Eligible entities 
                that represent all or part of a noncore area, a 
                micropolitan area, or a small metropolitan statistical 
                area with a population of not more than 200,000.
                    (B) Mid-sized metropolitan communities.--Eligible 
                entities that represent all or part of a metropolitan 
                statistical area with a population of more than 200,000 
                and not more than 500,000.
                    (C) Large metropolitan communities.--Eligible 
                entities that represent all or part of a metropolitan 
                statistical area with a population of more than 
                500,000.
                    (D) Indian tribes.--Eligible entities that are 
                Indian tribes.
            (2) Award of funds to small and rural communities.--
                    (A) In general.--The Director shall--
                            (i) award not less than 15 percent of the 
                        funds under the grant program to eligible 
                        entities described in paragraph (1)(A); and
                            (ii) ensure diversity among the geographic 
                        regions and the size of the population of the 
                        communities served by recipients of grants that 
                        are eligible entities described in paragraph 
                        (1)(A).
                    (B) Insufficient applications.--If the Director 
                determines that insufficient approvable applications 
                have been submitted by eligible entities described in 
                paragraph (1)(A), the Director may award less than 15 
                percent of the funds under the grant program to 
                eligible entities described in paragraph (1)(A).
            (3) Award of funds to high-poverty communities.--
                    (A) In general.--The Director shall award not less 
                than 25 percent of the funds under the grant program to 
                eligible entities within the jurisdiction of which 
                there are not fewer than 3 census tracts with a poverty 
                rate of not less than 25 percent, according to the most 
                recent 5-year estimate of the American Community Survey 
                of the Bureau of the Census.
                    (B) Insufficient applications.--If the Director 
                determines that insufficient approvable applications 
                have been submitted by eligible entities described in 
                subparagraph (A)--
                            (i) the Director may award less than 25 
                        percent of the funds under the grant program to 
                        eligible entities described in subparagraph 
                        (A);
                            (ii) the Office of the Director shall 
                        conduct further educational outreach to 
                        eligible entities within high-poverty 
                        communities;
                            (iii) the Director shall keep an open 
                        application period until the Director 
                        determines there is an appropriate amount of 
                        approvable applications that can be awarded 
                        within the period of availability; and
                            (iv) the Director shall provide technical 
                        assistance to eligible entities within the 
                        jurisdiction of which are high-poverty 
                        communities.
            (4) Availability of funds.--
                    (A) In general.--An eligible entity that receives a 
                grant under the grant program shall--
                            (i) obligate any funds received under the 
                        grant program not later than 1 year after the 
                        date on which the grant agreement under 
                        subsection (g) is made; and
                            (ii) expend any funds received under the 
                        grant program not later than 4 years after the 
                        date on which the grant agreement under 
                        subsection (g) is made.
                    (B) Unobligated amounts.--After the date described 
                in subparagraph (A)(i), the Secretary may--
                            (i) grant an extension to the eligible 
                        entity if the eligible entity has--
                                    (I) demonstrated progress in 
                                executing the grant; and
                                    (II) certified that the eligible 
                                entity needs additional time to 
                                obligate grant funds; or
                            (ii) award to another eligible entity, to 
                        carry out activities under this section, any 
                        amounts that an eligible entity has not 
                        obligated under subparagraph (A)(i).
    (d) Application.--
            (1) In general.--The lead applicant of an eligible entity 
        that desires a grant under this section shall submit to the 
        Director an application, at such time and in such manner as the 
        Director shall prescribe, that contains--
                    (A) a description of the project proposed to be 
                carried out by the eligible entity;
                    (B) a budget for the project that includes the 
                anticipated Federal share of the cost of the project 
                and a description of the source of the non-Federal 
                share;
                    (C) the designation of lead applicant to receive 
                and manage any funds received by the eligible entity 
                under the grant program;
                    (D) a signed copy of a memorandum of understanding 
                among local jurisdictions, including, as appropriate, a 
                State, an Indian tribe, units of general local 
                government, units of special purpose local government, 
                metropolitan planning organizations, rural planning 
                organizations, and regional councils that 
                demonstrates--
                            (i) the creation of an eligible entity;
                            (ii) a description of the nature and extent 
                        of planned collaboration between the eligible 
                        entity and any partners of the eligible entity;
                            (iii) a commitment to develop a 
                        comprehensive regional plan; and
                            (iv) a commitment to implement the plan 
                        after the plan is developed;
                    (E) a certification by the lead applicant that the 
                eligible entity has--
                            (i) secured the participation, or made a 
                        good-faith effort to secure the participation, 
                        of transportation providers and public housing 
                        agencies within the area affected by the 
                        comprehensive regional plan and the entities 
                        described in clause (ii); and
                            (ii) created, or will create not later than 
                        1 year after the date of the grant award, a 
                        regional advisory board to provide input and 
                        feedback on the development of the 
                        comprehensive regional plan that includes 
                        representatives of a State, the metropolitan 
                        planning organization, the rural planning 
                        organization, the regional council, local 
                        jurisdictions, non-profit organizations, and 
                        others, as deemed appropriate by the eligible 
                        entity, given the local context of the 
                        comprehensive planning effort; and
                    (F) a certification that the eligible entity has 
                solicited public comment on the contents of the project 
                description under subparagraph (A) that includes--
                            (i) a description of the process for 
                        receiving public comment relating to the 
                        proposal; and
                            (ii) such other information as the Director 
                        may require;
                    (G) a description of how the eligible entity will 
                carry out the activities under subsection (f); and
                    (H) such additional information as the Director may 
                require.
            (2) Indian tribes.--An eligible entity that is an Indian 
        tribe is not required to submit the designation under paragraph 
        (1)(C) or the certification under paragraph (1)(E).
    (e) Selection.--In evaluating an application for a grant under the 
grant program, the Director shall consider the extent to which the 
application--
            (1) demonstrates that the eligible entity has or will have 
        the legal, financial, managerial, and technical capacity to 
        carry out the project;
            (2) demonstrates the extent to which the eligible entity 
        has developed partnerships throughout an entire region, 
        including, as appropriate, partnerships with the entities 
        described in subsection (d)(1)(D);
            (3) demonstrates integration with local efforts in economic 
        development and job creation;
            (4) demonstrates a strategy for implementing a 
        comprehensive regional plan through regional infrastructure 
        investment plans and local land use plans;
            (5) promotes diversity among the geographic regions and the 
        size of the population of the communities served by recipients 
        of grants under this section;
            (6) demonstrates a commitment to seeking substantial public 
        input during the planning process and public participation in 
        the development of the comprehensive regional plan;
            (7) demonstrates a strategy for connecting underserved, 
        low-income, disabled, and minority community members with 
        housing, transportation, and infrastructure resources;
            (8) demonstrates a commitment to implementing the plan upon 
        completion, including securing funding to implement 1 or more 
        elements of the plan; and
            (9) demonstrates such other qualities as the Director may 
        determine.
    (f) Eligible Activities.--An eligible entity that receives a grant 
under this section shall carry out a project that includes 1 or more of 
the following activities:
            (1) Coordinating locally defined planning processes across 
        jurisdictions and agencies.
            (2) Identifying potential regional partnerships for 
        developing and implementing a comprehensive regional plan.
            (3) Conducting or updating assessments to determine 
        regional needs, including healthy housing, and promote economic 
        and community development.
            (4) Developing or updating--
                    (A) a comprehensive regional plan; or
                    (B) goals and strategies to implement an existing 
                comprehensive regional plan.
            (5) Identifying and implementing local zoning and other 
        policy or code changes necessary to implement a comprehensive 
        regional plan and promote sustainable development and fair 
        housing.
    (g) Grant Agreement.--Each eligible entity that receives a grant 
under the grant program shall agree to establish, in coordination with 
the Director, performance measures, reporting requirements, and any 
other requirements that the Director determines are necessary, that the 
eligible entity, through the lead applicant, shall meet at the end of 
each year in which the eligible entity receives funds under the grant 
program.
    (h) Public Outreach.--
            (1) Outreach required.--Each eligible entity that receives 
        a grant under the grant program shall perform substantial 
        outreach activities--
                    (A) to engage a broad cross-section of community 
                stakeholders in the process of developing a 
                comprehensive regional plan, including low-income 
                families, minorities, disabled individuals, older 
                adults, and economically disadvantaged community 
                members; and
                    (B) to create an effective means for stakeholders 
                to participate in the development and implementation of 
                a comprehensive regional plan.
            (2) Finalization of comprehensive regional plan.--
                    (A) In general.--An eligible entity that receives a 
                grant under the grant program may not finalize a 
                comprehensive regional plan before the eligible entity 
                holds a public hearing to obtain the views of citizens, 
                public agencies, and other interested parties.
                    (B) Availability of information.--Not later than 30 
                days before a hearing described in subparagraph (A), an 
                eligible entity shall make the proposed comprehensive 
                regional plan and all information relevant to the 
                hearing--
                            (i) available to the public for inspection 
                        during normal business hours; and
                            (ii) available on a publicly accessible 
                        website.
                    (C) Notice.--Not later than 30 days before a 
                hearing described in subparagraph (A), an eligible 
                entity shall publish notice--
                            (i) of the hearing; and
                            (ii) that the information described in 
                        subparagraph (B) is available.
    (i) Violation of Grant Agreement or Failure To Comply With Public 
Outreach Requirements.--If the Director determines that an eligible 
entity has not met the performance measures established in the grant 
agreement under subsection (g), is not making reasonable progress 
toward meeting such measures, is otherwise in violation of the grant 
agreement, or has not complied with the public outreach requirements 
under subsection (h), the Director may--
            (1) impose increased reporting and more stringent 
        expenditure authorization requirements;
            (2) withhold financial assistance until the requirements 
        under the grant agreement or under subsection (h), as 
        applicable, are met;
            (3) wholly or partly suspend or terminate the grant 
        agreement;
            (4) refer the grantee to the appropriate office within the 
        Department for further enforcement action; and
            (5) take other remedies that may be legally available.
    (j) Report on the Comprehensive Planning Grant.--
            (1) In general.--Not later than 120 days after the date on 
        which the grant agreement under subsection (g) expires, an 
        eligible entity that receives a grant under the grant program 
        shall submit a final report on the project to the Secretary.
            (2) Contents of report.--The report shall include--
                    (A) a detailed explanation of the activities 
                undertaken using the grant, including an explanation of 
                the completed project and how it achieves specific 
                transit-oriented, transportation, housing, or 
                sustainable community goals within the region;
                    (B) a discussion of any obstacles encountered in 
                the planning process and how the eligible entity 
                overcame the obstacles;
                    (C) an evaluation of the success of the project 
                using the performance measures established in the grant 
                agreement under subsection (g), including an evaluation 
                of the planning process and how the project contributes 
                to carrying out the comprehensive regional plan;
                    (D) an outline of any proposed follow-up activities 
                to implement 1 or more elements of the plan, including 
                commitments of additional planned public or private 
                investments for such activities; and
                    (E) any other information the Director may require.
            (3) Interim reports.--The Director may require an eligible 
        entity to submit an interim report or reports before the date 
        on which the project for which the grant is awarded is 
        completed.
    (k) Authorization of Appropriations.--
            (1) Authorization.--There are authorized to be appropriated 
        to the Secretary for the award of grants under this section, to 
        remain available until expended--
                    (A) $570,800,000 for fiscal year 2022; and
                    (B) $707,300,000 for each of fiscal years 2023 
                through 2026.
            (2) Technical assistance.--The Director may use not more 
        than 2 percent of the amounts made available under this 
        subsection for a fiscal year for technical assistance under 
        section 5(c)(3).

SEC. 7. COMMUNITY CHALLENGE GRANT PROGRAM.

    (a) Definitions.--In this section--
            (1) the terms ``consortium of units of general local 
        governments'', ``eligible entity'', and ``eligible partner'' 
        have the meanings given those terms in section 6; and
            (2) the term ``grant program'' means the community 
        challenge grant program established under subsection (b).
    (b) Community Challenge Grant Program Established.--The Director 
shall establish a community challenge grant program to make grants to 
eligible entities to--
            (1) promote integrated planning and investments across 
        policy and governmental jurisdictions; and
            (2) implement projects identified in a comprehensive 
        regional plan.
    (c) Grants.--
            (1) Diversity of grantees.--The Director shall ensure--
                    (A) geographic diversity among and adequate 
                representation from eligible entities in each of the 
                categories described in section 6(c)(1); and
                    (B) diversity among and adequate representation 
                from eligible entities described in section 6(c)(3).
            (2) Terms and conditions.--Except as otherwise provided in 
        this section, a grant under the grant program shall be made on 
        the same terms and conditions as a grant under section 6.
            (3) Expending funds.--An eligible entity that receives a 
        grant under the grant program shall expend any funds received 
        under the grant program not later than 5 years after the date 
        on which the grant agreement under subsection (g) is made.
    (d) Application.--
            (1) Contents.--An eligible entity that desires a grant 
        under the grant program shall submit to the Director an 
        application, at such time and in such manner as the Director 
        shall prescribe, that contains--
                    (A) a copy of the comprehensive regional plan, 
                whether developed as part of the comprehensive planning 
                grant program under section 6 or developed 
                independently;
                    (B) a description of the project or projects 
                proposed to be carried out using a grant under the 
                grant program;
                    (C) a description of any preliminary actions that 
                have been or must be taken at the local or regional 
                level to implement the project or projects described 
                under subparagraph (B), including the revision of land 
                use or zoning policies;
                    (D) the designation of a lead applicant to be the 
                entity to establish the direct grant relationship with 
                the Secretary;
                    (E) a signed copy of a memorandum of understanding 
                among local jurisdictions, including, as appropriate, a 
                State, units of general local government, units of 
                special purpose local government, metropolitan planning 
                organizations, rural planning organizations, and 
                regional councils that demonstrates--
                            (i) the creation of a consortium of units 
                        of general local government; and
                            (ii) a commitment to implement the 
                        activities described in the comprehensive 
                        regional plan; and
                    (F) a certification that the eligible entity has 
                solicited public comment on the contents of the project 
                or projects described in subparagraph (B) that 
                includes--
                            (i) a certification that the eligible 
                        entity made information about the project or 
                        projects available and afforded citizens, 
                        public agencies, and other interested parties a 
                        reasonable opportunity to examine the content 
                        of the project or projects and to submit 
                        comments;
                            (ii) a description of the process for 
                        receiving public comment, and a description of 
                        the outreach efforts to affected populations 
                        and stakeholders;
                            (iii) a certification that the eligible 
                        entity--
                                    (I) held a public hearing to obtain 
                                the views of citizens, public agencies, 
                                and other interested parties;
                                    (II) made the proposed project or 
                                projects and all information relevant 
                                to the hearing available for inspection 
                                by the public during normal business 
                                hours not less than 30 days before the 
                                hearing under subclause (I); and
                                    (III) published a notice informing 
                                the public of the hearing under 
                                subclause (I) and the availability of 
                                the information described in subclause 
                                (II); and
                    (G) a budget for the project or projects that 
                includes the Federal share of the cost of the project 
                or projects requested and a description of the source 
                of the non-Federal share; and
                    (H) such additional information as the Director may 
                require.
            (2) Indian tribes.--An eligible entity that is an Indian 
        tribe is not required to designate a lead applicant under 
        paragraph (1)(D) or submit a memorandum of understanding under 
        paragraph (1)(E).
    (e) Selection.--In evaluating an application for a grant under the 
grant program, the Director shall consider the extent to which the 
application--
            (1) demonstrates that the eligible entity has or will have 
        the legal, financial, managerial, and technical capacity to 
        carry out the project;
            (2) demonstrates the extent to which the eligible entity 
        has developed partnerships throughout an entire region, 
        including partnerships with units of special purpose local 
        government and transportation providers;
            (3) demonstrates clear and meaningful interjurisdictional 
        cooperation and coordination of housing, including healthy 
        housing, transportation, and environmental policies and plans;
            (4) demonstrates a commitment to implementing a 
        comprehensive regional plan and documents action taken or 
        planned to implement the plan;
            (5) identifies original and innovative ideas to overcoming 
        regional problems, including local land use, zoning, or other 
        obstacles to carrying out the comprehensive regional plan;
            (6) promotes diversity among the geographic regions and the 
        size of the population of the communities served by recipients 
        of grants under the grant program;
            (7) demonstrates a commitment to substantial public input 
        throughout the implementation process;
            (8) demonstrates a strategy for connecting underserved, 
        low-income, disabled, and minority community members with 
        housing, transportation, and infrastructure resources; and
            (9) demonstrates such other qualities as the Director may 
        determine.
    (f) Grant Activities.--
            (1) Planning activities.--
                    (A) In general.--An eligible entity that receives a 
                grant under the grant program may use not more than 10 
                percent of the grant for planning activities.
                    (B) Limitation.--Activities related to the 
                updating, reform, or development of a local code, plan, 
                or ordinance to implement projects contained in a 
                comprehensive regional plan shall not be considered 
                planning activities for the purposes of a grant under 
                the grant program.
            (2) Projects.--An eligible entity that receives a grant 
        under the grant program shall carry out 1 or more projects that 
        are designed to achieve the goals identified in a comprehensive 
        regional plan.
    (g) Grant Agreement.--Each eligible entity that receives a grant 
under the grant program shall agree to establish, through the lead 
applicant and in coordination with the Director, performance measures, 
reporting requirements, and any other requirements that the Director 
determines are necessary, that the eligible entity, through the lead 
applicant, shall meet at the end of each year in which the eligible 
entity receives funds under the grant program.
    (h) Violation of Grant Agreement.--If the Director determines that 
an eligible entity has not met the performance measures established 
under subsection (g), is not making reasonable progress toward meeting 
such measures, or is otherwise in violation of the grant agreement, the 
Director may--
            (1) impose increased reporting and more stringent 
        expenditure authorization requirements;
            (2) withhold financial assistance until the requirements 
        under the grant agreement are met;
            (3) wholly or partly suspend or terminate the grant 
        agreement;
            (4) refer the grantee to the appropriate office within the 
        Department for further enforcement action; and
            (5) take other remedies that may be legally available.
    (i) Report on the Community Challenge Grant.--
            (1) In general.--Not later than 120 days after the date on 
        which the grant agreement under subsection (g) expires, an 
        eligible entity that receives a grant under the grant program 
        shall submit a final report on the project to the Secretary.
            (2) Contents of report.--The report shall include--
                    (A) a detailed explanation of the activities 
                undertaken using the grant, including an explanation of 
                the completed project and how it achieves specific 
                transit-oriented, transportation, housing, or 
                sustainable community goals within the region;
                    (B) a discussion of any obstacles encountered in 
                the planning and implementation process and how the 
                eligible entity overcame the obstacles;
                    (C) an evaluation of the success of the project 
                using the performance measures established under 
                subsection (g), including an evaluation of the planning 
                and implementation process and how the project 
                contributes to carrying out the comprehensive regional 
                plan;
                    (D) outline of any proposed follow-up activities 
                including commitments of additional planned public or 
                private investments; and
                    (E) any other information the Director may require.
            (3) Interim reports.--The Director may require an eligible 
        entity to submit an interim report or reports before the date 
        on which the project for which the grant is awarded is 
        completed.
    (j) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary for the award of grants under this 
section, to remain available until expended--
            (1) $175,350,000 for each of fiscal years 2022 through 
        2023;
            (2) $203,700,000 for fiscal year 2024;
            (3) $233,100,000 for fiscal year 2025; and
            (4) $262,500,000 for fiscal year 2026.

SEC. 8. CREDIT FACILITY TO SUPPORT TRANSIT-ORIENTED DEVELOPMENT.

    (a) Definitions.--In this section, the following definitions shall 
apply:
            (1) Eligible applicant.--The term ``eligible applicant'' 
        means a State or local governmental authority.
            (2) Eligible area.--The term ``eligible area'' means the 
        area within \1/2\ mile of an existing or planned major public 
        transportation facility.
            (3) Eligible borrower.--The term ``eligible borrower'' 
        means--
                    (A) a governmental entity, authority, agency, or 
                instrumentality;
                    (B) a corporation, partnership, joint venture, or 
                trust on behalf of which an eligible applicant has 
                submitted an application under subsection (c); or
                    (C) any other legal entity undertaking an 
                infrastructure development project on behalf of which 
                an eligible applicant has submitted an application 
                under subsection (c).
            (4) Major public transportation facility.--The term ``major 
        public transportation facility'' means--
                    (A) a fixed-guideway public transportation station;
                    (B) a high speed rail or intercity rail station 
                connecting to public transportation;
                    (C) an intermodal facility connecting multiple 
                public transportation lines; or
                    (D) a public transportation center located in an 
                area other than an urbanized area.
            (5) Planned major public transportation facility.--The term 
        ``planned major public transportation facility'' means a major 
        public transportation facility for which--
                    (A) appropriate environmental reviews have been 
                initiated or have been completed; and
                    (B) funding for construction can be reasonably 
                anticipated.
            (6) Project.--The term ``project'' means an infrastructure 
        project that is used to support a transit-oriented development 
        in an eligible area, including--
                    (A) property enhancement, including conducting 
                environmental remediation, park development, and open 
                space acquisition;
                    (B) improvement of physical mobility, including 
                rehabilitating, or providing for additional, streets, 
                public transportation stations, structured parking, 
                walkways, and bikeways;
                    (C) improve accommodations for individuals with 
                disabilities;
                    (D) utility development, including rehabilitating 
                or relocating existing, or providing for new drinking 
                water, wastewater, electric, and gas utilities; or
                    (E) community service facilities, such as child 
                care centers.
            (7) Public transportation.--The term ``public 
        transportation'' has the meaning given that term in section 
        5302 of title 49, United States Code.
    (b) Loan Program Established.--The Secretary, in consultation with 
the Secretary of Transportation, may make or guarantee loans under this 
section to eligible borrowers for projects.
    (c) Application.--
            (1) In general.--An eligible applicant may submit to the 
        Secretary an application for a loan or loan guarantee under 
        this section--
                    (A) to fund a project carried out by the eligible 
                applicant; or
                    (B) on behalf of an eligible borrower, to fund a 
                project carried out by the eligible borrower.
    (d) Selection Criteria.--
            (1) In general.--The Secretary may make a loan or loan 
        guarantee under this section for a project that--
                    (A) is part of a community-wide development plan, 
                as defined by the Secretary;
                    (B) promotes sustainable development; and
                    (C) ensures that not less than 20 percent of any 
                housing units constructed or substantially 
                rehabilitated as part of transit-oriented development 
                supported by the project are affordable over the long-
                term to, and occupied at time of initial occupancy by--
                            (i) renters with incomes at or below 60 
                        percent of the area median income; or
                            (ii) homeowners with incomes at or below 
                        100 percent of the area median income.
            (2) Considerations.--The Secretary, in consultation with 
        the Secretary of Transportation, shall select the recipients of 
        loans and loan guarantees under this section based on the 
        extent to which--
                    (A) the transit-oriented development supported by 
                the project will encourage increased use of transit;
                    (B) the transit-oriented development supported by 
                the project will create or preserve long-term 
                affordable housing units in addition to the housing 
                units required to be made available under paragraph 
                (1)(C) or will provide deeper affordability than 
                required under paragraph (1)(C);
                    (C) the project will facilitate and encourage 
                additional development or redevelopment in the overall 
                public transportation station area;
                    (D) the local government has adopted policies 
                that--
                            (i) promote long-term affordable housing; 
                        and
                            (ii) allow high-density, mixed-use 
                        development near public transportation 
                        stations;
                    (E) the transit-oriented development supported by 
                the project is part of a comprehensive regional plan;
                    (F) the eligible borrower has established a 
                reliable, dedicated revenue source to repay the loan; 
                and
                    (G) a loan or loan guarantee under this section 
                would be used in conjunction with non-Federal resources 
                to fund the project.
    (e) Eligible Sources of Repayment.--A loan made or guaranteed under 
this section shall be repayable, in whole or in part, from dedicated 
revenue sources, which may include--
            (1) user fees;
            (2) property tax revenues;
            (3) sales tax revenues;
            (4) other revenue sources dedicated to the project by 
        property owners and businesses; and
            (5) a bond or other indebtedness backed by one of the 
        revenue sources listed in this paragraph.
    (f) Interest Rate.--The Secretary shall establish an interest rate 
for loans made or guaranteed under this section with reference to a 
benchmark interest rate (commonly known as a ``yield'') on marketable 
Treasury securities with a maturity that is similar to the loans made 
or guaranteed under this section.
    (g) Maximum Maturity.--The maturity of a loan made or guaranteed 
under this section may not exceed the lesser of--
            (1) 35 years; or
            (2) 100 percent of the useful life of any project to be 
        financed by the loan, as determined by the Secretary.
    (h) Maximum Loan Guarantee Rate.--
            (1) In general.--The guarantee rate on a loan guaranteed 
        under this section may not exceed 75 percent of the amount of 
        the loan.
            (2) Lower guarantee rate for low-risk borrowers.--The 
        Secretary shall establish a guarantee rate for loans to 
        eligible borrowers that the Secretary determines pose a lower 
        risk of default that is lower than the guarantee rate for loans 
        to other eligible borrowers.
    (i) Fees.--The Secretary shall establish fees for loans made or 
guaranteed under this section at a level that is sufficient to cover 
all or part of the costs to the Federal Government of making or 
guaranteeing a loan under this section.
    (j) Nonsubordination.--A loan made or guaranteed under this section 
may not be subordinated to the claims of any holder of an obligation 
relating to the project in the event of bankruptcy, insolvency, or 
liquidation.
    (k) Commencement of Repayment.--The scheduled repayment of 
principal or interest on a loan made or guaranteed under this section 
shall commence not later than 5 years after the date of substantial 
completion of a project.
    (l) Repayment Deferral for Loans.--
            (1) In general.--If, at any time after the date of 
        substantial completion of a project, the Secretary determines 
        that dedicated revenue sources of an eligible borrower are 
        insufficient to make the scheduled loan repayments of principal 
        and interest on a loan made or guaranteed under this section, 
        the Secretary may, subject to criteria established by the 
        Secretary, allow the eligible borrower to add unpaid principal 
        and interest to the outstanding balance of the loan.
            (2) Treatment of deferred payments.--Any payment deferred 
        under this section shall--
                    (A) continue to accrue interest until fully repaid; 
                and
                    (B) be scheduled to be amortized over the remaining 
                term of the loan.
    (m) Sanctions for Performance Deficiencies.--If the Director 
determines that a recipient of a loan made or guaranteed under this 
section has performance deficiencies in the use of the loan funds under 
this section or is otherwise in violation of the loan or loan guarantee 
agreement, the Director may impose sanctions and undertake other 
remedies for noncompliance in accordance with section 111 of the 
Housing and Community Development Act of 1974 (42 U.S.C. 5311) and the 
implementing regulations of the Department.
    (n) Authorization of Appropriations.--There are authorized to be 
appropriated for the cost of loans and loan guarantees under this 
section $110,000,000 for each of fiscal years 2022 through 2026.

SEC. 9. HEALTHY HOMES.

    (a) Federal Initiative To Support Healthy Housing and Substantially 
Reduce Housing-Related Health Hazards.--The Secretary, acting through 
the Director of the Office of Lead Hazard Control and Healthy Homes and 
in consultation with the Secretary of Energy, the Administrator of the 
Environmental Protection Agency, the Secretary of Agriculture, the 
Secretary of the Treasury, the Director of the National Institute of 
Standards and Technology, the Director of the National Institute of 
Environmental Health Sciences, and the Director of the Centers for 
Disease Control, shall lead the Federal initiative to support healthy 
housing and substantially reduce the prevalence and severity of 
housing-related health hazards by--
            (1) identifying best practices and model programs, 
        including practices and programs that link services for low-
        income families and services for health hazards;
            (2) identifying best practices for finance products, 
        building codes, and regulatory practices;
            (3) researching training programs and work practices that 
        can accurately assess housing-related health hazards;
            (4) promoting collaboration among Federal, State, local, 
        and tribal agencies and non-governmental organizations; and
            (5) coordinating with all relevant Federal agencies.
    (b) Assessment.--The Secretary shall conduct a collaborative, 
interagency assessment of best practices for--
            (1) coordinating activities relating to healthy housing; 
        and
            (2) creating incentives in programs of the Federal 
        Government to advance the complementary goals of improving 
        environmental health, energy conservation, decarbonization, and 
        the availability of housing.
    (c) Study and Report on Sustainable Building Features and Indoor 
Environmental Quality in Housing.--
            (1) Study.--The Secretary, in consultation with the 
        Secretary of Energy, the Director of the National Institute of 
        Standards and Technology, the Director of the National 
        Institute of Environmental Health Sciences, the Director of the 
        Centers for Disease Control and Prevention, the Secretary of 
        the Treasury, the Secretary of Agriculture, and any other 
        Federal agency that the Secretary determines is appropriate, 
        shall conduct a detailed study of how sustainable building 
        features in housing, such as energy efficiency, affect--
                    (A) the quality of the indoor environment;
                    (B) the prevalence of housing-related health 
                hazards; and
                    (C) the health of occupants of the housing.
            (2) Report.--Not later than 3 years after the date of 
        enactment of this Act, the Secretary shall submit to the 
        Committee on Banking, Housing, and Urban Affairs and the 
        Committee on Appropriations of the Senate and the Committee on 
        Financial Services and the Committee on Appropriations of the 
        House of Representatives a report containing the results of the 
        study under paragraph (1).
    (d) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary to carry out this section.
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