Directs the Secretary to: (1) conduct an assessment of such organizations' capability needs; and (2) establish the Advisory Council on Community Economic Development.
Directs the President to include with each annual budget request a report regarding Federal financial support for community economic development.
[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1480 Introduced in House (IH)]
108th CONGRESS
1st Session
H. R. 1480
To increase the expertise and capacity of community-based organizations
involved in economic development activities and key community
development programs.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 27, 2003
Mrs. Jones of Ohio (for herself, Mr. Tiberi, Ms. Lee, Mr. Blumenauer,
Mr. Andrews, Mr. Fattah, Ms. Carson of Indiana, Mr. Clyburn, Mr. Bass,
Ms. Corrine Brown of Florida, Mr. Hinojosa, Mr. Lampson, Mr. Meeks of
New York, Mr. Dingell, Mr. Davis of Alabama, Ms. Kaptur, Mr. Kildee,
Mr. Rush, and Mr. Wynn) introduced the following bill; which was
referred to the Committee on Financial Services
_______________________________________________________________________
A BILL
To increase the expertise and capacity of community-based organizations
involved in economic development activities and key community
development programs.
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 ``Community Economic Development
Expertise Enhancement Act of 2003''.
SEC. 2. FINDINGS AND PURPOSES.
(a) Congressional Findings.--The Congress finds that--
(1) there are a multitude of community economic development
programs that the Federal Government successfully administers
that help many of the Nation's most economically distressed
areas revitalize their physical and economic structures and
provide support to small and medium-sized businesses to help
them grow and generate long-term jobs and economic opportunity;
(2) there are many nonprofit, nongovernmental, community-
based economic development organizations, including faith-based
organizations, that have successfully operated community
economic development programs that create jobs, build homes,
and revitalize local markets;
(3) existing Federal community economic development
programs are intended to leverage private sector investment as
part of an overall community development effort;
(4) existing Federal community economic development
programs connect residents of distressed neighborhoods to jobs
and opportunities of the regional marketplace, thereby
replacing economic distress with opportunity;
(5) existing Federal community economic development
programs provide financial assistance, including tax credits
and loan guarantees, involve private investment institutions
and universities, and provide technical expertise for small
businesses;
(6) existing Federal community economic development
programs build upon ongoing efforts to encourage economic
growth in distressed communities, helping to create new
affordable housing opportunities, allowing communities to
address important public safety, access to capital,
infrastructure, and environmental concerns, and providing
social services including affordable health care,
transportation, child care, and youth development;
(7) the continuing success of Federal community economic
development programs will depend in great measure upon the
ability of community-based organizations and private sector
institutions to form partnerships that connect residents of
distressed neighborhoods to jobs and other opportunities;
(8) the Federal Government administers various programs
that employ the services and capabilities of community-based
organizations to deliver a wide range of services to residents
of distressed communities;
(9) Federal community economic development programs help
achieve lasting improvement and enhance domestic prosperity by
the establishment of stable and diversified local economies,
sustainable development, and improved local conditions;
(10) there is a need for greater cooperation between the
Federal Government, States, and other entities to ensure that,
consistent with national community economic development
objectives, Federal programs are compatible with, and further
the objectives of, State, regional, and local economic
development plans and comprehensive economic development
strategies;
(11) while economic development is an inherently local
process, the Federal Government should work in closer
partnership with community-based economic development
organizations to ensure that existing resources are fully
utilized and all Americans have an opportunity to participate
in the economic growth of the United States; and
(12) extending technical assistance to community-based
economic development organizations may be necessary or
desirable to--
(A) alleviate economic distress;
(B) encourage and support public-private
partnerships for the formation and improvement of
economic development strategies that promote the growth
of the national economy;
(C) stimulate modernization and technological
advances in the generation and commercialization of
goods and services; and
(D) enhance the effectiveness of United States
companies in the global economy.
(b) Purposes.--The purposes of this Act are--
(1) to provide a new source of Federal funding to enhance
the capabilities of nonprofit, nongovernmental, community-based
economic development organizations, or collaborations of such
organizations, to leverage private sector investment as part of
an overall community development strategy;
(2) to establish educational programs for nonprofit,
nongovernmental, community-based organizations to expand their
project development capabilities;
(3) to increase the use of tax incentives to leverage
private sector investment in community economic development
projects;
(4) to promote and facilitate investments in community-
based economic development projects from traditional and
nontraditional capital sources;
(5) to encourage partnerships between community-based
organizations that will expand and enhance the expertise of
emerging such nonprofit, nongovernmental organizations in
utilizing private sector investment as part of their
comprehensive community development strategies; and
(6) to ensure that viable community economic development
projects are successfully pursued throughout the United States
in communities having a wide range of economic, geographic, and
social characteristics.
SEC. 3. GRANTS TO INCREASE CAPACITY AND EXPERTISE OF NONPROFIT,
NONGOVERNMENTAL COMMUNITY-BASED ORGANIZATIONS INVOLVED IN
COMMUNITY ECONOMIC DEVELOPMENT ACTIVITIES.
(a) Grant Authority.--The Secretary of Housing and Urban
Development may make grants under this section only to eligible
community-based economic development organizations only for the
purposes under subsection (c).
(b) Eligible Community-Based Economic Development Organizations.--
For purposes of this section, the term ``eligible community-based
economic development organization'' means a community-based economic
development organization (as such term is defined under section 7), or
a collaboration of such organizations (such as city or state community
economic development associations), that demonstrates management
capacity by meeting, as determined by the Secretary, two or more of the
following requirements:
(1) Affordable housing.--Having completed construction of
10 or more dwelling units of affordable housing.
(2) Facilities.--Having completed construction of a
commercial, industrial, retail, or community facility project.
(3) Partnering.--Partnering, or having a history of
partnering, with community-based economic development
organizations to provide training, education, capacity,
technical assistance, or other mentoring services.
(4) Support of emerging organizations.--Exhibiting
willingness to form operational partnerships and execute
contractual agreements with emerging community-based economic
development organizations.
(5) Ownership of assets.--Having ownership of tangible
assets the value of which are equal to or exceed the value of
the grant requested under this section.
(c) Use of Funds.--
(1) Purposes.--Amounts from grants under this section may
be used only for the following purposes:
(A) Salaries and administrative expenses.--For
salaries or administrative expenses of the grantee or
an emerging community-based economic development
organization that is undertaking a community economic
development project.
(B) Technical assistance.--To provide technical
assistance to an emerging community-based economic
development organization that is undertaking a
community economic development project.
(C) Training and research.--Through subgrants
pursuant to paragraph (2), for training, research, and
technical assistance relating to community economic
development, including subgrants for program evaluation
and economic impact analyses.
(2) Expenditure.--Amounts from grants under this section
may be used directly by the eligible community-based economic
development organization receiving the grant or redistributed
by such recipient to other nonprofit, nongovernmental entities
in grants, loans, loan guarantees, payments to reduce interest
on loan guarantees, or other appropriate assistance, except
that a recipient may not provide any such assistance from grant
amounts to a private, for-profit entity.
(d) Selection Criteria.--The Secretary shall issue rules,
guidelines, and procedures to provide for the selection of eligible
community-based economic development organizations for grants under
this section, based upon a determination of the relative effectiveness
of such organizations in carrying out the purposes of this Act. Such
rules, guidelines, and procedures shall provide for consideration of
the following factors:
(1) The number of such organizations eligible to receive
assistance under existing programs other than this section.
(2) The extent to which grant amounts provided under this
section will enhance the capabilities of community-based
economic development organizations in underserved States and
localities.
(3) The extent to which an eligible community-based
economic development organization applying for a grant does not
have access to other traditional local financial sources.
(4) The extent to which such an organization represents
nonprofit, nongovernmental organizations that serve low-income
communities and persons.
(5) The extent to which such an organization will implement
a plan to become financially sustainable.
(e) Amount.--A grant under this section to a single grantee shall
be in an amount that is not less than $250,000 and does not exceed
$1,000,000.
(f) Prohibition of Matching Funds Requirement.--The Secretary may
not require a grantee under this section to provide amounts from
sources other than this section to fund the specific activities to be
carried out with grant amounts under this section.
(g) Eligibility for Community Reinvestment Act Credits.--In
assessing and taking into account, under section 804(a) of the
Community Reinvestment Act of 1977, the record of any regulated
financial institution, the appropriate Federal financial supervisory
agency (as defined in section 803(1) of such Act) may consider as a
factor investments in community economic development projects of
eligible community-based economic development organizations in
determining whether the institution is meeting the credit needs of its
community for purposes of such section 804(a).
(h) Authorization of Appropriations.--
(1) In general.--There are authorized to be appropriated
for grants under this section $75,000,000 for each of fiscal
years 2004, 2005, and 2006.
(2) Set-aside for technical assistance and training.--Of
the amount made available under this Act for each fiscal year,
$10,000,000 shall be available only for technical assistance
and training activities, to be conducted by national community
development organizations, state community development
associations, or city community development associations, which
have extensive nationwide partnerships and experience in
working with community-based economic development
organizations, as authorized by section 4 of the HUD
Demonstration Act of 1993 (42 U.S.C. 9816 note), as in effect
immediately before May 1, 2000. Of the amount reserved for use
under this paragraph, not less than $4,000,000 shall be used
for the support of development organizations in rural areas.
SEC. 4. ASSESSMENT OF COMMUNITY-BASED ECONOMIC DEVELOPMENT EXPERTISE.
(a) Capability Study.--The Secretary shall conduct a study to
assess the capability needs of community-based economic development
organizations, which shall--
(1) analyze, evaluate, and recommend processes to improve
the administrative and operational capabilities of such
organizations to acceptable levels of success in support of the
role of the Federal Government in community economic
development; and
(2) assess the extent to which federal agencies can
incorporate such organizations into the formulation of the
strategic plans of funding agencies and, if the extent or
quality of this type of involvement is satisfactory, can
support the role of the federal government in community
economic development.
The Secretary shall submit a report regarding the results of the study
under this subsection not later than the expiration of the 6-month
period beginning on the date of the enactment of this Act.
(b) Annual Reports to Congress.--Not later than the first March 1
occurring after the end of each fiscal year for which amounts are made
available for grants under section 3, the Secretary shall submit a
report to the Congress, which shall include--
(1) an evaluation of the progress made during such fiscal
year to enhance the administrative and operational capabilities
of community-based economic development organizations in
support of the role of the Federal Government in community
economic development;
(2) an assessment of the extent to which Federal agencies
have, during such fiscal year, involved community-based
economic development organizations in responsibilities for
carrying out community economic development programs
administered by the agencies and delivering services under such
programs that enhance the operational capabilities of the
organizations; and
(3) a plan for making recommendations for actions or
measures to further involve community-based economic
development organizations in the strategic operations of
Federal agencies in support of community economic development.
(c) Final Evaluation.--The Secretary shall select an independent
entity that has experience with national community economic development
activities, nonprofit community-based developers, and impact evaluation
and analysis to conduct an evaluation of the impact of the grant
program under section 3. The evaluation shall be conducted upon the
termination of the program. Not later than 6 months after the
conclusion of the last fiscal year for which amounts are made available
for grants under section 3, the entity conducting the evaluation shall
submit to the Secretary and the Congress a final report regarding the
evaluation.
SEC. 5. ADVISORY COUNCIL.
(a) Establishment and Duties.--The Secretary shall establish an
advisory council to be known as the Secretary's Advisory Council on
Community Economic Development (in this section referred to as the
``Advisory Council''). The Advisory Council shall make recommendations
to the Secretary on carrying out this Act, including recommendations on
developing plans under section 4(b)(3) and reviewing and making
recommendations on such plans that have been developed.
(b) Membership.--The Advisory Council shall consist of not less
than 19 members, appointed by the Secretary, as follows:
(1) Ex officio members.--The following members, who shall
serve as nonvoting members:
(A) The Secretary of Housing and Urban Development,
or the designee of such Secretary.
(B) The Secretary of Health and Human Services, or
the designee of such Secretary.
(C) The Assistant Secretary for Economic
Development of the Department of Commerce, or the
designee of the Assistant Secretary.
(D) The Administrator of the Community Development
Financial Institutions Fund, or the designee of the
Administrator.
(E) The Under Secretary of Agriculture for Rural
Development, or the designee of the Under Secretary.
(2) Other members.--No fewer than 14 members, who are not
officers or employees of the Federal Government, who shall
serve as voting members:
(A) No fewer than 2 individuals who conduct
research on community economic development activities.
(B) No fewer than 2 individuals who are experts in
community economic development financing.
(C) No fewer than 3 individuals who are publicly
elected officials.
(D) No fewer than 7 individuals who are
representatives of community-based economic development
organizations that carry out community economic
development activities.
(c) Travel Expenses.--Members of the Advisory Council shall not
receive any pay by reason of their service on the Advisory Council, but
shall receive travel expenses, including per diem in lieu of
subsistence, in accordance with sections 5702 and 5703 of title 5,
United States Code.
SEC. 6. COORDINATION WITH PRESIDENT'S ANNUAL BUDGET REQUEST.
The President of the United States shall include, together with
each annual budget of the United States Government required to be
submitted under section 1105(a) of title 31, United States Code, a
report regarding Federal financial support for community economic
development that includes--
(1) a detailed summary of the total level of funding
committed to community-based economic development organizations
throughout all Federal agencies;
(2) a statement of projected funding levels for the grant
program under section 3 of this Act for the upcoming fiscal
year and each fiscal year thereafter until 2010, and projected
funding levels for financial assistance for economic
development activities for each Federal agency that provides
such assistance;
(3) an identification and analysis of the method (including
grant agreements, procurement contracts, and cooperative
agreements (as such terms are used in chapter 63 of title 31,
United States Code) by which such financial assistance is
provided for each such economic development activity; and
(4) Recommendations for specific activities and measures to
enhance community-based economic development capacity building
in states having less concentrated economic and infrastructure
resources and to strengthen nationwide community-based economic
development.
SEC. 7. DEFINITIONS.
For purposes of this Act, the following definitions shall apply:
(1) Community-based economic development organization.--
(A) In general.--For purposes of this section, the
term ``community-based economic development
organization'' means a nonprofit, nongovernmental
organization that--
(i) has as its primary mission to serve, or
provide investment capital for, low-income
communities and low-income persons; and
(ii)(I) maintains accountability to
residents of low-income communities through
their representation on any governing board of
the organization or on any advisory board to
the organization; or
(II) maintains accountability to low-income
communities by having a board primarily
consisting of leaders of community-based
development organizations from its region or
State on its governing board.
(B) Nondiscrimination against faith-based
organizations.--Such term shall include any faith-based
organization that complies with the requirements under
clauses (i) and (ii) of subparagraph (A).
(C) Treatment of community development financial
institutions.--The requirements of subparagraph (A)
shall be treated as met by any community development
financial institution (as such term is defined in
section 103 of the Community Development Banking and
Financial Institutions Act of 1994 (12 U.S.C. 4702).
(2) Community economic development project.--The term
``community economic development project'' means a project that
involves--
(A) investment in business enterprises, including
investments in the form of loan origination, equity
investment, and monetary assistance to home buyers or
to business owners for business development projects;
or
(B) the construction or rehabilitation of
facilities, including commercial or industrial
facilities, homes, apartment buildings, and community
parks.
(3) Low-income communities and persons.--The terms ``low-
income communities'' and ``low-income persons'' shall have the
meanings given such terms in section 45D of the Internal
Revenue Code of 1986 (26 U.S.C. 45D).
(4) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Financial Services.
Referred to the Subcommittee on Housing and Community Opportunity.
Llama 3.2 · runs locally in your browser
Ask anything about this bill. The AI reads the full text to answer.
Enter to send · Shift+Enter for new line