Brownfield Redevelopment and Economic Development Innovative Financing Act of 2014 - Directs the Secretary of Housing and Urban Development (HUD) to establish the Brownfield Redevelopment and Economic Development Innovative Financing Program, under which the Secretary may guarantee the repayment of loans made by lenders to local governments, local redevelopment agencies, or Base Realignment and Closure Commission (BRAC) redevelopment projects to carry out projects for redeveloping brownfields and promoting urban renewal.
Requires such an entity, in order to receive such a loan guarantee, to submit: (1) a master plan that describes the proposed brownfield redevelopment project, demonstrates that such project will result in major redevelopment, provides evidence of investment commitments from non-federal entities, and includes a remediation action plan approved by the Environmental Protection Agency (EPA); and (2) a certification from EPA that the brownfield to be redeveloped requires environmental remediation. Prohibits an entity from: (1) receiving a loan guarantee if it was responsible for contaminating the brownfield to be redeveloped, or (2) having more than one outstanding loan that is guaranteed under the Program.
Sets forth requirements regarding an eligible loan's principal amount, interest rate, duration, and repayment terms. Directs the Secretary to establish criteria for selecting entities to receive loan guarantees.
[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4173 Introduced in House (IH)]
113th CONGRESS
2d Session
H. R. 4173
To establish the Brownfield Redevelopment and Economic Development
Innovative Financing program to promote urban renewal, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 6, 2014
Ms. Hahn (for herself and Mr. Gibson) introduced the following bill;
which was referred to the Committee on Financial Services
_______________________________________________________________________
A BILL
To establish the Brownfield Redevelopment and Economic Development
Innovative Financing program to promote urban renewal, 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 ``Brownfield Redevelopment and
Economic Development Innovative Financing Act of 2014''.
SEC. 2. BROWNFIELD REDEVELOPMENT AND ECONOMIC DEVELOPMENT INNOVATIVE
FINANCING PROGRAM.
(a) Establishment and Purpose.--The Secretary of Housing and Urban
Development, in consultation with the Secretary of the Treasury, shall
establish a program, to be known as the Brownfield Redevelopment and
Economic Development Innovative Financing program, under which the
Secretary may guarantee, and make commitments to guarantee, the
repayment of principal and interest on loans made by lenders to local
governments, local redevelopment agencies, or BRAC redevelopment
projects for the purposes of carrying out projects for redeveloping
brownfields and promoting urban renewal.
(b) Eligibility Requirements.--
(1) Application.--A local government, local redevelopment
agency, or BRAC redevelopment project shall be eligible to
receive a loan guarantee under the Program only if such
government, agency, or project submits to the Secretary (at
such time and in such form as the Secretary may require)--
(A) a master plan that meets the requirements under
subsection (c);
(B) a certification from the Environmental
Protection Agency, or an entity designated by the
Environmental Protection Agency, that the brownfield to
be redeveloped under the master plan requires
environmental remediation; and
(C) any other information as the Secretary may
require.
(2) Loan eligibility.--A loan may be guaranteed under the
Program only if the loan meets the following requirements:
(A) Use.--Such loan shall be used for costs of
carrying out a project to redevelop brownfields and
promote urban renewal, which may include--
(i) acquisition of a brownfield site;
(ii) remediation of a brownfield site;
(iii) relocation of existing facilities in
operation on the redevelopment site; or
(iv) site preparation, including the
installation of utilities, sewers, storm
drains, and transportation facilities.
(B) Contamination.--A local government, local
redevelopment agency, or BRAC redevelopment project may
not receive a loan guarantee under the Program if the
applying agency was responsible for contaminating a
brownfield to be redeveloped using such loan.
(C) Number of loans.--A local government, local
redevelopment agency, or BRAC redevelopment project may
not at any time have more than one outstanding loan
that is guaranteed under the Program.
(D) Amount of principal.--The original principal
amount of such loan shall not--
(i) be less than $25,000,000; and
(ii) exceed the lesser of--
(I) the total cost of the
redevelopment project for which the
loan is to be used; or
(II) $150,000,000.
(E) Interest rate.--Such loan shall bear interest
at a rate negotiated between the lender and the
borrower, subject to any limitations that the Secretary
may establish.
(F) Duration.--The term to maturity of such loan
shall not be shorter than 20 years nor longer than 30
years.
(G) Repayment.--Such loan--
(i) shall not require any repayment of
principal or interest within 10 years after the
date that the lender makes the loan to the
borrower; and
(ii) shall require that repayment shall
begin not later than 15 years after the date
that such loan is made.
(c) Master Plan.--A master plan under this subsection shall
describe the proposed brownfield redevelopment project for which the
loan guarantee is to be made, and shall include--
(1) a description of the project to be funded by the loan,
including a schedule of activities to be undertaken and a
budget for such project;
(2) a demonstration that the brownfield redevelopment
project will result in major redevelopment, based on economic
development and environmental quality and restoration, in the
community in which such project is located, which shall include
information regarding--
(A) the extent of non-Federal funds committed to
the project;
(B) the number of long-term jobs created by the
project;
(C) the environmental remediation of brownfield
sites due to the project;
(D) a description of the environmental and economic
impact of the project on the community;
(E) the amount of affordable housing created by the
project;
(F) the reduction of vehicle congestion and
emissions expected to result from the project;
(G) the extent of integration of green technology
into developments and buildings created by the project;
(H) the extent of improvement in air quality
expected to result from the project; and
(I) the extent to which complete streets planning
and transit-oriented development is incorporated into
the project;
(3) evidence of the commitments of investment from non-
Federal entities, established through zoning or other
documentation; and
(4) a remediation action plan that has been approved by the
Environmental Protection Agency, or its designee.
(d) Selection Criteria.--The Secretary shall establish criteria for
selecting local governments, local redevelopment agencies, and BRAC
redevelopment projects to receive loan guarantees under the Program.
Such criteria shall take into consideration the information required
under subsection (c)(2). Such criteria shall provide that existing BRAC
redevelopment projects having existing Federal grants, loans, or other
assistance or commitments for Federal grants, loans, or other
assistance, shall be given additional favorable consideration toward
such selection.
(e) Full Faith and Credit.--The full faith and credit of the United
States is pledged to the payment of all guarantees made under this
section. Any such guarantee made by the Secretary shall be conclusive
evidence of the eligibility of the obligations for such guarantee with
respect to principal and interest, and the validity of any such
guarantee so made shall be incontestable in the hands of a holder of
the guaranteed obligations.
(f) Protection Against Liability for Environmental Remediation.--
The Federal Government shall not be liable under the Comprehensive
Environmental Response, Compensation, and Liability Act of 1980 (42
U.S.C. 9601 et seq.) or any other Federal, State, or local law as a
result of a loan guarantee made under this section.
(g) Processing; Repayment and Collateral; Congressional
Oversight.--
(1) Processing.--The Secretary shall consider, process, and
approve all requests for loan guarantees under this section
using an approval process that is substantially identical to
the approval process used for loan guarantees provided under
section 108 of the Housing and Community Development Act of
1974 (42 U.S.C. 5308).
(2) Repayment schedule and collateralization.--To be
eligible for a loan guarantee under this section, an applicant
shall demonstrate a viable repayment schedule and shall provide
sufficient collateral to ensure repayment of loans so
guaranteed, which may be in the form of a pledge of grants for
which the applicant may become eligible under title I of the
Housing and Community Development Act of 1974 (42 U.S.C. 5301
et seq.), except that the Secretary may not require a pledge of
such grants as collateral and shall provide for applicants to
provide collateral in other forms, at the option of the
applicant.
(3) Congressional oversight.--Before final approval of any
loan guarantee under this section, the Secretary shall notify
the Committees on Financial Services and Appropriations of the
House of Representatives and Committees on Banking, Housing,
and Urban Affairs and Appropriations of the Senate of such
approval.
(h) Definitions.--For purposes of this section the following
definitions shall apply:
(1) BRAC redevelopment project.--The term ``BRAC
redevelopment project'' means a project to redevelop a site
that has been designated as a Base Realignment and Closure Site
by the Secretary of Defense, through the Defense Base Closure
and Realignment Commission, and is listed on the website of the
Department of Defense as such a site.
(2) Brownfield.--The term ``brownfield'' has the meaning
given such term in section 101(39) of the Comprehensive
Environmental Response, Compensation, and Liability Act of 1980
(42 U.S.C. 9601(39).
(3) Local redevelopment agency.--The term ``local
redevelopment agency'' means any agency, office, or division of
a State government whose purpose includes improving blighted,
deteriorated, or otherwise economically depressed areas.
(4) Remediation action plan.--The term ``remediation action
plan'' means, with respect to a brownfield redevelopment
project, a document that describes how the project site will be
remediated, what technology will be used to accomplish such
remediation, and when the remediation actions will take place.
(5) Program.--The term ``Program'' means the Brownfield
Redevelopment and Economic Development Innovative Financing
program established under this section.
(6) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
(i) Regulations.--Not later than 6 months after the date of
enactment of this section, the Secretary shall issue regulations as may
be necessary to carry out the Program.
(j) Authorization of Appropriations.--There is authorized to be
appropriated to the Secretary $100,000,000 for fiscal year 2015 for
costs (as such term is defined in section 502 of the Federal Credit
Reform Act of 1990 (2 U.S.C. 661a)) of loans guaranteed under this
section, which amounts shall remain available through fiscal year 2019.
<all>
Introduced in House
Introduced in House
Sponsor introductory remarks on measure. (CR E330)
Referred to the House Committee on Financial Services.
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