Title: Neighborhood Economic Development and Opportunity Act of 2020
Policy area: Housing and Community Development

Summary:
Neighborhood Economic Development and Opportunity Act of 2020
This bill establishes, and provides emergency funding for, grants to support the revitalization of opportunity zones and areas with long-term poverty, including in Baltimore, Maryland.
The bill designates the funding as emergency spending, which is exempt from discretionary spending limits.
The Department of Commerce shall provide grants to qualifying nongovernmental, nonprofit, faith-based, or charitable organizations to carry out in these areas programs that help individuals acquire or improve skills. Such a program may include a development project that revitalizes physical infrastructure.
For qualifying projects in Baltimore, Maryland, Commerce may also provide grants to the city or to the state.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 4405 Introduced in Senate (IS)]

<DOC>






116th CONGRESS
  2d Session
                                S. 4405

   To establish a pilot program to provide grants to nongovernmental 
      entities, including nonprofit organizations and faith-based 
organizations, to provide economic support in urban areas of the United 
                    States, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             August 3, 2020

Mr. Van Hollen introduced the following bill; which was read twice and 
       referred to the Committee on Environment and Public Works

_______________________________________________________________________

                                 A BILL


 
   To establish a pilot program to provide grants to nongovernmental 
      entities, including nonprofit organizations and faith-based 
organizations, to provide economic support in urban areas of the United 
                    States, 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 ``Neighborhood Economic Development 
and Opportunity Act of 2020''.

SEC. 2. NEIGHBORHOOD ECONOMIC DEVELOPMENT AND OPPORTUNITY PILOT 
              PROGRAM.

    (a) Findings.--Congress finds that--
            (1) residents of certain urban communities in the United 
        States have experienced decades-long, complex, and systemic 
        racial, economic, social, and other impediments that prevent 
        the best solutions and equal opportunities for certain urban 
        residents compared to those in outlying communities;
            (2) the efforts and work of nonprofit and faith-based 
        community organizations are essential to revitalizing the urban 
        communities referred to in paragraph (1) and delivering 
        meaningful, positive change in people and improvement of 
        physical infrastructure of neighborhoods, resulting in better 
        communities; and
            (3) cities are in need of immediate and emergency action 
        and streamlined delivery of Federal assistance through local 
        nonprofit and faith-based organizations within or directly 
        contributing to severely distressed urban neighborhoods, 
        especially in areas designated as opportunity zones.
    (b) Definitions.--In this section:
            (1) Eligible entity.--The term ``eligible entity'' means a 
        nongovernmental, nonprofit, faith-based, or charitable 
        organization, including a Community Development Corporation, or 
        a combination of such organizations, that--
                    (A) is described in section 501(c)(3) of the 
                Internal Revenue Code of 1986 and is exempt from 
                taxation under section 501(a) of that Code; and
                    (B) delivers--
                            (i) services that improve employment 
                        skills, promote self-sufficiency and self-
                        empowerment, and help individuals achieve their 
                        full potential through the development and 
                        provision of skills and capacities that promote 
                        productive individuals; or
                            (ii) development projects that revitalize 
                        physical infrastructure needed in severely 
                        distressed urban neighborhoods, especially 
                        opportunity zones.
            (2) Faith-based organization.--The term ``faith-based 
        organization'' means a nonprofit organization or group of 
        organizations that is affiliated with or composed of 
        congregations or networks of worship organizations that deliver 
        social, human, or community redevelopment services or 
        activities for the purpose of improving the human condition or 
        lives of people.
            (3) Opportunity zone.--The term ``opportunity zone'' has 
        the meaning given the term ``qualified opportunity zone'' in 
        section 1400Z-1(a) of the Internal Revenue Code of 1986.
            (4) Review board.--The term ``review board'' means the 
        review board established under subsection (d)(1).
            (5) Secretary.--The term ``Secretary'' means the Secretary 
        of Commerce.
            (6) Severely distressed urban neighborhood.--The term 
        ``severely distressed urban neighborhood'' means--
                    (A) an opportunity zone; or
                    (B) an area that has experienced severe long-term 
                poverty, as determined by the Secretary.
    (c) Neighborhood Economic Development and Opportunity Pilot Program 
for Nonprofit and Faith-Based Partnerships To Support Severely 
Distressed Urban Neighborhoods.--
            (1) Establishment.--The Secretary shall establish a grant 
        program to provide grants to eligible entities to carry out 
        activities to achieve urban community revitalization in 
        severely distressed urban neighborhoods.
            (2) Eligible activities.--An eligible entity may use a 
        grant under this section to carry out--
                    (A) a social or economic program that improves 
                employment skills, promotes self-sufficiency and self-
                empowerment, or helps individuals achieve their full 
                potential through development and provision of skills 
                and capacities that promote productive individuals; or
                    (B) a development project that revitalizes physical 
                infrastructure in a severely distressed urban 
                neighborhood, in combination with activities described 
                in subparagraph (A).
            (3) Applications.--
                    (A) In general.--Not later than 60 days after the 
                date of enactment of this Act, to be eligible to 
                receive a grant under this section, an eligible entity 
                shall submit to the Secretary an application that 
                describes funding needs of the eligible entity, 
                including a description of any funding needed to 
                complete ongoing projects, development plans, and 
                sustainable services for residents in severely 
                distressed urban neighborhoods and how that funding 
                will achieve urban community revitalization results 
                with such people and in neighborhoods.
                    (B) Requirement.--An application under subparagraph 
                (A) shall--
                            (i) describe the total cost of the 
                        activities (including non-Federal 
                        contributions) to be carried out with a grant 
                        under this section;
                            (ii) describe the amount of non-Federal 
                        funds that will be contributed to carry out the 
                        activities described in clause (i);
                            (iii) describe the measurable results 
                        expected as a result of the activities 
                        described in clause (i); and
                            (iv) include a clear, itemized statement 
                        that demonstrates how the activities described 
                        in clause (i) will achieve the goals of--
                                    (I) restoring communities--
                                            (aa) by bettering people 
                                        through building core personal 
                                        attributes needed for 
                                        successful, functioning 
                                        communities and individuals, 
                                        including by improving skills, 
                                        character, and economic 
                                        productive capacity of 
                                        individuals; and
                                            (bb) by building 
                                        economically translatable 
                                        skills; and
                                    (II) improving severely distressed 
                                urban neighborhoods through 
                                comprehensive development projects that 
                                revitalize physical infrastructure in 
                                such neighborhoods.
            (4) Grant requirements.--
                    (A) Total cost of activities.--The total cost of 
                activities carried out with a grant under this section 
                (including non-Federal contributions) shall be--
                            (i) not less than $2,500,000; and
                            (ii) not more than $50,000,000.
                    (B) Non-federal share.--The non-Federal share of 
                the cost of activities carried out with a grant under 
                this section shall be not less than 5 percent.
    (d) Review Board.--
            (1) In general.--The Secretary shall establish a review 
        board to review and evaluate applications for grants under this 
        section.
            (2) Composition.--
                    (A) In general.--The review board shall be composed 
                of 9 members, of which--
                            (i) one shall be the Secretary (or a 
                        designee);
                            (ii) two shall be appointed by the 
                        President;
                            (iii) two shall be appointed by the Speaker 
                        of the House of Representatives;
                            (iv) one shall be appointed by the minority 
                        leader of the House of Representatives;
                            (v) two shall be appointed by the majority 
                        leader of the Senate; and
                            (vi) one shall be appointed by the minority 
                        leader of the Senate.
                    (B) Deadline for appointment.--Members of the 
                review board shall be appointed not later than the date 
                that is 30 days after the date of enactment of this 
                Act.
            (3) Duties.--
                    (A) In general.--The review board shall--
                            (i) review, evaluate, and rank applications 
                        for grants under this section; and
                            (ii) not later than 120 days after the date 
                        of enactment of this Act, submit to the 
                        Secretary the priority list under subparagraph 
                        (C)(ii) for consideration in the final 
                        selection of grant recipients by the Secretary.
                    (B) Evaluation.--
                            (i) In general.--The review board shall 
                        evaluate each application received under this 
                        section based on the following criteria:
                                    (I) The extent of existing poverty 
                                and crime issues in the severely 
                                distressed urban neighborhood.
                                    (II) The likelihood that activities 
                                proposed to be carried out with a grant 
                                under this section will achieve the 
                                goals described in subsection 
                                (c)(3)(B)(iv).
                                    (III) The support for the 
                                application, as demonstrated through 
                                meaningful, substantive roles of one or 
                                more Federal, State, or local 
                                government and one or more private, 
                                nongovernmental entity in carrying out 
                                the proposed activities.
                                    (IV) The proportion of non-Federal 
                                funds contributed to carry out the 
                                activities described in the 
                                application, including private, State, 
                                local, and other sources of funds, with 
                                a preference given to those 
                                applications that commit a larger non-
                                Federal share.
                                    (V) The demonstrated success of the 
                                eligible entity in providing services 
                                or projects in the severely distressed 
                                urban neighborhood.
                                    (VI) The management and 
                                administrative capacity of the eligible 
                                entity to carry out the activities.
                                    (VII) The accountability measures 
                                proposed in the application, such as 
                                metered release of Federal funds, 
                                audits, transparency measures, public 
                                disclosure, and third-party reviews to 
                                ensure funding is spent as budgeted and 
                                results are measured, reported, and 
                                shared.
                            (ii) Priority.--In evaluating applications 
                        under this section, the review board shall give 
                        priority--
                                    (I) to applications that reflect 
                                direct community neighborhood input; 
                                and
                                    (II) to applications from eligible 
                                entities that are based in the 
                                community served by the eligible 
                                entity.
                    (C) Rankings.--
                            (i) In general.--Based on the evaluations 
                        under subparagraph (B)--
                                    (I) the review board shall 
                                determine which applications meet the 
                                requirements of this section;
                                    (II) each member of the review 
                                board shall provide a score for each 
                                application described in subclause (I) 
                                on a scale of 0 to 100;
                                    (III) for each application that is 
                                scored, the scores of each member shall 
                                be averaged to create an average score 
                                for the application; and
                                    (IV) the applications shall be 
                                listed by average score in the 
                                applicable category on the priority 
                                list under clause (ii).
                            (ii) Priority list.--The review board shall 
                        develop a priority list that includes each 
                        application that receives a score under clause 
                        (i), in the following categories:
                                    (I) Applications with a total cost 
                                (including non-Federal contributions) 
                                of $10,000,000 or less, from the 
                                highest average score to the lowest 
                                average score of those applications.
                                    (II) Applications with a total cost 
                                (including non-Federal contributions) 
                                of more than $10,000,000, from the 
                                highest average score to the lowest 
                                average score of those applications.
            (4) Staff.--
                    (A) In general.--The review board may hire 
                temporary staff to support the review board in carrying 
                out the duties of the review board under paragraph (3).
                    (B) Funding.--The review board may use not more 
                than $1,000,000 of the amounts made available to carry 
                out this section for staff salaries and expenses under 
                subparagraph (A).
            (5) Termination.--
                    (A) In general.--Subject to subparagraph (B), the 
                review board shall terminate on the date on which the 
                Secretary has selected all grant recipients under this 
                section and section 3.
                    (B) Extension.--The Secretary may grant the review 
                board not more than 1 extension of not more than 180 
                days, if the Secretary determines an extension to be 
                necessary.
    (e) Selection and Distribution.--
            (1) Initial grants.--
                    (A) In general.--Not later than 60 days after the 
                date on which the review board submits the priority 
                list to the Secretary under subsection (d)(3)(A)(ii), 
                the Secretary shall select 12 applications to receive 
                grants under this section, after taking into 
                consideration the priority list.
                    (B) Regional selection.--The applications selected 
                under subparagraph (A) shall include 2 applications 
                from each region served by an Economic Development 
                Administration regional office.
                    (C) Distribution.--Of the amounts made available to 
                carry out this section--
                            (i) not less than $200,000,000 shall be 
                        used to provide grants for applications on the 
                        priority list under the category described in 
                        subsection (d)(3)(C)(ii)(I), with priority 
                        given to providing full funding to the 
                        applications that received the highest 
                        rankings; and
                            (ii) not less than $300,000,000 shall be 
                        used to provide grants for applications on the 
                        priority list under the category described in 
                        subsection (d)(3)(C)(ii)(II), with priority 
                        given to providing full funding to the 
                        applications that received the highest 
                        rankings.
            (2) Additional selections.--
                    (A) In general.--Not later than 60 days after the 
                date on which the review board submits the priority 
                list to the Secretary under subsection (d)(3)(A)(ii), 
                after providing 12 grants in accordance with paragraph 
                (1), the Secretary shall use any remaining amounts to 
                provide grants as described in subparagraph (B).
                    (B) Selections.--In making selections under 
                subparagraph (A), the Secretary shall--
                            (i) select to receive grant applications 
                        that were not selected to receive grants under 
                        paragraph (3);
                            (ii) give priority consideration to the 
                        highest ranked applications remaining in the 
                        category described in subsection 
                        (d)(3)(C)(ii)(I) or the category described in 
                        subsection (d)(3)(C)(ii)(II), as applicable; 
                        and
                            (iii) consider equitable regional 
                        distribution.
            (3) Multiple disbursements.--The Secretary may provide a 
        grant under this section in multiple disbursements, with 
        subsequent disbursements contingent on a report to the 
        Secretary by the eligible entity that demonstrates that the 
        previous disbursement was--
                    (A) expended consistent with this section and all 
                applicable Federal laws; and
                    (B) free of fraud, waste, and excessive spending, 
                as verified to the satisfaction of the Secretary.
    (f) Coordination.--In providing grants under this section, the 
Secretary may coordinate with the heads of other Federal agencies to 
ensure the best implementation of this section.
    (g) Reports.--
            (1) Reports by grant recipients.--
                    (A) Accounting.--Not later than 20 days after the 
                end of each quarter, beginning with the first full 
                quarter after grant funds are disbursed, until the 
                grant funds are expended, each eligible entity that 
                receives a grant under this section shall submit to the 
                Secretary a report that--
                            (i) details the expenditures made for each 
                        activity carried out with the grant funds; and
                            (ii) certifies that the expenditures were 
                        used to carry out the activities described in 
                        the application of the eligible entity.
                    (B) Final report.--Not later than 1 year after the 
                date on which the activities carried out with a grant 
                under this section have been completed, the eligible 
                entity shall submit to the Secretary a report that 
                describes--
                            (i) the results and effectiveness of the 
                        grant in carrying out those activities; and
                            (ii) improvements to communities, jobs 
                        created, and other factors that have 
                        contributed to community improvement in the 
                        severely distressed urban neighborhood as a 
                        result of those activities.
            (2) Reports by secretary.--Not later than 1 year after the 
        date on which the amounts made available under subsection (h) 
        have been disbursed for grants under this section, the 
        Secretary shall submit to the Committee on Commerce, Science, 
        and Transportation of the Senate and the Committee on Energy 
        and Commerce of the House of Representatives a report that 
        evaluates the program under this section, including an 
        evaluation of--
                    (A) the quality of the grant applications; and
                    (B) the outcomes and impacts of the projects and 
                activities carried out with a grant, including health 
                outcomes and the impact on determining characteristics 
                of severely distressed urban neighborhoods.
    (h) Funding.--
            (1) In general.--There is appropriated, out of amounts in 
        the Treasury not otherwise appropriated, to the Secretary to 
        carry out this section $600,000,000, to remain available until 
        expended.
            (2) Emergency designation.--
                    (A) In general.--The amounts provided by paragraph 
                (1) are designated as an emergency requirement pursuant 
                to section 4(g) of the Statutory Pay-As-You-Go Act of 
                2010 (2 U.S.C. 933(g)).
                    (B) Designation in senate.--In the Senate, this 
                section is designated as an emergency requirement 
                pursuant to section 4112(a) of H. Con. Res. 71 (115th 
                Congress), the concurrent resolution on the budget for 
                fiscal year 2018.

SEC. 3. BALTIMORE NEIGHBORHOOD ECONOMIC DEVELOPMENT AND OPPORTUNITY 
              INITIATIVE.

    (a) Definitions.--In this section:
            (1) City.--The term ``City'' means the City of Baltimore, 
        Maryland.
            (2) Eligible entity.--The term ``eligible entity'' means--
                    (A) an eligible entity (as defined in section 2(b)) 
                that is located in or serves the City;
                    (B) the City; or
                    (C) the State of Maryland.
            (3) Review board.--The term ``review board'' means the 
        review board established under section 2(d)(1).
            (4) Secretary.--The term ``Secretary'' means the Secretary 
        of Commerce.
            (5) Severely distressed urban neighborhood.--The term 
        ``severely distressed urban neighborhood'' has the meaning 
        given the term in section 2(b).
    (b) Establishment.--The Secretary may provide grants to eligible 
entities to carry out activities to achieve urban community 
revitalization in severely distressed urban neighborhoods in the City.
    (c) Eligible Activities.--An eligible entity may use a grant under 
this section to carry out--
            (1) a social or economic program that improves skills, 
        character, or productive capacity of individuals that reside in 
        a severely distressed urban neighborhood in the City; or
            (2) a development project that revitalizes physical 
        infrastructure in a severely distressed urban neighborhood in 
        the City, in combination with activities described in paragraph 
        (1).
    (d) Applications.--Not later than 60 days after the date of 
enactment of this Act, to be eligible to receive a grant under this 
section, an eligible entity shall submit to the Secretary an 
application that describes funding needs of the eligible entity, 
including a description of any funding needed to complete ongoing 
projects, development plans, and sustainable services for residents in 
severely distressed urban neighborhoods in the City and how that 
funding will achieve urban community revitalization results with such 
people and in such neighborhoods.
    (e) Grant Requirements.--
            (1) Total cost of activities.--The total cost of activities 
        carried out with a grant under this section (including non-
        Federal contributions) shall be--
                    (A) not less than $2,500,000; and
                    (B) not more than $50,000,000.
            (2) Non-federal share.--The non-Federal share of the cost 
        of activities carried out with a grant under this section shall 
        be not less than 5 percent.
    (f) Ranking by Review Board.--The review board shall--
            (1) review, evaluate, and rank the applications received 
        under this section in accordance with the procedures and 
        requirements described in section 2(d)(3), except that the 
        review board shall only develop 1 priority list for 
        applications under this section; and
            (2) not later than 120 days after the date of enactment of 
        this Act, submit to the Secretary the priority list for the 
        applications received under this section for consideration by 
        the Secretary in selecting grant recipients under this section.
    (g) Selection.--
            (1) In general.--Not later than 60 days after the date on 
        which the review board submits the priority list to the 
        Secretary under subsection (f)(2), the Secretary shall select 
        eligible entities to receive grants under this section.
            (2) Priority; consideration.--In providing grants under 
        this section, the Secretary shall--
                    (A) give priority to providing full funding to the 
                applications that received the highest rankings from 
                the review board;
                    (B) consider equitable regional distribution of 
                grants in all areas of the City; and
                    (C) give priority--
                            (i) to applications that reflect direct 
                        community neighborhood input; and
                            (ii) to applications from eligible entities 
                        that are based in the community served by the 
                        eligible entity.
    (h) Coordination.--In providing grants under this section, the 
Secretary may coordinate with the heads of other Federal agencies and 
the Mayor of the City (or a designee) to ensure the best implementation 
of this section.
    (i) Reports.--
            (1) Accounting.--Not later than 20 days after the end of 
        each quarter, beginning with the first full quarter after the 
        grant funds are disbursed, until the grant funds are expended, 
        each eligible entity that receives a grant under this section 
        shall submit to the Secretary a report that--
                    (A) details the expenditures made for each activity 
                carried out with the grant funds; and
                    (B) certifies that the expenditures were used to 
                carry out the activities described in the application 
                of the eligible entity.
            (2) Final report.--Not later than 1 year after the date on 
        which the activities carried out with a grant under this 
        section have been completed, the eligible entity shall submit 
        to the Secretary a short report that describes--
                    (A) the results and effectiveness of the grant in 
                carrying out those activities; and
                    (B) improvements to communities, jobs created, and 
                other factors that have contributed to community 
                improvement in the severely distressed urban 
                neighborhood in the City as a result of those 
                activities.
    (j) Funding.--
            (1) In general.--There is appropriated, out of amounts in 
        the Treasury not otherwise appropriated, to the Secretary to 
        carry out this section $200,000,000, to remain available until 
        expended.
            (2) Emergency designation.--
                    (A) In general.--The amounts provided by paragraph 
                (1) are designated as an emergency requirement pursuant 
                to section 4(g) of the Statutory Pay-As-You-Go Act of 
                2010 (2 U.S.C. 933(g)).
                    (B) Designation in senate.--In the Senate, this 
                section is designated as an emergency requirement 
                pursuant to section 4112(a) of H. Con. Res. 71 (115th 
                Congress), the concurrent resolution on the budget for 
                fiscal year 2018.
                                 <all>