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.
Amends the Internal Revenue Code to provide a limited housing infrastructure business credit for qualified housing infrastructure property placed in service. Defines such property as property located in an empowerment zone, enterprise community, or renewal community, when substantially all of the use of which is to provide water, sewer, electricity, or natural gas service to residents.
Doubles, and extends through 2009 (currently 2005), for employment beginning after the enactment of this Act, the: (1) work opportunity credit; (2) welfare-to-work credit; (3) empowerment zone employment credit; and (4) renewal community employment. Increases, through 2009, the Indian employment credit. Increases and extends, through 2009, deductions for expensing the cost of certain depreciable business assets, commercial revitalization, and environmental remediation. Extends, through 2009, the special deduction for property used on Indian reservations.
[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2683 Introduced in House (IH)]
109th CONGRESS
1st Session
H. R. 2683
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
May 26, 2005
Mrs. Jones of Ohio (for herself, Mr. Tiberi, Mr. Grijalva, Mr.
Blumenauer, Mr. McIntyre, Ms. Eddie Bernice Johnson of Texas, Mr.
Owens, Mr. Kildee, Ms. Carson, Ms. Schakowsky, and Mr. Brown of Ohio)
introduced the following bill; which was referred to the Committee on
Financial Services, and in addition to the Committee on Ways and Means,
for a period to be subsequently determined by the Speaker, in each case
for consideration of such provisions as fall within the jurisdiction of
the committee concerned
_______________________________________________________________________
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 2005''.
TITLE I--EXPERTISE ENHANCEMENT
SEC. 101. 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 title 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 in low
income, renewal communities, enterprise communities, and
empowerment zones 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. 102. 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 title. 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 2006, 2007, and 2008.
(2) Set-aside for technical assistance and training.--Of
the amount made available under this title 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. 103. 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. 104. 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 title, 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. 105. 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 102 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. 106. DEFINITIONS.
For purposes of this title, 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.
TITLE II--TAX INCENTIVES FOR DEVELOPMENT PROJECTS IN RENEWAL,
EMPOWERMENT, AND ENTERPRISE COMMUNITIES
SEC. 201. HOUSING INFRASTRUCTURE CREDIT.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 (relating to business-related
credits) is amended by adding at the end the following new section:
``SEC. 45J. HOUSING INFRASTRUCTURE.
``(a) Allowance of Credit.--For purposes of section 38, the housing
infrastructure credit determined under this section for the taxable
year is an amount equal to 50 percent of the aggregate bases of
qualified housing infrastructure property placed in service by the
taxpayer during the taxable year.
``(b) Qualified Housing Infrastructure Property.--For purposes of
this subpart--
``(1) In general.--The term `qualified housing
infrastructure property' means any housing infrastructure
property--
``(A) which is property to which section 168
applies,
``(B) which is placed in service after the date of
the enactment of this section, and
``(C)(i) the construction, reconstruction, or
erection of which is completed by the taxpayer, or
``(ii) which is acquired by the taxpayer if the
original use of such property commences with the
taxpayer.
``(2) Housing infrastructure property.--For purposes of
this subsection, the term `housing infrastructure property'
means property--
``(A) which is located in an empowerment zone,
enterprise community, or renewal community, and
``(B) substantially all of the use of which is to
provide water, sewer, electricity, or natural gas
services to residences located in such a zone or
community.
Such term shall not include property which uses such services
after the point of residential metering.
``(c) Certain Rules not to Apply.--
``(1) Recapture not to apply to dispositions to
government.--Section 50(a) shall not apply to a disposition to
a governmental unit.
``(2) Use by government permitted.--Section 50(b)(4) shall
not apply.''.
(b) Credit to Be Part of General Business Credit.--Subsection (a)
of section 38 of such Code is amended by striking ``plus'' at the end
of paragraph (18), by striking the period at the end of paragraph (19)
and inserting ``, plus'', and by adding at the end the following new
paragraph:
``(20) the housing infrastructure credit determined under
section 45J(a).''.
(c) Clerical Amendment.--The table of sections for subpart D of
part IV of subchapter A of chapter 1 of such Code is amended by adding
at the end the following new item:
``Sec. 45J. Housing infrastructure.''.
(d) Effective Date.--The amendments made by this section shall
apply to periods after the date of the enactment of this Act under
rules similar to the rules of section 48(m) of the Internal Revenue
Code of 1986 (as in effect on the day before the the date of the
enactment of the Revenue Reconciliation Act of 1990).
SEC. 202. INCREASE AND EXTENSION OF BENEFITS FOR EMPLOYMENT AND CERTAIN
INVESTMENTS.
(a) Credits for Employment.--
(1) Work opportunity credit.--
(A) Credit doubled.--Subsection (b) of section 51
of the Internal Revenue Code of 1986 is amended by
adding at the end the following new paragraph:
``(4) Temporary doubling of credit.--In the case of
individuals beginning work for the employer after the date of
the enactment of the Community Economic Development Expertise
Enhancement Act of 2005 and before January 1, 2010, this
section shall be applied by doubling each of the dollar amounts
in paragraph (3) and subsections (d)(7)(B)(ii) and (h)(1). ''.
(B) Extension.--Subparagraph (B) of section
51(c)(4) of such Code is amended by striking ``December
31 2005'' and inserting ``December 31, 2009''.
(2) Welfare-to-work credit.--
(A) Temporary doubling of credit.--Section 51A of
such Code is amended by redesignating subsection (f) as
subsection (g) and by inserting after subsection (e)
the following new subsection:
``(f) Temporary Doubling of Credit.--In the case of individuals
beginning work for the employer after the date of the enactment of the
Community Economic Development Expertise Enhancement Act of 2005 and
before January 1, 2010, this section shall be applied by doubling each
of the dollar amounts in paragraphs (4) and (5)(C) of subsection (b).
''.
(B) Extension.--Subsection (f) of section 51A of
such Code is amended by striking ``December 31 2005''
and inserting ``December 31, 2009''.
(3) Temporary doubling of empowerment zone employment
credit.--Subsection (c) of section 1396 of such Code is amended
by adding at the end the following new paragraph:
``(4) Temporary doubling of credit.--In the case of
individuals beginning work for the employer after the date of
the enactment of the Community Economic Development Expertise
Enhancement Act of 2005 and before January 1, 2010, this
section shall be applied by doubling the dollar amounts in
paragraphs (2) and (3)(B).''.
(4) Temporary doubling of renewal community employment
credit.--Subsection (b) of section 1400H of such Code is
amended by adding at the end the following new flush sentence:
``In the case of individuals beginning work for the employer after the
date of the enactment of the Community Economic Development Expertise
Enhancement Act of 2005 and before January 1, 2010, paragraph (2) shall
be applied by substituting `$20,000' for `$10,000'. ''.
(5) Indian employment credit.--
(A) Temporary increase in credit.--
(i) In general.--Paragraph (3) of section
45A(b) of such Code is amended by inserting
before the period ``($25,000 in the case of
individuals beginning work for the employer
after the date of the enactment of the
Community Economic Development Expertise
Enhancement Act of 2005 and before January 1,
2010)''.
(ii) Conforming amendment.--Paragraph (2)
of section 45A(c) of such Code is amended by
adding at the end the following new sentence:
``In the case of individuals beginning work for
the employer after the date of the enactment of
the Community Economic Development Expertise
Enhancement Act of 2005 and before January 1,
2010, the limitation under the preceding
sentence shall not be less than the limitation
in effect under subsection (b)(3).''.
(B) Extension.--Subsection (f) of section 45A of
such Code is amended by striking ``December 31 2005''
and inserting ``December 31, 2009''.
(b) Deductions for Expensing the Cost of Property.--
(1) Increase in section 179 deduction.--
(A) Dollar limitation.--Paragraph (1) of section
179(b) of such Code is amended by striking the
parenthetical and inserting ``($125,000 in the case of
taxable years beginning after the date of the enactment
of the Community Economic Development Expertise
Enhancement Act of 2005 and before January 1, 2010)''.
(B) Reduction in limitation.--Paragraph (2) of
section 179(b) of such Code is amended by striking the
parenthetical and inserting ``($500,000 in the case of
taxable years beginning after the date of the enactment
of the Community Economic Development Expertise
Enhancement Act of 2005 and before January 1, 2010)''.
(2) Increase in deduction for commercial revitalization.--
(A) Dollar limitation per building.--Paragraph (1)
of section 1400I(c) of such Code is amended by
inserting before the comma ``($12,500,000 in the case
of buildings placed in service after the date of the
enactment of the Community Economic Development
Expertise Enhancement Act of 2005 and before January 1,
2010)''.
(B) Dollar limitation per renewal community.--
Subparagraph (A) of section 1400I(d)(2) of such Code is
amended by striking ``$12,000,000'' and inserting
``$12,000,000 ($15,000,000 in the case of calendar
years ending after the date of the enactment of the
Community Economic Development Expertise Enhancement
Act of 2005 and before 2010)''.
(3) Extension of special deduction for environmental
remediation.--Subsection (h) of section 198 of such Code is
amended by striking ``December 31 2005'' and inserting
``December 31, 2009''.
(4) Extension of special deduction for property used on
indian reservations.--Paragraph (8) of section 168(j) of such
Code is amended by striking ``December 31 2005'' and inserting
``December 31, 2009''.
<all>
Introduced in House
Introduced in House
Referred to the Committee on Financial Services, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Financial Services, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Financial Services, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Subcommittee on Housing and Community Opportunity.
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